IBA Unveils Recommendations On Cross-Border Practice

by Glen Shapiro, LawAndTax-News.com, New York

23 September 2003

At its annual conference last week, the International Bar Association (IBA) called for the support of bar associations throughout the world for its draft code on temporary cross-border practice.

Unveiling the 'Draft Best Practice Recommendations for Temporary Cross-Border Commercial Practice', chairman of the IBA's Section on Business Law (SBL), and head of the committee tasked with examining this issue, Fernando Pelaez Pier, explained that:

"These Draft Recommendations address the current reality in the daily practice of our members. We intend that the work of this task force, and the open debate of our draft recommendations at this showcase, be a constructive effort contributing to the World Trade Organization and to immediate efforts necessary within the profession to modernize lawyer regulation."

The ten recommendations put forward by the IBA task force were:

- Restrictions on the temporary provision of legal services in a foreign country should be removed;

- Foreign lawyers should be obliged to obtain local legal advice prior to the provision of any service;

- Foreign lawyers should be permitted to advise on local law in countries in which they are not admitted to practice;

- Foreign lawyers show follow the ethical rules of countries in which they are admitted to practice, and should 'make an effort' to understand local professional rules;

- In-house corporate counsel should be allowed to advise their company in any country;

- In-house lawyers should retain their legal privilege rights;

- Lawyers should be allowed to represent a client in any jurisdiction in arbitration cases;

- Lawyers should have privilege in arbitration cases;

- Lawyers should represent an entity as a whole rather than any particular company member, and should therefore be obliged to report illegal activity taking place within the company;

- In-house counsel should resign from a company if they are aware of any illegal activity taking place within it.

However, the recommendations have been criticised by some within the international legal community as being too focused on the needs of US and UK commercial law firms.

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