Tag Archives: Singapore

East vs. West: Client Satisfaction Higher in the East

Posted on March 26, 2013 by | Leave a comment

Client satisfaction is a global issue, yet it looks like Eastern law firms are better at it than those in the West. A new report finds that general counsels (GCs) in Asian firms rated their external firms higher for billing practices and service delivery than GCs in Western firms did.

The Client Satisfaction Report (CSR) Asia, the first of its kind from Legal Week, is culled from Asia-specific data in the Legal Week Intelligence Client Satisfaction Survey 2012. Of 1,204 respondents, 214 offered data about Asia in six categories: cost/billing practice; service delivery; use of IT/knowledge management; personal/partner relationships; quality of legal advice; and quality of commercial advice.

The biggest difference in the East vs. West client satisfaction scores were in the area of cost/billing practices. On a 10-point scale measuring satisfaction, Asian GCs rated their firms at 7.37, higher than the global score of 7.22. Asian firms also came in higher for service delivery and responsiveness and use of IT and knowledge management.

At 8.9, overall satisfaction was highest for firms in mainland China. It was the highest-rated of the five jurisdictions examined closely in the report. The others are, by rank: India, Singapore, Hong Kong and Japan.

Data was also collected about preferred billing methods. The survey found that 45 percent of Asian companies preferred fixed fees, 31 percent like capped hourly rates and 10 percent prefer chargeable hours.

Read the full rundown and discussion of the results on Legal Week (sub. req).

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Twenty Three New QFLP Applications in Singapore

Posted on September 18, 2012 by | Leave a comment

Expansion in the Asia-Pacific region continues to sit high on the agenda for many international law firms and Singapore has emerged as a key commercial hub in Southeast Asia.

Historically, foreign firms were permitted to operate in Singapore only via Foreign Law Practice (FLP) licenses. Firms wishing to provide local Singapore law capabilities were required to form a Joint Law Venture (or less formal alliance) with a local law practice. However, as we’ve discussed in previous posts, the legal market in Singapore has undergone considerable deregulation and the advent of Qualified Foreign Law Practice (QFLP) licenses has meant that firms holding such a license can now practice both foreign and local Singapore law (in certain areas, mainly corporate and commercial work-types), without the need for a joint venture arrangement.

QFLP Licenses

Currently QFLP licenses are held by only six firms – Allen & Overy, Clifford Chance, Latham & Watkins, White & Case, Norton Rose, and Herbert Smith – with a number of other international firms, such as Baker & McKenzie and Hogan Lovells, choosing instead to continue with their Joint Venture arrangements.

Following favorable reviews and performance results of the initial tranche of licenses, the Ministry of Law announced plans to expand the scheme earlier this year and invited foreign firms to submit applications for a second round of licenses between July 1st and August 31st of this year.

As of August 31st, Legal Week (subscription required) reported that 23 law firms had submitted applications. Firms understood to have bid for a license include global giant, DLA Piper, U.S. firms Shearman & Sterling, Jones Day and K&L Gates, as well as UK firms Ashurst, Watson Farley Williams, Olswang and Stephenson Harwood.

The number of licenses to be awarded has not yet been determined, although successful firms should receive their license before the end of the year. However, the Ministry of Law has indicated that priority will be given to firms that demonstrate an ability to help the Ministry achieve the overall goals of the expansion scheme. These are thought to include supporting the growth of Singapore’s key economic areas, such as the financial services, the value of foreign work that a local office would attract, the extent to which the office would act as a regional headquarters, and the size of the office overall.

Rob Bratby, Asia Managing Partner for Olswang outlined his firm’s thinking in terms of bidding for a QFLP license in Legal Week:

“…our technology, telecoms and media industry sector focus complements the Singapore Government’s initiatives to make Singapore a regional hub for IP-rich businesses…a licence to practise Singaporean law will give us additional flexibility for regional transactions”.

New Market Entries

In addition to QFLP license applications (these have mainly been firms already active in the market looking to add a local law capability), a number of other foreign firms have looked to establish new Singapore offices for the first time in recent months. These include a number of offshore and private wealth-focused practices such as Bedell Cristin and Withers, as well as more mainstream firms including the UK’s Addleshaw Goddard and the U.S.’s Squire Sanders.

However, the most prominent has been the announcement by Freshfields Bruckhaus Deringer to re-launch in Singapore, six years after it announced the closure of its office during 2006. The firm decided to shutter the office as part of a wider restructuring of its Southeast Asia business, which also saw the Bangkok office close in 2004, and the focus shift towards Hong Kong and China.

The Lawyer reported that the firm re-opened in Singapore last week. Two partners (capital markets co-head Stephen Revell and co-head of the international arbitration practice, Lucy Reed) have relocated from Hong Kong to Singapore and the firm has also added an energy & natural resources capability via the hire of Gavin MacLaren from leading Australian firm, Allens.

Posted by Tricia Pelton

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Singapore: Attracting More Private Wealth Practices

Posted on August 28, 2012 by | 1 Comment

We’ve written before about Singapore as an important financial and legal center in Southeast Asia, and with new legal reforms opening up the market, firms continue to flock to the city-state.  So far, we’ve mostly concentrated on the cross-border transactional nature of the work that is driving an increasing number of firms to establish a presence in Singapore. However, in the July/August issue of Legal Business (subscription required), an article titled Filling Big Shoes focuses on Singapore as a highly desirable destination for firms serving high-net-worth-individuals (HNWIs).  For wealth management practices of offshore and onshore firms alike, Singapore has become strategically important as the global diversification of wealth tilts more towards the Asia-Pacific region. 

According to the 2012 World Wealth Report (free; registration required), published in June by Capgemini and RBC Wealth Management,there were approximately the same number of HNWIs in the world in 2011 as there had been in 2010.  While the number of HNWIs in the Asia-Pacific increased slightly in 2011, the number in North America declined.  For the first time, the Asia-Pacific region became home to slightly more HNWIs than any other region, although North America still accounted for the largest regional share of HNWI wealth.  Specifically:

  • The number of Asia-Pacific HNWIs rose 1.6% to 3.37 million in 2011, compared to 3.35 million in North America, and 3.17 million in Europe.
  • In North America, HNWIs’ wealth was down 2.3% in 2011 to US$11.4 trillion
  • In Asia Pacific, wealth was down 1.1% in 2011 to US$10.7 trillion
  • In Europe, wealth was down 1.1% in 2011 to US$10.1 trillion.

Along with the changing demographics in the global HNWI market there are also increasing regulatory pressures on established financial centers, both of which are contributing to the rise of more non-traditional centers according to the latest PwC Global Private Banking and Wealth Management Survey. Respondents to the 2011 survey predicted that by 2013, London and Switzerland and to a lesser extent New York, would be challenged by the rise of Singapore and Hong Kong, and in fact Singapore would top the list of these five international financial centers.

Offshore Firms

Offshore firms that have opened branches in Singapore in the last four years include Collas Crill, Bedell Cristin, Walkers and Cains[1]. 

Channel Islands-based Collas Crill opened an office in Singapore on August 1 of last year to satisfy demand from institutional and private clients in Asia for Channel Islands legal services.  Collas Crill’s joint managing partner in Guernsey, Jason Romer, said:

We are breaking the mould by choosing to open in Singapore with a Channels Islands offering rather than, say, Hong Kong or mainland China. Singapore provides an excellent hub from which to service the region and its established and emerging economies.

Bedell Cristin is the most recent newcomer, opening an office in July to provide British Virgin Islands (BVI) legal services.  Richard Gerwat, Managing Partner at Bedell, commented that it was a logical move, increasing the firm’s global reach and range of services to clients in the Asian region. 

In February 2009, driven by demand for Cayman Islands and BVI legal and corporate services, Walkers opened a new office in Singapore.  The office advises both corporate and individual clients, including ultra-high net worth individuals and their advisers.

Cains, located on the Isle of Man, opened a new office in Singapore in July 2008.  Headed by Mike Edwards, a director of Cains, who presciently said at the time, “It is evident that as markets in the West slow down, investors are looking to the East, and Singapore is well positioned as Asia’s financial hub and a gateway to emerging global markets”.

Onshore Firms

In addition to the offshore firms, a number of onshore firms known for their private client work have also planted a flag in Singapore. 

UK-based Lawrence Graham (LG), with its strong private client and wealth management practice, announced in February the launch of an office in Singapore after forging an alliance with local firm PK Wong & Associates.  LG’s former senior partner Penny Francis has relocated to Singapore to spearhead the launch.  She is joined by private capital partner Nick Jacob, corporate partner Geoff Gouriet, and Sunil Kakkad, head of LG’s India Group, who divide their time between London and Singapore.  Nick Jacob said:

Singapore is an important centre for wealth management and we have a large number of longstanding private capital clients across South East Asia. This alliance with a local firm will enable us to provide local law advice and enhance our ability to look after clients and offer more services.

In May, UK private wealth specialist Withers confirmed that it had launched an office in Singapore to meet the growing demand from high-net-worth individuals for tax and trust advice in South East Asia.  The four-lawyer Singapore team includes Jay Krause, who heads Withers wealth planning group in Asia. Margaret Robertson, the firm’s Managing Director commented: 

Even when we opened in Hong Kong [2008] we knew it would only be a question of time before we set up in Singapore. Having a presence in both locations along with our offices in Europe and the US enables us to deliver integrated advice both quickly and directly to clients across Asia. I forecast that our Singapore office will grow as quickly as our Hong Kong office.

More Room to Grow

Opportunities for private client lawyers appear to be plentiful in Singapore as well as Hong Kong.  Alan Binnington, private client director at RBC Wealth Management, says in Legal Business that he does not see an oversaturated market in either location.  “I don’t see there being a finite amount of space for international wealth management teams operating in Singapore or Hong Kong, as that part of the world is where the wealth is being created.” 

Despite the threat of slowing economies in Asia, with the number of HNWI individuals in Asia Pacific on the rise, there is reason for optimism for firms that specialize in wealth management as well as for the international private client teams at major law firms.  Singapore presents an opportunity for many of these firms to effectively grow their practices in Southeast Asia, where the highest number of HNWIs of anywhere in the world is yet one more measure of the continuing transformation of the global economy.

Posted by Marianne Purzycki

[1] Hildebrandt Institute office opening data.

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Foreign Law Firms Invited to Apply for New QFLP Licenses in Singapore

Posted on May 30, 2012 by | 3 Comments

Yesterday, Asia Legal Business reported that Singapore’s Ministry of Law has announced that it is inviting foreign law firms to apply for a new set of Qualifying Foreign Law Practice (QFLP) licenses.  QFLP licenses allow foreign firms to practice permitted areas of Singapore law.  The licenses were last issued in December 2008. 

The issuing of the QFLP licenses is part of an effort to liberalize the legal market in Singapore, which continues to be an attractive location for international law firms.  In February, Singapore’s parliament passed The Legal Profession (Amendment) Bill which will allow foreign firms to merge with local firms and hold profit and equity shares in domestic firms.  The Bill also lets foreign-qualified trial lawyers appear in local courts. 

The six firms that currently hold QFLP licenses are Allen & Overy, Clifford Chance, Latham & Watkins, White & Case, Norton Rose, and Herbert Smith.  A number of other international firms, including Hogan Lovells and Baker & McKenzie, are in joint ventures with local firms.

Firms that have expressed interest in applying for the new licenses, according to The Lawyer, including Ashurst, DLA Piper, Eversheds, K&L Gates, Linklaters and Watson Farley & Williams.  Matthew Glynn, DLA Piper’s Singapore managing partner said the firm will be applying for a license because being able to provide Singapore law advice is part of the firm’s strategy.  He added:

Singapore has continued to provide a strategic location for corporates and financial institutions to headquarter themselves to service the region, in particular India and Indonesia. It presents one of the best growth opportunities for business. The country’s at the heart of DLA Piper’s South East Asia strategy.

The applications will be reviewed by an evaluation committee and a selection committee.  Factors under consideration will be the amount of offshore work that the Singapore office will undertake and the number of lawyers based in the office.  The areas of legal practice being offered in the Singapore office and the extent to which the Singapore office will function as a headquarters for the firm in the region will also be taken into consideration.

The Ministry of Law will accept applications for the licenses between July 1 and August 31 and there is no cap on the number of licenses granted this year.  The licenses awarded will be announced by the end of 2012. The QFLP licensees will have up to six months to set up their Singapore office, and their licenses will be valid for an initial period of five years.

Posted by Marianne Purzycki

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Singapore Law Practices Embrace a “New Paradigm”

Posted on February 27, 2012 by | 2 Comments

Singapore, a key commercial center in the Asia-Pacific region, continues to be an attractive location for foreign law firms, as we reported last September.  We also noted that the government in Singapore was indicating that it might be willing to open up the local legal services market to more foreign firms.

Recently, Asia Legal Business reported that Singapore has taken steps to liberalize its legal market  to give local firms more flexibility to collaborate with foreign firms. Passed by Singapore’s parliament on February 14, The Legal Profession (Amendment) Bill will allow foreign firms to merge with local firms and hold profit and equity shares in domestic firms.  The Bill also lets foreign-qualified trial lawyers appear in local courts.

Currently only six foreign firms (White & Case, Clifford Chance, Allen & Overy, Herbert Smith, Latham & Watkins and Norton Rose) hold licenses that allow them to practice local law.  A number of other law firms are in joint ventures with local firms, including Linklaters, Hogan Lovells and Baker & McKenzie.

Minister for Law, K Shanmugam, in the second reading speech stated:

The legal services market today is a globalised one and increasingly competitive. Size, international presence, and economies of scale matter. Consolidation is the trend. The international market is dominated by a handful of large international practices, which secure the most lucrative transactional work. Singapore law practices realise this, and many of them are moving to embrace the new paradigm.

The Ministry of Law will implement the changes in the second quarter of 2012.

 Posted by Marianne Purzycki

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Industry Insight: Singapore on the radar screen

Posted on September 16, 2011 by | 4 Comments

The Asia-Pacific region continues to draw U.S. and U.K. law firms hoping to capitalize on the area’s growth potential.  As a result, Singapore, a key commercial center and hub for a growing number of companies doing business in the region, is an attractive location for foreign law firms.  In fact, since 2006 the number of foreign law firms in Singapore has more than doubled to approximately one hundred.  Newcomers include K&L Gates (2009), King & Spalding (2010) and Mayer Brown JSM, the firm’s Asian practice (by the fourth quarter of 2011), as well as the UK’s Olswang, which is set to launch an office later this year.  Another UK firm, Taylor Wessing, announced in August that the firm had established a strategic alliance with Singapore’s RHT Law.

Taylor Wessing managing partner Tim Eyles commented in Legal Week:

 ”More than 50% of our clients have a presence in Singapore and that interest will only increase.”  “We have been looking at Asian expansion for the last year and we are still looking in relation to Hong Kong. We already have two offices in China but we were losing out on opportunities in Singapore, which has one of the largest GDP growth rates in the world, is a hub for the local region and a key financial centre.”

Top Australian firms also have a presence in the market.  Allens Arthur Robinson, for example, operates in Singapore through Allens Arthur Robinson TSMP, a joint law venture with Singapore law firm TSMP Law Corporation. Client interest in investing in Indonesia is keeping the legal market in Singapore “extremely buoyant” says Allens Arthur Robinson’s Singapore-based banking and finance partner Rod Howell in a recent article in Lawyers Weekly.

Howell goes on to add,

“I don’t think there has ever been a time where the macro-economic and geo-political environment has meant that Australia is so intrinsically linked with the Asian economy.”  “In broad terms, you have still got a need for resources in the increasingly industrialised north: China, Korea, Japan and India. In the south, you have got huge piles of reserves in the likes of Australia and Indonesia.”

While only six foreign firms (White & Case, Clifford Chance, Allen & Overy, Herbert Smith, Latham & Watkins and Norton Rose) currently hold licenses that allow them to practice local law, the Singapore government has recently signaled that it might be willing to open up the local legal services market to more foreign firms. The speculation is that firms are establishing themselves in Singapore to be ready for that change, which could come by the end of this year.

 Posted by Marianne Purzycki

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