Offshore magic circle

The offshore magic circle refers to a number of law firms practicing in offshore jurisdictions which are considered to be amongst the leaders in the field. The terms is adopted as an imitation of the more well-recognised London Magic Circle law firms. The concept of an offshore magic circle was first suggested in the wake of a series of cross-jurisdictional mergers and expansions by various firms.[1]

Although there is some disagreement over exactly who should constitute the offshore magic circle, a recent article in Legal Business^[1] suggested that an offshore magic circle might constitute the following firms:

The concept of an offshore magic circle has been criticised by the wider legal community and within the offshore legal sphere itself.

In the wider legal community, it has been suggested that label is a little self-aggrandising. Not only does the proposed offshore magic circle seem fairly big (with 9 firms, as opposed to the 5 firms in the original magic circle), but it also appears to contain a fairly large proportion of offshore firms, including almost all the significant Channel Islands firms. But the combined population and economies of all the principal offshore financial centres combined still only amount to a tiny fraction of the United Kingdom, and the magic circle contains a infinitely smaller proportion of the law firms in the United Kingdom.^[2]

Within the offshore legal community, critics have also suggested that the sole criterea for inclusion appears to be to operate in more than one jurisdiction in (thereby excluding a number of single jurisdiction firms, such as Harneys, Cains and Hassans), rather than the quality of the practice. The approach is slightly ironic as the acknowledged leading member of the real magic circle, Slaughter and May, has eschewed the multi-jurisdictional approach and focuses purely on excellence in a single jurisdiction.

It has also been noted that the proposed offshore magic circle has a strong emphasis on the Channel Islands, and contains almost every significant commercial firm within those jurisdictions. Edward Fennell, a columnist for The Times has expressed slightly irreverent views of law firms designating themselves as part of an offshore magic circle.[2]

However, the concept of an offshore magic circle has gone down very well with the firms involved, and the concept is actively promoted by legal recruitment consultants who earn substantial fees by persauding city lawyers to spend a few years working in an offshore jurisdiction.

Footnotes

^ Issue 165, June 2006
^ The combined populations of the British Virgin Islands, Bermuda, Cayman Islands, Jersey, Guernsey and the Isle of Man add up to 372,000, against the population of the United Kingdom, which is estimated at 59,800,000 (2004 estimated figures). In terms of GDP, the aggregate of the offshore jurisdictions is US$15 billion, as against US$1,860 billion in the United Kingdom (2005 estimated figures).

[1] Issue 165, June 2006

[2] The combined populations of the British Virgin Islands, Bermuda, Cayman Islands, Jersey, Guernsey and the Isle of Man add up to 372,000, against the population of the United Kingdom, which is estimated at 59,800,000 (2004 estimated figures). In terms of GDP, the aggregate of the offshore jurisdictions is US$15 billion, as against US$1,860 billion in the United Kingdom (2005 estimated figures).

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