What are the reasons for the proposal
The aim of the proposal is twofold:
to formalise and tighten control over foreign law firms operating in Hong Kong;
to extend to foreign law firms similar rights to practise multi-jurisdictional law that are currently enjoyed by some of the larger firms of Hong Kong solicitors.
The reasons for the proposal are as follows: (a) The existing right of foreign law firms to practise foreign law in Hong Kong is given through the issue of work permits by the Immigration Department. Under loose administrative arrange- ments the Immigration Department consults the Law Society which, before it will approve the issue of a work permit, requires members of the firm to enter into an undertaking with the Law Society. The undertaking includes a requirement that the members of the firm observe Hong Kong professional and business ethics. There are no published criteria which set out the conditions that need to be met before a work permit is issued. Such control, and the existence of an undertaking, depends upon whether the members of the firm require a work permit. A Hong Kong resident with a foreign qualification, for instance, does not need a work permit and is therefore subject to no control despite practising foreign law. The Government considers that, as with the admission of Hong Kong lawyers, a formal admission system, with published criteria to be applied through the Chief Justice, is in the best interests of Hong Kong. (b) At present control on the practise of
law by foreign law firms does not fall within the statutory powers of discipline exercised by the Law Society over Hong Kong solicitors but depends upon the undertaking given to the Law Society. The Government considers that all foreign lawyers should be brought under a formal system of
discipline in the same way that cop is exercised over local law firms. (c) Enabling foreign law firms to provide
from within the firm a full range of legal service to their international business clients will help strengthen Hong Kong's position as a major international financial and commercial centre. In recent years there has been a growing international trend towards permitting the integration of domestic and foreign lawyers to provide multi- jurisdictional advice within a single firm (see Annex for details). The proposal will also enhance employment opportunities for Hong Kong solicitors by giving them the opportunity to gain experience in working for world class firms on major international commercial work.
Implementation
Details of implementation will need to be worked out together with the Law Society. The issues to be addressed include:
the criteria to be satisfied before a foreign law firm is given a licence to practise in Hong Kong;
what evidence a foreign law firm should be required to produce in support of its application for a licence; conditions to be imposed upon the
granting of a licence;
what records should be kept by foreign law firms of advice given or work done by their Hong Kong solicitors on Hong Kong law; to whom records should be made available;
powers to impose sanctions; compulsory insurance;
the ratios of local partners to foreign partners and local partners to local solicitors employed. This exercise will take time; but when completed it should meet the worries expressed about the proposal.
The proposal will then have to be approved by the Executive Council and the Legislative Council.
No comments yet.
Private notes are available after approval.