International firms in Brazil under scrutiny as local Bar queries alliance business practices

The Brazilian Bar Association has asked international firms with associations in Brazil to supply information about their businesses amid concerns they are not complying with local Bar rules.

Following several hires made by the associated firms of DLA Piper and Mayer Brown, the Ordem dos Advogados do Brasil (OAB) has asked all international firms for information on their alliances, prompted by concerns that international firms are using their associations to recruit local lawyers.

The OAB move was reported last week by the publication Latin Lawyer. DLA's associated firm, Campos Mello, recently hired a team from TozziniFreire, while Mayer Brown's local firm, Tauil & Chequer, has made a number of hires from Machado Meyer Sendacz & Opice.

Shearman & Sterling Sao Paulo managing partner Rob Ellison (pictured) said: "There has been a recent wave of new arrivals setting up joint ventures with local firms, and the market is wondering whether they are respecting the spirit as well as the letter of the law. The Brazilian Bar authority seems to think some of them are sailing close to the wind."

DLA said in a statement: "We have respected and upheld the regulations regarding foreign law firms in the market and have rigorously adhered to all requirements of the Brazilian Bar in relation to our agreement with Campos Mello."

Stephen Hood, who heads Mayer Brown's operations in Brazil, said: "We are confident that Mayer Brown and its affiliated firm are completely compliant with all relevant regulations in Brazil, as we are in any jurisdiction in which we operate. The firm has received and responded to the request for further information which the OAB has sent to international firms in Brazil."

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