S'pore opens up further to joint-venture law firms
S'pore opens up further to joint-venture law firms
SINGAPORE (DPA): Five joint ventures of local and foreign law firms will be initially allowed in Singapore's liberalization of its legal market to give the financial sector a one-stop service for international contracts, it was reported on Saturday.
The Ministry of Law accepted the recommendations of the Legal Services Review Committee, which found banks and financial institutions want more convenience in doing cross-border transactions involving local laws and those of another country.
"Many of the top-ranking New York law firms are not represented in Singapore," said the committee's report.
But foreign law firms still cannot litigate. In Hong Kong, British firms and lawyers are allowed to practice. While foreign firms are barred from practicing local law in Singapore, individuals may do so if they are qualified.
Under the guidelines, the foreign lawyer can draft documents for cross-border transactions but advice and opinions on local law are the domain of Singapore lawyers.
The ministry said legislation would be introduced in parliament to implement the recommendations.
The nine-member committee was charged in 1997 with reviewing the city-state's strategic legal needs.
It also recommended Singapore attract more top-notch offshore law firms. "As lawyers follow their clients or business opportunities, we need to attract more banks and financial institutions, especially global investment banks, to expand their business in or from Singapore," the report said.
Sam Bonifant, a partner with an English firm, said a numerical limit on joint ventures is not a market-driven solution. "It is there and we've got to live with it," he told The Business Times.
Foreign lawyers have asked why it is not possible for attorneys from different jurisdictions to practice freely as in the case of Europe.
Deputy Prime Minister Lee Hsien Loong told a group last month law is unlike other services "because the legal system is really part of the fabric of society".
When cases are tried in a local court, the Singapore perspective has to be preserved, Lee said.