Scots lawyers anticipate workload surge & voice concerns over 18-month timetable
If Scotland votes “Yes” this week then law firms north of the border can anticipate a surge in their workload.
“It will mean a lot of one-off transactions,” says Rod MacLeod, banking and finance partner at Tods Murray.
“I would expect the phones to be ringing off their hooks in some departments. We are having informal discussions with clients in the finance sector on what it would mean and we would expect to be helping them to interpret negotiations in the event of a ‘Yes’ vote.
“Many clients have been forming contingency plans. We have also been discussing the implications with other law firms in the City that we support. There are advantages and disadvantages for businesses. Our job is to stay neutral and explain what it means.”
An 18-month timetable has been set for independence, with Scotland potentially independent on 24 March 2016. But will that be enough time?
“In a word, no,” says MacLeod.
“I try to stay neutral but one of my biggest criticisms is that what’s been proposed in the White Paper doesn’t stack up within the timeframe. With the EU, for example, they might be able to negotiate continued membership or they might have to come out and accede, but, whatever route you go down you need the agreement of the other 28 member states. You cannot predict that, particularly given Spain’s Catalonia issue.”
EU accession could also depend on Scotland having a strong regulatory system up and running in time. EU rules require member states to be responsible for their own regulators. Currently, regulation is UK-wide, and the Scottish administration says it will create a super-regulator if it gains independence. This could be “fairly straightforward” as current regulations and mechanisms can be adopted, says MacLeod, “but the big problem will be finding human resources for a regulator, particularly in the financial services sector. It could be in place in time but would it be competent?”
“Independence could work but there will be some risks and it is prudent to examine them.”
