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Pledge to prevent outsourcing of legal work

Richard Horseman

The Bermuda Bar Association’s re-elected president has warned of the dangers of outsourcing legal work outside of the island.

Richard Horseman, who was reappointed to the post this month, said that the practice of outsourcing was “of real concern” to the association.

“Last year’s agenda was dominated by the announcement that overseas law firms were intending to move to Bermuda,” Mr Horseman said.

“Of real concern to the Bar Association is the outsourcing of the practice of Bermuda law to other jurisdictions. This is not just a concern for the local law firms and lawyers, but for Bermuda as well.

“Many of the normal services necessary to run a law firm can be done cheaper overseas. Likewise, corporate administration services can be easily administered from overseas where overhead costs and labour are much cheaper.

“Corporate administration jobs in Bermuda provide high-paying jobs for locals who are not attorneys.

“These jobs can be easily outsourced to other countries where they can be done for much less.”

Mr Horseman said the association would want to see a continuing commitment to the island from new firms, and would not support any departure from the 60/40 rule governing incorporated law firms in Bermuda.

He also revealed that the Bar Council was in the process of drafting new amendments to the law that would keep the legal playing field level. Mr Horseman said: “It is possible to have a large amount of legal work performed overseas which may result in a lack of opportunity for young lawyers in Bermuda.

“That is not to say that some of the new firms are not affording opportunities for newly qualified attorneys. They are doing so.

“We need to ensure that the balance is struck so we do not find ourselves in a position where a large amount of legal work and accompanying support services are being outsourced from Bermuda. Further, all incorporated law firms are required to comply with our local laws and in particular in regard to ownership.

“A law firm incorporated in Bermuda must comply with the well-known 60/40 rule unless afforded an exemption by the Government. We would not support a relaxation of the rule at this juncture.”

Mr Horseman’s reappointment as president was made at the Annual General Meeting of the Bermuda Bar Association last Wednesday

The vice-president’s position will be undertaken by Karen Williams-Smith, while Christian Luthi was named honorary secretary.

The other Bar Council members will include Elizabeth Christopher, Barclay Simmons, Cindy Clarke, Mark Chudleigh, George Jones, Michael Hanson and Trevor Moniz, the Attorney-General.

Mr Horseman said it was an “honour and a privilege” to be elected and described his first year in the position as a “busy and challenging” one. He added: “The 2015 legal year commenced with the Government’s introduction of the criminal law reforms, which the Bar Association had significant concerns regarding some of the proposed legislative changes.

“We are pleased that during the consultation phase, the Government took on board some our reservations regarding some of the proposed changes, the most notable of which being a citizen’s right to silence.

“It has long been citizens’ right in this country to not be required to account to the police or the authorities for one’s movements through Bermuda or to say anything for that matter if under suspicion.

“In the United Kingdom, where the proposed law was modelled from, there is system of safeguards that provide for proper legal advice and representation that counterbalances the loss of the right to silence.

“There was no such effective system being proposed and that was of great concern to the Bar Association.”