Solicitors to join overseas MDPs

Solicitors will be able to join overseas multi-disciplinary partnerships (MDPs) under plans released recently by the Law Society.

The move could help City firms associated with overseas MDPs tie their practices closer together.

A consultation paper on changes to the international practice rules proposes to limit this change to partnerships with a minority of non-lawyer principals, at least until a general scheme for MDPs is developed in England and Wales.

The Law Society Council has already approved MDPs in principle, but solicitors would not be able to practise through the overseas MDP in England and Wales until they are formally allowed here.

The paper said that maintaining the ban could create problems for firms merging with foreign law firms, or individuals joining foreign firms.

It could also put English and Welsh firms at a competitive disadvantage in those countries which allow MDPs, such as Germany, the Netherlands and some Australian states.

The paper said: 'Originally, it may have been intended that solicitors should be protected from clashes of culture between the lawyer's professional ethos and that of business generally.

We do not believe that this on its own is a sufficient justification for the restriction, because it is already a fundamental part of a solicitor's professional duty to resist pressure to breach the rules or the principles of conduct.'

It recognised that the main objection will arise from the fear that this move represents 'the thin end of the wedge' for MDPs.

Some firms, such as SJ Berwin, have associations with German firms which include accountants and tax advisers.

SJ Berwin senior partner David Harrel said this move was something his firm had been hoping for.

Two of the key figures in its German practice - formed through merger - are tax advisers and they have to be given special status rather than be partners.

'It causes us a problem in completely merging the two operations,' he said.

Neil Rose