You are a trainee solicitor with the law firm, Gilbert, Herring & Khan LLP, based in Manchester. Your mentor, Amina Khan, who is also one of the partners, has justhad a meeting with one of the firm'ssolicitors regarding somepotential irregularities that have been identified in client files and the use of the firm's client account. In the light of thefact that you have a more up-to-date understanding of the SRA's professional requirements, she asks you to provide her with a confidential report highlighting the following points with regard to Kimberley:

Any possible statutory and professional regulatory provision(s) applicable to the situation

The possible classification of Kimberley's actions under both statutory and regulatory provisions

The processes and procedures thatKimberleymay be subject to in relation to the classification of her actions

In addition, she asks you to highlight any potential actions by the firm, Gilbert, Herring & Khan LLP that Kimberley may point to as a reason for her behaviour. Amina emphasises the fact that this is to be kept strictly confidential and that you must only communicate with her on this matter.

Kimberley Stanton is a solicitorwho works in the firm's family law department. Her clients are mainly involved in divorce proceedings. Kimberley's associate, Lulu Tarn, has been offon long-term sick leave and the firm has not employed an interim replacement to assist Kimberley. As such, Kimberley has been finding it increasingly difficult to keep up with her client's instructions.

As the number of applications for divorce become too much to handle, Kimberley decided to stockpile the correspondence in a store room and, when the period of 8 months has passed, Kimberley issued letters to her clients telling them that their divorces have been finalised. In reality, the divorces have not been finalised and the clients remain legally married to their current partners.

Kimberley is currently experiencing personal financial problems since the breakdown of her relationship. She has not shared this with anyone at work because she's afraid that it will impact negatively her chances of promotion within the firm. In a moment of desperation, she transfers 50,000 of client money into her own personal bank account while administering her client's fictitious proceedings. A few weeks later, afraid that the transaction will be noticed, she transfers 24,000 from her own account back into the firm's client account attempting to reconcile the accounts.

The reason that these events have come to light is that one of Kimberley's clients who travelled overseas to be remarried discovered that she is, in fact, not divorced and still married. She made a complaint directly to the Solicitors Regulation Authority (SRA) who subsequently raised the matter with the managing partner of Gilbert, Herring & Khan LLP.

A subsequent investigation by the firm reveals the stockpiled client files and copies of the false letters sent to clients. To date, it is estimated that there are approximately twenty (20) clients involved. The accounting irregularities are also discovered during the investigation.

This meeting between Amina Khan and Kimberley Stanton is the first meeting. Amina is concerned about what has been discovered and wants you to prepare the memorandum for her highlighting the points mentioned above.