The Gazette 1991

OCTOBER 1991

GAZETTE

Multi-National Practices - the Need for Safeguards

developed. Law societies will have to decide, therefore, on how they are to approach the question of recognition of foreign lawyers for this purpose. The approach adopt- ed by the Law Society of England and Wales involves the establish- ment of a register of foreign lawyers which will be maintained by that Society." Noel Ryan said that the setting up of such partnerships had implica- tions in regard to safeguards for clients and regulation of the pro- fession, among them: • "How is the question of regula- tion and control by law societies of foreign lawyers practising within the jurisdiption, who will not be members of the home law society, to be exercised and what arrangements are needed to ensure that they will be answerable in a disciplinary sense; • how can law societies ensure that there is adequate pro- tection of the public, especially in relation to handling by foreign lawyers of clients' money and, in this connection, what is to be the liability of locally maintained compensation or guarantee funds for acts of dishonesty by foreign lawyers; • is there to be participation by foreign lawyers in indemnity funds or professional indemnity insurance arrangements; • how is the issue of professional conduct to be regulated, and in particular, what codes of con- duct and other disciplinary codes are to apply? MNPs are on the way "As yet these issues have not surfaced in a concrete way in Ireland", said Noel Ryan, " t hat is to say the Law Society has not had to draw up rules relating to any Safeguards and regulations

The es t ab l i shment of Multi- National Practices (MNPs) raises important issues of principle re- garding safeguards for clients and disciplinary and regulatory arrange- ments. In a recent address to the ESSEBA Group (English speaking secretaries of law societies and bar associations), Law Society Director General, Noel Ryan, outlined the key considerations that arise. What is a MNP? Several distinguishing features of MNPs were worth stressing, he said: • "first, we are talking about practices t hat exclusively comprise lawyers; • secondly, the concept relates to lawyers from different juris- dictions joining together in a single practice; • thirdly, such a practice provides services of an international kind on an international basis, and; • fourthly, the practice can be organised in a variety of forms." While it seemed clear, he said, that issues raised by the establishment of MNPs did not give rise to the same difficulties as were raised by multi-disciplinary partnerships (MDPs), nonetheless, law societies would have to examine a number of important questions. Recognition arrangements " I t is clear that the essence of the relationship in a multi-disciplinary practice is that there is a fee- sharing arrangement between lawyers who are fully qualified to practise within the jurisdiction in which the practice is established and foreign lawyers, that is to say, lawyers who are qualified in another jurisdiction but who chose to operate, under home title, in the jurisdiction of the practice. This means that rules, whether statu- torily-based or otherwise, which prohibit lawyers from sharing fees with foreign lawyers would have to be changed to enable MNPs to be

Noel C. Ryan Irish based multi-national practice. We have, however, considered the issues involved at the legal level and the forthcoming Solicitors Bill is expected to contain provisions that will facilitate the development of MNPs in Ireland. The message issuing from Government would seem to be that whatever legal obstacles exist to the creation of MNPs should be removed. "The international trend would also seem to be clear. MNPs are already happening. It is certainly true that larger firms in the UK and Ireland are already in a business relation- ship of one kind or another with foreign-based firms as a matter of necessity. We hope that in Europe the development of MNPs will proceed in an orderly manner. Meanwhile in Ireland, the Law Society will in due course develop a policy stance in relation to the desirability or otherwise of per- mitting such practices." • ^ j p CABGO MAHNE SURVEYORS LTD. Capt. Thomas C. Nash M. INST. PET. Marine Consultancy; Independent Marine Surveyors; Vessel & Terminal Safety Inspection; Recruitment; Procedures Manuals. Cooleen House, Rushbrooke, Cobh, Co. Cork. Tel: 021-811677 Fax: 021-813009 Marine Expert Witness; Ship to Ship Transfer;

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