Smith appealed against the decision and last year a disciplinary tribunal upheld two of the three findings of professional misconduct.
Smith then raised an action in the Court of Session, where his lawyers argued that he had not become personally involved in his clients’ business affairs.
They said he was acting as their advocate, not as a participant in the business, and that there was no clearly identified conflict of interest.
In June, Lord Colbeck quashed the decision of the tribunal at the Court of Session.
He concluded that the decision could not stand because the disciplinary bodies had failed to give adequate reasons for rejecting an earlier finding that Smith had been acting as counsel rather than becoming personally involved in his clients’ business affairs.
Following that ruling, the appeal was considered afresh by the disciplinary tribunal.
In an update posted on its website, the Faculty of Advocates said the tribunal had now set aside the earlier decision of the complaints committee and dismissed the compliant in its entirety.
The full written decision will be published later.
BBC News
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