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Spanish firms’ ‘best friends’ relationships with Latin
American firms are ‘one-sided’
Investment flows are mainly from Spain to Latin America, rather than vice-versa, which means
Spanish firms receive less referrals than they give
Spanish law firms that have ´bestfriend’ relationships with firms in Latin
America do not currently receive the
same level of referrals as they provide
so the arrangement is rather one-sided,
according to Santi Pagès Carballeda,
partner at Roca Junyent.
“We don’t have any offices in Latin
America as we prefer to recommend
trusted local law firms to clients,” he
adds. “However, it’s not quite a two-way
relationship as investment activity is
mainly from Spain to Latin America – we
are sending over ten clients each month
to recommended Latin American firms
but not getting the same volume back.”
While some Spanish law firms have
responded to this imbalance by opening
up their own local offices in Latin
America, Roca Junyent’s strategy is based
on the idea that having an extensive
local network of trusted local law firms
provides numerous benefits for its clients.
“As a firm we may know a lot about
each culture, but we also respect other
jurisdictions and the knowledge that our
recommended local law firms have,” says
Pagès Carballeda.
Furthermore, by ensuring that
Roca Junyent clients and the relevant
Latin American firm have a smooth
introduction, and then not interfering
in the relationship, Roca Junyent is able
to fulfil its main objective, says Pagès
Carballeda. “At the end of the day, we are
working for our clients – when they call
us and ask us if we have a local office to
help them, we have to do it.”
Santi Pagès Carballeda
Still optimistic
As for whether ‘best friends’
relationships in Latin America may
become more reciprocal, Pagès
Carballeda remains optimistic. “As a
big firm, it’s not our custom to ask for a
referral fee,” he says. “Instead, we will
wait for balance to be restored – we don’t
know when this will be but we will wait
for it.” Pagès Carballeda adds that Latin
American firms try to redress the balance
by “helping us to set up meetings with
possible clients”.
International clients rely on Portuguese law firms,
rather than global players, in Lusophone Africa
Major international law firms are unlikely
to open offices in Lusophone Africa so
clients look to Portuguese law firms to
provide them with the level of service they
expect, says Hugo Rosa Ferreira, partner at
PLMJ in Lisbon.
“We don’t anticipate major
international firms establishing themselves
in those [Lusophone African] jurisdictions,
which means clients are expecting large
Portuguese firms to provide the high
level of service that they are used to,”
he explains. “But it’s a double-edged
sword: you try to grow internationally,
but at the same time, the expectations are
higher from international law firms and
international clients – it’s a big challenge
but it’s one that Portuguese firms are well
prepared to face.”
Rosa Ferreira says that the biggest
challenge for law firms operating abroad is
maintaining the level of service, something
that has been a struggle ever since
Portuguese firms began looking abroad.
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It was this issue that was behind PLMJ’s
decision to open in Angola and Mozambique
six years ago, he adds. “We felt we needed to
take steps towards a more stabilised presence,
into which we could inject our DNA, and
enable the legal sector there to develop by
raising the standard,” Rosa Ferreira explains.
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July / August 2016 • IBERIAN LAWYER • 37