Eversheds Sutherland and Freshfields top growing list of UK firms registering lawyers in Ireland as Brexit draws closer
Since early 2016, firms have registered lawyers in Ireland to hedge against a possible no-deal Brexit.
August 16, 2018 at 09:09 AM
4 minute read
Eversheds Sutherland has registered more of its lawyers in Ireland than any other UK law firm, according to new data from the Law Society of Ireland which highlights the steps firms have been taking to prepare for Brexit in the months since the referendum.
The Anglo-American firm has registered 132 of its lawyers in Ireland since 2016, putting it narrowly ahead of second-placed Freshfields Bruckhaus Deringer, which has registered 131 of its lawyers.
In total 1,644 England and Wales solicitors have registered in Ireland since 2016, with the magic circle accounting for more than 300 of these. Numbers have tapered off slightly, with 806 registrations made in 2016, 547 in 2017, and 291 this year to date.
Of those registering, 586 have taken the further step of taking out an Irish practising certificate, with 103 applying in 2016, 245 in 2017, and 238 so far in 2018.
Slaughter and May has registered 98 lawyers in Ireland, with Allen & Overy (A&O), Linklaters and Clifford Chance (CC) taking a more circumspect approach with 39, 31 and 25 registrations respectively.
Latham & Watkins has registered 80 of its lawyers – equating to nearly 25% of its London lawyer count, with other firms taking the plunge including Hogan Lovells, Herbert Smith Freehills and IP specialist Bristows.
Firms started to take precautionary measures against a possible no-deal Brexit ahead of the referendum in June 2016, amid fears that they may find it more difficult to practise EU law without lawyers registered in an EU country.
"Law firms and solicitors are doing everything they can to ensure they continue to meet their clients' needs seamlessly when we leave the EU," president of the Law Society of England and Wales, Christina Blacklaws, tells Legal Week. "With Brexit negotiations ongoing, contingency planning varies from firm to firm depending on client profile."
Concerns centre on the ability of UK-qualified lawyers to maintain legal professional privilege in disputes and competition matters once Brexit takes place in March 2019. This privilege allows client companies to withhold documentation from investigating authorities, such as the European Commission, on the grounds they pertain to litigation proceedings.
Firms have been shoring up their position by registering lawyers in Ireland in case non-EU-registered lawyers no longer maintain this privilege.
While Slaughters has one of the largest number of Ireland-qualified lawyers, the firm's head of competition Philippe Chappatte says the real key to successfully preparing for Brexit lies in Brussels, not Ireland.
"For us, legal professional privilege is a non-issue because we have a number of EU-qualified lawyers who can address this, as will other magic circle firms.
"The Competition and Markets Authority is expecting to see a 50% increase in notifications under its merger control regime, so law firms need to have a strong presence in both Brussels and London to handle parallel notifications. We already have four partners and 20 other lawyers in Brussels, as well as the UK. We're Brexit-proof."
A spokesperson for A&O also said Ireland was only a small part of its Brexit plans: "We are in the process of finalising contingency plans to ensure we are prepared for all scenarios, including the possibility of a 'hard' Brexit, and Irish re-qualification is only one element of those plans."
Commenting on the wider questions about how the government is going to shield the legal services sector from any fallout from a no-deal Brexit, Blacklaws adds: "It appears we will face a more complicated situation for our profession post-Brexit and we hope the government will do everything it can to mitigate harm to the legal services sector, which contributes over £26bn to the UK economy each year, and £4bn in exports.
"Law firms are being resourceful and ensuring they continue to serve the best interests of their clients whatever the outcome of the negotiations."
Top 10 firms by number of solicitors admitted to the Irish Roll since 2016
- Eversheds Sutherland – 132
- Freshfields Bruckhaus Deringer – 131
- Slaughter and May – 98
- Latham & Watkins – 80
- Hogan Lovells – 42
- Herbert Smith Freehills – 40
- Allen & Overy – 39
- Bristows – 33
- Linklaters – 31
- Clifford Chance – 25
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