Understand Your Rights. Solve Your Legal Problems
Margarida Lima Rego speaks on drafting legislation and how it is changing the insurance sector.
In your insurance work, what are the matters you commonly deal with alongside your clients? How do you help them avoid litigation in this segment?
I provide a full range of services to our national and international clients in the insurance industry: we assist them on a daily basis at the design stage, in drafting new products or introducing adjustments in existing products, we help them at the claims-handling stage, in responding to complaints, we represent clients in insurance litigation, and we assist them in their dealings with the regulator.
We also provide in-depth knowledge of sector-oriented advice in insurance-related areas, such as tax, competition, employment or data protection. The problems that arise in such areas are often not insurance-specific, but they are problems which insurers have to face, and it helps when their legal advisers know the sector inside out.
Currently one of the most sought-after expertise within our team is that of data protection, in view of the new EU General Data Protection Regulation.
The Insurance Distribution Directive (Directive (EU) 2016/97) is also at the onset of quite a few requests for advice. New product oversight and governance requirements will apply as from 1 October 2018. Insurers must prepare for this and we are prepared to help them get through that process.
This is also how we help clients avoid litigation in this segment. Compliance is our main focus. However, that is naturally not always possible. Sometimes litigation is unavoidable. Oftentimes we are only called upon to assist when a claim has already been filed in court against our client. Even then, a positive aspect of working in insurance is that insurer clients are usually very open to settling a case when it makes business sense to do it. So, it helps if one provides them with the numbers to support their decision.
And then there is also litigation that is initiated by insurers, such as subrogation claims.
I should add that we also take part in insurance litigation on behalf of the insured or an injured third party against an insurer. We are often prevented from doing so by our strict conflicts of interests, rules and policies, but we will happily assist when the insurer in question is not a client.
You have drafted legislation in the field of insurance law in the capacity of adviser of the Portuguese Government; can you share with Lawyer Monthly the challenges involved with this?
The most relevant legislation I have helped create was related to the collateral assignment of life insurance in home loans. Ideally no significant legislative measures should ever be introduced, in any field, without the prior study of their potential socio-economic impact. But the resources are not always available. It is hence vital for those drafting legislation to be extremely aware of the sector so that such impact may be anticipated. Well-intentioned changes often backfire due to their authors’ insufficient knowledge of the sector they are attempting to interfere with. In my case the main purpose of the measures was consumer protection. The main dangers of such an attempt are twofold: one could get carried away and draft legislation that is so protective of consumers that enacting it becomes unrealistic; and one could make it more expensive for insurers to distribute the relevant insurance, which would naturally result in policyholders having to pay higher premiums for the insurance. One should tread very carefully so as to avoid such dangers.
How would you say this legislation changed the insurance sector?
I would not go so far as to say this legislation changed the insurance sector, but it did play a relevant role in the improvement of life insurance products specifically designed to be used as collateral in home loans. Before such legislation existed, policyholders would often end up paying more than strictly necessary, because their debt to the bank would decrease with each monthly payment but the insured sum would often remain the same. This is no longer the case. On the other hand, this legislation also attempted to stop product bundling. Such measures were unfortunately as not as successful. We live and learn.
Morais Leitão, Galvão Teles, Soares da Silva & Associados - Sociedade de Advogados, SP, RL.
Rua Castilho, 165, 1070-050 Lisboa – Portugal
Tel.: +351 213 817 400
Fax: +351 213 817 499
My name is Margarida Lima Rego. I am associate professor of private law at the School of Law of NOVA University, Lisbon, and of counsel at the Portuguese law firm Morais Leitão, Galvão Teles, Soares da Silva & Associados, SP, RL, where I head the Insurance and Reinsurance, Insurance Mediation and Pension Funds Team.
Cembre S.p.A. informs to have signed, assisted by “Studio Tributario e Societario Deloitte” as tax advisor, the agreement with the Tax Authority defining methods and criteria in order to calculate the economic contribution to the production of intangible property income for the purposes of the so-called Patent Box regime, with reference to fiscal years 2015-2019. The agreement allows Cembre S.p.A. to achieve a tax benefit for 2015 around 934 thousand euro, calculated by the Company, together with the above mentioned consultants, on the basis of the methods and criteria defined in the mentioned agreement; the tax benefit for 2016 is in the process of being calculated and will be communicated as soon as available. The benefit for 2017, 2018 and 2019 will be calculated when the financial statements for the respective years will be drawn up. The Patent Box represents a tax relief regime, introduced by Italy for the benefit of companies generating income through the direct and indirect use of intellectual property rights, patents, trademarks and other intangible assets; with reference to 2015, the benefit is determined by excluding from the taxable income 30% of the income attributable to the use of intangible assets, for 2016 the rate is 40%, while for the three-year period 2017- 2019 it is equal to 50%.
Interview with Aldo Castoldi at Deloitte
How is this deal a positive one for the respective companies and the jurisdictions they are based in?
This deal has allowed the Company to access the Italian “Patent Box Regime” and benefit from a 30% to 50% exemption from both corporate income tax (levied at 24%) and regional income tax (levied at 3.9%), on the income attributable to the exploitation of intangible goods for a five year period, including FYs 2015-2019 and for a total estimated cash benefit in excess of Euro 7Ml; in addition, since it implies a periodic communication flow between the Company and the Tax Authority, it will enhance Cembre’s relationship with the latter, helping reducing the risk of future tax disputes. On the other hand, the deal is part of the extraordinary effort made by the Government to incentivise R&D activity in Italy and, possibly, encourage repatriation of valuable intangibles in order to stimulate and consolidate economic growth.
As tax adviser to this deal, were there any specific challenges you faced?
The deal implied, among others, detecting, defining and analytically describing intangible property eligible for the Patent Box regime, as well as the conclusion of a complex transfer pricing ruling with the Italian Competent Authority, since the aforementioned “Patent Box Regime” requires the use of transfer pricing techniques to evaluate the share of the taxable income of the applicant attributable to the exploitation of intangible goods. During the negotiation, it had therefore been necessary to perform a thorough functional and risk analysis and a full transfer pricing study based on a “residual profit split” methodology. The study was then submitted to the scrutiny of the competent tax officers, revised and modified a few times and eventually approved after long discussions. Indeed, closing a Patent Box Ruling may well be harder than an APA, because whilst the subject of the latter is “just” the suspension of any TP audit – provided, of course, that the applicant respects the content of the agreement – for its whole duration, a Patent Box Ruling allows for getting tax credits which could be immediately offset against any other tax liability or asked for reimbursement.
How did you guide your team around such challenges?
I have been leading negotiations with tax authorities for many years now and used the extensive experience accumulated therein to help building a “bridge” between the Company’s and the Tax Office’s positions, which were initially pretty far from each other. We worked in getting them gradually closer, to some extent, by being sufficiently flexible as to adapt our analyses to (some of) the suggestions/requests made by the Office (for instance, with reference to the exclusion of certain “comparables” from the benchmark sets used to determine the routine profitability), but also politely, yet firmly, rejecting them when we deemed they were unfounded or unfair to the Company. Of course, technical accuracy and consistency played a very important role in persuading the Tax Authority of the good reasons of the Company.
Why were Deloitte the perfect team for this deal?
Our transfer pricing and R&D incentives teams are leader in their respective markets and, besides participating in both public and reserved consultations to help “refine” the Patent Box regulations, we have closed already many Patent Box deals. In addition, having been serving Cembre for many years now, we have got an extensive and in depth knowledge of their business and organisation, which had revealed extremely helpful to drive the Tax Office closer to the Company’s requests; furthermore, we were absolutely well placed to both drafting the application and conducting the negotiations to a successful outcome.
Immigration is an integral part of developing society. Anu Gupta speaks to us on how ‘making immigration easy’ makes America a better place to be.
What are the common reasons to why visas are rejected, and when are clients advised to file a petition against their rejection?
Employment-based visa filing is a numbers game. The majority of the H1B and L1 visas are filed by a fewer than a 100 larger firms, with the smaller companies filing less than 1000 petitions each annually. A visa for an IT professional with a Master’s degree being filed by a well-funded Fortune 100 company has an extremely small chance of being rejected. When the company is filing thousands of petitions for the same exact position, it is fairly easy to copy and paste from the first, well-drafted petition to the others without actually having to understand the underlying legal requirements. Therefore, most of these companies have economized by retaining para professionals or entry-level attorneys to file their petitions.
People don’t know but the “Immigration and Nationality Act” officially surpassed the Internal Revenue Code for length and complexity in the past few years. It is only when a President like Trump insists that each section of each statute, regulation, policy memoranda be strictly adhered to that suddenly the cut and paste petitions actually start being reviewed for legal inaccuracies. Unless the filer understands the laws well, it is hard to respond to some of the questions – which, by the way, are very valid and legitimate questions for the USCIS to ask.
At this time, a majority of my time is devoted to reviewing and responding to requests for evidence from the USCIS and filing Motions to Reopen and Appeals. Each case is different, but each case has something that can be used to get the case approved. I have had to turn very few people away. There is always something in the file, if you spend sufficient time on it, that will help you convince the USCIS that the petition has merit.
With a 95% approval on the petitions you’ve filed in the past 20 years, what would you say are three things which are key for you to consider, in order to get the best outcome for your clients?
Honesty, dedication and ethics. You have to insist that your clients are honest with you. Most cases are not lost because the case cannot be won – cases are lost when the attorney does not have sufficient time to understand the case well. The attorney has to know what the client is saying – and much more importantly – what the client has not said. Then take the time to dig deeper to flush out all the facts. You can be sure the USCIS will find out whatever your client does not want you to know, and you cannot get that case approved if the USCIS points out the hidden fact in the request for evidence (RFE) to you. At that time, your client’s credibility is already lost. If you spend the time to talk to the client in the beginning, you will know how to draft the petition and what will get it approved.
Second, the attorney must love what they do and be dedicated to winning. You have to love your clients and be fascinated by how each case is different and, at the same time, fits into the same laws. You have to want to spend whatever time is needed for into each case that you decide to take. Law should not be a business; it is a calling.
The last factor, but the most important one, is ethics. An attorney must be honest and truthful. A client once told me that he was at a consulate for a visa interview when the interviewing officer saw my name on the file and said: “I know this attorney. She does good work.” The visa was issued in less than 10 minutes. The attorney’s reputation precedes them. The same officers look at work sent in by the same group of attorneys year after year. The attorney’s reputation can sway an officer into approving a case when the facts are not all favourable.
How does ‘making immigration easy’ help the US?
We are a global economy. I don’t believe protectionism can be a long-term strategy. If everyone in the world wants to work together, and we don’t, we may just end up making ourselves irrelevant. For the past century, we are the destination nation - the Statue of Liberty being seen as a summoning beacon to the rest of the world. We have been not only a financial leader, but also the leader in thought and freedom, attracting the best and the brightest of minds, and the most hardworking of individuals from across the globe. Our immigration laws evolved over the past couple of centuries. Each immigration law that was written or changed was in reaction to an event that occurred. (For example, the Department of Homeland Security was created after 9/11). Instead of being reactionary, I believe that we should plan our futures. We do need a comprehensive overhaul of our laws to make them more aligned to what we want to be as a nation and what we want our future to be. We have always been a nation of migrations – from the Irish fleeing from the famine, to the Protestants seeking religious tolerance, to the economic migrants from Asia or the millions seeking refuge from war. We cannot change our makeup. We are a blend of all cultures and all ethnicities. It is time our laws reflect this reality.
What inspired you to specialise in immigration law? Moreover, how do you fight to oppose negative opinions towards immigration?
I was practicing general business law in Manhattan when I did my first immigrant petition and was hooked. The law itself was not tough, but there was a story there - a real person whose life changed because I could do something to help her. Since then, I’ve helped thousands of immigrants enter the US, start businesses in the US, or be allowed to work, and later on bring their families and slowly become integrated into our communities. I am constantly in awe of the strength, drive to succeed, and the honest hard work that my clients put into making America great. From the corner Chinese takeout, to the Vietnamese laundry, to the Patel motel, and the Indian programmer- this is America to me as much as eating apple pie at a Denny’s is.
There is a lot of negative attention being given to immigration at this time. I think the worst thing that happened was when the Bush administration equated “immigrant” to “criminal”. In the 80s, people still had respect for the Indian doctor and the German scientist. Statistically, as a percentage, we have more doctors and scientists who are immigrants than criminals who are immigrants. Now, day after day, headlines show mass deportations, ICE raids, and children brought to the US without their consent now being forced out of the workforce and treated like pariahs. It is all extremely distressing to most people, but it is still political—aimed at increasing the vote bank. Every day people like you and me, we don’t see colour quite so clearly. Did the Chinese takeout close down? No. Did the laundromat lose its clients? No. Meanwhile, perhaps some good might come out of all this negativity and that we might actually see reform in our immigration laws.
Why are companies often reluctant to hire immigrants? What would you advise them to ensure that their apprehensions can be dismissed?
The company will try to hire the brightest possible employee, at the cheapest possible rate, to ensure maximum profitability. Hiring immigrants at this time costs the company more – just a basic work visa for example, an H-1B, costs $2,460 in filing fees. If it is a larger employer, it may have to pay an additional $4,000. If they want the visa in 2 weeks, it is $1,225 extra on top of these fees. And this does not even include the attorney’s fee. And then there is the hassle of extra regulatory requirements imposed by the Department of Labour and the USCIS that the employer has to comply with and the “site inspections” when a federal agent happens to drop by your office unannounced to check on a visa worker – managing to freak out half the people in the office. Or worse, when the officer visits your customer’s location and manages to freak out your paying customers.
Parts of our economy are dependent on an immigrant work force for survival - the summer crew at resorts and vacation spots, the migrant farm worker during picking season, and the IT industry—to name a few. Each industry would hire locally if they could at times like these but labour shortages in these areas are extreme. My short-term suggestion would be to ensure that companies hire good attorneys who will guide them on the rules, help them plan their workforce needs, and make sure that companies invest time and money to conduct internal audits to ensure that their paperwork is complete and up to date. And most importantly, remember that life is like a wheel. Tough times change for the better. Well run businesses endure… (and administrations only last four years – at most, eight).
Anu Gupta
Founder
1-800-688-7892
Anu Gupta is the Founder and Managing Attorney of Immigration Desk, Inc., a full-service immigration law firm dedicated to making US immigration easy. The smiles on our clients faces and their heartwarming testimonials are the true measure of our success. If we can help make the process easier for you as well, it would be our pleasure. Please consult with us, by emailing Info@ImmigrationDesk.com or telephoning 800-688-7892. You can also reach us by submitting your questions through “Avvo”.
Restructuring Key Points
Undertaking restructuring in the Oman market on any level, whether corporate, management, operation or debt, would likely be subject to the provisions of various laws. Beside the statutory requirements that clients need to be aware of, there are also practical implications that should be considered, as most of these restructuring transactions are to be registered with Omani authorities, i.e. the Ministry of Commerce and Industry.
Based on the above, clients must firstly be aware of the rule of Omani sponsorship which requires an Omani partner (whether an individual or a corporate entity wholly owned by Omanis) to own 30% minimum of the share capital of the entity registered in Oman and the remaining 70% can be owned by the foreign shareholder. Despite the fact that the shareholding ownership is split into thirty for the Omani and seventy for the foreign investor, the dividends can be split between them differently according to their agreement and does not have to be proportionate to their shareholding. The foreign shareholder cannot own the whole beneficial interest of an entity registered in Oman. The relationship between the Omani shareholder and the foreign shareholder are commonly regulated by a private shareholders agreement. There is no tax or restriction on repatriation of dividend outside of Oman.
Secondly, if the restructuring relates to the financial liabilities of an entity in Oman, commercial mortgages can be taken over the assets of the entity. Creditors who have commercial mortgages or securities over the assets of the entity will be deemed secured creditors. Secured creditors have priority over any other ordinary creditor. Enforcement of a security over the assets of the entity can be made by a creditor which is based outside of Oman through filing a claim before the Oman courts.
The third element that clients need to be aware of is the requirement of obtaining approvals or licenses that are necessary for the operations of the business. Such requirements or licenses are issued by various bodies in the Sultanate and vary according to the type of project or activity. By way of an example, setting up a manufacturing plant or the addition of an industrial activity requires an industrial license to be issued by the Ministry of Commerce and Industry and an environmental license to be issued by the Ministry of Environment and Climate Affairs.
New Laws
There are a number of draft laws currently being considered by various governmental bodies for issue in 2018 or 2019 including: the Public-Private-Partnership Law, new Foreign Capital Investment Law and the new Commercial Companies Law. Once these laws come into effect, they aim to define a wider and more enhanced role for the private sector and international investors to play in the Oman market - in order to boost the economy. Ownership of foreign investors in some sectors might be increased to 100% instead of 70% although this is not certain until the official New Foreign Capital Investment Law is issued.
Free Trade Agreement with the USA
Entering into a Free Trade Agreement (FTA) with the US represented a challenge as it deals with a number of areas under Oman law that need to be considered and amended so that it’s in line with the FTA. These include (but are not limited to): customs law and its regulation, foreign capital investment law, telecommunication law and its regulations and immigration law and its regulations. Although the laws have been amended to reflect the obligations of the Oman state in the FTA, the authorities in Oman are still facing difficulties implementing these amendments and changes, which more or less, treat American citizens the same as Omanis when it comes to investment in Oman. However, the FTA has eliminated trade barriers between Oman and the US, notably, the customs tariff of 5% on most products has been removed and Omani sponsorship is no longer required.
My name is Ahmed Al Barwani, the head of Al Tamimi & Company - Oman Office. I am admitted before the Oman courts and have right of audience before the Court of Appeal. My particular specialism is in inward investment, corporate restructuring, corporate governance, mergers and acquisitions.
In my capacity as Head of Office, I manage a team of specialist lawyers who provide legal services in number of practice areas: corporate, intellectual property, banking, litigation, arbitration, hospitality and employment.
Al Tamimi & Company as a firm has a wider regional presence with 17 offices in 9 countries with 60 partners and 350 lawyers and growing. We represent regional, international and local clients in various sectors that range from oil and gas, tourism to logistics, food, retail, mining and the health sectors.
Do you want to specify exactly where your assets will go after you pass away? Do you want to avoid the probate process? Do you want to make certain that assets won’t be given outright to a minor or that your young children are responsibly taken care of – money wise? Then it is time to start considering estate planning.
Whether you are single, married, have children, or have fur children, you ought to make sure your surviving spouse, surviving children, and/or surviving animals are provided for as you see fit. This can be done with an array of estate planning techniques.
Moreover, even though it is often the last thing you are thinking about when a loved one dies, probate and assets are an important aspect to consider. To ensure those who will keep your legacy going will undergo a smooth process, a probate attorney should be at hand, so the rightful people have access to their deserved assets.
We speak with Donna Jackson, an attorney who works hard to ensure her clients are given all the support they need, in regard to assets and estate planning.
With almost 30 years of legal experience how have you seen client’s concerns change over the years?
When I started practicing law in 1988, the clients’ major concerns were avoiding probate and avoiding paying estate taxes. Today, clients worry about the cost of long term care and losing everything to the nursing home.
Are there any changes in regulations that account towards this?
In 1988, any estate over $600,000 not passing to the surviving spouse was subject to federal estate tax. But now in 2018, estates under $11,200,000 are exempt from federal estate taxes.
There are various types of trusts: which do you think clients often are unaware about?
Most clients are not aware of Special Needs Trusts for incapacitated beneficiaries. In addition, there are irrevocable trusts available to help clients qualify for Medicaid and veteran’s benefits.
With a specialism in Elder Law, what do you think is the most concerning issues the aging population face?
The major concern is funding health care and long-term care.
Can you advise to what is the best methodology to ensure that families and family businesses are secure for the future generations?
I am a believer in establishing trusts and family limited liability companies for succession planning to preserve the family business and family farm.
What is the biggest challenge you face during probate law and how do you overcome the said challenge?
The biggest challenge in probate is the time and cost of probate. Probate records are public and there is no privacy.
Reports state that the elderly are more vulnerable to financial fraud; why do you think that is and how do you ensure your clients are protected?
Elder abuse and exploitation are growing issues. There are lots of abuse of durable power of attorneys. Attorneys need to education and counsel clients about who should have power of attorney. Attorneys need to be observant about undue influence and incapacitated of the client.
Is there anything else you would like to add?
As our clients’ lives change, the estate planning need to be reviewed and updated.
Donna Jackson
Partner
0404 Vineyard Blvd, Ste E, Oklahoma City, OK 73120
(405) 840-1874
Donna J. Jackson is a nationally-recognized attorney, authority, speaker and educator in estate planning. Ms. Jackson is a CPA and hold a Masters Degree (L.L.M.) in Elder Law. With over 28 years of legal experience, she mostly practices in estate planning with an emphasis on Medicaid, VA Benefits, and special needs planning, including revocable, irrevocable and special needs trusts, wills, durable power of attorneys, and living wills. Additionally, Donna’s practice includes taxes, probates, and business organisations.
Donna currently serves on the board of the National Academy of Elder Law Attorneys; she’s on numerous committees of the American Bar Association, Oklahoma Bar Association, Oklahoma Society of CPAs, and many others. She has been a keynote speaker for the Oklahoma Bar Association, Strafford, and the National Business Institute (NBI). She was honored as one of the 2011-2015 Five Star Wealth Managers in Estate Planning in the Oklahoma Magazine.
We’ve been practicing business law for over 25 years and we’ve found that our clients truly appreciate the time and effort we put into every aspect of their business. We’re here to help you succeed and that’s something we don’t take lightly.
At Donna J. Jackson, Attorney at Law, PC we are here to listen to your needs and help you accomplish your business goals in any way we can. We know that starting a business can be tough on your wallet, and we’ve got a number of different options that you and your company can review to keep costs as low as possible.
Fast-growing digital agency, Valtech, has acquired UK-based True Clarity in a deal assisted by London law firm, Joelson. This is the latest acquisition by Valtech and is part of a wider international expansion that it has been undertaking in recent years.
The addition of True Clarity to its existing portfolio has broadened Valtech’s capabilities in e-commerce and experience platforms such as Sitecore.
The acquisition also expands its influence with brands such EasyJet, Dyson and ASOS, who have benefited from True Clarity’s services and expertise. True Clarity has built a strong reputation for building and operating high transaction platforms for global consumer brands, which attracted Valtech to the firm.
The move also provides a wealth of experience to Valtech, which will support its position as a Sitecore Global Platinum partner and secure its place as a global leader in delivering great experiences and services on the Sitecore Digital Experience Platform.
Paul Chiappe, a Partner in Joelson’s Corporate and Commercial team, said: “We were delighted when Valtech approached us to help them with this deal. We have worked with a number of digital and tech companies before, so we understood what both parties wanted to get out of the deal.
“I am glad that the legal assistance that we provided throughout the deal has resulted in the creation of one of the UK’s largest digital agencies.”
True Clarity’s team will join Valtech’s 2,500 employees worldwide, while its office in Bristol will increase Valtech’s presence in England, where it has established offices in London and Manchester.
Josephine Theron, M&A Director at Valtech, said: “Valtech has executed many successful M&A transactions around the world. The Joelson Corporate team, stand out. Pro-active, always looking for solutions, they don’t hang around, one of our favourite advisers. We are looking forward to the next deal.”
Interview with Paul Chiappe, Partner at Joelson
What aspects did both parties agree on which made this transaction run smoother than expected?
This was our first Valtech SE transaction, but the former publicly listed company has been going through a series of international acquisitions and this was the latest in a long list which it recently completed. These transactions covered multiple legal jurisdictions around the world, each with their own unique complexities. As experienced acquirers of businesses, Valtech SE went into the deal with a clear set of objectives and procedures that made the deal run much smoother.
Moreover, what differences between the parties caused difficulty, and how did you and your team at Joelson Law work through this?
Valtech have a definite global view on transactions. One of the key requirements was to adapt their standard acquisition agreement so as to ensure their expectations on risk allocation and liability were delivered within an English law environment.
What was one thing that took you by surprise when assisting this deal, and why?
Transactions with Societas Europeas are rare and there were certain conditions and restrictions that we had to carefully consider. These included considerations on the issuing of shares and the ability to impose restrictions on them. There were also a number of novel issues that were related to it being a public company that needed to be overcome.
We have decades of experience working with public companies in the UK and overseas, so were able to deploy our team's international expertise to find creative solutions which overcame these matters, creating a deal structure that delivered on our client's requirements.
New research conducted by global elite network Interlaw, reveals the challenges GCs face in finding consistently high quality legal advice in all of the jurisdictions in which they operate. A detailed analysis of the global footprint of major international firms revealed a significant bias towards Europe and the USA, with gaps in other key trading areas around the world.
The research, which surveyed more than 100 general counsels and senior lawyers at 55 independent law firms across 41 countries, revealed what today’s global client is seeking from its legal provider. The findings also showed that the traditional law firm model is being challenged by alternative providers, with GCs having the freedom to choose the best legal provider structure for their needs
In this article, Michael Siebold, Chair of Interlaw, will shed light on the way ‘New Law’ models are challenging the ‘Big Law’ approach to give GCs this much needed depth and breadth they are seeking in legal provider.
As corporate tentacles sprawl across new and emerging geographical markets, legal services providers must be capable of offering their global clients consistently high-quality advice and service anywhere in the world - even in the most remote jurisdictions. However, Interlaw’s most recent independent research paper – ‘Global Legal Services in a Disruptive World’ – reveals the challenges general counsel face in securing this all-important uniformity in all corners of the globe.
The research, which surveyed more than 100 general counsel (GC), and senior lawyers at 55 independent law firms across 41 countries, revealed what today’s global client is seeking from its legal provider. The short answer to this question is quality, with feedback from GCs showing they are increasingly becoming less reliant on the international law firm model and more open to the idea of working with alternative providers.
One of the reasons behind this may be found by taking a closer look at the true geographical reach of some of the world’s leading ‘international’ law firms. The research reveals a significant bias towards the West – with 83% of lawyers at the top 30 firms based in Europe or North America - and clear gaps in key trading areas around the world. This calls into question the capability of such firms to deliver the consistently high standards their global clients demand.
More detailed feedback from clients about their experiences of working with international law firms revealed further concerns, with almost a quarter of GCs admitting that consistency in quality and service was the biggest challenge, while one in five reported problems with inconsistent working practices between offices, as well as patchy local insight and understanding of cultural nuances. Indeed, half of in-house lawyers (50%) said that as global law firms continue to grow they become bogged down by internal operating pressures at the expense of client service. The same proportion also said they had witnessed inter-firm political wrangling, citing poor communication between teams, blocking relationships to preserve income for a particular office and a lack of joined up working among the worst behaviours. Rather than a spirit of collaboration, the research uncovered a prevailing protectionist culture at some international firms with a distinct lack of co-operation between offices. This is entirely at odds with the type of seamless global legal services that today’s multinational client is seeking and giving rise to alternative ways of delivering legal services.
As we’ve seen, the corporate flag planting favoured by the traditional international law firm model is vulnerable to the destructive impact of political infighting. Instead, clients want flexible and agile legal providers who are willing to collaborate across borders – this is more in keeping with the network model, which is centred around collaboration and building trust. It is this emphasis on joint effort and camaraderie – where people strive to perform at their best because they do not want to let their network colleagues down – that not only sets some law firm alliances apart from others, it also sets apart the network model from traditional international law firms.
I have long held the view that the network model is more attuned to the needs of the multinational, 24/7 client. The past two years in particular have seen the waters getting increasingly muddied in terms of large firms adopting the network model, and it’s a trend that will only continue to grow. International law firms are becoming more like networks and networks have adopted some of the best traits of international law firms, but with one distinct advantage. Networks offer better value for money, as they do not have the expense of supporting the vast infrastructure that international law firms have to maintain, a fact stemming from the independence of our firms.
Almost half (46%) of the GCs involved in the Interlaw research said they already use or intend to use a network of independent firms. Of those who had already worked with a global network, 77% described their experience as good or excellent, with local insight and understanding of local culture cited as the most important benefit. They described networks as “convenient”, “dependable”, “efficient” and “effective”, but there is still work to be done to convince some in-house lawyers who used words such as “complicated” and “confusing” to describe the model. They also didn’t score as highly as international firms on their ability to use consistent working practices, such as billing and project management.
Through this report, it was important for us to get an honest picture of the type of service global clients currently receive and how we need to adapt to their future needs. Our mission at Interlaw is clear - we want to create a leading global legal services platform that can truly meet and evolve with the needs of the 21st Century multinational client, providing seamless access to consistently high quality legal solutions in every jurisdiction in which they operate.
This means ongoing investment and collaboration, but we have a clear plan and are already delivering against it. We conducted a detailed strategic review, which has resulted in our new Interlaw 3.0 strategy – a three-year plan, with clearly defined projects and timescales, to create a legal network that embraces innovation, technology and sophisticated marketing and business development processes. Not only will this bring benefits for our member firms to grow and develop their businesses, it will ensure we keep pace with the evolving needs of our global clients.
About Interlaw Ltd.
For over 35 years, Interlaw has been one of the world’s leading global networks of elite independent law firms for both global clients and member firms. Chambers and Partners ranks Interlaw as a global elite legal network. With 7,000 lawyers worldwide in 140 cities and growing, Interlaw has the capacity and ability to mobilise lawyers for the benefit of global clients and member firms, wherever in the world they want to do business. The network is fluent in the nuances of international business, yet offers an unrivalled presence across the world.
Unlike a global law firm, each Interlaw member is an established independent law firm in its country, with only the best law firms accepted as members to ensure quality is never compromised. The connected capability offered by Interlaw means lawyers can respond to the demands of global business no matter what the time zone.
navabi, the global leader in plus size fashion, partners with Verdane Capital IX, the Nordic investor in online retail and technology enabled companies.
Verdane Capital IX has invested an 8-figure euro sum to fuel navabi's ongoing growth. The investor is taking over all shares of Bauer Venture Partners, while investing an additional higher amount. All other previous investors - such as Index Ventures - remain on board in navabi. Verdane Capital is well-known in the online retail space, having invested in Boozt.com, known by some as the ‘Nordic Zalando’, which was successfully listed on the Nasdaq Stockholm Stock Exchange in 2017.
navabi will further use the investment to emphasise technology development, as the company’s success is significantly based on their data and automation focus. Having achieved its goal of reaching profitability during a period of growth based on this data-driven strategy, navabi plans to further grow its in-house data science and artificial intelligence systems to better serve the needs of its international customer base. Data-driven merchandising will also continue to help navabi expand its popular range of own brands.
The team at Mazars GmbH & Co. KG commented: “Within this deal, Mazars acted as financial adviser on the buy-side for Verdane Capital, a Swedish based financial investor. Thus, Mazars supported and closely advised in financial and tax matters to reduce the risk of the transaction from Verdane Capital’s perspective. Mazars benefited from its global network and could refer to experiences made in similar transactions worldwide.”
Lead Partner was Susann Ihlau, Global Head of Mazars’ Valuation Practice, supported by her experienced Düsseldorf based team, led by Hendrik Duscha (Senior Manager). Due to the unique, integrated partnership at Mazars, tax advice was given by a Berlin based Mazars tax team.
The insurance sector has also been subject to discussing the effects of the ever-developing data protection laws and cyber insurance. This month, Philipp Strasse, an attorney specialising in insurance law speaks on how he has seen the legal world change, how he helps his clients through litigation and the developments in the insurance industry.
Can you tell LM about your involvement in insurance law since you began practising?
Since the very beginning of my professional life I have focused on dispute resolution, in particular in pertaining to insurance law, such as: corporate liability cases, banking and finance disputes, post M&A litigation and all kinds of coverage disputes. My emphasis on the insurance sector, and my expertise in representing the interests of local and international insurers in all kinds of insurance related issues, allows me to be a leader in a challenging and extremely complex niche market, both in Austria and internationally.
As such, I also supported the foundation of ARIAS Austria (branch of the AIDA Reinsurance and Insurance Litigation Society) in 2017.
In your insurance work, what are the matters you commonly deal with alongside your clients? How do you help them avoid litigation in this segment?
Over the years I have built a client base consisting of numerous national and international blue-chip insurers, including some of the biggest global players in the industry. Vavrovsky Heine Marth is one of the go-to firms in (re)insurance law and (re)insurance litigation in Austria.
My work specifically focuses on, inter alia, Financial Lines/Specialty Lines insurance (Directors & Officers, Professional Indemnity and Error & Omission, POSI, Warranty & Indemnity, Transactional Risk, etc), product and public liability as well as property and construction insurance.
A quick response policy, a service-oriented approach and absolute accuracy in the advice we provide, are attributes my clients highly appreciate. No matter whether we deal with CEOs or Claim Handlings Specialists, Vavrovsky Heine Marth aims for perfectly tailored, self-explanatory assessments and recommendations.
In regards to the insurance companies, we deliver services and advice, inter alia, with respect to insurance product development, insurance underwriting and insurance related regulatory issues.
To avoid costly disputes, in high-profile or high-risk cases, for example, we employ a sophisticated litigation-decision-tree-approach in order to accurately anticipate liability and coverage risks as well as to address any eventuality.
What insurance issues do you believe are still to develop further? How would you go about implementing these developments?
At the moment, data protection and cyber insurance are two of the evolving topics in the industry.
The D&O insurance market will also develop further as the awareness of members of Supervisory Boards of their – on a factual basis – steadily evolving liability risks is growing. As a fact, management liability disputes lately tend to address the question whether the corporate supervision of the management was sufficiently diligent.
For me personally it is very important to anticipate market developments and changes in the insurance industry. As a firm, our strong industry network coupled with my team’s profound legal specialisation and pertinent experience, Vavrovsky Heine Marth’s systematic approach to problem-solving and our desire to provide highest quality, one-stop service to our insurance industry clients allow us to see changes long before they take place.
As an expert leader in this field, how are you and the firm working towards these changes?
My professional commitment as well as my strong ties to the industry enable me to always stay abreast of current changes and developments – in the legal environment as well as the industry.
My team and I constantly participate in seminars, congresses and trainings in the most relevant legal areas. We keep a constant dialogue with other market participants. Most importantly, we maintain transparent communication with our clients to better understand their needs and anticipate future challenges.
Philipp Strasser
Vavrovsky Heine Marth
Fleischmarkt 1
1010 Vienna, Austria
T + 43 1 512 03 53
My name is Philipp Strasser. I am an attorney-at-law registered with the Austrian Bar Association and specialise on insurance law, corporate law and dispute resolution. When joining Vavrovsky Heine Marth in 2015 as an equity partner, I leveraged my long-lasting contacts in the international Insurance Industry to build up Vavrovsky Heine Marth’s Insurance Sector and Insurance Litigation Practice.
Vavrovsky Heine Marth is a commercial law firm with offices in Vienna and Salzburg. Our core international competencies are Dispute Resolution and Real Estate. Our DR practice focuses on insurance and reinsurance, corporate and commercial, capital markets and banking, competition and IP, real estate and construction related disputes.
Several renowned national and international legal directories have acknowledged our expertise by ranking Vavrovsky Heine Marth and all of its partners among the leading Austrian specialists in their fields.
It is always difficult to decide which law firm should represent you. Some may think that only the biggest law firms are able to represent big companies. However, the cases Masoud Taheri has tried for his clients against multinational companies, he and his firm has won almost 90% of these cases.
He says: “This proves that when it is about law, knowledge and strategy is everything, not the size of the law firm.”
Taheri speaks more on what companies ought to consider when wanting to expand internationally.
When entering a new market, there are a lot of factors entrepreneurs should consider; what do you think are the most important aspects these business people often overlook?
One of the biggest mistakes that we see some clients make, is jump into the market of an alternative jurisdiction, thinking that they can handle their market simply because they are a well established company in their home country. But even when the client has done research, they do not realise their decisions may not reflect on what the local people may desire. This is why clients leave their company’s legal strategy to our firm. We consider the legal entity the client should establish in the new market, in order to be safe and gain tax benefits; how the trademark or the brand and logo of the company/product will be secured in the new market, and if the new jurisdiction offers a legal system which protects the rights of the foreign companies, etc.
We often see companies approaching us midway into their implantation to this new market, where we then spot crucial legal mistakes.
Another common mistake is clients directly negotiating with the party to which they are entering a merger/ joint merge with. They should always do this through a specialist lawyer who knows the market well.
As you are based in many jurisdictions, in your opinion, which country do you think is currently worth investing in?
In general it depends on the branch. But the Netherlands, UK and Germany are stable countries to invest in. Nevertheless, one may not expect that countries such as Iran, Iraq, Suriname, New Guinea and Frans-Guinea are good targets for investment, if one act with a good strategy. These countries have new markets and are desperately in need for new products and services. At the same time, the costs in these countries are low, while the profits can be in the millions.
What is something companies undervalue the importance of?
One of the most voluble assets of a company is its intellectual property right such as copyright, trademark, trade name, industrial design rights. A company should understand that owning such a right in one country, or even in the entire EU, does not automatically mean that it works outside those territories. Thus, before entering in to a market, and even before announcing that the company has such a plan, you should take care of all the legal steps to secure its right, so that no other person or company can claim it. At the same time, companies shouldn't accept any violation of their intellectual rights. I know that some of the biggest companies in the world (such as movie producers and music labels) are letting violators in some courtiers slip by, because they think that the violation is too small and unimportant. What they often forget is that their [the violator’s] movies, music or products are illegally distributed to the 'interesting countries' such as the US and countries in the EU. This is why my firm has specialised in this field, to secure the rights of our clients in the countries in which we operate.
My name is Masoud Taheri, a Corporate and a Trial Lawyer, and Managing Partner of International Law Firm Taheri. I have a Bachelor and a Master’s degree in Law alongside further specialist qualifications. I have been a guest lecturer and key speaker in international conferences and am member of several law related organisations.
With a success rate of 82% International Law Firm Taheri is based in Netherlands, UK, Iran and Suriname.
From Iran we handle the cases in Middle-East and Asia and from Suriname we handle cases in South America. We are also establishing a branch in India. We are specialized in international corporate law and international business law, mainly joint ventures, trade, financial services and guarantees.
The firm is also a Notary Public Associate Partner which means we can offer our clients, wherever they are based in the world, all the services which the local notary publics offer.
