Despite the perceived threats brought about by regulatory changes and law firm collapses in 2010, our survey shows that the real risks are more prosaic.
City Limits – Risk Management Survey Part 3
With risk management teams struggling to cope with cost and time pressures, the move to outcomes-focused regulation is stretching resources to their limits, despite the best intentions of the SRA.
Continue reading “City Limits – Risk Management Survey Part 3”
Moving the Goalposts – Risk Management Survey Part 4
Discussion over scrapping the single professional indemnity insurance renewal date and consigning the assigned risks pool to history has reignited. LB reassesses the state of play
In our report last year, it seemed that the debate over whether to move away from a single renewal date for law firms’ professional indemnity insurance (PII) had been settled. Insurers, brokers and risk advisers, such as Marsh, felt that it hadn’t been thought through properly. Risk managers at the top-150 law firms surveyed couldn’t see the benefits of staggering renewal dates. Even the Solicitors Regulation Authority (SRA) itself, after taking advice from various corners of the industry, declared the likelihood of scrapping the single renewal date for solicitors’ PII as ‘improbable’.
Continue reading “Moving the Goalposts – Risk Management Survey Part 4”
Turkey – Bridging the Gap
As its economy booms Turkey has attracted the attention of the world’s legal market. Will Clifford Chance and DLA Piper’s arrival mark a new chapter for the country’s local firm?
Clifford Chance’s move into Istanbul didn’t exactly take the market by surprise. The announcement that the Magic Circle firm is to open an outpost in the Turkish city followed its 2009 hire of Mete Yegin from local heavyweight Pekin & Pekin. Required by local Bar rules to ally with a local firm, CC will now officially launch in conjunction with Yegin’s firm, Yegin Legal Consultancy.
Kop Kings – Liverpool FC
From the fields of Anfield Road to the offices on Bunhill Row, the takeover of Liverpool Football Club was played out in the full glare of the courts and the press. Legal Business talks to the key legal players
When John William Henry II descended the curving flight of stairs into the cool, inconspicuous client reception at Slaughter and May’s offices on Bunhill Row on the afternoon of 15 October 2010, he was met by an unusual sight. As the threshold of a law firm that has long prided itself on its understated manner, it’s usually exceptionally quiet. But that afternoon there was little evidence of calm: pandemonium had taken hold.
Deals are back, but with a whimper, not a bang – Corporate round up
The corporate world may have recovered from its 2009 nadir but M&A, capital markets and private equity remained fragile in 2010. For many firms, the emerging markets remain the only bright spot
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In the Spotlight – SJ Berwin
After very public merger talks with Proskauer Rose and a contentious managing partner election, SJ Berwin has been left to lick its wounds. The firm needs to act fast to determine its immediate future
Litigation round table
Trends in international commercial litigation were to the fore in the second Legal Business round table in conjunction with McCann FitzGerald. From the globalisation of disputes to rising levels of disclosure and tougher regulators there was plenty on the agenda
There has arguably never been a better time to be a litigator. Although the much-anticipated tsunami of litigation has not hit the market, there has been a discernible rise in disputes, which more often than not require a litigator to keep them out of the courts.
Worlds colliding
The Alternative Investment Fund Managers Directive, dreaded by the offshore world, has now been agreed. LB finds out why the offshore world’s law firms are still smiling
After laboured negotiations and more than 30 drafts, the Alternative Investment Fund Managers (AIFM) Directive was finally approved by the EU parliament in November 2010. As the terms were thrashed out in the preceding 18 months, the funds industry held its breath, stifling funds activity both on and offshore. The offshore world is now resting a little easier.
Going solo
Equity partners from a number of big Austrian firms have decided to go it alone, setting up boutiques over the past 12 months. Legal Business explores the impact these moves are having on the market.
In the final days of last summer in downtown Vienna, a small law firm opened its doors for the first time. Nothing unusual there, except that this firm, Benn-Ibler Rechtsanwälte, was opened by five well-respected former DLA Piper Weiss-Tessbach partners who quit in January 2010. When the partners left their old firm, they walked out with a fifth of the firm’s revenue and 40% of its equity partners.
Eine kleine Nachtmusik
With litigation from the banking crisis now starting to filter through in Austria, most commentators believe that disputes work will be a firm feature of the legal market for the next few years. LB explores some of the biggest trends to emerge from the banking crisis
There have been a few late nights at many of Austria’s top law firms in the past year. At the end of 2009, the government was dealing with the emergency nationalisation of the country’s sixth largest lender, Hypo Group Alpe Adria (HGAA), and Austria’s top lawyers had been called in to help clear up the mess.
Under review
Over the past decade panels have defined the relationship between law firms and the major banks. But as the nature of those relationships shifts, panels are becoming even more important
Mark Harding insists there’s been a shift of power. ‘Previously, with a lot of work, the boot was always on the law firm foot,’ Barclays’ general counsel asserts. ‘Now the boot is on the other foot.’ Coming from one of the most senior GCs in the City, head of a 900-strong in-house team with a legal spend of £100m, it’s something to take note of. Continue reading “Under review”
Two’s company
After getting Beachcroft fit for the modern age, senior partner Simon Hodson and managing partner Paul Murray will run the firm for five more years. Time for a progress report
Beachcroft senior partner Simon Hodson (see left) often has his tongue firmly in his cheek when commenting on the industry, but this time he’s deadly serious. ‘These pissing contests over how many hundreds of thousands people get paid are obscene and, frankly, not good for the profession.’ You might expect this from a buyer of legal services, but not from the senior partner of the 23rd largest firm by revenue in the UK. To his left, managing partner Paul Murray (see right) nods in agreement. Continue reading “Two’s company”
In the soup
Historically, the largest law firms have had a patchy relationship with the profession’s regulators. Can the Solicitors Regulation Authority build bridges?
Martin Baker, head of risk and compliance at Taylor Wessing, is sitting in a boardroom in front of a mountain of documents. He has only just read through the first few pages of the Solicitors Regulation Authority’s (SRA) second consultation paper on its proposed new code of conduct. With a worried look on his face, he mentions that, in order to bring his firm’s current risk and compliance handbook up to date, he may as well start implementing the changes now before they come into force next October. Continue reading “In the soup”
Italy 2.0
The Italian legal market has modernised over the past decade as local firms have reacted to greater client demands and the influx of foreign practices. Now there’s greater pressure on fees and billing arrangements
Over the past decade the Italian legal market has gradually been modernising, entering its own 2.0 era. Firms have taken a more business-focused approach to how they run their firms. Italian lawyers who traditionally prided themselves on their ability to advise on a wide range of areas have become more specialised. Continue reading “Italy 2.0”
System failure
The Advocates General of the European Court of Justice have argued that more work needs to be done before a single European patents court replaces national jurisdiction in the EU. More than 20 years after it was mooted, a unified patent litigation system is still being debated.
If you thought patent lawyers were mild-mannered boffins, think again. You could almost hear the collective wailing and gnashing of teeth throughout the EU this summer when a leaked opinion appeared to shatter any hope of a unified patent litigation system being introduced in Europe. Continue reading “System failure”
Management speak
In just under two years Simon Davies has restructured Linklaters’ partnership, cut lawyers and offices and ridden the financial crisis. Time for a new strategy
Simon Davies sees his job in simple terms. ‘The most important task is developing the strategy and then implementing it,’ says Linklaters’ managing partner. Since April of this year he’s been putting a new strategy in place. The vision set out by his predecessor Tony Angel – to be the leading global law firm – hasn’t changed. It’s the means of getting there that the new plan is concerned with.
The two-year strategy places particular emphasis on client relationships and the firm’s people. Just as Davies sees his role, it’s hardly rocket science. But since he officially took over from Angel in January 2008 aged just 40 Davies and his management team have been forced to make a series of tough strategic calls.
Education, education, education
Law firms take their training very seriously. LB spent some time in the classroom to see how education has become more than just a break from the billable hour
It’s all far removed from a university lecture. The 20 Norton Rose senior associates turn up on time, apparently without a hangover in sight. The lawyers help themselves to the spread of fresh fruit and coffee and take their seats at a U-shaped desk which leaves nowhere to hide. They have come from as far afield as the Hong Kong and Dubai offices to the firm’s London HQ for a three-day course on marketing and business development. Continue reading “Education, education, education”
The right track
Everything seems to conspire to prevent all but the most adventurous and patient of investors from entering Angola. A room at the ‘four star’ Tropico hotel, a 1970s’ block in downtown Luanda, will set you back $500 a night. Once checked in expect to pay $10 for a two-litre bottle of drinking water, $6 for a beer and $20 for a sandwich. It’s not surprising that the capital Luanda is now one of the most expensive cities in the world. Working in Angola requires not only deep pockets but also patience and preferably a bit of Portuguese. Yet investors and their lawyers remain unperturbed, lured into oil-rich Angola by double-digit growth rates and growing investment opportunities.
Angola is a country of paradoxes, a stark contrast of boom town and abject poverty. Executives at the country’s national oil company Sonangol will travel to Lisbon to meet its lawyers because working in and travelling to Angola is so difficult. Despite the difficulties, with real GDP growth rates of 21% and 13% in 2007 and 2008 respectively, and major mandates on offer, international law firms are finding there is work to do in the country. Oil is at the heart of this growth, with revenues from the sector accounting for a massive 85% of the country’s GDP. Having overtaken Saudi Arabia and Iran to become China’s biggest oil supplier, Angola is also benefiting from a stream of multi-billion-dollar Chinese investments. Among them money from China has been paved into the reconstruction of the Benguela railway, much of which was destroyed in the recent civil war.
Russian cases for Russian lawyers
Disputes from Russia and the CIS are an increasingly profitable area for Western firms, even for those without offices in the region. LB looks at how long the trend can continue
It’s a time bomb,’ says Dimitry Afanasiev, chairman of the Russian law firm Egorov, Puginsky, Afanasiev & Partners. ‘Given the fact that at some point some of these commercial contracts are going to blow up into a dispute then I think the English legal market is going to see Russian business for a long, long time.’ Continue reading “Russian cases for Russian lawyers”