Despite recent meetings, Hong Kong’s international law firms remain greatly concerned about the Law Society’s proposed rules that would restrict foreign lawyers’ ability to practice in the market, but are hopeful for a resolution, Asian Legal Business understands.
An individual at an international law firm, who spoke on the condition of anonymity, said partners from a number of firms recently attended a meeting with the president of the Law Society, Melissa Kaye Pang, and were also at a dinner on Nov. 12 where members of the Law Society were present and where the issue was discussed. But the individual emphasized that until the proposal was defeated, those opposing it would remain concerned.
As previously reported, the South China Morning Post revealed last month that the Law Society had sent a letter to consulting firms proposing restrictions on lawyers who had gained their qualifications outside of Hong Kong, allowing them to only offer legal advice on cases that involved the jurisdictions they were registered in. Hong Kong law firms would also have to employ two local lawyers for one foreign lawyer, up from a ratio of one-to-one.
In response, Hong Kong-based partners from international law firms, including Linklaters, Davis Polk & Wardwell, Latham & Watkins, Paul Hastings, Kirkland & Ellis, and Skadden, Arps, Slate, Meagher & Flom, signed a joint letter to the Law Society, voicing their concerns.
The Law Society has since set a consultation period from Nov. 1 to Dec. 31, and in remarks published in the November issue of the Hong Kong Lawyer, Pang wrote “I look forward to receiving the profession’s views on the proposals, which will be very valuable to the Law Society in considering the way forward.”
She added that the proposed rules “do not change the law but are merely clarifications.”
NOT GOING AWAY
But the general feeling among those challenging the rules is that this is not true, and increasing the ratio from one-to-one to two-to-one is more than a clarification.
The representative of the international law firm suggested that such changes could force international firms to move their operations and regional headquarters to other markets, such as the mainland or Singapore. Also, the additional hiring requirements could force international firms to expand their practices into areas they wouldn’t necessarily choose to be in, therefore making the market more competitive.
They also warned that, should there be a slip in the city’s reputation, Singapore or Shanghai could easily become more attractive markets for firms with Hong Kong losing out on consumers of rental space, consumers of services and products, and cachet.
Even if the Law Society does approve the new rules, the chief justice may not approve of them, with the source suggesting there could be further backlash should there be preliminary approval.
The sense from those in international firms is the issue will not go away anytime soon.
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