Global annual report business investment can I make there with certainty ?’” There is a view that , with funds looking for returns on investment , the result of the Spanish election ( in which the ruling PP increased its number of seats , though it failed to win a majority ) was good for the country in terms of increasing its chances of attracting investment . “ This is a great opportunity for Spain ,” says one partner . “ We [ Spain ] can sell stability and predictability – Spain is a cheap jurisdiction , while Madrid is a great hub ,” he adds .
Spain would have a better opportunity to benefit from uncertainty in the UK if it had a stronger government , argues Gracia . “ It would be better if Spain was less bureaucratic , Anglo- Saxon investors would fear this [ bureaucracy in Spain ],” he says . Gracia also says that while income tax has recently been reduced in Spain , regional government in the country can set inheritance tax as high as 80 per cent . “ We [ Spain ] could replace the UK , but bureaucracy could push us out of the game ,” Gracia says .
The big banks are all in Spain , but the country ’ s public sector lacks the international standards needed to “ really understand what investors need ”, says Vázquez- Guillén . “ It ’ s also difficult when the government changes the rules – we are playing within a global market , we have fantastic law firms – all the big players are in Madrid , what is needed is an agreement to provide a stable regime for all investors .”
‘ Joke ’ ministries One partner argues that Spain should be asking international businesses what the country could do to make it attractive to investors . As another partner at an international firm in Madrid puts it : “ We have government ministries that are a joke , we don ’ t have a serious financial court , we should be moving quickly , we should create an arbitration hub .”
There is also a view that major Spanish law firms should “ work harder to convince government ” of the need to bring more “ legal business ” to Spain , as one partner puts it . He continues : “ The UK government has a plan to increase legal business , but do we [ Spain ] have a plan ?” It is in this context , that Frankfurt and Luxembourg are identified by some market observers as the places that have the most to gain as a result of Brexit .
It is understood that some major global firms with operations in London are now asking themselves whether they have “ over-capacity ” in the UK . One partner at the Madrid office of a ‘ Magic Circle ’ firm says : “ Given the value of the pound following Brexit , it may be more profitable for a global firm to move 500 London lawyers to Frankfurt or Luxembourg – you
How are the international demands of clients impacting on the way law firms do business ?
“ As our clients demand high-quality service irrespective of jurisdiction , law firms have increasingly been expanding internationally , whether by seeking local partnerships or by setting up local offices . Additionally , we are more open to hiring foreign lawyers and receiving lawyers on secondment from international firms .” Antonio Villacampa , partner , Uría Menéndez - Proença de Carvalho
“ At an international level , we see that in-house legal departments are becoming more sophisticated and demanding . It is no longer a seller ’ s market . Many large international companies use different law firms depending on the matter and they often go to panels . Surveys tell us that clients expect lawyers not just to be technically great , but also savvy in terms of understanding their business and ensuring we anticipate upcoming legal challenges they may face all over the world .” Mercedes Fernández , partner-in-charge , Jones Day Madrid
“ International demand , and the full scale internationalisation of SMEs , has allowed small and medium-sized law firms to come into contact with international standards . This had a curious effect on the legal market in that it granted these law firms access to experiences that otherwise would be closed , such as a greater awareness of business development , alternative budget methods and lawyers ’ careers . It also shaped , and is still shaping , how legal services are rendered - that is , using a deeper integration of methods , documents and legal solutions .” Rita Trabulo , associate , CCA Ontier
“ Three factors drive change : non-traditional legal competitors ( that is , accounting firms , consultants , data-based suppliers and boutique law firms ); the influence of technology ( technology makes it increasingly possible to displace lawyers who handle routine legal matters ); and globalisation ( growing numbers of businesses are no longer local and thus require legal advice from wider geographic areas ).” Inês Albuquerque e Castro , associate , FCB Sociedade de Advogados
“ International demands are making our firms better , no doubt about it . They are forcing us to be more professional , efficient and easy-going . International clients now need quick responses to their inquiries and do not want barriers to communication or understanding . Multilingual teams are required to provide proper service .” Jordi López Batet , managing partner , Pintó Ruiz & Del Valle
“ Clients demand very modern firms , with a modern and efficient internal administration , business-orientated lawyers and lawyers that are capable of understanding how to add value to their work for the client . Quality of service is presumed .” Luis Marimón Prats , partner , Marimón Abogados
“ It forces lawyers and firms to train in legal project management ( LPM ) – international demands make LPM compulsory if you want to successfully conduct a multijurisdictional case .” Juan José García , managing partner , Yingke Adarve Law Firm
>> www . iberianlawyer . com July / August 2016 • IBERIAN LAWYER • 31