Byfield Bytes - November Edition
The clocks have gone back, the curtains are drawn, and the scent of cinnamon and mulled wine is starting to fill the air. The John Lewis Christmas ad is surely around the corner. It’s the perfect time to take stock and reflect on the home run for 2024.
All eyes have been on the Autumn Statement this month. Billed as the most significant budget in a decade, it came with weighty expectations: how would the government manage a fiscal tightening while maintaining its ambitious spending plans? In the run up, Law.com offered an insightful roundup of partners’ predictions, highlighting concerns and the possible impact on different sectors and practices. In the end, business sentiment was mixed, with reactions varying dramatically. This doesn’t feel unfamiliar every budget has winners and losers after all. Firms with large private client practices may find their services are in demand as increased tax burdens loom, and there is a cautious optimism that infrastructure investments and targeted industry support could have a positive impact on the overall landscape for corporate transactions and overall economic activity.
Anticipation has also been building towards the US election. Ahead of voting opening, Krish Nair at Law.com International provided an incisive overview of how the outcome could reshape markets, law firm strategy, and international alliances. The term "Trump Trade" has gained popularity among investors as policies on tariffs, immigration, Ukraine aid, and cryptocurrency regulation spark significant shifts. The US dollar, gold, silver, and Bitcoin have strengthened, while stock markets feel the strain.
As the new president prepares to take office, one thing remains clear: Big Law’s westward retreat continues. Firms like WilmerHale and Jones Day have already drawn political lines in the sand, and the fallout from Trump’s 2018 China trade war still casts a long shadow, prompting a wave of US law firm exits from China. India, however, may offer new horizons, with firms like CMS in tie-up talks with IndusLaw, signalling that the Asian legal landscape still holds potential amid the global retrenchment (please forgive a shameless plug here for this timely article from Law360, authored by yours truly and my erstwhile colleague Liam McCafferty).
The annual debate over NQ salaries has also revived, as perennial as Pimms in summer. This month, we’ve seen increasing scrutiny of trainee pay as well. With magic circle firms hiking NQ salaries by up to 20%, trainee salaries are also on an uphold trajectory, sparking debate over the culture this may encourage. Higher pay often brings higher expectations, with some fearing that trainees may be under pressure to justify their salaries with longer hours and greater productivity. For big law, it’s a delicate balance: staying attractive to talent without risking reputational damage by appearing profit-focused over people-focused.
Finally, and by no means the least, is the bombshell report from the super-regulator Legal Services Board (LSB) into the SRA’s handling of the Axiom Ince affair. In its scathing report, the LSB found that the SRA failed to act “adequately, effectively and efficiently,” – particularly in not securing client funds, which led to a further ￡36 million loss – and promises there will be enforcement action. SRA Chair Anna Bradley attempted to frame the issue as “history” at a recent compliance conference, an approach that risks further inflaming critics. Paul Rogerson of the Law Society Gazette underscores the extent of reputational damage inflicted on the SRA and questions its continued “empire-building” approach despite apparent lapses in core oversight. In The Lawyer, Katy Dowell highlights how the SRA’s limited oversight allowed Axiom’s directors to pull off two high-profile acquisitions of struggling firms, only to be investigated by the SFO for allegedly misappropriating client funds to finance those very deals. Dowell warns that the LSB’s recommendations for the SRA to take a more hands-on approach could have a “chilling effect” on the market, dampening consolidation efforts and adding new layers of bureaucracy to already complex acquisitions.
Big Questions for November
Post of the Month
Lawyer Quote of the Month?
‘I wanted a role where I could help people and businesses. The work I do involves advising and protecting people who disrupt the English status quo and so attract unfair criticism and intrusion from various institutions. I like to think this is a funny foreboding from the teachers at school who described me as disruptive.’
Jess Alden, Senior Associate at Slateford, on why she wanted to become a lawyer.?
Byfield Spotlight
Our second newsletter – Disputes Digest - launched earlier this month. The newsletter covers the biggest Disputes & Investigations stories, bringing to you our unique perspective as communications and reputation experts.
October’s edition covered the FCA’s proposed ‘name and shame’ regime, Harrods’ investigation into alleged abuses by its former owner, BHP’s Mariana Dam Collapse and more. The newsletter can be accessed through LinkedIn, or can be sent directly in to your inbox after completing our registration form.
The team celebrated World Mental Health Day in our new offices with some cake, coffee and a chat. Everyone's mental health matters.
Learn more and access resources at Mental Health Foundation and https://www.mentalhealth.org.uk/
?? How SRA investigations work - Expert Panel ??
领英推荐
?? Date: 14th November 2024
?Time: 8:30 AM
??Venue: Kingsley Napley, 20 Bonhill Street, London, EC2A 4DN
This insightful panel discussion on navigating SRA investigations will explore key topics such as the investigation process for firms and individuals, effective strategies for managing media attention, and what journalists are legally allowed to report.
The panel features our Joint Managing Director, Ben Girdlestone, as well as: Chair: Leor Franks (Chief Business Development & Marketing Officer at Kingsley Napley) Krishnan Nair (Managing Editor at com) Julie Norris (Regulatory Partner at Kingsley Napley)
?? Please contact [email protected] if you want to attend the event.
At the start of the month, Meg was joined by Rose Walker from Bloomberg Tax for an episode of Counsel Culture where they discussed the latest Freshfields rebrand and the Johannesburg office closure and equity partner cut at A&O Shearman, the communications and cultural challenges that come with such changes, and what firms can do to ensure they walk the walk when it comes to diversity and inclusion.
At the end of Black History Month, we reflected on the remarkable individuals who have shaped and continue to impact the legal landscape in the UK. These pioneers have opened doors for diversity, justice, and equality within the legal profession.
Click the below link and swipe through to learn more about their remarkable journeys and achievements.
For more insights, stories, and historical retrospectives that resonate with the ethos of this year’s Black History Month theme “Reclaiming Narratives” visit: https://www.blackhistorymonth.org.uk/?
Halfway through the month, Meg was joined by Simon Davis, The Law Society President and former commercial litigation Partner at Clifford Chance. They discussed the ever-changing landscape of the legal industry and all of the challenges arising out of that for law firms and their lawyers as well as scrutiny of lawyers in litigation and ethical considerations in disputes.
Some Things you might have missed…
As regular Counsel Culture host Meg took a well-deserved break, Joint Managing Directors Ben Girdlestone and Michael Evans stepped in to discuss the biggest stories in the UK Legal Market. ??
They explored whether law firm leaders are experiencing FOMO (fear of missing out) amidst the wave of mergers sweeping the sector. The conversation also touches on trainee salaries and the divide between equity and non-equity partners in US firms. Additionally, they provide updates on high-profile cases, including the BHP case regarding the dam disaster in Brazil, as well as how the SRA is handling the Post Office and Axiom Ince cases. ??
Until next time—don’t hesitate to reach out with any questions or feedback!