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Interview with Diego Villarroel, Partner, Ferrere, Bolivia

What are the biggest challenges facing Bolivia’s legal market in the next 12 months?

Recently, the legal market in Bolivia has seen increasing competition, due to mergers of local firms, as well as entry of foreign and regional firms to the Bolivian market and their mergers with local firms. Thus, the challenge we face is competition in the field, as well as keeping our current clients and finding new ones. Yet, this gives Ferrere an opportunity to reinvent itself to meet these challenges, while maintaining the work standards for which it is known.

Do you consider sustainability credentials important to your firm’s business?

Yes, they are important. As a matter of fact, there is a general consensus on this, and clients are more and more active in ensuring that their services incorporate sustainability within the firm.

Have ESG considerations prompted you to re-evaluate the service you provide?

Yes, ESG considerations prompted us to re-evaluate the services we provide. As a matter of fact, we created a regional ESG practice in 2021, to be in an optimal position to assist our clients as they increasingly turn their focus to sustainability issues and ESG-related factors. While environmental, social, and corporate governance factors have always been a part of investment and business decisions, they are now often the cornerstone or the central issue when acquiring, investing, or operating a business. Conversely, when a deal does not materialize or an investor looks to divest a company in its portfolio, a lack of sustainability or ESG risks are often cited as contributing factors. So, these issues are no longer aspirational; they are key concepts in our clients’ businesses, and therefore also in our own.

Looking forward, we expect ESG concepts to permeate every part of the business cycle, and businesses will be required, not only by the market but also by increasingly demanding legislation, to know and inform where their raw materials come from, who their suppliers are, how they relate to their employees, and how their operations impact their communities and the environment. To assist our clients in navigating this change in paradigm and adapting their business operations accordingly, our new ESG practice brings together professionals from our environmental, compliance, and labor law practices, with the specific task of understanding market demands and regulatory requirements, and their efficient and effective implementation in our clients’ business practices. Furthermore, our ESG practice has the mission of looking inward and deepening our firm’s commitment to sustainability and incorporating ESG concepts into our own operations. For us, this change in how business should be done is welcome and irreversible, and we believe change begins at home.

Where do you feel your clients need the most legal support in the next 12 months?

In general, given the investment opportunities in Bolivia, the areas where our clients will need more support in the short term are corporate matters, mining, oil & gas, technology, tax, compliance, litigation, and structuring investments.

What sets your firm apart from competitors?

High specialization, horizontal structures and high coordination, combined with regional experience. We have a pool of more than 150 lawyers with great expertise in different practices and three jurisdictions. This allows us to combine our lawyers’ strengths and local knowledge of the laws.

What is your perspective on the attractiveness of Bolivia to foreign investors in light of recent election results across the continent and with the relative calming of the domestic political situation?

Bolivia has kept its currency exchange rates stable for the last decade. This means security not only for the internal market, but also for foreign investors. Additionally, Bolivia has markets that are developing and growing, such as agrobusiness, mining, hydrocarbons, and infrastructure. It is also important to highlight that many startups have started developing in Bolivia, which are not only important at a local level, but also internationally.

How are domestic clients responding to the return to governance of Mas and policies such as the patrimony tax and increasing challenges in terms of compliance?

Domestic clients are dealing with the challenges that come about, and complying with every law.

How do you anticipate the fuel-price crisis and other global economic trends resulting from the Russian invasion of Ukraine impacting Bolivia’s economy? Are these factors likely to delay the expected re-introduction of traditional socialist policy by the current administration?

Given the current exchange rate and its stability, as well as Bolivia’s fuel price subsidies, it has not yet seen many challenges in that regard stemming from the Russian invasion of Ukraine. Notwithstanding, the Russian invasion has had effects in other areas, such as commodity prices and logistic issues.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

Given Bolivia’s economy and the recent projects being developed, the practice areas we believe will particularly thrive in the short term are agrobusiness, infrastructure, technology and project finance. A new area that has recently emerged is technology startups.

How active are members of your team in terms of thought leadership?

They are very active. Several of our members are leaders in their respective fields of practice, are sought out for that, and normally participate in activities to further develop their leadership inside the firm and outside.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

For many years FERRERE has embraced the best practices for avoiding bias and favouring D&I in all the firm’s areas and jurisdictions. This commitment was made clear in a regional plan, led by a D&I committee, whose chief objectives are equality of opportunities, social awareness on gender matters and creation of a better workplace for everyone.

The plan has specific programs geared to inclusion, advancement and visibility of all our practitioners. Some examples are:

– “Maternity Mentors”: to provide women with support on all matters related to work-life balance.

– “Cross Mentoring Program”: organizes mentoring sessions between senior men and women mentees within the firm.

– “High Profile Women Attorneys”: FERRERE explicitly and firmly fosters high profiles and involvement of its practitioners – men and women alike – in institutions, organizations and business networks, as well as participation and speaking at conferences leading to professional growth and making a contribution to society that goes far beyond their work with the firm. In the case of women, they have also become models for female junior attorneys.

As a result of these efforts, we can affirm that FERRERE is a benchmark firm in the region in terms of D&I, while leading the indicators of women professionals. Currently, 61% of associates, 57% of counsels, and 30% of partners of FERRERE are women.

What does innovation mean to you? Can you tell us about any specific innovation initiatives at your firm?

At FERRERE we understand innovation as a way of thinking and acting. This means that we deeply understanding the needs and requirements of our clients and other stakeholders, to ever be one step ahead. We also generate proposals and solutions that are as creative as they are efficient.

In fact, innovation has been key since the very conception of the firm. It was then that Daniel Ferrere got back to Uruguay from Harvard with the conviction, contrary to the reality and the consensus at the time, that it was possible to create a highly specialized US-style law firm grounded on meritocracy, and where client service and a focus on practical solutions would be the aim. In 1994 FERRERE added a family hiring exclusion to its partnership agreement, and in 1996 it had its first woman partner.

More recently, FERRERE has innovated in terms of the practice areas and the services it offers. For example, in the past year it stepped up and officialised two practice areas that reflect the dynamics of the business and the firm’s concern to offer highly specialized service: Fintech and ESG.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

For several years now, at FERRERE we have been working on updating all our IT systems. This has allowed us not only to be a pioneer firm in terms of information security, but also to be a step ahead of unforeseen events or contingencies.

From well before the COVID-19 pandemic’s arrival, FERRERE was investing in technology and working to foster telecommuting, so that when the virus hit the region it did not pose a major issue in that connection. FERRERE has stepped up those processes and today can respond to any request, beyond the restrictions on movement in each country, and has been able to go from an in-person to a remote working arrangement.

Today, FERRERE is a full-licensed Office 365 firm, and also works with Microsoft Azure for cloud computing services. For desktop telephony, from day one of remote work the firm was able to provide access from the cell phones and laptops of each of its practitioners.

In turn, we incorporated tools that make it possible to share information with clients, avoiding use of email, thereby obtaining greater information control and security.

Some tools such as Teams, Yammer and Avaya Workplace were resources used to the maximum of their potential to guarantee the best interaction between the different teams and the firm’s clients.

We also work with iManage Work10, a business document management software. In turn, we use Easy Doc, an online platform that makes it possible to access templates for standard documents, such as employment contracts, admonishments and suspensions, among others.

Another example of this is that we have begun using Artificial Intelligence for attorneys – programs that interpret texts and extract contract clauses, to cite one example. For large numbers of documents, this makes it possible to see points in common, find the most relevant aspects, etc.

Finally, FERRERE is one of the few firms that submits to external data security audits to certify its information systems.

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Interview with… Joel Luís Thomaz Bastos, partner, Thomaz Bastos, Waisberg, Kurzweil Sociedade de Advogados

What are the biggest challenges facing the Brazilian legal market in the next 12 months?

I believe there are number of challenges the market will be facing, especially given the upcoming elections and world events (the war in Ukraine, the lingering effects of the pandemic etc.). Chief among these difficulties I think will be inflation and its corrosive effects. We have a long history with inflation in Brazil but its are always numbing and affect the less fortunate the most. The legal market, as all other ones, will have to adapt.

Do you consider sustainability credentials important to your firm’s business?

Of course. How a company keeps itself in sync with the environment and social aspects is of paramount importance.

Have ESG considerations prompted you to re-evaluate the service you provide?

It has prompted us to re-evaluate how the firm affects and is affected in the bigger context of things, which includes the service we provide.

Where do you feel your clients need the most legal support in the next 12 months?

Litigation and debt restructuring, certainly.

What sets your firm apart from competitors?

We have been blessed with a team that has worked in, if not all, at least the greater part of the most complex and challenging restructuring and litigation cases in the last years, both in and out of court over the years, which uniquely positions our firm with proven expertise, innovation and outstanding track records in all sectors of the economy.

How much progress has there been with the government’s privatisation programme in the last 12 months and what are the wider ramifications of this process?

The main headline on the that issue is the Eletrobrás privatisation, which, albeit lengthy, has been successful thus far and serves as an example of what can be done.

Brazil faces a particularly polarised election in October 2022 do you have any particular concerns for the business environment – or in a more extreme scenario, for judicial security?

The extreme polarization raises grave concerns, since candidates and acting governments may go to foolhardy measures to simply try to gain advantage. Such extremism pervades all society, including the judiciary branch, not to mention attacks on the democratic system itself.

As regards restructuring and insolvency, are you expecting an uptick in restructuring processes due to the ongoing impact of the pandemic this year or next?

We expect basically the same flow we have seen in the past months. Inflation, more so even than the outstanding effects of the pandemic, will likely prove more challenging to the market so how the country adapts and corrects inflation will prove decisive.

Your firm has established a strong reputation in restructuring. What in your opinion are the skill-sets required by an aspiring insolvency and restructuring lawyer today, in order to build a successful career?

On the legal side a comprehensive knowledge of business, civil and procedural law are essential requirements. It is hard to find experienced lawyers who are knowledgeable in these fields but that also work them together in an efficient manner. Restructuring never has only one aspect to a problem so it is important to not be one sided in any given situation. However, the lawyer must never neglect to cultivate relationships, especially in a distressed market.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

I feel that, given the future challenges from elections and inflation, litigation (both judicial and arbitration) will likely see an upbeat workflow. Specifically when coupled with corporate and shareholders conflicts.

How active are members of your team in terms of thought leadership?

Very. A boutique law firm which essentially depends on how good or team is to needs to always have that the forefront.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

Our firm endeavours to provide opportunity and assistance to all the diverse groups and peoples, without prejudice to any.

What does innovation mean to you? Can you tell us about any specific innovation initiatives at your firm?

Innovation is both coming up with something new out of nothing, but also looking at old problems and issues in new ways. Our firm is prodigious in coming up with innovative solutions to legal challenges our legislative and judiciary systems present.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

Especially new systems to control and run legal filings and proceedings, which, given the numerous and different systems each State uses is of paramount importance to not loose only clients’ time and value, but also quality and timing in a service providing context.

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Interview with… Manuel Galicia, M&A, B&F and ESG practices partner Chairperson of the Executive Committee

Do you consider sustainability credentials important to your firm’s business?
ESG is no longer an option, but a must for our firm. Our ESG practice definitively has granted our firm an additional advantage in the market by advising our clients with ESG related needs.

Have ESG considerations prompted you to re-evaluate the service you provide?
Yes, and we consolidated some of the practice areas already engaged in related ESG activities in order to be able to assist in a holistic way our clients. As soon as we announced the formalization of our ESG practice, we revived request for advice by some of our publicly held clients. The major immediate impact was in the financial activity as a factor for credit rating agencies.

Where do you feel your clients will need more legal support in the next 12 months?
In regulatory aspects, compliance, litigation and commercial diplomacy to convince authorities of the benefits of some projects.

 What sets your firm apart from competitors?
In the last several years, Galicia has strengthened its leading position in the
Mexican and LatAm markets because our main differentiator is clear: We are the only Mexican leading firm with the ability to provide a unique legal service offer that includes strong transactional and regulatory advice coupled with strategic capabilities in litigation and ESG.

Our focus on a unique people-centered culture based on strong values such as respect, trust, innovation, adaptability, creativity and a pro-business vision and having a business model based on collaboration as a means to provide a unique and multidisciplinary legal advice to each client.

It would appear that in Mexico there has been a far greater return to ‘presencialidad’ than in many other countries in the region. Do you consider that the recent Ley de tele-trabajo adequately meets the requirements of employers, workers and clients? In addition, is the new regulation regarding sub-contracting continuing to cause difficulties- particularly in relation to fiscal/tax requirements – or has the impact of this now largely been assumed and accommodated by the business sector?

The Telework Amendments to the Mexican Federal Labour Law were enacted on January 2021, as a response to the Covid-19 pandemic. Telework regulation only applies to employees rendering more than 40% of their work from home. In our opinion, telework regulation can be improved for what regards to (i) employee’s right to disconnect, (ii) working hours and overtime, (iii) social security and tax treatment of electricity and internet payments made by employers to teleworkers, as well as (iv) other flexible work arrangements or hybrid and flex work schemes that currently lack of any regulation whatsoever.
The return to offices is just beginning, globally we are still in the process of defining the best way of working and we have seen that what it is required is flexibility. A law that sets rules based on the number of working days in-person is not a flexible solution by itself and can become a constraint to achieving the objectives of firms, partners and members of the firm.

In addition, is the new regulation regarding sub-contracting continuing to cause difficulties – particularly in relation to fiscal/tax requirements – or has the impact of this now largely been assumed and accommodated by the business sector?

The Labor Subcontracting Reform entailed business restructuring, amendments to organizational documents, renegotiating services agreements and employee transfers, which happened largely during 2021. It has been implemented by most businesses precisely because of tax reasons in connection with income tax deductibility and VAT credits. However, in certain sectors, such as electricity generation, infrastructure and construction services, companies have been somehow reluctant to adapt, arguing they do not fall within the scope of the reform. Further, we are just starting to see the labor subcontracting reform effects on profit sharing. As you know, payment of profit sharing to employees was capped last year as part of the reform. Some unions have been alleging that the cap is unconstitutional. Unclear rules on how the cap is calculated have generated uncertainty among employers. Since the reform became effective ten months ago, there are still no court precedents addressing such issues.

Another labor-related issue keeps employers awake at night, and it is about the legitimation of protecting collective bargaining agreements under the 2019 labor reform and the USMCA. Collective bargaining agreements shall be legitimated through workers’ consultation process and secret ballot voting system, no later than May 1, 2023; four years after the 2019 labor reform became effective. Less than 10% of the existing agreements in Mexico have been legitimated as of this date. Employers cannot intervene in the legitimation process, which must be conducted by unions. Collective bargaining agreements that are not legitimated within the timeframe will be terminated.

Cryptocurrencies have been of growing relevance in Mexico (a firm advising an energy client on how to convert its carbon bonds into bitcoin, for example) and now it would appear that NFTs (non-fungible tokens) are becoming similarly fashionable. Concurrently, at present, there is no dedicated legislation regarding this area and as a result, the new industrial property law has had to be adapted to provide a degree of protection. What do you regard as the likely scenario for this sector in the short to medium future?

The only regulation on the subject concerns limitation on certain entities to trade in virtual assets (crypto). Otherwise, there are no relevant restrictions for
unregulated entities or individuals.

There is lack of definition on different fronts:

a. Tax treatment of movements in value of crypto (marked to market or
capital gains)
b. New “ultimate beneficiary” rules impede dealing with DAOs
c. Lack of counterparty in a block chain (difficulty to enforce a judicial
determination)
d. No restrictions in (or even interest in addressing) energy consumption
issues of crypto farming.

The pandemic resulted in a significant upturn in the number of firms seeking out of court restructuring, with certain market segments – such as microcredit providers – in serious difficulty. At the same time, while the jurisdiction of the bankruptcy courts is now nationwide (and this should permit greater specialization on the part of judges), bankruptcy procedures remains poorly viewed and problems in the handling of these case mean that many companies opt for a US Chapter 11 process to avoid the pitfalls of the bankruptcy system in Mexico. How do you see the development of this practice with the new courts?

We expect the new designated specialized courts to become more acquainted with the nature of insolvency proceedings, and therefore, sensible to the realities of reorganization, in the near future.

There is still a long learning curve, but at least the Judiciary is implementing courses and other education tools for the court personnel.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

Technology, ESG, Venture Capital, Tax Controversy, Regulatory Compliance.

How active are members of your team in terms of thought leadership?

We focus on identifying and developing or strengthening each partner’s leadership capabilities and soft-skills through a unique integrated program as follows:

a) Partners´ Core Skills Development Program: innovative program that identifies and assist each partner in the development of specific core skills. In a second phase, this program will be implemented to additional decision-making position collaborators and lawyers. Firms often oversee that partners are one of the most important motivators and leaders within the organization. We, on the contrary, invest and assist them in developing and maximizing their leadership potential and Thought Leadership.

b) Soft Skills and Professional Development: providing our team with non-legal tools that will help them advance in their professional path -i.e. Leadership.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

DEI Institutional Programs and Initiatives
Consistent with our guiding principles, our strategy focus in developing and implementing innovative initiatives, which we can proudly say have resulted in spearheading DEI programs and initiatives in the Mexican legal market. Each initiative and project is develop to consider, in an equitable way, each of the relevant aspects of our Diversity, Equality & Inclusion strategy into three major programs: 1. Career Development, 2. Work-Life Balance and 3. Gender Diversity.

Impact of our DEI Programs / Goals
The impact of these programs, projects and initiatives aim to focus our resources towards our talent being the key component, distinguishing Galicia as an elite institution from the rest of our colleagues. By procuring non-legal skills, human development and professional tools, we allow our collaborators to have a holistic approach to personal and professional development.

Our teams will achieve greater happiness by knowing that the Firm is investing time and resources in each one of them. Our talent is our most valuable asset.
Our DEI Programs and initiatives are focused not only on soft skills but also, looking for extracurricular activities that demonstrate an interest beyond the law.

This will allow our Firm to integrate balanced and more productive teams and individuals who will feel safe in a friendly and supportive environment.
Our short and mid-term goals are:

a. Every collaborator will benefit from developing and honing his or her nonlegal skills.

b. To identify development opportunities and offer the ability to track development progress over time.

c. Turn ourselves into a talent breeding institution. The law firm that attracts and maintains the top talent will be the one with the most interesting clients
and mandates and the highest profit per partner.

d. To listen (through our Mentoring Program, focus groups and close communication processes) the concerns of young lawyers and collaborators
to learn from them and be able to shape the profession of the future.

e. Capitalize the youth force of our Firm by learning from them. Be open to innovation and creativity.

f. Reject any discrimination motivated by ethnic or national origin, gender, age, disabilities, social condition, health conditions, religion, opinions, sexual
orientation, marital status or any other condition that violates dignity and intends to nullify or impair the rights and freedom of people.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

• Mobile phones and laptops to all personnel
• Beefed up VPN and remote access tools
• Cybersecurity continued education
• Began implementation of “moving to the cloud”
• Equipment of videoconferencing infrastructure

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Interview with… Lale Defne Mete, CETINKAYA Law Firm, Partner

Tell us about your career choice and journey.

Since my early years in high school, I had a passion for social justice issues, the art of debate, and law as a discipline. How much I enjoyed my university education in law further affirmed the veracity of this direction.

I found private practice appealing in particular because of the independence it offers and its ever-evolving landscape. I quickly realized the competitive nature of this line of work kept me on my toes and motivated.

 Since you graduated in 2011, your career has been varied from starting at a leading Turkish law firm to moving in-house in 2016 to co-founding your own law firm in 2020. What prompted these changes and what were your motivations?

Starting at a leading law firm allowed me to get experience in a wide range of practice areas, thus, in turn, helping me recognize which practice areas I enjoyed most working on. Experiencing what the expectations are from an in-house attorney within a corporate environment was my primary motivation behind working as an in-house attorney. In contrast, co-founding allowed me to focus on the practice areas I was passionate about while establishing a work environment that aligned closely with my values and ideal work culture.

You worked as an in-house lawyer at Turkish Fortune 500 pharmaceutical manufacturer Deva Holding A.S. before co-founding CETINKAYA in 2020. What has been your experience as a woman working in both private practice and in-house environments?

Both private practice and in-house environments equipped me with different sets of skills. As an in-house lawyer, I got the opportunity to focus on a specific industry and topic for extended periods of time. In contrast, in my private practice, the variety of practice areas and the balancing act between business development while focusing on client work is a welcome challenge.

You completed a Masters of Law degree at Queen Mary University. Tell us about your experiences in London.

Studying in London was one of my best decisions early in my career. Studying at Queen Mary University gave me the opportunity to learn from some of the best in the industry, network in international legal circles, and focus on arbitration.

What are your reflections on the diversity and inclusion culture in the legal profession in Turkey?

Even though our industry fares better in terms of diversity and inclusion in comparison to most others, specific practice areas are still dominated by our male colleagues. At CETINKAYA, diversity, and inclusion play a pivotal role in structuring our team, promotion policy, and pay grades.

With clients valuing diversity in their external law firms, how do we get more women into leadership roles in law firms?

This is a priority we distinctly observe when working with our international clients. The most straightforward solution is not to be hesitant in bringing women into leadership roles and affording them the same support that our male colleagues benefit from. At this rate, I have no doubt we will be seeing more women in leadership roles in the legal industry.

 How is CETINKAYA Law Firm progressing with its diversity agenda?

At CETINKAYA, we believe diversity should be considered from a broader perspective, in addition to balancing the women-men ratio. In our recruitment processes, we prioritize personal experiences and potentials, rather than educational and cultural backgrounds. Women comprise 55 percent of our workforce at CETINKAYA. Although we believe this is a good starting point, we always strive to do better.

The unexpected death of Founding Partner Mr. Orçun Çetinkaya last year clearly had a profound and emotional impact on both yourself, the firm, and the wider Turkish legal business community. It is incredibly inspiring to see how you have managed to move forward since the tragedy. Can you talk to us about how you and the CETINKAYA law firm managed to cope with the tragedy?

To overcome this tragedy that had a weighty effect on us all, as a team, we chose to focus on our work and servicing our clients. I feel fortunate to have strong partners and I am proud of our team that proved itself to be resilient, hardworking and focused in the face of such adversity.

 If you weren’t a lawyer, what would you be?

I am not sure how successful I would have been, but I would have liked to have been a professional tennis player.

Which women have inspired you the most?

In my career journey I have been and keep being inspired by my peers, colleagues, and young practitioners, in particular, the hard-working, detail- oriented and creative women I get to work with on a daily basis.

What motivates you?

I particularly enjoy untangling complex legal cases one step at a time with persistence and creativity, and alongside a team, I thoroughly enjoy working with. Working with a team I trust and believe in is also a major motivator for me.

 In your career so far what achievements are you most proud of?

In my career, I am most proud of having co-founded a private practice where, along with our partners and team members, we got to define our own working model based on our values and priorities, and have clients that we are proud of working with.

How do you manage your current work/life balance?

I find that an imbalance between work and life is inevitable during busy periods, especially in our field. However, I see myself better managing this imbalance as I get more skilled in time management.

When you look back at your career and the knowledge you’ve gained, what advice would you give to female students who are about to enter the legal industry?

I have the same advice for both male and female students: Finding your area of practice is akin to finding a musical instrument to play. I would advise them to get exposed to a variety of practice areas after which I trust they will naturally find their inclination towards one or a few.

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Interview with… Roberto Pereira, Benites, Vargas & Ugaz Abogados

What are the biggest challenges facing Peru’s legal market in the next 12 months?

I believe that the ability to adapt and respond quickly and efficiently to the demands of changing services, which are increasingly characterized by their multidisciplinarity, the incorporation of new technologies and contexts of institutional instability due to the impact of internal and external factors, will be fundamental.

Do you consider sustainability credentials important to your firm’s business?

Having a solid organization is fundamental to face the challenges of the legal market, which does not necessarily depend on its size, but fundamentally on having clear objectives and the ideal human resources to achieve them.

Have ESG considerations prompted you to re-evaluate the service you provide?

For some time now, ESG factors have been criteria not only for the selection of clients, but also for the development or execution of our legal services. Consequently, rather than re-evaluating our services in terms of ESG, our efforts are aimed at maintaining and improving them.

Where do you feel your clients need the most legal support in the next 12 months?

I believe that the institutional instability of the country will be the main factor that will impact the needs of clients, so they will require legal services that incorporate these factors in the analysis of their problems and especially in their solutions.

What sets your firm apart from competitors?

We have demonstrated our ability to solve complex problems transcending the specific case and providing a vision of comprehensive solutions to our clients’ problems, supported by a team that integrates experience, creativity and innovation.

The country has endured considerable political instability since the ousting or Martin Vizcarra, most recently with the deeply divisive and polarised 2021 presidential elections that brought Pedro Castillo to power; are there fears for the country’s institutions – and more specifically, the independence of the judiciary and the rule of law?

In the middle of the political instability and in spite of its problems, which are not few, the Judiciary has maintained important levels of independence from the political power. In fact, I believe that it is one of the factors that sustain a certain institutionalism in the country in the midst of the crisis. I think that the political interference in the judiciary during Fujimori’s government affected it a lot and this served as a learning process.

In recent years the Peruvian market has seen the proliferation of white-collar practices, both boutique offerings and those tied to larger corporate firms; as long standing specialists in this branch of law, to what do you attribute the very strong growth in this legal sub-sector?

· I believe that at a global level there is a process, with more or less intensity depending on the regions, of “taking good corporate practices seriously” in the understanding that companies, improperly managed, can be an important source of serious crimes such as tax fraud, attacks against the environment, against consumers and undoubtedly corruption that has a greater impact on the fundamental rights of people in less developed countries and societies.

· As a manifestation of this phenomenon, the approval of regulations sanctioning “white collar” practices was promoted by international bodies (OECD, OAS), and there were emblematic cases of criminal sanctions against multinational companies – and their executives – in their countries of origin, which has allowed them to export a culture of Criminal Compliance to our countries along with their economic activities. In this context, the impact of the Lava Jato case has been decisive in establishing in countries such as Peru the need to effectively prosecute “white collar” practices. The prosecution of 17 companies in the construction industry, among them the most important in the country, in the so-called “Construction Club” case, confirms this trend.

At the height of the pandemic it was predicted that a combination of the mining sector and tourism (and its related services, gastronomy etc), would be key to the country’s recovery. Eighteen months on, the transactional sector appears to have remained strong – what is your vision of the country’s recuperation post-pandemic?

I am very optimistic about overcoming the negative effects of the pandemic despite the serious impact it had on the economy. I base my assessment on the evidence that a good part of the economic actors showed a great capacity for adaptation and reconversion, and if this is accompanied by a sustained process of access to vaccines in the face of new “waves” or strains of the virus, I believe that this will accelerate the process of economic recovery.

To what extent has the pandemic forced modernization – in terms of technology – of court processes and practices, leading to a more efficient judicial system; or on the contrary, has an inability to make this step seen a move towards arbitration – at least for civil and commercial cases?

The pandemic undoubtedly triggered a process of technological modernization in the provision of justice services that is still underway, but is happily irreversible and necessary. For example, it is still pending that technology expands, more or less uniformly, to all specialties and throughout the territory; and above all, that it is reflected in a better quality of decisions. My impression is that the possible difficulties of this process do not or do not have a significant impact on the decision to move towards arbitration, which has to do not only with the time it will take to resolve conflicts but also with the quality of decisions, which often have to deal with complex and specialized problems.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

We have emblematic practice areas such as Criminal, Labor, Litigation or Public Law, which are in high demand and the challenge is to maintain and consolidate them as market leaders. We are also committed to relaunching our Tax and Corporate areas. In the first case, oriented to underserved sectors such as AgriFood and new technologies. However, our main concern is not so much the practice areas but the ability to address complex problems that require teamwork and multidisciplinary work. For example, nowadays an essential factor in most complex legal disputes is the reputational factor, and its impact on the commercial, corporate and financial dimensions of companies. Controlling all these variables, or contributing to do so, is part of a new way of conceiving our legal services.

How active are members of your team in terms of thought leadership?

One of the factors that we consider essential in our firm is the profile of our lawyers. We believe that it is not possible to achieve a good legal practice without a solid humanistic and dynamic academic background, that is to say, of permanent learning, understanding and adaptation to reality and innovation. We encourage our lawyers to fit this profile and their promotion to management or leadership positions is essentially defined by fulfilling it to a greater extent.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

We are a firm with a special commitment to fundamental rights and among them certainly those of equality and non-discrimination, which imply the recognition and respect for diversity and certainly inclusion. Our partners include a former President of the Constitutional Court, a former Minister of Justice and Human Rights and a former First Deputy (e) of the Ombudsman’s Office.

Dedicating hours to Pro Bono work, which often involves dealing with cases of discrimination, human trafficking or lack of access to justice for reasons of economic or social inequality, is a criterion of evaluation of our lawyers. Since last year we decided to accept the invitation of the firm Bullard Falla Ezcurra +, to join the Ayni initiative, which consists of providing students of public universities in the interior of the country, access to professionals and knowledge that otherwise would be impossible or very difficult for them. Ayni rewards the best students with a paid internship for six months in our firm.

What does innovation mean to you? Can you tell us about any specific innovation initiatives at your firm?

We understand innovation as the elaboration and execution of unprecedented solutions to complex legal problems. The formation of “tailor-made” teams to meet all foreseeable contingencies of complex cases, including non-lawyers.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

Two fundamental measures. We are in the process of migrating to a digital document management platform for cases, which guarantees immediate remote access with sufficient guarantees of information security. We are also in the process of installing a digital attention system for certain queries that require immediacy, a sort of “digital help desk” for our clients.

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Focus on… Ferrere Uruguay

FERRERE is the largest law firm in Uruguay and the only multi-jurisdictional, purely South American, law firm in the region. It has +150 attorneys throughout Bolivia, Paraguay and Uruguay.

Specialization is a differentiating feature: The firm has invested for years in building practice groups dedicated to the areas of both law and industry. Along with cutting-edge technology, this allows Ferrere to provide clients outstanding quality legal advice with a high level of cost efficiency. The firm regularly deploys members of its highly specialist talent pool to any jurisdiction where they may be required, at any time. Regional and international companies, as well as global law firms, take advantage of the firm’s footprint to achieve full coverage of the region.

Ferrere adheres to international standards and provides homogeneous services, guaranteed by integrated, vertical practice groups and procedures, and a firm-wide training programme. Many of the lawyers have US or European degrees and have worked for global law firms, financial institutions or at the headquarters of major multinationals. It is a fully merit-based organization with a mandatory early retirement policy and a strong focus on promoting diversity, with women making up 30% of the partnership.

Ferrere’s regional structure and depth of resources enable it to handle the most complex cross-border and multi-jurisdictional transactions and disputes.

Clients

Ferrere advises mainly multinationals, including five of the top 25 Fortune 500 companies, global financial institutions, and some of the largest Latin American companies. Many global law firms also use Ferrere to complete their coverage of the region, given its multijurisdictional presence.

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Interview with… Başak Gürbüz Lead Regional Counsel at Visa

Tell us about your career choice and journey. What made you decide to get into law?

I was used to the legal profession because of my grandfather and dad. My grandfather was one of the head judges in the Court of Appeals and my father also used to be a judge and then the legal consultant in Turkish Prime Ministry.

I was always impressed to see my grandfather in his giant judge’s cape and I guess this made me choose to go to law faculty.

I began my career in Ankara at Bayındır Holding in 2006 and then I moved to Istanbul as I always longed for working with international clients in a reputable firm. I worked at Pekin & Bayar for 2 years and then I moved to Gün + Partners where I worked for 8 years and specialized in IP and Media Laws.

In 2015, I decided to change path in my career and moved in-house to be close to the business itself and to be surrounded by colleagues from different professions and having different angles. This gave me a lot of precious experience, insight and business acumen. I started my in-house counsel career at The Walt Disney Company where I used to work as Legal & Compliance Director for approximately 4.5 years. At the beginning of 2020, I moved to Visa as Regional Counsel for Southern Eastern Europe covering 9 countries and I still work there as the Lead Regional Counsel for Southern Europe and parts of the Central Eastern Europe clusters.

Before moving in-house in 2015, your career up to that point was in private practice What prompted this change and what were your motivations?

As mentioned above, I felt the need for a change of path. I think changes in career path are key when done in right times. In private practice, there are lawyers everywhere and law is the priority. It is the laboratory of the profession as I see it and you learn how to look and design a solution for a legal matter with the right resources.

Moving in-house is a totally different world. I struggled at the beginning because you need to have a different angle, indeed angles to see bigger pictures and create alternatives for the business partners. I truly loved this challenge and was quite educational and constructive for me. You also realise that you are directly influencing commercial decisions and thus share responsibility for those.

What has been your experience as a woman working in both private practice and in-house environments?

There is a lot to say in terms of experience. Both have specific dynamics and I always tried to harmonize them. I always consider myself lucky in terms of my workplaces and colleagues because I was supported and respected all the time both as a woman and a lawyer.

How do you view the new generation of female lawyers?

Hard working and agile! I had trainees and also the opportunity to work with new generation female lawyers thanks to our external firms and I really appreciate their dedication, new ideas/fresh way of thinking and energy.

What is the size and scope of your current role at Visa. Can you give us a day in the working life of Başak Gürbüz?

I am the Lead Regional Counsel for Southern Europe cluster focusing in particular on 5 countries (Turkey, Israel, Greece, Malta and Cyprus) and for aspects of Central Eastern Europe cluster covering 4 countries (Romania, Bulgaria, Croatia, Slovenia). We have a growing Regional Counsels team based across our other clusters (currently 8 colleagues) and also we have a larger hub team based in London which we closely work with.

A working day at Visa just flies by. Typically, every day is very busy – my legal colleagues and I are much in demand for advice on a wide number and breadth of issues – and there are priorities which make me work on matters in the right order. I always have a notebook with my daily and weekly and monthly to do lists and I use the traffic lights system to flag matters depending on their urgency and status. During the day, it is usually very busy with emails, calls and meetings but I always spare time for my coffee and lunch breaks.

How would you define the culture at Visa?

I love Visa’s motto: “Meet Visa. A network working for everyone”. I see Visa’s fundamental values as inclusion & diversity, social impact and operating as a responsible, ethical and sustainable company.

With that, how I define the culture at Visa? Highly ethical and inclusive, respecting everyone’s thoughts and well- being. Also in my view, Visa is a company that always targets to provide the most secure and reliable payment methods and network and I appreciate the sensitivity on that.

With both law firms and corporate legal departments valuing diversity, how do we get more women into leadership roles in the Turkish legal market?

By creating more opportunities and I think networking groups and events are very key to that. The awareness of diversity increases in the work environment day by day when compared to the very past and I find it really promising. I think we can also support this by remaining as flexible and accommodating as we can.

Can you talk about any positive trends or changes in the diversity landscape you are seeing emerge within the Turkish legal market?

I see many woman colleagues with reputable titles in the Turkish legal market. As far as I can observe it on LinkedIn, approximately 80 % of the job anniversaries or new role notifications I run into are from my woman colleagues. I also see that there are increasing numbers of female colleagues in working groups or legal social networks. As said, I see that there is a positive trend in Turkey on diversity.

Can you name a woman who’s inspired you the most during your career?

I would like to name two women. Nikki Keat- my ex-manager at Disney – and Emma Slatter – our Europe General Counsel at Visa. Both women guided and supported me always by staying positive and constructive. Also, I always admired (and try to adapt myself as well) their time management skills. Despite a crazy work schedule, they make time for leisure, pro bono & volunteering activities and their private lives.

How do you motivate yourself and stay motivated?

By remembering how much I love my profession and work. It is not always easy to stay motivated due to various reasons from work, schedules, private life, country’s well being etc. but when I feel overwhelmed, I just stop for a while and try to indulge myself with good and positives, by remembering the things I love and respect.

What has been your greatest achievement, in a professional and personal capacity?

When you use a superlative, it is hard to pick the right one. I think what comes to mind in the first place should be spoken out in these cases. I will go with moving in-house and designing a “how to work with Legal” system with all my colleagues in both companies. The common expectation both at Disney and at Visa was to create a local legal infrastructure and legal communication guidelines since I was the first local in-house lawyer to work for the designated country and cluster in both companies.

What do you see as the major challenges facing Turkish legal counsel over the next 12 to 24 months?

To name a few, the constant and challenging law and regulation changes as well as some unclear regulatory body practices. Also, I see the slow judgment processes quite challenging and if no solid measures are taken, it could be worse within the next couple of years.

When you look back at your career and the knowledge you’ve gained, what advice would you give to young female students who are about to embark on a law career in Turkey?

Law is a great but very hard and also sophisticated profession. We are all aware that practicing law is full of challenges in Turkey but still, I am so happy that I became a lawyer and I would do the same if I had a second chance. I would advise our young female students to be ambitious, curious to learn, questioning, determined and care for ethical values in whatever they do and whatever they are faced with.

I would like to end with my favourite quote from Disney’s Cinderella movie: Have courage and be kind.

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Interview with… Bernardo Tobar, managing partner, Tobar ZVS

What are the biggest challenges facing Ecuador’s legal market in the next 12 months?

The legal environment constantly grows more complex, as a result of the ever-increasing regulatory pressures and the incessant enactment of laws that heighten both the level of reporting and compliance obligations on any business and the complexity of any transactional work; notwithstanding, corporate clients expect these legal challenges to be met by their counsel with less resources. So, law firms need to radically transform their service delivery model if they wish to remain profitable while doing more for their clients in exchange for less fees.

Certainly global firms extending their franchising reach and the emergence of alternative legal service providers are creating competitive pressures.

Another challenge, and an opportunity also, is the need of corporate clients to get from their legal advisors more than just legal solutions. Law firms must be able to add strategic value to its services, so industry expertise will not be sufficient to ensure quality services if not coped with business acumen and overall risk management skills.

Do you consider sustainability credentials important to your firm’s business?

We consider sustainability as an essential factor in the long term health of any business and as a result our firm (i) has had for almost two decades a dedicated sustainability group practice, (ii) advises clients on how to make sustainability a concept and a practice that touches every aspect of an organization, from corporate governance through talent management and stakeholder engagement, and (iii) reviews carefully the potential client commitment to sustainability in deciding whether to accept new client engagements.

Have ESG considerations prompted you to re-evaluate the service you provide?

As said before, embedding ESG concepts across our service offerings has been part of our identity as a firm. We proud ourselves of having represented a client that created the largest private conservation fund in Ecuador to this date, and have helped create sound social responsibility programs to clients operating in socially and environmentally sensitive industries.

Where do you feel your clients need the most legal support in the next 12 months?

Ecuador is one of the few countries in LatAm that will grow above 4.5% in 2022, according to the World Bank. We have been busy in the last couple of years with M&A, and we expect this trend to continue within the next couple of years. In this context, clients will require support particularly in the areas of M&A, project finance, permitting of large infrastructure projects.

What sets your firm apart from competitors?

Our Firm uses advanced technologies that have enabled us to shift from the traditional leverage model -i.e. billable hours- to a value creation model. Our digital operations platform integrates document management, document automation, workflow automation, data management, AI, team and client collaboration and more in one digital workspace. In terms of service delivery and collaboration, the client has with our firm an experience that is unique in this market.

The impact of the pandemic – notably in Guayaquil, the country’s key business centre – revealed the fragility of the health system; what -to your mind- should be the government’s priorities in terms of strengthening the country’s institutions and infrastructure?

The government has done very well so far in fighting the pandemic. Fully vaccinated population is more than 83%, and the vaccination program continues.

“Tech” has become a short-hand, catch all phrase that encompasses a myriad different inventions and developments; which of these -if any- truly impact not just ‘ways of doing business’ but the fundamentals of the practice of law – blockchain, perhaps?

In reality most law firms continue operating the same way they used to 30 years ago: email exchanges, calendar reminders, word processing apps. They have sophisticated time, billing, accounting, sales management and client relationship software, that is to say business support technologies. But in terms of getting the legal work done, only a handful of Firms in Latam use AI, legal data management, contract automation workflow management and other LPM technologies in a meaningful way.

We believe law firms should become, in a way, technology companies if they want to stay relevant, and the adoption of artificial intelligence will be a key component in this transformation. And certainly blockchain will become the new digital shelf for a number of legal products based on non-fungible tokens, from self executing legal contracts, tokenized securities, property title transfers and much more.

The advent of the centre-right Lasso government was to some degree unexpected; how has it improved the climate for business and are you optimistic that this could be more than just a one-term administration?

The Lasso administration has made a priority of the economic chapter to attract private sector investment, and the numbers speak for themselves: the country risk rate reduced significantly, the figure of investment agreements signed within the last year (US$ 5Billion) outscores the figure accumulated during the preceding 10 years. And there is an ambitious PPA portfolio of projects worth $39Billion calling for private investors. So there will be no shortage of business opportunities.

Whether this paves the way for a second term to be likely will largely depend on two factors: (i) an aggressive regulatory reform -which can be done by presidential decree- to simplify and shorten permitting processes and timelines so that the investments and associated job creation can actually be felt within the next three years, and (ii) a sound and properly funded plan to contain and reduce the organized crime violence.

Can Ecuador become a tech hub while concurrently maintaining and furthering its green credentials and biodiversity?

The potential is there: free market policies, a dollarized economy, a trend to decrease regulatory pressures. But certain reforms are needed, most notably (i) a new intellectual property law; (ii) clarifying the legal status of crypto transactions while avoiding the temptation of using the traditional regulatory toolbox to deal with crypto; (iii) a reform of labour laws. These reforms need the cooperation of the Assembly (legislative body), which doesn’t seem likely any time soon.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

As mentioned before, M&A, project finance, regulatory are currently thriving. But we also see a market ready to embrace legal products embedded in technology, some of which may be delivered through self-help interactions: expert systems that guide the client with legal processes and regulatory obligations, document automation for reporting and typical corporate forms, AI assisted compliance and diligence, self-executing contracts and tokenized securities in Blockchain, to name a few.

How active are members of your team in terms of thought leadership?

Another partner of the firm and myself have written books and contribute with weekly editorials to reputed media. Most of our partners have written essays on legal subjects and are recognized authorities in their field of practice. We are all very active in legal and business webinars.

Four of our partners are also professors of law at various universities.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

Our Firm’s policies on D&I stem from the principles of individual freedom, respect and non-discrimination, which are the core values of our organization. In our teamwork philosophy, ensuring contributions from diverse perspectives is crucial, as is ensuring the assignment of work to the most capable professional depending on the task at hand, regardless of any other consideration. Inclusion is fostered by a very flat organizational design, where leaders change on a project basis and the ultimate word lies with the client. Valued firm professionals in practice leadership positions are members of the LGBTQ community.

What does innovation mean to you? Can you tell us about any specific innovation initiatives at your firm?

For us innovation should have an impact in two areas, external and internal. Internally, we understand innovation as anything that brings about positive transformations in terms of the client experience, value creation (more work with less resources) and service delivery model (legal operation technologies). In this area we are the only Law Firm in Ecuador and one of the few in Latam that conducts its legal operations entirely through a digital platform that integrates in a single workspace document management, legal project management, contract automation, two AI engines (one in English, another in Spanish) and a number of other collaboration and data management tools. This has enhanced the quality of our practice, has brought about significant efficiencies and above all has enabled a unique client experience.

Other firms measure their capabilities by the number of attorneys; we do it by measuring work delivered through automation, which frees the human time for higher value tasks. The former is a linear concept; our view is exponential.

On the external, market side, for us innovation is about creating new products that solve legal needs and add value to clients, mostly leveraging technology.

We have trained in Spanish the Litera AI in Data Protection smart fields, combining the AI functionalities with the data management and workflow automation of our LPM software in order to automate the whole process of DP document review, red flagging and contract correction and amendment. We have also automated key procedures relating to KYC forms, KYC data assessment against black lists and automated reporting.

Our innovation process starts by listening to the client, understanding his pain points, identifying what parts of the process can be automated, and combining a number of tools from our technological pool, typically AI + LPM + Contract automation.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

For legal project management and document management system we use Thomson Reuter’s HighQ. We adopted Contract Express for document automation. In AI we have deployed IBM’s Watson, HighQ’s native AI and have lately added Litera’s Kira AI, which we are training in Spanish, with each smart field thus becoming proprietary.

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Interview with… Nestor Loizaga, partner, Ferrere

What are the biggest challenges facing Paraguay’s legal market in the next 12 months?

The biggest challenges that the legal market will face in the next months are potential opportunities of investment in the infrastructure area with participation of foreign investors. Talent retention also will be a challenge.

Do you consider sustainability credentials important to your firm’s business?

Yes, they are important. As a matter of fact, there is a general consensus on this, and clients are being more and more active in having their service provides incorporate sustainability within the firm.

Have ESG considerations prompted you to re-evaluate the service you provide?

Yes, ESG considerations prompted us to re-evaluate the services we provide. As a matter of fact, we have created a regional ESG practice in 2021, to be in an optimal position to assist our clients as they increasingly turn their focus to sustainability issues and ESG-related factors. While environmental, social, and corporate governance factors have always been a part of investment and business decisions, they are now often the cornerstone or the central issue when acquiring, investing, or operating a business. Conversely, when a deal does not materialize or an investor looks to divest from a company in its portfolio, a lack of sustainability or ESG risks are often cited as contributing factors. So, these issues are no longer aspirational in nature; they are key concepts in our clients’ businesses, and therefore also in our own.

Looking forward, we expect ESG concepts to permeate every part of the business cycle, and businesses will be required, not only by the market but also by increasingly demanding legislation, to know and inform where their raw materials come from, who their suppliers are, how they relate to their employees, and how their operations impact their communities and the environment. To assist our clients in navigating this change in paradigm and adapting their business operations accordingly, our new ESG practice puts together professionals from our environmental, compliance, and labor law practices, with the specific task of understanding market demands and regulatory requirements, and their efficient and effective implementation in our clients’ business practices. Furthermore, our ESG practice has the mission of looking inward and deepening our firm’s commitment to sustainability and incorporating ESG concepts into our own operations. For us, this change in how business should be done is welcome and irreversible, and we believe change begins at home.

Where do you feel your clients need the most legal support in the next 12 months?

It is hard to pinpoint one area since Paraguay´s economy is growing constantly and attracting projects in new areas. In general corporate matters, tax, and structuring investments.

What sets your firm apart from competitors?

High specialization, horizontal structures and high coordination, combined with regional experience. We have a pool of more than 150 lawyers with expertise in different areas thus not only we have a pool a legal knowledge but also industry knowledge. As an example, if Paraguay attracts an investment in pulp mills or hydrocarbon, there is no experience locally but on of our members of Uruguay or Bolivia has on hands experience in the industry. This, combined with local lawyers, provides the client with a perfect combination of industry knowledge and local laws with cannot be matched by our competitors.

How well placed is the country, economically, if the international investment it has courted -particularly for infrastructure projects- does not materialise? Can local bank financing begin to meet the envisaged costs?

Due to governmental budget deficit caps, most infrastructure projects that could have been attractive for international investors (due to their size and complexity) are being financed with soft loans from the multilateral sector. Nonetheless, should these projects eventually require local funding, Paraguayan banks have sufficient liquidity and project financing experience to – through a syndication – cover the financing requirements.

Is the market confident in a victory for the Colorado Party in the 2023 elections or is there nervousness in light of recent “shock” election results in the region?

The market is not confident in a victory of the Partido Colorado. There are many factors that must be defined, especially who will be the Partido Colorado’s candidate. The opposition is fragmented but they still have time to get their act together, organize themselves and present a candidate that can rival the Partido Colorado.

How has the relatively recent enforcement of the competition law affected foreign companies’ outlook in terms of starting/expanding operations in the country?

As of today, the competition enforcement authority does not represent an impediment for companies doing business in Paraguay. While it is true that since the enforcement of the competition law, there are new regulations to be aware of and to comply with, most of the foreign companies doing business in Paraguay are already familiar which such requirements.

This is probably because local regulation and enforcement policy are generally consistent with international standards.

In addition, we have seen that the approach of the local enforcement authority during this first period of enforcement is focused on advocacy and collecting data relating to the different markets in Paraguay rather than intervening in the business model of the companies or imposing sanctions.

Are there specific practice areas you see as particularly thriving, which you intend to bolster in coming years? Are there any new areas of practice that have emerged recently?

Foreign investment, environmental, and M&A are particularly thriving. Nonregulated market of carbon bonds is developing fast and attracting foreign attention. Competition is emerging due to M&A activity in the region and the world. The same with Technology regarding mining and crypto. Paraguay has become attractive to miners due to the huge surplus of energy that comes from the Itaipu dam.

How active are members of your team in terms of thought leadership?

They are very active. Several of our members are leaders in their respective fields of practice, are sought for that and normally participate in activities to further develop their leadership inside the firm and outside.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

For many years FERRERE has embraced the best practices for avoiding bias and favoring D&I in all the firm’s areas and jurisdictions. This commitment was made clear in a regional plan, leading by a D&I committee, whose chief objectives are equality of opportunities, social awareness on gender matters and creation of a better workplace for everyone.

The plan has specific programs, which are geared to inclusion, advancement and visibility of all our professionals. Some examples are:

– “Maternity Mentors”: to provide women with support on all matters related to work-life balance.

– “Cross Mentoring Program”: organizes mentoring sessions between senior men and mentees (women) within the firm.

– “High Profile Women Attorneys”: FERRERE explicitly and firmly fosters high profiles and involvement of its practitioners – men and women alike – in institutions, organizations and business networks, as well as participation and speaking at conferences leading to professional growth and making a contribution to society that goes far beyond their work with the firm. In the case of women, they have also become models for female junior attorneys.

As a result of these, we can affirm that FERRERE is a benchmark firm in the region in terms of D&I, while leading indicators of women professionals. Currently, 61% of associates, 57% of counsels, and 30% of partners of FERRERE are women.

What does innovation mean to you? Can you tell us about any specific innovation initiatives at your firm?

At FERRERE we understand innovation as a way of thinking and acting. This means that we deeply understanding the needs and requirements of our clients and other stakeholders, to ever be one step ahead, and also, we generate proposals and solutions that are as creative as they are efficient.

In fact, innovation has been key since the very conception of the firm. It was then that Daniel Ferrere got back to Uruguay from Harvard with the conviction, contrary to the reality and the consensus at the time, that it was possible to create a highly specialized US-style law firm focusing on meritocracy, and where client service and a focus on practical solutions would be the aim. In 1994 FERRERE added a family hiring exclusion to its partnership agreement, and in 1996 it had its first woman partner.

More recently, FERRERE has innovated in terms of the practice areas and the services it offers. For example, in the past year it stepped up and officialized two practice areas that reflect the dynamics of the business and the firm’s concern to offer highly specialized service: Fintech and ESG.

What technological changes have you implemented at your firm to improve the legal services you provide to your clients?

For several years now, at FERRERE we have been working on updating all our IT systems. This has allowed us not only to be a pioneer firm in terms of information security, but also to be a step ahead of unforeseen events or contingencies.

From well before the COVID-19 pandemic’s arrival, FERRERE was investing in technology and working to foster telecommuting, so that when the virus hit the region it did not pose a major issue in that connection. FERRERE has stepped up those processes and today can respond to any request, beyond the restrictions on movement in each country, and has been able to go from an in-person to a remote working arrangement.

Today, FERRERE is a full-licensed Office 365 firm, and also works with Microsoft Azure for cloud computing services. For desktop telephony, from day one of remote work the firm was able to provide access from the cellphones and laptops of each of its practitioners.

In turn, we incorporated tools that make it possible to share information with clients, avoiding sending it by email, thereby obtaining greater information control and security.

Some tools such as Teams, Yammer and Avaya Workplace were resources that were used to the maximum of their potential to guarantee the best interaction between the different teams and the firm’s clients.

We also work with iManage Work10, a business document management software. In turn, we work with Easy Doc, an online platform that makes it possible to access templates for standard documents, such as employment contracts, admonishments and suspensions, among others.

Another example of this is that we have begun using Artificial Intelligence for attorneys – programs that interpret texts and extract contract clauses, to cite one example. For large numbers of documents, this makes it possible to see points in common, find the most relevant aspects, etc.

Finally, FERRERE is one of the few firms that submits to external data security audits to certify its information systems.

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Interview with… Juan Carlos Castillo Chacón, Aguilar Castillo Love

With thanks to Paula Ibargüen, for co-ordinating the content for this interview

Where do you feel your clients need the most legal support in the next 12 months?

In recent years, we have seen a trend where inevitably the business and foreign investment world is increasingly engaging with standards that were typically isolated or non-existent in Guatemala (compliance, human rights, environmental rights, ESG, anti-corruption). Any business wishing to enter the Guatemalan market, or remain in it successfully, must verify that its practices are aligned with these critical standards.

What sets your firm apart from competitors?

Aguilar Castillo Love has distinguished itself from its competitors in the region for three characteristics (i) commitment to quality and the client’s interests above everything else, (ii) trust, most of our lawyers are trained in the US or British markets and therefore are up to date with what those clients need and expect from their legal representation and (iii) business oriented, we are aware that legal services are a necessary part of business not separate from it.

Furthermore, we are the first locally founded Central American firm to expand its services beyond the region, having offices in nine countries. Currently, our firm has expanded to key jurisdictions in South America, such as Ecuador, Paraguay, and Bolivia, being the only home grown Latin American Firm. That allows us to provide to our clients the convenience of a one stop shop.

What are your thoughts as regards the country’s new insolvency law, with its stated intention to seek to ensure that companies remain operational and avoid liquidation?

We strongly believed that an insolvency law was a necessity. The new law comes to fix that problem and does so in a timely fashion. In our opinion, the big expansion of credit Guatemala has experienced during the las decade or so will probably lead to a lot of insolvency cases once the credit stops expanding and begins to contract. The new insolvency law provides new legal

tools to increase the possibility of those businesses that are indeed viable can continue operating and that the assets of those that are not viable are distributed fairly among all creditors. This can be seen in the powers granted by the law in the case of voluntary insolvency proceedings to keep the administration of their business; the possibility to suspend debt foreclosure and precautionary measures granted; and the possibility of rehabilitating contracts for essential services. This in principle and on paper seems to be a preventive measure of the legislator to transfer to a second option the liquidation of the business to only those cases in which it is determined in accounting terms that the debtor’s credits and obligations exceed the assets and rights with which it can meet its obligations.

What seems crucial to us is to see how effective these provisions will be in practice. This law contemplates the creation of special courts to hear such proceedings; however, until such courts are created, insolvency proceedings will be heard by the courts of first instance, which already have a high degree of judicial overload and arrears. Likewise, the reorganization proceedings are subject to considerable delays due to the possibility of incidents and accumulation of proceedings, which would inevitably cause a considerable delay in the process.

What progress has been made in Guatemala in terms of the digitization of court services (in the wake of their closure as a result of the covid pandemic)?

Currently courts in Guatemala have electronic mailboxes at the level of the Judiciary Branch and the Constitutional Court. Through these, notifications and judgements are received electronically; and in the case of the platform of the Constitutional Court, submissions can be entered digitally.

Likewise, as a result of the pandemic, it has been possible to conduct hearings virtually, for example public hearings before the Constitutional Court.

Has the country also seen a corresponding up-tick in arbitration (as a result of the delays in the court system) and a growth in its acceptance despite results being binding and not subject to appeal?

Although arbitration is a practice that is still developing as a response to the judicial delay, we are increasingly seeing a strong tendency to include arbitration clauses in contracts involving a foreign party, contracts in highly regulated industries and even in contracts entered with the State of Guatemala.

There are still areas for improvement, we have evidenced the existence of pathological arbitration clauses in the country that hinder their operability. Beyond the binding and non-appealable nature of awards, it’s necessary to raise awareness regarding the proper use of the review appeal (which is the only mechanism provided by law to review an award under certain procedural or public order issues) so that it’s not used in an improper manner either to modify the content of the award or to avoid enforcement, negating the benefits of arbitration and the will of the parties.

How active are members of your team in terms of thought leadership?

At Aguilar Castillo Love Guatemala, we pride ourselves in our team members active involvement as proactive and innovative leaders in key industries and practices. Both our partners and associates are leaders in the development and training of practices in key sectors such as: energy, arbitration, anti-corruption compliance, financing, and corporate matters, among others. Researching the latest trends in these areas at an early stage to contribute to their development in Guatemala.

Similarly, and to mention a few, our firm has a direct involvement at a level of trade associations, youth associations in arbitration, fintech and anti-corruption. Our lawyers are leaders in the academic community, serving as professors and actively participating in conferences and writing academic articles. ACL has also built close relationships with several embassies in Guatemala.

What are your firm’s policies on diversity and inclusion? Does your firm have any specific diversity initiatives?

At Aguilar Castillo Love we have always believed in the idea that talent is not found only in a specific demographic (especially the one that has traditionally prevailed in the Guatemalan legal services market). Our policy, since its inception, has been to hire the best talent and the best people, regardless of gender, age, race, creed, etc. Just by looking at our partners at a regional level it is easy to confirm it, we have partners, both female and male, of a wide age range and backgrounds. The leadership of our female partners has been crucial for the development of the firm.

Our office in Guatemala is characterized by the strong participation of women at a partner and associate level. They have been constantly involved in initiatives to promote through concrete actions the participation of women in the Guatemalan legal sector.

Have ESG considerations prompted you to re-evaluate the service you provide?

Being an international firm, our lawyers are always researching the most recent and important trends in the international legal market. Since before the proliferation of the ESG practice, some of our most innovative lawyers trained and alerted our clients in the region on the impact that ESG considerations would have on the services we provide. Lately, we have focused on conveying to our clients in Guatemala the importance of ESG to advise them on the best way to develop their business in strict compliance with such standards. We are also offering our existing client’s advice on how to evaluate their business model in light of these standards.

Career timeline:

1. Graduated Magna Cum Laude as Lawyer and Public Notary at Universidad Francisco Marroquín. 1991

2. LL.M. Harvard Law School. 1991

3. President of the Guatemalan Stock Exchange Market. 1999-2007

4. Legal Advisor of the Guatemalan Government in the Privatization of Electric Generation and Distribution Companies. 1996

5. Legal Advisor of the Guatemalan Government in the Privatization of Guatemala’s Ports and Airports. 1998

6. Professor of Public International Law at Universidad Francisco Marroquín.

7. Experience as arbitrator and party representative in national and international, commercial and investment arbitrations in energy, corporate, software contracts, and family business disputes.