Risk managementFrom the horse's mouth?Be careful when accepting instructions from a third party.

Although these instructions may be totally innocent, the fact they have been received from a third party may indicate more sinister motives.

Solicitors must always be alive to potential fraud, and receipt of instructions from a third party can be an indicator of fraudulent activity.

The Guide to the Professional Conduct of Solicitors, 1999, eighth edition, is clear on how a solicitor should proceed in such a situation:'Where instructions are received from a third party, a solicitor should obtain written instructions from the client that he or she wishes the solicitor to act.

In cases of doubt the solicitor should see the client or take other appropriate steps to confirm instructions.' (para 12.05 p.246)The third party may be a complete stranger to the 'client'.

But it is more likely that there is some form of relationship - family, spouse, or business associate.

Typical scenarios where a solicitor could receive third party instructions include:l A member of the family purports to give instructions for a will on behalf of an elderly relative.

The solicitor must take care to ensure that the instructions received are actually what the client wants.l In a conveyancing transaction where the husband purports to represent his wife's interests in connection with the sale of the matrimonial home and disposal of the proceeds.

Never treat husband and wife as one client.

They are not.

They are both individuals with separate interests that need to be considered.

Remember this irrespective of how well you may think you know the clients.l Partnerships: accepting instructions from one partner on behalf of the partnership.

Are the instructions received the instructions of all the partners, or just the partner who is instructing you? l Corporate clients: Is the individual giving you instructions on behalf of the company authorised to do so? Be careful of making assumptions in the case of repeat instructions.

Check if there is a resolution in place authorising the course of action proposed.Remember in the case of third party instructions:l If they are given on behalf of an elderly client, or if there is any suggestion of fraud or dishonesty, see the client;l In other cases, take steps to confirm instructions;l You must represent and protect the interests of your client, not the third party, and;l Make sure all staff are aware of the dangers of third party instructions.

No matter how well you may know the third party and the client, whether through business or even socially, you still need to address the points above.

Only in this way can you be sure that you are meeting your professional obligations in conduct.

And only in this way can your firm be sure that it is systematically monitoring its instructions to help reduce the risk of claims.l This column was prepared by the St.

Paul risk management team