Switzerland – Between a rock and a hard place

Eu rock with Swiss flag in crevice

As the eurozone economy slows down after six years of uninterrupted growth, Switzerland is an anxious spectator. Amid increased concerns among the EU27 over the potential impact of a disorderly Brexit and the halt to quantitative easing from the European Central Bank’s asset-purchasing programme, Europe’s big three are bracing themselves while Switzerland sits in the middle, watching intently.

To the west, France endures its gilets jaunes; to the south, Italy faces a looming debt crisis with its banks. In the north, Germany has just avoided a technical recession and, like many of the other 18 eurozone countries, forecasters suggest that it will be fortunate to see 1% GDP growth this year. ‘What I see in Italy and France is scary, in particular the rise of populism,’ says Manuel Bianchi della Porta, managing partner of BianchiSchwald in Geneva. ‘A lot is going on in the eurozone: most Swiss trade depends upon Germany, France and Italy. But it seems that we are living on a small island unaffected by all the turmoil that is happening around us. It is like the political stability of our country is protecting us and the business community we are serving.’ Continue reading “Switzerland – Between a rock and a hard place”

Sponsored briefing: The end of Libor in Switzerland

Frédéric Bétrisey

The UK Financial Conduct Authority (FCA) announced on 27 July 2017 it would no longer require that banks that are members of the Libor panel be obliged to communicate a daily rate after 2021.

2021 is perhaps not tomorrow, but it is definitely very soon after tomorrow. Financial institutions should now review their Libor-based contracts and products to quantify their exposure to the discontinuation of such a rate. While the effort is obviously larger for financial institutions, other enterprises, and even retail investors and borrowers, should assess their risk and determine what measures to take. We provide below an overview of the contracts that may be affected and possible remedies. Continue reading “Sponsored briefing: The end of Libor in Switzerland”

The Last Word – Global London perspectives from inside the shark tank

Julian Stait

To mark the launch of our 2019 Global London report, we ask senior management at the leading US firms in London for a progress update

Brexitproof

‘Milbank does not just have stellar transactional practices: a very significant component of the London office are countercyclical businesses such as restructuring and litigation. They are among the strongest performers. At some point the economy may deteriorate, but we have positioned ourselves to thrive in good and bad conditions.’

Julian Stait, London co-managing partner, Milbank Continue reading “The Last Word – Global London perspectives from inside the shark tank”

Revolving Doors: King & Spalding continues lateral spree with double hire as Linklaters loses NY funds partners to Debevoise

The first week of April saw no fooling around in the lateral hires market. King & Spalding has continued its six-month long lateral hiring run, bolstering its projects and disputes practices in London with a double hire of project development and financing partner Nikhil Markanday and arbitration and public international law partner Giorgio Mandelli.

Last year the firm made three lateral partner hires in London, including corporate and M&A partner Derek Meilman from Hogan Lovells, and White & Case real estate partner David Cox. Markanday joins the firm’s corporate, finance and investments practice from Ashurst while Mandelli joins the trial and global disputes practice from boutique Volterra Fietta in London. Continue reading “Revolving Doors: King & Spalding continues lateral spree with double hire as Linklaters loses NY funds partners to Debevoise”

A&O ups the ante on female partner promotions as Skadden ends City investment drought

Allen & Overy

Allen & Overy has promoted 14 London partners amid a scaled up 34-strong global round while Skadden, Arps, Slate, Meagher & Flom has promoted its first City partner in three years.

The Magic Circle firm made heavier investment in new partners than last year and also significantly improved the promotion of women, minting eight females – equal to 24% of the newest partners – of which two are part-time. Last year, A&O made up only two women in its 20-strong round, having the same month vowed to redouble its diversity efforts. Continue reading “A&O ups the ante on female partner promotions as Skadden ends City investment drought”

Practice Area Spotlight: Dispute resolution – Strategic case management with legal acumen

Prager Dreifuss

State court litigation and private arbitration proceedings require practitioners to combine legal thoroughness and the management of evidence with strategic ingenuity. Understanding court processes, legal practice and tactical procedural advantages all add up to sound advice in contentious legal matters.

Dispute resolution in all its appearances enjoys a longstanding tradition at Prager Dreifuss. Our attorneys represent parties before local state courts as well as administrative authorities. Debt collection and bankruptcy matters are strong areas of our practice, in particular in disputes involving foreign parties. International arbitration has attained special significance in our firm, and a number of our attorneys are regularly appointed as arbitrators in institutional and ad hoc arbitration tribunals. Continue reading “Practice Area Spotlight: Dispute resolution – Strategic case management with legal acumen”

Sponsored briefing: ‘Fantastic boutique CM Murray dominates the market in the partnership space’

CM Murray

CM Murray is a leading specialist partnership and employment law firm based in London. The firm is ranked by the legal directories as Tier 1 for both of its practice areas, and enjoys a market-leading reputation for advising professional and financial services firms on sensitive and complex cross-border partnership and employment law issues.

The breadth and depth of the firm’s partnership practice encompasses the 360-degree life cycle of partnership businesses, offering both contentious and non-contentious partnership law advice. The firm’s non-contentious law firm expertise includes establishing law firm LLPs/partnerships and alternative business structures, drafting and reviewing LLP/partnership agreements, advising on partnership and governance structures, partner remuneration and contribution, LLP conversions and internal restructuring, international network structures (including Swiss Verein structures), and associations and law firm M&A. Continue reading “Sponsored briefing: ‘Fantastic boutique CM Murray dominates the market in the partnership space’”

Sponsored briefing: Regulatory challenges in the year ahead

Kingsley Napley

Ten years ago, very few large law firms needed external legal advice on dealing with their regulator. This was because the Solicitors Regulation Authority (SRA) would normally only take action against an individual within a firm rather than the firm itself. Since then, the SRA has increasingly used its powers to regulate entities and shown a much greater interest in how law firms are run. With that has come the era of big fines for firms that have breached the SRA’s Handbook.

While all large law firms will have experts in-house that deal with regulatory and risk issues, they are unlikely to have had extensive experience of the SRA’s investigation and enforcement procedures. In addition, external advisers can act as a sounding board on difficult issues, such as if, how and when to report a matter to the SRA. Continue reading “Sponsored briefing: Regulatory challenges in the year ahead”

Sponsored briefing: The rise of the law firm IPO

Cantor Fitzgerald

An oft-cited phrase from partners of law firms is that ‘the partners are the guardians of the firm for the next generation of lawyers’.

However, cultural changes and behavioural traits, particularly those of Generation Y and Millennials, has – and is – leading certain professional services firms to consider the appropriateness of their existing corporate and organisational structures, as well as their working environment and culture. Continue reading “Sponsored briefing: The rise of the law firm IPO”

Sponsored briefing: Reputation management – who to call in a crisis

Byfield Consultancy

Gus Sellitto of Byfield Consultancy discusses the trends he is seeing in legal PR and the role of external advisers

When someone’s in trouble, they call their lawyer, but who do lawyers call in a crisis? With over 20 years’ experience in the legal PR industry, Gus Sellitto is well known for both defending and promoting the reputations of UK and global law firms and their clients. We spoke to Sellitto to find out more… Continue reading “Sponsored briefing: Reputation management – who to call in a crisis”

Sponsored briefing: The lawyer’s lawyer

Clyde & Co

The risks and exposures facing law firms have dramatically changed over the last decade. The legal industry now faces a significantly more complex risk landscape and one that will continue to evolve as technology transforms the way firms operate.The risks and exposures facing law firms have dramatically changed over the last decade. The legal industry now faces a significantly more complex risk landscape and one that will continue to evolve as technology transforms the way firms operate.

That is certainly the view of Sarah Clover, partner in Clyde & Co’s specialist lawyers’ liability practice. She believes that while the risk landscape is already more complex than ten years ago, new products and services will shape and test the boundaries of liability, and law firm’s regulatory and ethical obligations.

Clover says: ‘Working alongside our clients to identify the current and future threats facing their organisations, it is apparent that law firms continue to face pressure from consolidation, globalisation, increased regulation and ethical dilemmas, but in the near future this list will continue to grow rapidly.

‘As law firms find ways to operate using technology, automation, data analytics and artificial intelligence, to name a few, their exposures will become increasingly more complex.’

Clyde & Co’s specialist lawyers’ liability practice has defended the interests of law firms for over 40 years. The team has in it a large number of solicitors whose practices are dedicated to lawyers’ liability and regulatory work. Firms will be familiar with the work of partners such as Richard Harrison, Andrew Blair, Fergal Cathie, Neil Jamieson, James Preece, Tony Nurse-Marsh, Clive Brett, Tom White and Helen Rowlands. The current team’s roots stem from lawyers’ professional liability, their predecessors having drafted the first solicitors’ professional liability policy in 1928 and devised the first professional liability insurance scheme for solicitors in the mid-1970s.

It has acted in a series of landmark cases that have developed professional liability law. A very few of the notable highlights include:

  • The Football League v Edge Ellison [2006] EWHC 1462 (Ch), led by Clover, which looked at the boundary between legal and commercial advice.
  • Paragon Finance plc v Freshfields [1999] EWCA Civ 955, led by former Barlow Lyde & Gilbert senior partner Richard Dedman, which concerned the extent of the implied waiver of privilege by a client suing his solicitor.
  • More recently, Solicitors Regulation Authority v Leigh Day & ors [2018] EWHC 2726, led by Fergal Cathie, was the most high-profile and longest-running disciplinary prosecution ever brought by the Solicitors Regulation Authority.

Although the team has acted for over 40 of the top 50 law firms over many years, they will not descend into specifics, client confidentiality and discretion being of paramount importance to them.

Current risk landscape

According to Clover, some of the key threats currently facing law firms include:

Globalised civil exposures: The threat of civil claims is nothing new, but law firms are increasingly facing claims of greater severity and complexity. As firms operate in a more globalised marketplace, a growing number of liability claims traverse jurisdictional boundaries. Law firms must also grapple with a changing litigation environment, not least the growing prevalence of litigation funders who view professional liability claims as an attractive hunting ground.

Regulatory exposures: These represent perhaps the biggest shift in the last decade. The threat of regulatory investigation and enforcement is now as high as that in respect of civil claims. Indeed, civil and regulatory claims can feed off one another, with firms often facing parallel proceedings, which throw up a myriad of issues. Firms must now also navigate ever-more burdensome regulatory self-reporting obligations and an increasingly politicised atmosphere. In recent years this has led individuals at large firms to be brought before parliamentary committees in the full glare of the media spotlight and often without the procedural safeguards that a more formal regulatory process would entail.

Criminal exposures: Broadening criminal liability regimes, particularly in the tax sphere, have the potential to snag law firms. In line with other professional advisers, there is also concern about getting embroiled in criminal investigations brought against a law firm’s clients.

Data issues: Data breach issues are a core risk for all organisations and law firms are no exception. Firms must ensure they have the systems and controls in place to manage the risks posed by the introduction of the GDPR regime as well as the changing modus operandi of increasingly sophisticated cyber criminals. As recent history has shown, a significant data breach has the potential to destroy a firm.

In line with the increasingly global nature of exposures, Clyde & Co’s specialist lawyers’ liability team now boasts the largest global professional liability practice, and regularly acts in international and cross-border claims for global law firms.

Clover explains the reason for having an extensive global team: ‘Litigating overseas presents a number of challenges for organisations, including law firms. In addition to the practical difficulties of securing local representation and managing the translation process, firms must navigate cultural differences, local court systems, procedural requirements and the selection of local experts. Having boots on the ground is essential to consistent delivery of the highest quality service to our clients.’

Recognising that law firms face a broad range of exposures and challenges, Clyde & Co has developed a reputation as ‘the professional’s professional’, handling, in addition to civil claims, disciplinary and regulatory issues, a long list of other advisory work for professional services firms, including employment, bribery and sanctions, partnership and other corporate structures, as well as  commercial and intellectual property advice. It has also built up a leading practice advising on the structuring of insurance and reinsurance arrangements for global professional service networks.

‘Our close-knit team works in tandem to draw on each other’s expertise and ensure our clients are equipped to face the evolving risk landscape that continues to threaten the operations of the world’s leading law firms,’ concludes Clover.

Sarah Clover has been a partner at Clyde & Co since 1992. She has specialised in lawyers’ professional liability for 30 years and advised on a wide range of professional liability claims against lawyers, including claims involving corporate finance, tax, pensions, commercial and residential property, litigation and commercial contract. She also advises clients on regulatory and disciplinary issues, risk management and policy coverage. Sarah has a wealth of experience in mediation and other forms of alternative dispute resolution.

For more information, please contact:Sarah Clover

Sarah Clover, partner, Clyde & Co

T: 020 7876 6386
E: [email protected]

www.clydeco.com

Sponsored briefing: Challenges in leading law firms – the Cambridge approach

Cambridge Judge Business School Executive Education

Leading a law firm has always been demanding, but the extent and pace of change engulfing the global legal industry today is undoubtedly taking the challenge to a new level. As a result, leaders of firms are understandably seeking additional guidance and insight as they navigate a complex strategic landscape clouded by unprecedented levels of uncertainty, ambiguity and disruption. The key drivers of these dynamics – which include exponential advances in technology, significant changes in client expectations and buying patterns, and the increasing volume and competitive impact of new entrants and new models – are well documented. The big questions we are now exploring with law firm leaders and partners centre on what this new paradigm means for the traditional law firm business model, strategic decision making, differentiation, organisational structure and agility, the development of talent and the leadership skills needed to deliver fundamental change.

Continue reading “Sponsored briefing: Challenges in leading law firms – the Cambridge approach”

The risk report – Reputations tarnished as #MeToo fallout hits the legal profession

Last year’s risk management and professional indemnity report with broker Marsh told a story of progress; firms felt risk culture had significantly improved in the ten years since Lehman Brothers’ collapse. However, risk remains a moving target and there is a feeling recent unpleasant episodes at a number of City law firms means much-touted improvements in culture have yet to include progress in professional ethics.

‘I’m a great believer in the risk team playing a key part in defining a firm’s culture,’ says Walkers’ chief compliance officer Angela Robertson. ‘Fundamentally, risk teams enforce types of appropriate behaviour, whether dealing with clients or third parties. So it being involved in defining culture is no different really. Currently risk teams don’t have a specific remit to do so though.’ Continue reading “The risk report – Reputations tarnished as #MeToo fallout hits the legal profession”

EY makes further inroads into the legal sector after acquiring Thomson Reuters’ LPO arm

Less than a year after it acquired Riverview Law, EY has maintained its acquisitive form by agreeing to buy the managed legal services business of Thomson Reuters.

The acquisition of the business, named Pangea3, will see EY bolster its corporate legal department by more than 1,000 legal professionals across eight service delivery lines. Pangea3 aims to mitigate legal risk, reduce cost and provide efficiency to legal teams. Continue reading “EY makes further inroads into the legal sector after acquiring Thomson Reuters’ LPO arm”

‘The glue’: Ince Gordon Dadds secures legacy international branches to network

Four months after its headline merger, Ince Gordon Dadds has secured £23m of business by formally incorporating five international legacy Ince & Co offices to its network.

Effective earlier this week (1 April), former Ince network firms in Hong Kong, Singapore, Dubai, Greece and Germany have all become more closely aligned with the newly-merged business. Continue reading “‘The glue’: Ince Gordon Dadds secures legacy international branches to network”

Freshfields mints eight partners in the City in renewed 22-strong global promotion round

Freshfields Bruckhaus Deringer

Freshfields Bruckhaus Deringer has promoted 22 lawyers to partner, including eight in London, amid a stronger promotion round for the Magic Circle firm.

This is a significant increase on last year when the firm made up just 12 lawyers globally and a mere five in the City. It is also an increase on 2017 when the firm promoted 18 lawyers globally and six in London. Continue reading “Freshfields mints eight partners in the City in renewed 22-strong global promotion round”

Introduction: Alex Speirs

Our latest collaboration with Clifford Chance, Their Voices: Insights from Today’s Rising Lawyers, chronicles the journeys and stories of a selection of the next generation of lawyers, written and compiled by the team at GC magazine.

The collection of stories reveals that the stereotypical, well-trodden pathway to law is far from the sole entry point to the profession. In the past, anything but a complete commitment to the law – and nothing but the law – may have been considered a detriment, whereas now diversity of experience, both personal and professional, is characterizing the next generation of entrants. Those featured in the pages that follow embody this change, hailing from a range of backgrounds with law a second career for many – some in tangentially related industries, others hailing from a past which couldn’t be further from the law – but all bringing with them an insight as unique as it is valuable.

The interviews that underpin this publication also reveal a profession in the midst of change, as the realities of working at a law firm in the 21st century ring true for all the right reasons. The impact of technology is creating opportunities for new ways of working, increased flexibility and the chance to fundamentally reimagine how lawyers should – and do – operate. With this newest cohort of entrants hailing from a generation of digital natives, it shouldn’t come as a surprise that many of those featured are showing leadership and helping drive this change, but the willingness of senior partners and management to respond by empowering some of their newest members in such a positive fashion illustrates the changing dynamics apparent in a modern law firm.

Helping to facilitate that change at Clifford Chance, particularly for new entrants to the firm, has been Erin Zucker, the firm’s dedicated assignment manager, who has been instrumental in transforming the experience of first-year law clerks and associates. Instead of specializing at the commencement of their professional career or operating under the rigidity of the typical six-month rotation, most new entrants now enter a pool for a two-and-a-half-year period, during which time they are exposed to assignments across the firm’s transactional practices. That very exposure – to a broad selection of practices and practitioners – offers the opportunity to glean an insight into what their own future could hold, while developing well-rounded lawyers with a more holistic understanding of the profession.

When considered in the context of a world (and business environment) that is increasingly globalized, one with less defined boundaries and practice areas that no longer operate in silos, bringing together the aforementioned threads – diverse pathways, modern working practices and holistic approaches to training – no longer seems like nice-to-haves, but rather professional imperatives.

The stories that follow paint a picture of progression and much-needed modernization for the next generation of lawyers. And while change can be a scary word, based on my interactions with those who generously gave their time as part of this undertaking, I can confidently say that if this is what the future leaders of the legal profession look like, we’re in good hands.

Alex Speirs, Editor-in-Chief, GC magazine

Foreword: Erin Zucker

Lawyers choose a legal career for many different reasons. Some have it in their DNA and come from a family of attorneys. For others, the idea may arise during high school or college, or maybe after spending some time in another kind of job or doing community service. When the idea strikes, some are not certain and need time to explore; others are driven straight to law school. But they all have one thing in common: something sparked their interest.

My job is to help empower our lawyers. They arrive here on their first day having already navigated their way through law school, the recruitment process and a summer program. It’s an impressive beginning, and I find great joy in doing my part to help them shape the future of their careers – digging into the work and finding the right space to practice in.

Since the firm decided in 2015 to embrace a pool concept for our first years in the transactional practice, I have been tasked with implementing that process. Shortly thereafter, I began coordinating staffing within the litigation practice in collaboration with our partners and counsel. This approach offers significant benefits. For one, it keeps everyone consistently busy and allows lawyers to immerse themselves in a variety of work, where and when our clients need it. It also provides exposure to our international network of offices in a very fluid way – that’s a great fit with our culture as a global firm.

A big part of my job is getting to know people: what kind of work interests them, their professional styles and goals – their voices. What I’ve learned is that this generation of junior lawyers is shifting the prevailing wisdom about success in the law.

I’m also here to encourage people to step outside their comfort zone by exposing them to different types of work. I know that I am having a positive impact on someone’s career when they say, “I’m so glad I tried something new.”

What you will read in these pages is just a sampling of the stories that our junior lawyers could tell. From my perspective, the takeaway is this: whether they practice law for their entire careers or move on to something completely unexpected, they are on a path to forging their own success in an evolving field. That’s why their perspective is so valuable. n

Erin Zucker, Americas regional professional development manager, Clifford Chance

A level playing field: How the Transactional Pool works

Upon joining Clifford Chance, most first-year law clerks and associates enter the pool for a two-and-a-half-year period, during which time they are given exposure to assignments across the firm’s transactional practices. The enhanced system preserves the best aspects of prior approaches – exposure to many different kinds of work and to partners and associates practicing in different areas – without the rigidity of six-month rotations. Ms Zucker’s role as a dedicated assignment manager was integral to the firm’s objectives in designing the pool system.

Give it your all: Andrés Berry

Photo credit: Thomas Donley, New York

I’ve always been interested in the field of government. I worked in politics before going to law school, including on Michael Bloomberg’s 2009 campaign for Mayor of New York and later at the NYC Housing Authority as a strategist and liaison with elected officials. It was interesting work, but after four years, I started thinking about Big Law.

I was craving the intensity of a campaign, but also wanted a more stable environment where I wouldn’t have to worry about finding a job if the campaign was unsuccessful. My experience in politics also gave me a good understanding of what it’s like to work long hours and under pressure, so I already knew that it was an environment I thrived in.

As a lawyer, most of your training is done on the job, and you have to jump right in. I’ve found it helpful to be thrown into the fire a bit – of course, in a safe environment – because you often don’t know that you’re ready for more difficult work until you take on those challenges. I also value the opportunities I’ve had to work with attorneys who are at the top of their field because it’s given me the chance to learn how they work through complex issues and, over time, to make some of those strategies my own.

“Everyone works hard here, and I really like that.”

Everyone works hard here, and I really like that. As a junior lawyer, you don’t always have control over when you work, but once you’ve shown that you can get the job done, the “how” and the “where” become less important – and you’re given the space you need to balance other priorities.

Now, if I need to work from home because my child is sick, I can do that, and we are provided the technical tools to help us carry out our work seamlessly. Finding that flexibility and respect for other priorities, particularly in a profession that is outwardly seen as rigid, was very welcome and allowed me to envision working in this industry long term.

Now that I’ve been here a while, I can see that part of the game is about trusting yourself and relaxing a bit – not about your work or being driven in your career, but more in managing emotions. To be honest, if someone had given me that advice when I was in law school, I probably wouldn’t have followed it. But I’ve learned that if you go the extra mile and do everything you possibly can on a project – every time – then there’s no reason to worry. Just give it your all and have no regrets.