Singapore to award second round of local law licences as firms line up to apply
DLA Piper, Eversheds, K&L Gates and Linklaters are among a raft of firms expected to apply to practise local law in Singapore after the country's Ministry of Law announced that a second round of licences will be awarded next year.
May 03, 2012 at 07:03 PM
3 minute read
DLA Piper, Eversheds, K&L Gates and Linklaters are among a raft of firms expected to apply to practise local law in Singapore after the country's Ministry of Law announced that a second round of licences will be awarded next year.
Singapore law minister K Shanmugam recently confirmed that law firms will be able to apply for Qualifying Foreign Law Practice (QFLP) licences in the second half of 2012, with the licences to be granted next year. Clifford Chance, Herbert Smith, Allen & Overy, Norton Rose, White & Case and Latham & Watkins all won licences during the first round in 2008.
DLA Piper's Asia head of finance and projects, Martin David (pictured), said the firm is "very enthusiastic" about the news, adding: "It shows real determination on the part of the Government to liberalise and charge forward. In principle, we've been waiting for this moment. Practising local law is very much a part of our strategy, and I'd be surprised if we didn't apply."
K&L Gates Asia managing partner David Tang confirmed the firm's intention to apply for a licence for its five-partner Singapore arm, while Eversheds managing partner Lee Ranson said the UK firm is also likely to put itself forward.
Partners at Linklaters recently told Legal Week that the firm is interested in applying for a licence in the wake of the termination of its joint venture with top-tier local practice Allen & Gledhill.
Kennedys has also confirmed that it is considering moving into local law in the city-state, while Stephenson Harwood and Ashurst are also thought to be likely applicants, having failed to secure a licence in 2008, when around 20 firms applied.
"Firms that weren't selected in 2008 have been asking for a few years when the next round will be," said Stephenson Harwood global head of aviation Paul Ng. "The largest international law firms were granted licences the first time around, and we're hoping smaller, more boutique firms will have the chance this time," he added.
The licensing process is expected to be completed early next year, although the Ministry refused to confirm how many will be granted. Priority is expected to be given to firms boasting a high-profile, strong brand and a sizeable workforce.
Earlier this year the Singapore Government ushered in new legislation allowing overseas firms to take a stake of up to 33% in local practices and share profits with Singapore partnerships.
The six firms granted QFLP licences in 2008 will also be allowed to enter into formal law alliances or joint law ventures with Singapore firms after the reforms come into effect in the second half of this year.
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