Tough on the high street – 153 law firms enter last chance saloon after failing to gain cover

In further evidence of the intense pressure facing small practices, the Solicitors Regulation Authority (SRA) today (31 October) announced that 153 law firms are at threat of closure after having failed to secure professional indemnity insurance (PII) cover.

Under the new PII arrangements – introduced this year to replace the old assigned risks pool – these solicitor firms will now enter a 60-day ‘cessation period’ in which firms can only deal with existing instructions while they seek an insurer. Those failing to gain cover by 29 December will be required to close.

A ‘landmark’ baby step towards filming the courts welcomed by all

The long campaign for domestic courts to be opened up to filming today (30 October) secured an (actually pretty minor) victory with the Court of Appeal letting in television cameras. With the Court of Appeal (Recording and Broadcasting) Order 2013 coming into force, the ban on cameras in courts in England and Wales that has been in place since 1925 has been somewhat eased.

After years of lobbying by the BBC, ITN, Press Association and Sky News, who are funding the scheme, cameras have been placed in five courts in the Court of Appeal. ‘I salute those in our organisations who have worked tirelessly over many years to overturn the ban,’ said John Hardie, chief executive of ITN.

Davis Polk and Cleary act on big four Booz takeover as PwC re-shuffles legal leadership

Major accountancy and advisory groups are always nice clients for law firms to have so Davis Polk & Wardwell, Cleary Gottlieb Steen & Hamilton and Linklaters have some cause for cheer after having been instructed on one of the biggest deals in the professional services sphere for years.

The deal sees big four accountancy and advisory group PricewaterhouseCoopers (PwC) seal an acquisition of New York-based Booz & Company, one of the proudest names in strategic consulting.

Guest post: R (PressBoF) v Culture Secretary: the hearing

I was in court 68 at the Royal Courts of Justice yesterday morning (30 October) to hear the Press Standards Board of Finance’s (PressBoF) urgent application for interim relief – an injunction – to stop the government from getting the cross-party press regulation Royal Charter granted by the Queen in Privy Council this afternoon. The Privy Council was due to ‘meet’ at 5.30pm (these are very short meetings in which everyone stands, I’m told; the meeting would be a constitutional formality); the hearing began at 10.30am.

Right from the start, Lord Justice Richards made clear he thought the court could deal not only with the application for the injunction, but with the question whether permission for judicial review should be granted. That surprised me, and I suspect some others in court.

Consolidation update – Dentons and McKenna chiefs back tie-up with November partner vote to follow

Dentons looks set to secure another substantive merger after management of the firm and US suitor McKenna Long & Aldridge this week approved proposals for its mooted union, clearing the way for partners to vote on the tie-up in November.

With both having confirmed the merger discussions in late September, the impending union looks set to create a firm with more than 3,100 lawyers around the world and push revenues through £1bn.

UPDATED: BLP launches independent review of finance practice after team head departs

Berwin Leighton Paisner‘s (BLP’s) head of banking and finance Matthew Kellett is to leave the firm, it was confirmed today (30 October), with BLP launching an independent review of its finance practice.

A spokesperson for the firm said: ‘Matthew Kellett has decided to leave BLP to pursue his business and other interests. Matthew will stay in his role until a successor has been appointed. The finance team continues to retain significant clients and is involved an increasing amount of international and multi-practice work.

Guest post: Prerogatives, power and press regulation

I make no apology for returning to the question of the Royal Charter on Self-Regulation of the Press. This was discussed in my earlier post of 14 October, which concluded by noting: ‘Perhaps the Charter will somehow be challenged before the courts. Unless that happens, the existence of a prerogative power to regulate the press is likely to become accepted given that the Charter itself effectively claims a prerogative right to do so by using the words: “Now know ye that we by our prerogative royal …..will, ordain and declare ….” It might then be wondered what might be ordained and declared at some time in the unknown future when some further need for State Control over some activity is perceived.’

Deal Watch: Hogan Lovells and CC lead on AMC Networks’ $1bn buyout

Clifford Chance (CC) and Hogan Lovells have plugged into the renaissance in US television production after advising on a $1bn (€750m) buyout by US entertainment group AMC Networks of Chellomedia, the international content division of media company Liberty Global.

The acquisition announced on Monday (28 October) provides the entertainment group with 68 new television channels distributed to more than 390m households in 138 countries, and the opportunity to distribute its programming worldwide, including celebrated shows like Breaking Bad, Mad Men, and The Walking Dead.

Deutsche Bank profits dive amid €1.2bn legal provision as pressure builds on finance leaders

If anyone still doubts the mounting legal burdens now falling on the world’s largest finance houses Deutsche Bank has this week dispelled such thoughts after announcing a fresh €1.2bn provision to cover its legal costs.

The German banking giant today (29 October) reported a 98% fall in quarterly profits after setting aside additional funds to cover its liabilities, reflecting the mounting regulatory burden facing the financial institution. The bank’s group income before taxes dropped for the third quarter to €18m, against last year’s figure of €747m for the same period in 2012.

Entries and exits: ‘Tesco Law’ licences hit 200 mark but a few early movers stumble

Despite a handful of well-publicised problems at alternative business structures (ABS), there are no shortage of entrants looking to pursue the ‘Tesco Law’ model. Just how many was confirmed this week when it emerged that that Solicitors Regulation Authority (SRA) has now awarded more than 200 ABS licences.

The move is a startling figure coming less than two years since the regime to consider ABS applications went live. City media boutique Wiggin became ABS number 200, and will operate as an ABS from the start of next month, while corporate boutique firm Gunnercooke came in at number 201 and is to become effective as an ABS structure in mid-November.