From offshore to Big Law: the Panama Papers’ lasting imprint on the legal landscape

Tom Moore argues profession must deal with changing attitudes on tax and reputation

The offshore market is being redrawn following the leak on 3 April of 11 million documents from Panama law firm Mossack Fonseca & Co, which led to a public outcry about tax evasion. The leak revealed some 12 world leaders, including close associates of Russian president Vladimir Putin and 143 politicians, used the firm to avoid tax in developed countries.

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Standing tall – 2015 in review for the offshore elite

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The offshore transactional market continues to go from strength to strength. Our annual focus on the ten largest offshore firms again reveals impressive activity levels during the last year. According to Appleby’s recent private equity report, during the third quarter of 2015 deal activity was even more robust than usual: there were 660 offshore deals during the quarter, worth a total of $60.7bn. Of those, 26 involved private equity firms either acquiring or disposing of their investments. With a combined worth of $16.1bn, private equity deals therefore represented over a quarter of total offshore activity by value in Q3 2015.

Material growth in private equity-backed M&A is a trend that looks set to continue, according to Ogier global managing partner Nick Kershaw. ‘The asset classes are diverse, from real estate to trust companies, but there is consistent acquisitive appetite,’ he says. Ogier acted on several high-profile deals in 2015, such as providing Jersey law advice to Palamon Capital Partners on the £200m joint acquisition with Corsair Capital of Currencies Direct.

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Harneys: British Virgin Islands positioned to become an international arbitration centre

Phillip Kite

Global head of litigation and insolvency, Harneys

phillip.kite@harneys.com

The British Virgin Islands’ (BVI) Arbitration Act 2013 came into force on 1 October 2014. It is a landmark piece of legislation which is expected to propel alternative dispute resolution in the BVI into high gear. The BVI is now well-positioned to become a leading jurisdiction for international arbitration. The Act incorporates these main features:

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Making gains – to be or not to be in the fiduciary business

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In July, global offshore firm Appleby announced the management buyout (MBO) of its fiduciary business for an undisclosed sum, backed by private equity house Bridgepoint. Completion is subject to regulatory and legal approvals, but is expected to wrap up by the end of 2015.

According to group chair Frances Woo, the sale had been considered for some time, so that the fiduciary arm could continue to develop new products while the legal side could invest in new technology and knowledge management going forward.

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