Regulation: bars may make passing on knowledge a condition of foreign lawyers' presence

A controversial 'skills transfer' clause is at the heart of a proposed International Bar Association (IBA) resolution on the regulation of foreign lawyers by host jurisdictions.


The IBA's World Trade Organisation (WTO) working group presented the draft resolution to delegates at the association's first bar leaders conference, held last week in London.


The resolution - which is principally aimed at encouraging countries that have not made an offer on legal services or at best an extremely limited one in WTO negotiations - builds on IBA efforts to facilitate the cross-border establishment of lawyers on the basis that the host bar can register and regulate foreign lawyers within their borders.


Bars around the world are often wary of allowing in the likes of UK and US firms, fearing that they have the economic power to scoop up all the best work and lawyers to the detriment of the local profession.


The draft resolution suggests that registered foreign lawyers should - as a minimum - be expressly authorised to give advice on the law of their home jurisdiction.


It also proposes that a foreign lawyer 'should make his or her best endeavours to transfer legal and law firm skills' to local lawyers. The host jurisdiction would be entitled to make this a condition of registration.


The draft says the skills transfer could take place in a number of ways, whether through training and work experience, mentoring, courses 'or any other form of transfer of such skills'.


But the wording brought divisions between delegates to the fore. Some argued that there should be a greater element of compulsion and said the resolution should be much more specific about the foreign lawyers' commitments. However, others warned that the imposition of heavy burdens could be used by host jurisdictions as a way of putting up obstacles to foreign lawyers.


Law Society international head Alison Hook said she understood the resolution's objectives but warned that being over-specific could create a barrier.


Jonathan Goldsmith, Secretary-General of the Council of Bars and Law Societies of Europe and a member of the working group, said the resolution was intended to set the minimum standards for opening up markets. He acknowledged there were differences of opinion, but insisted that the gap was 'bridgeable'.


Before the meeting, eight leading City law firms - Allen & Overy, Clifford Chancer, Freshfields Bruckhaus Deringer, Herbert Smith, Linklaters, Norton Rose, Simmons & Simmons, and Slaughter and May - held a meeting for the bar leaders to explain how they work.