Client Care, Engagement and Professional Conduct
Client care begins before the engagement letter is signed. Candidates must understand client due diligence (identity, beneficial ownership, source of funds), the terms of engagement (scope, fee basis, responsibilities, complaints procedure, termination), and the professional conduct duties of integrity, independence, and acting in the client's best interests. Know the difference between a retainer (authority to act) and a fee agreement, and understand when a client care letter is mandatory versus good practice.
Scope is the most litigated term. A clear engagement letter states what is included, what is excluded, who is the client (and who is not), and how fees will be calculated and billed. Complaints handling must be transparent, with escalation to the relevant regulator or ombudsman where applicable. Conflicts, confidentiality, and money handling are dealt with in later domains but are flagged here as engagement-stage checks.
Traps: treating an engagement letter as a formality rather than a risk-allocation tool; failing to identify the client when a third party pays; assuming a retainer can be unilaterally widened or narrowed without written confirmation; and missing the duty to confirm instructions in writing where risk is high.
Worked example: a company director asks the firm to advise both the company and himself personally on a transaction. The engagement letter must identify the client(s), flag the joint retainer, explain the implications if interests diverge, and record consent. Rule of thumb: if it is not in the engagement letter, it is a dispute waiting to happen.