The Legal 500

Ecuador

Editorial

 

Legal market overview

Following President Rafael Correa’s election to a third term, Ecuador’s economy has remained strong – growing at an annual rate of 4.9% (one of the highest rates in the region). Inequality has also decreased to a Gini coefficient of 48.5% in 2013, compared 54% in 2006. These conditions may be the result of the implementation of a new model of development derived from the “Good Life” National Plan 2009-2013. The main goal of which has been the reinforcement of the role of the State in steering the economy and strengthening the provision of public goods and services, mainly in the areas of infrastructure, health, and education.

In spite of some ever present difficulties, Ecuador is generally considered to offer a relatively stable and flexible legal framework. Prospects of more attractive scenario for foreign investment and business is also highlighted by the resumption of FTA negotiations with the EU earlier this year; previous talks were suspended in 2009.

Legal novelties include an amendment to the 2009 Mining Law which it is hoped will stimulate the mining sector by simplifying investment conditions. On the telecommunications front, a new media law was passed in June 2013; highly controversial, it creates a state-controlled regulator that will oversee newspaper and television content, and as such, increase the government’s direct involvement in the media sector.

After the enactment of the Organic Law for the Regulation and Control of Market Power in 2011, the activity for law firms in the area of competition and antitrust has increased. The country witnessed the effects of such legislation when a court in Guayaquil suspended a multimillion-dollar fine issued by the newly established antitrust authority in the telecommunications sector.

The market remains dominated by full-service firms such as Pérez Bustamante & Ponce and Bustamante & Bustamante, which are usually involved in the largest transactions and preferred by international clients. A second group of slightly smaller firms are also very active; Corral Rosales Carmigniani Pérez with presence in both Quito and Guayaquil; and Paz Horowitz Robalino Garcés, Abogados, increasingly expanding its market presence in several areas.

There is also demand for boutique firms specialising in IP, labour and tax where Bermeo & Bermeo Law Firm, Jaramillo Dávila Abogados and Tax & Legal Advisors respectively, are at the top of the market.

Regional alliances have also made headlines. Central American firm Aguilar Castillo Love has formed an alliance with Pólit & Pólit Abogados, marking its first step into the South American market, and continuing an integrationist trend that began with Noboa, Peña, Larrea & Torres Abogados, the Ecuadorian arm of Peru’s largest firm Muñiz, Ramírez, Pérez-Taiman & Olaya Abogados and the more recent association between Corral Rosales Carmigniani Pérez and Colombian firm Mauricio Velandia Abogados in the competition and antitrust area. Also in the offing is the opening of an Ecuadorian office by Uruguayan firm Ferrere, which has previously established itself firmly in both the Paraguayan and Bolivian markets.

Press releases

The latest news direct from law firms. If you would like to submit press releases for your firm, send an email request to

Legal Developments worldwide

Legal Developments and updates from the leading lawyers in each jurisdiction. To contribute, send an email request to
  • http://www.drewnapier.com/Publications-Events/Legal-Updates/Copyright-(Amendment)-Bill-2014

    This update discusses the Copyright (Amendment) Bill 2014 (" Bill "), which was passed by Parliament on 8 July 2014.
  • EU/AT: Austrian gas law's possible non-compliance with EU Gas Directive

    On 18 July 2014, the Austrian energy regulatory authority E-Control released its affirmative decision in relation to the certification of Trans Austria Gasleitung GmbH (" TAG ") as a transmission system operator (" TSO ") for gas. In its decision, E-Control not only requires TAG to be comprehensively restructured, but also takes a stance on the European Commission's (" EC ") opinion on the potential non-compliance of the Austrian Natural Gas Act 2011 (Gaswirtschaftsgesetz " GWG ") with EU unbundling rules.  read more...
  • Proposals to enhance regulatory safeguards for investors in the capital markets

    This update discusses a consultation paper published by the Monetary Authority of Singapore on proposals to enhance its regulatory framework for safeguarding investors' interests. The proposals are in the following three key areas: (a) extending to investors in non-conventional investment products the current regulatory safeguards available to investors in capital markets; (b) requiring investment products to be rated for complexity and risks, and for these ratings to be disclosed to investors; and (c) refining the non-retail investor classes including providing accredited investors the option to benefit from the full range of capital markets regulatory safeguards that are applicable for retail investors.
  • New Regulation for the Turkish Banking Industry: Towards a Healthy Synthesis Between the Banks and t

    Turkish banking industry is considered one of the strongest in Europe. The crisis ridden global banking industry had experienced numerous difficulties following the 2008 market collapse, but Turkish banking industry had survived the crisis with relatively insignificant scars.
  • A Touchstone in Energy Financing: Reduced Yield and Turkish Insurance Market

    The effect of climate change is not only an environmental problem today as it directly relates to the resource based industries.  In today's world, the scientific assessments lead the players of energy to reflect on their project viability.  In direct proportion to the growth in financing renewable projects, insurance companies and underwriters are also expected to formulate their risk assessments on resource-oriented allocation models.  Since especially the incontestable growth of ancillary instruments in Europe and  the Japan the warranties in financing the "energy as the capital and the resource itself" yields new insurance coverage.
  • UA: New rules for conversion of FX proceeds

    The National Bank of Ukraine (NBU) introduced the compulsory exchange of 100% of foreign currency proceeds.  read more...
  • Competiton Law Quarterly Update Q2/2014

    In this edition's feature article "CCS airline industry market study", we discuss CCS findings from an airline industry market study which CCS commissioned to examine whether certain joint ventures between airlines operating through Singapore have actually resulted in net economic benefits.
  • South Korea: Draft Act on Compensation and Relief of Environmental Pollution Damage

    The Korean Government has launched a government project to establish a system to compensate and insure against environmental pollution damage, and is pursuing the introduction of a legal relief system for environmental pollution damage. Such Government initiative is intended to address the current situation where environmental pollution accidents inflict serious damage on society due to the enormous amount of tax money that is required for curing the pollution, while companies that caused the accident sometimes go bankrupt because they cannot bear the financial burden of paying the compensation. Moreover, the victims of environmental pollution accidents are often unable to obtain proper compensation due to the burden of proving that their injury resulted from the pollution or due to the prolonged litigation process which is unavoidable in light of the nature of environmental pollution.
  • South Korea: KFTC Approves First Consent Decree

    On March 12, 2014, the Commissioners of the Korea Fair Trade Commission ("KFTC") approved a consent decree with Korea's major Internet portal companies, Naver and Naver Business Platform (collectively "Naver") and Daum Communications ("Daum"). This was the first time since its introduction that a consent decree was used to conclude a case before the KFTC. With this consent decree, the KFTC's investigation of Naver and Daum for their alleged abuse of market dominance ended without any finding of liability.
  • South Korea: Recent Developments in Broadcasting Regulations

    Recent regulatory developments in the ever-changing broadcasting environment are summarized below.

Press Releases worldwide

The latest news direct from law firms. If you would like to submit press releases for your firm, send an email request to