Following the Hong Kong Law Society’s proposed restrictions on foreign lawyers, concerns have been raised about what this could mean for the city’s global reputation as a legal hub.
Under the rules proposed by the Law Society, lawyers who gained their qualifications outside of Hong Kong would only be allowed to offer legal advice only in 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.
Since the story broke, it has been widely reported on internationally and across the local media.
As reported earlier, local international law firms recently met with the Law Society to speak about the proposal but remain concerned about the changes.
A lawyer at an international law firm, who attended the meeting with with the Law Society, revealed to Asian Legal Business last week that should the new rules be rolled out, international firms may choose to move their operations and regional headquarters to other markets. Singapore and Shanghai have been cited as more attractive choices.
HONG KONG IN UNIQUE POSITION
Industry consultant John Grimley told Asian Legal Business that it would be “very surprising” if Hong Kong were to limit the ability for foreign lawyers to practice in the market, as it remains an important “conduit” to foreign investment into and out of mainland China.
“Foreign firms play an integral role in this,” Grimley said, adding that the changes “would ultimately hinder the smooth flow of foreign investment and Belt and Road dealmaking were firms integral to this activity suddenly limited in their access to Hong Kong.”
“Shanghai and Singapore are credible alternatives,” he suggested, noting that “both are highly competitive local legal markets with unique regulatory restrictions on foreign firms and unique trade and investment patterns which would not necessarily match up exactly with the capabilities a Hong Kong firm has developed to meet local needs.”
The Law Society has since extended the consultation period from Nov. 1 to Dec. 31, with president Melissa Kaye Pang writing in the November issue of Hong Kong Lawyer that the proposed rules “do not change the law but are merely clarifications.”
“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 wrote.
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