(SINGAPORE) Details are still on the drawing board, but the proposed Qualified Foreign Law Firm (QFLF) scheme already looks set to increase the competition for the best legal talent in Singapore.
Of the five legal recruitment agencies BT spoke to, most expected to see more competition between local and foreign law firms for top lawyers practising Singapore law. But, they pointed out, it is still too early to tell what the QFLF scheme's full impact may be.
'Firms which apply and are successful in obtaining the QFLF licence will certainly compete with the local law firms for the best of the local talent,' said Ash Raivadera, managing director of legal recruitment firm ATR Associates.
And the firms that 'decide to not apply or are not successful will gradually increase their local talent pool in order to take advantage of any further liberalisation as and when it happens', he added.
Sharing similar views was director of Law Alliance, Jeremy Small. 'QFLFs will be in a position to target the best lawyers with the most profitable practices from established local firms, in areas such as mergers and acquisitions and capital markets,' he said. According to Mr Small, one reason is that 'QFLFs will be able to make money from local work and share the profits in a way they have been unable to do before'.
Senior consultant at JLegal Genevieve Chia also noted that there is now 'the distinct possibility that foreign law firms may look to lateral partner hires as well in order to boost their regional practices'.
According to Ms Chia, local firm partners may migrate their business and client base over to international firms.
Concurring, general manager at Hughes-Castell Singapore Pearline Teo said that 'QFLFs might look at rainmakers to join them and possibly bring along a few associates.'
BT understands from industry sources that up to two international law firms are already looking to set up shop here this year.
Said one source : 'We know of two foreign firms which are opening offices in Singapore a little later this year, and both have looked to recruiting lawyers from the local market.'
Some legal recruitment agencies have seen in recent years more lawyers qualified to practise Singapore law leaving the country to join international law firms. Will the introduction of QFLFs help keep lawyers within Singapore?
According to Ben Batten, manager of Hays Singapore, QFLFs are unlikely to retain Singapore lawyers who want to venture overseas. 'The desire to work in bigger financial markets and new and exciting cities for a time' may be too big of a pull, he believed.
Law Alliance's Mr Small also said that QFLFs may make little difference to lawyers who wish to work in law firms overseas. Other factors such as the chance to earn more and to broaden horizons are likely to come into play.
Some international law firms BT spoke to are waiting for more details on the QFLF scheme before deciding if they should apply for a licence. The Singapore offices of Ashurst and Latham & Watkins, for instance, have said that they are studying the proposal.
With a QFLF licence, foreign law firms can practise in some areas of Singapore law on their own by hiring Singapore-qualified lawyers.
According to Matthew Bubb, managing partner of the Singapore office of Ashurst, a number of lawyers from Singapore work in the London office. Should the Singapore office receive a QFLF licence, 'Ashurst would be in a better position to encourage Singapore lawyers who have acquired international experience to return', said Mr Bubb.
This article was first published in The Business Times on May 12, 2008
