HSF becomes latest Western firm to gain Chinese law capability through new Shanghai alliance

Herbert Smith Freehills (HSF) has made what its senior partner James Palmer described as a ‘game changer’ for its Chinese practice by signing a joint operation agreement with 20-lawyer Shanghai firm Kewei.

The move announced today (7 August) makes HSF the sixth Western firm to acquire PRC law capability in the Shanghai Free Trade Zone (FTZ), as part of the scheme launched by the Chinese government in 2013 in a bid to boost foreign investment.

While HSF’s 35-strong China operation remains barred from practising local law, the deal will allow its Shanghai practice to team up with Kewei’s PRC-qualified lawyers on client matters through a contractual arrangement known as HSF Kewei.

Palmer told Legal Business: ‘This may look just like another decision but it’s strategically key: clients are looking for integrated capability and if you can deliver it, as we now can, that’s a game changer for us in terms of offering advice in China.’

The deal took over a year of negotiations and planning before receiving the approval of Shanghai’s Bureau of Justice. Palmer said HSF picked Kewei because the firm, launched in 1995, had been growing with a view to tying up with an international player in recent years.

He said: ‘It was not a firm we would have worked with five years ago, but it developed a strategy to meet international quality standards with a view to entering an international partnership like this. It wants to be the Shanghai end of global quality work.’

As part of the deal, Kewei has also absorbed HSF’s alternative legal services hub, set up in Shanghai in summer 2016, into its own managed services business.

The initial focus of the joint operation will be on cross-border M&A, finance, disputes, competition, capital markets and financial services regulatory. Palmer noted the firm had not set any targets for headcount growth but its development would be influenced by ‘client response and the quality of people we can find’.

Despite being the only way around the ban on local law for foreign counsel in mainland China, just five firms have preceded HSF in signing similar partnerships in the six years since the launch of the FTZ.

The first was Baker McKenzie, which in April 2015 signed an association with FenXun Partners, followed by HFW’s deal with Wintell & Co in April 2016; Hogan Lovells’ alliance with Fujian Fidelity Law Firm in October 2016; and Ashurst’s tie-up with Guantao in January 2018.

Completing the group is Linklaters which, after holding talks with several firms for years, resolved to spin off some of its team to launch 30-lawyer practice Zhao Sheng and then set up a joint operation with it, which received the green light in May last year.

Palmer mentioned the current challenging economic climate in China amid trade wars with the US and the difficulties in finding a partner firm of the right quality as some of the challenges in the route to such partnerships for Western firms.

He added: ‘We take a long-term view: we are looking at the next 10 to 20 years, and international trade with China is going to increase massively. So we were not worried to enter [this association] in this period.’

The Shanghai launch comes after HSF posted the second consecutive year of sharp uptick in partner profits amid slower revenue growth. The firm’s top line rose 4% to £966m while profit per equity partner surged 11% to £949,000.

Author: Legal Business

CMS raises NQ salary and Clifford Chance increases trainee pay

CMS has raised its newly-qualified (NQ) salary to £73,000 plus bonuses. Qualifiers will have the ability to earn a bonus of up to 20% on top of their salary, based on their performance and ‘contribution to the firm’.

The salary for regionally-based NQs at CMS will remain at £50,000 in Bristol and £41,000 in Sheffield. Trainee salaries will also remain the same: First year London trainees receive £43,000, rising to £48,000 in their second year.

Clifford Chance has also confirmed a pay increase. Effective from 1 September 2019, trainee solicitors at the Magic Circle firm will now receive £48,000 in their first year and £54,000 in year two; an increase of 3%. The firm now pays the highest trainee salary compared to its Magic Circle counterparts, closely followed by Linklaters, which offers a first year salary of £47,000. The move comes after Clifford Chance increased its NQ remuneration package to £100,000 including bonuses just two months ago.

Compare what you will earn as a trainee and newly-qualified solicitor here.

Friday Rundown

The rundown of this week’s top news stories.

1. Pound falls lower on no-deal Brexit prospect [via BBC News]

2. Bank of England cuts UK growth forecast [via BBC News]

3. Facebook bans ‘Saudi Arabia-linked propaganda accounts’ [via BBC News]

4. Barclays, RBS and other banks face £1bn forex rigging lawsuit [via The Guardian]

5. Harbour litigation funding launches first litigation training contract

6. Accelerate your CV with a virtual experience programme

7. UK challenger bank OakNorth launches training contract

8. SRA report reveals money laundering and #MeToo cases driving increases in workload

9. Taylor Vinters accelerates strategy to help world leading innovators and entrepreneurs

10. Labour has spent ‘£400k’ on legal advice over antisemitism crisis [via The Jewish Chronicle]

11. SQE regulator ponders pure multiple choice to help minority candidates [via The Law Society Gazette]

Globe-trotting Dentons primed to secure Norton Rose’s Venezuela business

Globe-trotting Dentons primed to secure Norton Rose’s Venezuela business

Expansive global giant Dentons is positioned for another regional merger, with Norton Rose Fulbright’s (NRF) 26-lawyer strong Venezuelan practice the new addition, as Dentons moves to bolster its offering in the Caribbean and Latin America.

The Caracas-based practice is spearheaded by labour partner Juan Carlos Pró-Rísquez, who became managing partner for NRF in Venezuela in 2018. Pró-Rísquez will now lead the office under the name of Despacho de Abogados miembros de Dentons. Currently, the office is in a transitional structure, which sees it associated with Dentons’ Colombian business in Bogotá. However, it will be fully integrated into the firm’s verein-backed structure in the coming weeks subject to a vote from the Dentons partnership.

‘This first started after we recruited several Norton Rose lawyers in Bogotá,’ Jorge Alers, Dentons’ chief executive for Latin America and the Caribbean, told Legal Business. ‘They integrated very well with the firm so we knew how much of a good fit their former colleagues in Caracas would be.’

The Caracas firm counts eight partners with a business focused on energy and natural resource as well as employment. Venezuela, meanwhile, remains one of the world’s largest oil producers, however, the country is currently looking to diversify its economy in a bid to become less reliant upon global commodity cycles.

For Dentons, the tie-up continues its ultra-expansive strategy, having opened in Nicaragua and El Salvador last year, as well as combining with Delany Law and Dinner Martin in the Caribbean. In Latin America, meanwhile, the 8,700-lawyer firm allied with Brazil’s Vella Pugliese Buosi Guidoni, as well as merging with Gallo Barrios Pickmann in Peru.

NRF, in contrast, has been more conservative with its global footprint. The firm closed branches in Kazakhstan and Abu Dhabi last year while Paul Hastings recruited its Japanese corporate team.

The firm released a statement from chief executive Peter Martyr: ‘Market conditions in Venezuela have been challenging for some time. Therefore, we have reached a mutual agreement with our Caracas partners that Norton Rose Fulbright will no longer maintain a local market presence in Venezuela.’

Alers at Dentons unsurprisingly struck a different note, stressing his firm’s expansion plans in the Latin American and Caribbean region: ‘It not only our strategy to grow globally but also grow continually in Latin America and the Caribbean, where we already have the most legal coverage in the region. This is just another step in our effort to cover the entire jurisdiction.’

[email protected]

CMS adds to Northern line up with Liverpool launch

CMS adds to Northern line up with Liverpool launch

CMS Cameron McKenna Nabarro Olswang has extended its chain of northern offices with a Liverpool office opening following a hire from DWF, its first launch since its tripartite merger with Nabarro and Olswang in 2017.

The new office – located in Exchange Flags amidst Liverpool’s commercial district – will complement legacy Nabarro’s Manchester and Sheffield offices. DWF real estate partner Abigail Dry has been hired for the Liverpool launch, but the firm would not comment as to how many employees will be driving the opening. Liverpool is the firm’s tenth UK office.

The North has increasingly featured as part of firms’ UK strategies, with Freshfields Bruckhaus Deringer, Reed Smith, and Norton Rose Fulbright all among those to open up in the region. Taylor Wessing was another firm to target Liverpool, setting up an office in the city comprised of business analysts and IP specialists to better support the firm’s London hub. CMS will likely look to make good on an uptake in real estate work across the northern region.

In a statement regarding the Liverpool opening, the firm said: ‘This appointment forms part of our strategy to grow in the North. The ongoing regeneration of the North combined with opportunities coming out of the Northern Powerhouse initiative have resulted in a significant uptake in real estate projects across the region.’

Last June, CMS announced a UK turnover of £518m and a 19% increase in profitability, but chose to omit profit per equity partner in its figures. Meanwhile, the firm’s three-way merger cost approximately £50m, with the cost split to £25m between two financial years.

In October of last year, the firm lost real estate heavyweights Alan Karsberg and Simon Kanter to Fladgate, while in November Fladgate deepened the blow by recruiting an eight-lawyer team in London. CMS subsequently commented the exodus was due to ‘confidential client conflict issues’.

[email protected]

Fieldfisher swims against the current with launch of stand-alone alternative investments law firm

Fieldfisher swims against the current with launch of stand-alone alternative investments law firm

Never a firm to rest on its laurels, fast-paced Fieldfisher has taken the unusual step of launching a separate law firm focused on hedge funds, derivatives and alternative investments.

The new entity – called Cummings Fisher – sees Fieldfisher hire three partners from other law firms to run it. Financial services partner Claire Cummings, who founded alternative investments boutique Cummings Law in 2003, has been appointed managing partner. She will be joined by James Tinworth, formerly head of Stephenson Harwood’s hedge funds practice, who will lead the funds practice. Ron Feldman, previously a partner at asset management consultancy MJ Hudson, will spearhead the derivatives practice.

Cummings Fisher will be based at 1 Mayfair Place, London’s hedge fund and alternative asset management hub. Despite the separate office, Cummings Fisher will still be able to access Fieldfisher’s pool of lawyers and its outposts dotted across Europe.

Structurally, Cummings Fisher is a completely separate firm rather than a division or new brand of Fieldfisher. It is an independent, SRA-authorised firm that is owned and supported by Fieldfisher. It is not an Alternative Business Structure (ABS).

Guy Usher, head of financial markets and products at Fieldfisher, told Legal Business that the idea for a separate law firm came after seeing the success of Fieldfisher’s near shore operation in Belfast: ‘We wanted to do a similar service with a competitive price point for investment managers. We needed more hedge fund clients for this to work though, which is why we approached Claire. In fact, she was the first person who answered our email asking to meet for a coffee!’

Cummings added: ‘We are building up the practice we already had at Cummings Law. We had lots of smaller clients that we would often regard as friends, but now with the ability to exploit Fieldfisher’s resources, we are able to offer more for our larger clients.’

The Cummings Fisher launch builds on a sustained period of international growth and new product lines for Fieldfisher. In 2018, the firm opened the low-cost hub in Belfast, with a long-term view of staffing it with 125 people. The Northern Irish office provides document negotiation and legal support from a team largely consisting of paralegals.

In early 2017, Fieldfisher launched Condor, an alternative legal services platform which offers clients process-efficient services. Among those on offer are contract negotiation and outsourcing, contract automation, AI and robotics.

In other firm news, last week it was revealed that corporate partner David Wilkinson and real estate partner Anthony Phillips had launched bids to succeed Matthew Lohn as Fieldfisher’s senior partner.

[email protected]

Law Fair FAQs: All Your Training Contract Queries Answered

Law Fair FAQs: All Your Training Contract Queries Answered

Whilst travelling the length and breadth of the country attending law fairs, we noticed that students kept asking us the same few questions. Below, we attempt to address the most common queries.

I’m a non-law student. Can I become a solicitor?

There is still much confusion among non-law students as to how (and even if!) they can become solicitors. The answer is simple: the graduate diploma in law (GDL). The GDL is a year-long law conversion course which allows graduates of any degree discipline to gain a legal qualification. Once you have completed the GDL, you will be on an equal footing with your law graduate counterparts and you will be able to enrol on the legal practice course (LPC). So, if you’re not studying law at undergraduate level – don’t worry! In fact, some firms prefer non-law graduates because they bring fresh knowledge and a different skillset to the role.

I’m a STEM student. Can I become a solicitor?

Law has traditionally been the reserve of arts and humanities graduates so we completely understand why we frequently get asked this question. But times are changing and law firms are keener than ever to recruit candidates from a scientific background. If you are a STEM (science, technology, engineering or maths) student or graduate, our advice would be to watch out from STEM-specific open days and events at law firms. That way you can visit the firm, ask questions and find out if law is a career path to which you might be suited. Of course, you can always ask recruiters the same questions at law fairs, which are held at universities around the country.

I want to practise human rights law/I want to practise IP law/I want to practise [insert practice area here]

Law firms always encourage trainees to go into their training contract with an open mind as to which area they would eventually like to qualify into. But if you’re absolutely certain, or if there is a particular seat you want to make sure is on offer, you can find out which firm is highly regarded in what area. Our sister publication, The Legal 500 ranks law firms all over the country (and indeed the world) in hundreds of different practice and work areas. Search for your desired practice area on The Legal 500 website and, once you have drawn up your shortlist of firms, consult the firm’s Lex 100 profile to learn all about the training experience. The ‘Star Performers’ section of The Lex 100 profile also tells you in which areas a firm is ranked highly.

Do the law firms in your guide offer work placements?

Work placements or work experience are commonly known as vacation schemes in law firm speak. A large proportion of Lex 100 firms offer vacation schemes and these one or two-week programmes are generally a very good way of starting out on the training contract recruitment ladder. To find out which firms offer vacation schemes, consult the firm’s Lex 100 profile and check out their score in the vacation scheme category (that’s the fun, colourful graph which you’ll see at the top of each online profile, or on the first page of a firm’s print profile). We’ve also written extensively about vacation schemes here.

I don’t have any legal work experience

We get it, obtaining legal work experience is difficult. If you don’t have friends or family members who can help you out, you may need to think outside the box. Ask university professors, work colleagues, friends of friends or, if you’re feeling brave, give a local law firm a call and see what they can offer you. You could always send out your CV speculatively too. If none of the above works, remember that any work experience is good experience, even your part-time job in a shop or restaurant. Be sure to emphasise the transferable skills you have learnt in these jobs on your application form. And remember that law firms understand that it can be difficult to get legal work experience!

When should I apply for training contracts?

This completely depends on what stage you are at! As a general rule, if you are in your second year of a law degree or your final (usually third or fourth) year of a non-law degree, you can apply for training contracts. Graduates and career changers can apply whenever, just be sure to check each firm’s application deadline!

I’m only in my first year. Will this guide be useful for me?

The short answer is YES! It’s never too early to start thinking about which firms you might want to apply. More and more firms offer open days, workshops and other opportunities for first-year students, which we have handily summarised in our ‘first year opportunities’ section. Some firms even offer ‘mini vacation schemes’ for first years which could put you well on your way to obtaining a training contract at that firm. More generally, you can start reading firms’ Lex 100 profiles and get a feel for the types of firms they are and whether the culture is one in which you think you could fit in. The more you know about a firm before you apply, the better!

HFW continues Middle East growth drive with Saudi Arabia association

HFW continues Middle East growth drive with Saudi Arabia association

HFW has continued its Middle East expansion after striking an alliance with Saudi Arabian firm Mohammed Al Khiliwi.

Named partner and leader of the Riyadh outfit, Al Khiliwi, will join HFW’s partnership as part of the agreement, subject to authorisation by the Solicitors Regulation Authority. HFW insurance partner John Barlow, who splits his time between Riyadh and Dubai, is set to relocate full-time to the new office

For HFW, the association ties into a wider push to align the firm’s Middle East practice with its six global sector lines: aerospace, commodities, construction, energy and resources, insurance and shipping.

Richard Gimblett, head of HFW’s Dubai office, told Legal Business: ‘We know Mohammed from previous dealings so we know he’s a quality lawyer. He has a practice with a heavy dispute resolution focus, too, which perfectly aligns with what we do.’

Richard Crump, HFW’s senior partner, described the region as a ‘priority’ for each of the firm’s sectors, and said the Middle East ‘is fast becoming a major centre for international dispute resolution, which is a key part of our practice globally.’

Al Khiliwi’s arrival builds on an acquisitive 2018 for HFW, with the firm adding 24 new partners across Abu Dhabi, Brussels, Dubai, Hong Kong, Houston, London and Rio de Janeiro.

HFW was particularly expansive in the Middle East last year, most notably in the hire of Reed Smith’s managing partner for the region, Vince Gordon. Corporate partner Tania de Swart followed Gordon from Reed Smith to HFW.

The firm then strengthened the newly-opened Abu Dhabi outpost in November by hiring former Bird & Bird defence and infrastructure partner Richard Lucas to lead the office.

Throughout 2018 HFW also made key hires in Singapore, London and the USA. The firm also broke new ground by launching a standalone consultancy arm, branded HFW Consulting.

At a time when other firms, such as Herbert Smith Freehills, Clifford Chance and Latham & Watkins, have scaled back in the Middle East, HFW’s continued growth in the region comes amid robust overall performance. The firm’s revenue for the 2017/18 financial year was up 8% to £179.1m, thanks in part to its international offices accounting for 60% of overall turnover, up from 55% the previous year.

Gimblett added: ‘If you don’t have a sector focus in the Middle East then investment becomes a lot more speculative, it’s a difficult market out here at the moment. It’s a much more mature market too, so you need to offer something special.’

[email protected]

The Dechert Vacation Scheme

The Dechert Vacation Scheme

Vacation schemes have fast become a vital part of the trainee recruitment process for most law firms, and Dechert is no exception. For two years now the US firm has been recruiting its trainees exclusively through its vacation scheme, meaning that for those who have their hearts set on training at the firm, the best way in is via the two-week programme.

The decision to recruit solely from a pool of vacation scheme students comes from Dechert’s desire to have trainee solicitors ‘understand the firm and its clients, and reflect the energy, ambition and business focus that our clients look for’, explains training principal Jonathan Angell. ‘We also want our future trainees to have a solid understanding of the commitment Dechert has to its people, the training we provide and our collaborative working environment. We believe the best way to do this is to participate fully in a two-week scheme at our London offices’.

It’s not only those at the top who believe that this is a superior method of recruiting trainees. Many of the firm’s juniors also extol this new approach to recruitment, deeming it an incredibly useful opportunity to develop unparalleled insight into the firm. Charles Ashie, a future trainee, explains: ‘each firm’s culture is so different and so to gain insight in terms of what the people are like – not just the lawyers, but also the receptionists, secretaries and support staff – is invaluable’.

Current trainee Kerenza Kerslake agrees, adding that ‘[by completing the Dechert vacation scheme] you get more of a feel for the work that you’d be doing as a trainee, and get to see how friendly the teams are’. Furthermore, for the candidate bent on securing a training contract offer from the firm, the two-week vacation scheme is the perfect opportunity to showcase the skills and personality traits which cannot be gleaned from an application form. As Ashie rightly notes, completing the vacation scheme means ‘you get to see more of the firm and crucially, they get to see more of you’.

With the increased importance that the Dechert vacation scheme now holds, it is no wonder the firm goes to great lengths to make the two-week placement of excellent quality. And there is no doubt that the firm is living up to the expectations of candidates who join the fold over the spring or summer seasons. The work opportunities, quality of supervision and networking opportunities are unparalleled. Echoing this sentiment, Ashie is quick to praise the excellent supervision he received whilst working in the firm’s white-collar crime department: ‘having a supervisor who is so invested in your personal development over the week was incredible – I was really appreciative of it’.

The scheme sees students spend one week each in two of Dechert’s various departments. They have numerous opportunities to ask questions and network with staff of varying levels of seniority. Candidates are assigned a trainee buddy but sit with a supervisor – usually a senior associate – who assigns trainee-like tasks and provides feedback upon completion.

Much of the work is research-based says Kerslake, who recalls having to conduct research into the people with significant control register and good faith requirements in contracts during her time in the corporate team. In an equally stimulating task, Ashie was tasked with summarising a legislative update relating to white-collar crime. Students are also enlisted to help with pro bono work, which gives candidates an opportunity to see that ‘Dechert is not only committed to providing the highest level of service to clients, but also to individuals and organisations who may not have access to legal services’, asserts Ashie.

Attending training sessions, being included on conference calls, shadowing senior associates, giving group presentations, attending talks on different practice areas and having informal lunches with trainees and supervisors is all part and parcel of the vacation scheme at Dechert. The scheme, says Kerslake, is ‘challenging’ but nevertheless ‘really enjoyable’.

‘Dechert does loads’ to facilitate socialising, says Kerslake. Social events are dotted throughout the two weeks, with everything from ‘cooking classes at [French restaurant] L’Atelier’ and champagne networking events on the London Eye, to trips to the City of London Museum with clients comprising part of the itinerary – ‘it was clear that ‘they’d put a lot of time into organising the two weeks’. Attending these various events ‘showed a more relaxed side to the associates’ says Ashie, who advises incoming recruits to seize opportunities and ‘say yes to everything’! He notes that the firm is keen to get ‘vacation scheme students involved in anything that’s going on in the seat they’re placed in which made [him] feel more welcomed and included’.

Towards the end of the placement, candidates undergo a training contract interview. In recalling the interview process, Kerslake is keen to reassure nervous interviewees that when asked a challenging question, ‘[interviewers] are not testing what you actually know about business or markets, they’re assessing your thought process. So, in asking you a difficult question, they are looking for you to ask sub-questions that will get you to the answer they’re looking for. It’s all about showing that you are interested and willing to learn new things.’

There is no doubt that attending Dechert’s two-week vacation scheme (with a view to gaining a training contract) is beneficial to both the firm and the candidate, as each will emerge in a better position to decide whether to spend two years working with each other. A decision not to be taken lightly!

To apply for Dechert’s vacation scheme, click here.

For more information on the Dechert training contract, read the firm’s full Lex 100 profile.

ICSA Graduate Open Evening – Wednesday 30 January

ICSA Graduate Open Evening - Wednesday 30 January

Your law degree can get you into the boardroom, influencing and guiding the board of an organisation to be both effective and risk averse. There is no necessity for a training contract or the need to specialise.

Join the ICSA on Wednesday 30 January to find out more about roles in governance and company secretarial.

At this event:

• You will find out more about the role of the company secretary and how it can get you into the boardroom at an early stage in your career
• Meet company secretaries and learn about what drew them into the role, how they qualified, why they love their role, and why it’s better than a conventional law career
• Talk to a specialist company secretarial recruitment consultant about ways into the profession, career paths, work/life balance and salary potential
• Network with other students and graduates.

There will be a photographer present offering complimentary professional headshots.

Register now to discover more about routes into governance with ICSA.

Book your free place: https://www.icsa.org.uk/professional-development/graduatehub/graduate-open-evening?utm_source=3rd-party&utm_medium=email&utm_content=lex100&utm_campaign=graduateopenevening30jan19