SINGAPORE TO EXPAND JOINT LAW VENTURES' RANGE OF

UNCLAS SINGAPORE 000931 SIPDIS SIPDIS STATE PASS USTR FOR AUSTR BWEISEL AND JJENSEN E.O. 12958: N/A TAGS: ECON ETRD EINV EFIN KIPR ELAB SN SUBJECT: SINGAPORE TO EXPAND JOINT LAW VENTURES' RANGE OF SERVICES REFS: A) 05 Singapore 3324 B) Singapore 0197 ¶1. Singapore recently announced that it will begin drafting new regulations to expand the number of services that law firms with foreign partners, including U.S. ones, will be able to offer. These provisions, which should come into effect in the second half of 2006, will apply to Joint Law Ventures (JLV) and Formal Law Alliances (cross-border cooperative arrangements). JLVs and FLAs currently are restricted to practicing banking, finance and some corporate law. Upon taking effect, the new regulations also will allow these firms to offer arbitration, intellectual property, and maritime legal services. ¶2. Under the new regulations, the Attorney-General will be authorized to approve, on a case-by-case basis, JLV and FLA licenses. Foreign attorneys will be permitted for the first time to own equity shares in JLVs, subject to an aggregate limit of 25 percent of the total shares or profits of the law firm. A Restricted Market -------------- ¶3. Sixty-five law firms, including 16 American ones, currently operate in Singapore. Of these, six are JLVs, including one with a U.S. partner, Baker & McKenzie. There are no FLAs; all three that were established in 2000 have since dissolved due primarily to higher overall operating costs. Despite plans to enhance market access, foreign law firms still face significant restrictions (reftels). They cannot, for example, practice Singapore law except through a JLV. Foreign lawyers cannot litigate in Singapore courts. Creating an Arbitration Hub -------------- ¶4. Since June 2004, U.S. and foreign lawyers have been allowed to represent parties in arbitration without the need for a Singapore lawyer to be present. Singapore has ambitions to establish itself as a regional center for arbitration services. On February 16, 2006, the International Center for Dispute Resolution (ICDR) -- the international affiliate of the American Arbitration Association (AAA)-- and the Singapore International Arbitration Center (SIAC) announced a joint venture establishing a dispute resolution center in Singapore. ICDR also has offices in New York, Dublin and Mexico City. FTA: Recognition of U.S. Law Degrees -------------- ¶5. In line with its commitments under the U.S.-Singapore Free Trade Agreement, Singapore on March 8, 2006, announced that it would recognize Singapore citizens and permanent residents holding law degrees from Columbia University, Harvard University, New York University and the University of Michigan as qualified for admission to the Singapore bar. HERBOLD