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TODAY 17/03: IO Focus: Hong Kong, Investors Offshore special feature
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03/03 Personal Business Tax Guide, PBTG, has launched!
Providing essential tax news and information for globally mobile artists, contractors, entrepreneurs, professionals, small businesses, sportspersons and entertainers.
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LOWTAX OFFSHORE

GIBRALTAR: LEGAL PROFESSION


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BACK TO GIBRALTAR INFORMATION: BUSINESS, TAXATION AND OFFSHORE

On this Page:

- GIBRALTAR STRUCTURE AND REGULATION OF THE LEGAL PROFESSION
- GIBRALTAR CODES OF CONDUCT AND DISCIPLINARY PROCEEDINGS
- GIBRALTAR SOLICITORS' ACCOUNTS' RULES
- GIBRALTAR PROFESSIONAL INDEMNITY INSURANCE
- GIBRALTAR FEES AND DISPUTES
- GIBRALTAR RECENT TRENDS


Gibraltar Structure and Regulation of the Legal Profession

Gibraltar has a fused legal profession so that barristers and solicitors enjoy the same rights and privileges as regards appearances in court and direct contact with clients. The profession is regulated under the Supreme Court Ordinance (the 'Ordinance'). The Chief Justice may approve admit and enrol as barristers any persons who have been admitted as barristers in England or Northern Ireland or the Republic of Ireland or as advocates in the Court of Session in Scotland.

Likewise in the case of solicitors any persons who have been admitted as solicitors of the Supreme Court of Judicature in England or any Court of Record in Northern Ireland or the Republic of Ireland or a solicitor in administrative practice in Scotland may also act as barristers.

The Bar Council regulates the profession and is closely associated with its English counterpart.

In August, 2004, the government announced that it had partially transposed into local law a European Union Directive, 2001/19, on mutual recognition of professional qualifications. This was achieved though the Recognition of Professional Qualifications Ordinance (amendment) Ordinance 2003 passed in the House of Assembly on 28 July 2003.


Gibraltar Codes of Conduct and Disciplinary Proceedings

The Ordinance provides that the rules prescribed from time to time by the Bar Council and the Law Society in England in regard to the professional conduct of barristers and solicitors apply in Gibraltar, unless modified by the Chief Justice.

In practice the English barristers' or solicitors' rules apply depending whether a Gibraltarian lawyer is deemed to be acting in a barrister's or solicitor's role.

The Ordinance gives the Chief Justice extensive powers to suspend, reprimand, fine, investigate or strike off barristers or solicitors.

The Barrister and Solicitors Rules provide for the establishment of an Admissions and Disciplinary Committee.


Rule 7 provides that:

  • Any complaint of the conduct of a barrister or solicitor in his professional capacity shall be in writing and shall be addressed to the Registrar;
  • The Registrar shall lay the complaint before the committee; and
  • Furnish the barrister or solicitor concerned with a copy of such complaint.

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Gibraltar Solicitors' Accounts Rules

Rules 3-4 stipulate that client money (including trust money) must be kept in a separate and designated client account. Rule 7 specifies the circumstances in which money may be withdrawn from a client account and includes payments to and on behalf of a client, payment towards a solicitor's costs and money drawn on the client's authority.

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Gibraltar Professional Indemnity Insurance

Although most firms have indemnity insurance, this is not mandatory. In particular a client should check that individual lawyers are insured. At the time of writing a new proposal was being envisaged by the Bar Council making individual indemnity insurance compulsory.

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Gibraltar Fees and Disputes

There are no hard and fast rules with regard to billing. In general a lawyer's bill of costs should contain sufficient information to identify the matter and the period to which it relates together with disbursements. Contingency fees are not allowed. Normally, individual law firms agree fees based on an hourly rate.

Where there is a dispute as to the fees charged, a client may pursue two mutually exclusive possibilities (see also above):

  • request the lawyer to submit a bill of costs to the Registrar of the Supreme Court for taxation;
  • or submit a complaint to the Bar Council who will in an appropriate situation request the lawyer to review the matter.

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Gibraltar Recent Trends

Company incorporations and associated work had been a staple source of legal work. The downturn in the Spanish property market and the introduction of the Special Annual Tax by Spain, has meant a significant drop in incorporations.

In December 2006, Gibraltarians accepted a new constitution for the jurisdiction, which aimed to give it more autonomy from the United Kingdom over its own internal affairs.

The constitution, agreed in April 2006 by then UK Foreign Secretary Jack Straw and Peter Caruana, and between Gibraltar's two main political parties later in the year, saw the UK retaining international responsibility for Gibraltar.

However, the new constitution ceded certain powers previously in the possession of the British government to Gibraltar, and allowed the jurisdiction to have its own independent judiciary.

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