report_2019

Defender of the Rule of Law ANNUAL REPORT

Acknowledgement Cover artwork Rebirth by Keyon Lo, Hong Kong Visual Artist

2CONTENTS 46 The Council 2019 Report of the Council Key Metrics in 2019 8 18 20 22 President’s and Law Society Safeguarding the Improving Practice Secretary General’s Reports Secretariat Rule of Law Environment 26 30 40 46 Maintaining the Exploring New Providing Relevant Giving Back to and Effective Support Community Highest Standards Opportunities to Members 50 84 88 117 Membership Law Society Independent Abbreviated of Standing Representatives Auditor’s Report Terms Used in this Committees, on Statutory Report Committees, of Official Working Groups, Committees Working Parties and Organising Committees

The Law Society of Hong Kong THE COUNCIL 2019 Melissa K. PANG Amirali B. NASIR Thomas S.T. SO Billy W.Y. MA Nick CHAN President Vice-President (until May) Cecilia K.W. WONG (until May) Denis BROCK Brian W. GILCHRIST Stephen W.S. HUNG Serina K.S. CHAN Vice-President (until May) C.M. CHAN Vice-President 2

The Council 2019 / Annual Report 2019 Warren P. GANESH Robert C. RHODA Pierre T.H. CHAN Careen H.Y. WONG Mark DALY Jonathan ROSS Eric T.M. CHEUNG (from May) Simon S.C. LAI Karen LAM Calvin K. CHENG (until May) (from May) Doreen Y.F. KONG (from May) Roden M.L. TONG Christopher K.K. YU (from May) 3

The Law Society of Hong Kong REPORT OF THE COUNCIL The Council submit herewith its annual report together COUNCIL MEMBERS with the audited financial statements for the year ended 31 December 2019. The Council Members during the financial year and up to the date of this report and their attendance at the Council PRINCIPAL PLACE OF BUSINESS Meetings are shown in the table on page 5. The Law Society of Hong Kong (“The Law Society”) is a In accordance with article 15(a) of The Law Society’s company limited by guarantee, and is incorporated and articles of association, at the forthcoming annual general domiciled in Hong Kong and has its registered office and meeting the five members longest in office since principal place of business at 3/F, Wing On House, 71 election or re-election shall retire but shall be eligible for Des Voeux Road Central, Hong Kong. re-election. PRINCIPAL ACTIVITY At no time during the year was The Law Society, any of its subsidiaries or any of its related companies a party The principal activity of The Law Society is to act as the to any arrangement to enable the Council Members of professional and regulatory body for solicitors in Hong The Law Society to acquire benefits by means of the Kong. The principal activity and other particulars of The acquisition of an interest in The Law Society or any other Law Society’s subsidiaries are set out in note 8 to the body corporate. financial statements. Except for the related party transactions as disclosed BUSINESS REVIEW in note 17(a) to the financial statements, no contract of significance to which The Law Society, any of its A review of The Law Society’s operation and subsidiaries or any of its related companies was a management, financial position and risks, environmental party, and in which the Council Members had a material policies and performances and future direction of The interest, subsisted at the end of the year or at any time Law Society are set out on pages 8 to 17 and 20 to 49 of during the year. the Annual Report. INDEMNITY OF COUNCIL MEMBERS FINANCIAL STATEMENTS A permitted indemnity provision (as defined in section The surplus of The Law Society for the year ended 31 469 of the Hong Kong Companies Ordinance) for the December 2019 and the state of The Law Society’s benefit of the Council Members of The Law Society is affairs as at that date are set out in the financial currently in force and was in force throughout this year. statements on pages 91 to 116. AUDITORS MEMBERSHIP KPMG retire and, being eligible, offer themselves for As at 31 December 2019, there were 11,764 (2018: re-appointment. A resolution for the re-appointment of 11,266) members of The Law Society. The total number KPMG as auditors of The Law Society is to be proposed of Practising Certificates issued was 10,344 (2018: at the forthcoming Annual General Meeting. 9,903). There were 932 (2018: 915) firms of solicitors. BANKERS By order of the Council The bankers are The Bank of East Asia Limited, The Melissa K. Pang Hongkong and Shanghai Banking Corporation Limited, President Hang Seng Bank Limited, Standard Chartered Bank (Hong Hong Kong, 17 March 2020 Kong) Limited, CMB Wing Lung Bank Limited, Bank of China (Hong Kong) Limited and Bank of Communications Co., Limited. 4

Report of the Council / Annual Report 2019 ATTENDANCE OF COUNCIL MEMBERS AT THE COUNCIL MEETINGS DURING THE FINANCIAL YEAR AND UP TO 17 MARCH 2020, THE DATE OF THIS REPORT: Regular Unscheduled Official Duties Meetings Meetings Total 7 Melissa K. Pang, President 18 0 18 (re-elected as President on 4 June 2019) 2 26 2 28 Amirali B. Nasir, Vice President 0 (re-elected as Vice President on 4 June 2019) 24 1 25 2 Brian W. Gilchrist, Vice President 28 2 30 0 (re-elected as Vice President on 4 June 2019) 70 7 0 0 C. M. Chan, Vice President 29 1 30 0 (re-elected as Vice President on 4 June 2019) 21 2 23 0 26 1 27 0 Thomas S. T. So (retired on 30 May 2019) 17 2 19 0 Stephen W. S. Hung 0 Billy W. Y. Ma 70 7 0 Cecilia K. W. Wong 90 9 0 Denis G. Brock 29 3 32 1 Nick Chan (retired on 30 May 2019) 70 7 0 Serina K. S. Chan (retired on 30 May 2019) 25 1 26 0 Warren P. Ganesh 24 2 26 0 Simon S. C. Lai (retired on 30 May 2019) 26 1 27 0 Roden M. L. Tong (re-elected on 30 May 2019) 24 2 26 0 Robert C. Rhoda 25 2 27 0 Jonathan Ross 27 2 29 0 Pierre T. H. Chan 24 1 25 0 Eric T. M. Cheung 18 1 19 0 Karen Lam 10 0 10 Careen H. Y. Wong 16 2 18 Calvin K. Cheng (elected on 30 May 2019) 17 0 17 Mark Daly (elected on 30 May 2019) Doreen Y. F. Kong (elected on 30 May 2019) Christopher K. K. Yu (elected on 30 May 2019) 5

The Law Society of Hong Kong KEY METRICS IN 2019 (As of 31 December 2019) Members Members with (with or without Practising Practising Certificate) Certificate 11,764 10,344 (out of whom 7,596 (73%) are in private practice) Trainee Registered Solicitors Foreign Lawyers 1,219 1,688 (from 33 jurisdictions) Student Members 371 6

Hong Kong Law Registered Firms Associations 932 between Hong Kong law (47% are sole proprietorships firms and registered and 42% are firms with foreign law firms 2 to 5 partners, 46 are (including Mainland law firms) limited liability partnerships formed pursuant to the Legal 41 Practitioners Ordinance) Civil Celebrants Registered of Marriages Foreign Law 2,200 Firms Solicitor 91 Advocates (15 are limited liability 72 partnerships (66 in civil proceedings, formed pursuant to the Legal 6 in criminal proceedings) Practitioners Ordinance) 7 Reverse Mortgage Counsellors 448

The Law Society of Hong Kong PRESIDENT’S & SECRETARY GENERAL’S REPORTS Heidi CHU Secretary General Melissa K. PANG President 8

President’s & Secretary General’s Reports / Annual Report 2019 PRESIDENT’S REPORT DEFENDER OF THE RULE OF LAW Law. “One Country, Two Systems” is a unique concept that allows two different legal systems to co-exist within The rule of law is widely recognised as one of Hong one country. While Hong Kong continues to maintain its Kong’s greatest strengths. It is the cornerstone of Hong own independent and highly respected legal system, Kong’s success as a leading international commercial which is firmly embedded in the common law tradition and financial centre, providing a safe environment for in accordance with the Basic Law, it is important to be individuals and organisations and a level playing field for aware of, to understand and respect the differences business. between the two separate legal systems in Hong Kong and the Mainland. In this regard, The Law Society has One of the most important roles of The Law Society is been making tireless efforts to explain and promote to safeguard the rule of law and to uphold the principles “One Country, Two Systems” to local and international on which this core value is founded. The public order communities at every available opportunity including events in Hong Kong in 2019 have raised concerns about regular talks at schools and with local communities, a lack of respect by some quarters in the community for seminars at international events and exchanges with our the rule of law as a core value of society. As a regular overseas counterparts during the year. duty, The Law Society routinely promotes the rule of law locally and internationally. However, during the year, GATEKEEPER OF PROFESSIONAL The Law Society found it more necessary than ever to STANDARDS articulate repeatedly a proper understanding of the rule of law and to protect it from being undermined, eroded The Law Society has put in much effort in assisting or misused. the Government to see through the process of Mutual Evaluation of Hong Kong by the Financial Action Task Since June, The Law Society has, as a defender of the Force (“FATF”). We were very pleased that Hong Kong rule of law, issued eight press statements to condemn has been rated overall compliant by FATF in its report all forms of violence and call for respect of the rule of issued in September. Out of the 25 jurisdictions that law and judicial independence. Judicial integrity should were evaluated in the fourth round of Mutual Evaluation not and can never be undermined or compromised or be by FATF, only seven (including Hong Kong) have been dragged into the political arena. rated overall compliant and Hong Kong is the only Asian jurisdiction among the seven. As a forward-looking professional organisation, The Law Society has also proactively offered possible ways to Further, The Law Society has exercised its statutory address the concerns revealed in the social conflicts and power to intervene in the practices of three law firms to to lead the healing process that follows. The suggestions protect the interests of the firms’ clients and the public made to the Government included the commission of during the year. an independent inquiry by a committee and the scope of tasks and the chairmanship of that committee, as As an international legal services hub in Asia, Hong Kong well as a mediation pilot scheme to assist in mediating is blessed with legal talent from around the world. As the community disputes arising from the social of the end of the year, there were 91 foreign law firms confrontations. and 1,688 registered foreign lawyers (“RFLs”) from 33 overseas jurisdictions. The Law Society welcomes In addition to addressing specific incidents, The Law qualified talent from other jurisdictions, which enriches Society also put in much effort during the year to the diversity of the Hong Kong legal services market. promote public confidence in the proper functioning of To ensure the effectiveness of the foreign lawyers’ the judicial and legal systems of Hong Kong under “One regulatory regime, which has been in place since 1994, Country, Two Systems” in accordance with the Basic an overall review was conducted in 2016, followed by 9

The Law Society of Hong Kong a consultation with the general membership on the Further, after years of lobbying, The Law Society has proposed amendments to the regime in 2018. The achieved a welcomed breakthrough in relation to the consultation provided a good opportunity for The Law proposed introduction of a special qualifying examination Society to explain the underlying objectives of the for Hong Kong legal practitioners to become Mainland proposed amendments to members and for members lawyers. Eligible Hong Kong legal practitioners, upon to explain how those proposals might impact their passing a special examination, will be qualified to practice. After careful consideration of the consultation practise specific areas of Mainland law in nine Mainland responses in early 2019, the Council was convinced that cities of the Greater Bay Area with effect from June the proposals might have unintended consequences 2020. The special examination provides an avenue to that would adversely affect the development of the legal enable experienced Hong Kong lawyers in identified profession and the legal services market in Hong Kong practice areas to qualify as Mainland lawyers. It also and resolved not to pursue the relevant proposals. helps strengthen the talent pool to support the growing demand of multi-jurisdictional legal services in the CHAMPION OF CAUSES FOR THE Greater Bay Area. PROFESSION To promote Hong Kong legal services, in addition to Technology has become an indispensable element in actively participating in various international conferences, the sustainability of our legal practice environment. The The Law Society also successfully hosted a large-scale Law Society has been progressing with its Technology conference in Hong Kong in 2019. In November, The Roadmap to encourage and assist our members to take Law Society jointly organised the LAWASIA Conference advantage of suitable technological tools in their legal with LAWASIA in Hong Kong, which attracted over practice. To enhance the delivery of legal services and 600 participants from 30 jurisdictions around the world. access to justice, The Law Society has launched the This created an excellent opportunity for Hong Kong to InnoTech Law Hub to nurture innovative legal tech ideas showcase its world-class legal capabilities and enabled for possible general adoption by the legal community. local practitioners to expand their global network without having to travel outside Hong Kong. Campaigning for more liberal measures to enable Hong Further, The Law Society also signed a memorandum Kong practitioners to develop their practices beyond of understanding (“MOU”) with each of nine lawyers’ Hong Kong is another major focus of the work of The associations from the Mainland, Japan, Korea and the Law Society. United States during the year. These memoranda lay a good foundation for future collaborations and are aimed In April, the Council paid its annual visit to Beijing. One at bringing a variety of benefits to our members. of the topics under discussion was how to facilitate Hong Kong solicitors to take advantage of their unique Throughout the year, The Law Society provided support professional competitiveness to enhance their role in the to our members in a wide range of areas including development of the Belt and Road and the Greater Bay professional development and sector-specific initiatives Area. We were pleased to note that subsequent to the as well as programmes and activities designed to ensure visit, the minimum 30% capital injection requirement on the well-being of members. the Hong Kong firm partner in a partnership association was removed in the Guangdong Province from August For in-house lawyers, The Law Society has introduced and will be removed for the entire Mainland from June the “In-House Lawyers Training Programme” (in 2020. collaboration with law firms) to co-organise seminars with law firms on different topics relevant to in-house lawyers. Two seminars pursuant to the Programme have been held. Further, we have set up a working party 10

President’s & Secretary General’s Reports / Annual Report 2019 to consider the long-term strategies to enhance the connection between in-house practitioners, The Law Society and private practitioners. A dedicated working party has also been set up to consider issues relevant to small to medium law firms (“SME firms”). During the year, two sharing sessions and a Crossover Community Roundtable for SME firms were organised and one visit to an SME firm was conducted to gauge their needs. A review on the future strategy of the Young Solicitors Group (“YSG”) was completed during the year. With the refined terms of reference and composition, YSG aims to be an effective platform for sharing experience and ideas among junior solicitors and trainee solicitors and for enhancing their communication with more senior members of The Law Society. The Law Society also provides a structured framework for our members to participate in community and pro bono work and we are grateful for the enthusiastic support of members. The number of awardees in The Law Society’s annual Pro Bono and Community Work Recognition Programme keeps increasing every year. In 2019, a record-breaking number of 282 applications were received. 35 law firms and 179 lawyers have been duly recognized for their distinguished contributions with various awards. All in all, 2019 has been an eventful year. I am very honoured to be trusted with the opportunity to serve the profession. I extend my deepest gratitude to my fellow Council members, committee members and the Secretariat for their unfailing support. Many challenges lie ahead, but I am confident that with our united effort, our profession will continue to thrive and evolve into a better shape for the benefit of our future generations. Melissa K. PANG President 11

The Law Society of Hong Kong SECRETARY GENERAL’S REPORT 2019 has been an extraordinary year. The busy work (d) coordinated 48 outbound visits and events schedule that we keep to maintain our normal operations including 21 visits to the Greater China region and during the year was interspersed with urgent demands 27 delegations to international conferences and to take decisive actions in response to unprecedented meetings in other overseas jurisdictions; social situations. With diligence and judiciousness, our team proudly supported the legal profession in (e) organised five side sessions, workshops and defending the rule of law in Hong Kong throughout these seminars for major events in the Greater China challenging times. region and overseas jurisdictions; As the voice of the profession, The Law Society issued (f) arranged the signing of a MOU with nine lawyers 13 press statements in 2019, out of which eight related associations individually including Guangzhou to the public order events arising from the Fugitive Lawyers Association, International Association Offenders and Mutual Legal Assistance in Criminal of Young Lawyers (“AIJA”), Huizhou Lawyers Matters Legislation (Amendment) Bill 2019. The Association, Jiangmen Lawyers Association, disruptions caused by the social conflicts necessitated Zhaoqing Lawyers Association, Florida Bar the cancellation of the annual Sports Night and Christmas International Law Section, Hainan Lawyers Party that had initially been scheduled respectively for Association, Seoul Bar Association, and Hyogo-Ken October and December, the change of the examination Bar Association, as well as with Peking University venue for some subjects of the Overseas Lawyers Law School; Qualification Examination (“OLQE”) in October and November and the early closure of the office of the (g) selected and sponsored 10 young lawyers as well Secretariat on 5 August and 4 October to ensure staff, as organised their visit to the Hainan Free Trade participants and candidates remain safe. Zone and their participation at five international conferences hosted by AIJA in Rome, the Notwithstanding some unavoidable disruptions during International Bar Association (“IBA”) in Seoul, the the latter half of the year, we are pleased to report all of Commonwealth Law Conference in Livingstone, the ways we were able to continue providing value for Union Internationale des Avocats (“UIA”) in our members throughout the year. Luxembourg, and the Inter-Pacific Bar Association (“IPBA”) Conference in Singapore; The summary below sets out major quantifiable tasks we performed for members throughout the year, under (h) issued over 21 submissions on public consultations the guidance of the Council and Committees: and 13 press statements on issues relevant to the legal profession; (a) organised over 83 social and networking events for members, including Family Fun Day, Cooking (i) organised 357 training courses, attended by 17,362 Competition, Annual Cocktail, Spring Reception and participants, under the Continuing Professional luncheon talks, among many others; Development (“CPD”) Scheme and the Risk Management Education (“RME”) Programme; (b) coordinated 55 community projects, including Law Week, the Legal Pioneer Mentorship Programme, (j) administered the annual OLQE for a total of 238 the Helpline to provide free legal advice, elderly candidates; visits, as well as community and school talks; (k) coordinated over 750 activities of the 14 sports (c) received 49 delegations from the Greater China teams and nine recreational teams of The Law region and other overseas jurisdictions; Society including classes and training sessions; 12

Secretary General’s Reports / Annual Report 2019 (l) processed applications for (i) the subscription of Practice 2018: 12% 2018: 4% 201 11,764 members, 18 associate members, and 11,764 371 student members, (ii) the registration of 744 12% 4% 21% trainee solicitor contracts, (iii) the admission of 753 Solicitor solicitors, (iv) the issue of 10,344 bilingual practising Members 8: 21% certificates, (v) the registration of 2,075 foreign in total lawyers and 91 foreign firms, (vi) the issue of 797 (2018: 11,266) 2018: 23% 23% certificates of standing for solicitors/foreign lawyers and 20 for solicitors’ firms and foreign law firms, Sole Proprietors 13% 2018: 13% as well as (vii) the issue of 494 letters regarding employment or training visas; Partners 27% (m) processed the CPD accreditation of 4,724 training Consultants 2018: 27% courses and 110 other activities as well as the RME accreditation of 97 courses; Assistant Solicitors Practising Certificate holders, not in Private Practice No Practising Certificate (n) conducted CPD audits on 1,136 practitioners; Senority 8: 13% 2018: 29% 2018: 26 2018: 19% 10,344 % (o) handled 926 complaints on practitioners and 30% 25% employees of law firms; and Practising Certificate 20% (p) visited 66 law firms on 91 occasions to provide Holders assistance with their accounting procedures and to (2018: 9,903) 12% inspect documents to ensure compliance with the Solicitors’ Accounts Rules. ≤ 5 years PQE 201 13% > 5-10 years PQE Much of our work, however, is less quantifiable. Thus, > 10-15 years PQE 2018: 13% detailed explanations about other projects and initiatives > 15-20 years PQE we undertook in 2019 are set out in other sections of > 20 years PQE this Annual Report. MEMBERSHIP MOVEMENTS Gender 2018: 49% 49% 51% 2018: 51% AND BREAKDOWN 10,344 Our membership increased by 4.4% from 11,266 to Practising 11,764 as of the end of 2019. The growth rate is slightly Certificate lower than the average rate of 4.7% for the five-year Holders period from 2014 to 2018. Out of our 11,764 members, (2018: 9,903) 10,344 held a practising certificate, compared to 9,903 in 2017 representing a 4.5% increase. Male The charts on the right show a snapshot of the Female distribution of our membership in terms of their practice, seniority and gender as at the end of 2019: 13

The Law Society of Hong Kong The gap in the numbers of male and female practising The jurisdiction of The Law Society Council extends certificate holders was maintained at the same level of to the conduct not only of a person who is, or was 2% with 49% female practitioners and 51% male. at the relevant time, a solicitor, a foreign lawyer or a trainee solicitor, but also to an employee of a solicitor or During the year, 35 new Hong Kong law firms (41 foreign lawyer. At the end of 2019, 16,181 unqualified in 2018) and 11 new foreign law firms (8 in 2018) persons were employed by Hong Kong law firms and commenced practice. On the other hand, 21 Hong 604 by foreign law firms, an increase of 0.9% and 7.9% Kong law firms (16 in 2018) and six foreign law firms (5 respectively, compared to 2018. in 2018) ceased practice. Out of the six foreign firms that were closed, three became a Hong Kong law firm FINANCIAL POSITION (compared to one conversion in 2018). The number of foreign lawyers increased by 6.6% from A surplus after tax of HK$19.3 million was recorded for 1,584 (from 34 jurisdictions) in 2018 to 1,688 (from 33 the year, compared to the surplus of HK$9.9 million in jurisdictions with Uganda added to the list and Israel 2018. and Spain taken out) in 2019. The top three jurisdictions where the most foreign lawyers registered as being Our major sources of income included fees for their home jurisdictions in 2019 were the United States membership, solicitors’ practising certificates, foreign (36%), England and Wales (20%) and Mainland China lawyers’ registration and miscellaneous applications like (16%). However, there was a 2% increase in the share certificates of good standing. The income for the year of Mainland firms and a 1% drop in the share of US firms was about HK$131.3 million, representing an increase and England and Wales firms, each. of about 16.5% from 2018. The increase in income was largely attributable to the increase in the annual fee rate The number of foreign law firms increased by 5.8% of a solicitor’s practising certificate from HK$5,000 in from 86 (from 22 jurisdictions) in 2018 to 91 (also from 2018 to HK$6,500 from 2019, generating an additional 22 jurisdictions) in 2019. The top three jurisdictions income of about HK$17.6 million compared to the same where the most foreign law firms registered as their item of income in 2018. The legislative amendments home jurisdictions in 2018 were Mainland China (31%, to increase the fee rate were initiated following the compared to 29% in 2018), the United States (16%, substantial surge in regulatory costs incurred by The compared to 17% in 2018) and France, Cayman Islands Law Society to intervene in the practices of four law and British Virgin Islands (all three sharing third place, firms leading to a deficit of about HK$42 million in 2016. with each taking up 6%). England and Wales which The amendments were aimed to ensure the availability shared 6% in third place in 2018 has dropped to fourth of adequate resources for The Law Society to fulfill its place with a 4% share in 2019. statutory regulatory duties at all times. The relevant approvals from the Judiciary and the Legislative Council With the implementation of the Legal Practitioners were obtained and the new fee rate took effect from (Amendment) Ordinance 2012 introducing limited 1 January. liability partnerships (“LLPs”) for law firms in Hong Kong since 1 March 2016 up to the end of 2019, a total of 66 The other fee rates of membership and registration as a law firms have taken advantage of the provisions and foreign lawyer and a foreign firm remained unchanged become LLPs, out of which 13 were formed during 2018. for the year. The student membership fee continued to Of these 66 LLPs, two ceased practice in 2017 and one be free to encourage more law students to join The Law in 2018 and one in 2019. Of the remaining 62 LLPs as of Society. the end of 2019, 16 were foreign firms and 46 were local firms. LLPs afford limited liability protection to innocent partners pursuant to the provisions in the Ordinance. It was anticipated that LLPs might be an attractive choice for those who intended to expand their partnerships. 14

Secretary General’s Reports / Annual Report 2019 With respect to expenditure, compared to 2018, it The accumulated surplus and reserve stood at HK$219.8 increased by 9.1% to approximately HK$111.9 million. million. Our cash position increased by 12% from about The increase was mainly due to an increase of staff HK$195.9 million in 2018 to about HK$219.4 million at costs and other operating expenses. The costs on staff the end of 2019. The Law Society managed its cash increased by about 8.4% compared to 2018 as a result reserves prudently and maintained them in fixed deposits of the addition of six new headcount to cope with the spread among seven banks with no more than 22% increasing workload. For other operating expenses, of the total cash reserves in any one bank. Liquidity is there was an increase of about 12.5%, compared to closely monitored to ensure sufficient resources to meet 2018. During 2019, The Law Society participated more the operating needs of The Law Society and to maximise actively in international conferences to promote Hong interest earnings. As of the end of the year, about 69% Kong legal services to overseas jurisdictions in ASEAN of the total cash reserves were maintained with banks and the Belt and Road region. Further, more issues with maturity within three months. The details of the arose this year that required The Law Society to obtain exposure to financial risks including credit, liquidity and external professional opinion, leading to an increase in interest rate risks and the policies and practices adopted the amount of professional fees paid out in 2019. The to manage these risks are set out in Note [15(a) to (c)] of regulatory costs have also risen by about 7.7% mainly the Financial Statements on page 114. due to an increase in the costs of intervention work and disciplinary matters. ENVIRONMENTAL PROTECTION The Law Society is empowered under the Legal The Law Society is committed to ensuring that all Practitioners Ordinance (“LPO”) to intervene in the services it offers, as well as its own internal operations practice of a law firm for protection of the interests of are conducted in an environmentally responsible manner. the clients of the firm and the public. The Law Society exercised its statutory power to intervene in the The Law Society publishes a monthly journal, Hong Kong practices of three Hong Kong law firms in 2019, the Lawyer. Print copies are distributed to solicitor members, same number of interventions in 2018 except that out registered foreign lawyers, associate members and of the three interventions, two related to local firms and trainee solicitors residing in Hong Kong only. For one to a foreign firm. Through its intervention agents, members residing outside of Hong Kong and members The Law Society took control of the offices and clients’ of the Hong Kong Bar Association, they are notified of money of the intervened firms, made arrangements the journal’s publication by email every month with the for clients of the intervened firms to engage alternative provision of a link to the online version. Further, we have solicitors and took possession of the intervened firms’ regularly encouraged and reminded members to opt out documents. Subject to any court order for the payment from receiving the printed version. The same applies to of costs, any intervention costs incurred by The Law our Annual Report. The “Opt-Out” icon is prominently Society shall be paid by the solicitors whose practice placed on The Law Society website. Members can notify is intervened. To ensure that The Law Society had The Law Society of their decision to opt out at any time. sufficient reserve to meet the necessary costs that For other publications like our weekly Circulars and the might be incurred in carrying out its statutory regulatory Law List, only electronic versions are available. functions, the Council resolved to set aside a sum every year to build up a special reserve for regulatory costs. In 2019, the Council set aside HK$10 million in the reserve. 15

The Law Society of Hong Kong Further, to facilitate electronic communication with all Staff are urged to recycle and reuse wherever possible. members, The Law Society has installed a webmail There is a system in place to collect plastic and paper system by which every solicitor, trainee solicitor, materials, toner and ink cartridges for recycling. Used registered foreign lawyer, associate member and student envelopes are centrally stored for the staff to reuse. We member are entitled to register a Law Society email are in full support of energy saving. We have signed account. The Law Society actively encourages members up to the Energy Saving Charter organised by the to take advantage of this facility. In December 2018, The Environmental Bureau and to the Green Event Pledge Law Society took the initiative to assign an email account by the Environmental Protection Department. We to each of those members who had not activated the have pledged to maintain average indoor temperature facility. From January, communications from The Law between 24ºC to 26ºC between June and September and Society to the general membership including surveys to switch off electrical appliances and systems when not were sent electronically to our members’ Law Society in use and procure energy efficient electrical appliances email accounts. and systems from June 2019 to May 2020. We have successfully saved consumption of electricity, paper and An increasing number of members have applied for a printing by 4.2%, 9.1% and 10.3% respectively during Chinese version of their practising certificate, and The the year, compared to the consumption in 2018. Law Society has issued a separate practising certificate in Chinese to those members in accordance with the ABOUT THE TEAM format prescribed in the Practising Certificate (Solicitors) Rules. From 1 January, The Law Society has adopted the Excellence, transparency, empathy and fairness are the revised statutory bilingual format of practising certificates guiding values embraced by our team in the Secretariat so that both the English and the Chinese versions are in every task we undertake and every service we offer. printed on the same certificate. This format of a bilingual We implement the policies approved by the Council and practising certificate serves to reduce much printing for provide support to the work of the committees. the protection of the environment. Internally, measures to protect the environment are To cope with the heavy workload in the Secretariat, stipulated in The Law Society’s staff manual. Staff are six headcounts were added during 2019 and our total reminded to: headcount for permanent staff stood at 106 at the end of the year. On personnel movement, the Secretariat had (a) think carefully whether there is a need to copy or an overall turnover rate of 26% in 2019, compared to print a document and if there is a need, it should be 26.9% in 2018. Mr. Joshua Cheng joined us as Director done in the double-sided mode; of Communications and External Affairs, Mr. Damon Lam as IT Consultant and Ms. Iris Poon as Assistant Director (b) recycle and reuse envelopes and draft paper; and of Member Services. Human capital is the most valuable asset of an organisation and we place heavy importance (c) switch off all lights, electrical equipment and on the retention of talent. During the year, five members appliances before leaving the office. of our staff received long service awards in appreciation of their loyalty to The Law Society. Their years of service with us ranged from 15 to 25 years. 16

Secretary General’s Reports / Annual Report 2019 Staff functions organised during the year included the Spring Dinner in February, a staff gathering in September and Christmas luncheon in December. Staff seminars on medical insurance and personal health were organised throughout the year. An annual budget was also set aside to sponsor staff training on work-related knowledge and skills. Our team is proud to serve the profession and with our members’ trust and support, we will continue to excel in what we do in the coming year. Heidi CHU Secretary General 17

The Law Society of Hong Kong LAW SOCIETY SECRETARIAT LAW SOCIETY SECRETARIAT 18

Law Society Secretariat / Annual Report 2019 Secretary General Heidi Chu Deputy Secretary General Christine Chu Director of Director of Director of Director of Director of Communications & Compliance Member Services Practitioners Affairs Standards & Development External Affairs Margot Tung Wendy Lee Kenneth Fok Vivien Lee Joshua Cheng Assistant Director, Assistant Director, Assistant Director, Assistant Director, Conduct Administration and Member Services (I) Practitioners Assistant Director, (from September) Human Resources Affairs (I) Regulation & Vivian Yim Iris Poon Guidance (I) Phoebe Chow May Lo Eileen Tam Assistant (from December) Angela Li (until December) Director, Assistant Director, Assistant Director, Registration Accounts Ellie Ip Practitioners Assistant Director, Assistant Director, Affairs (II) Regulation & Communications & Sharon Liu Esther Cheng (from October; Guidance (II) until November) Kally Lam External Affairs Grace Ho Janice Yuen Assistant Director, Ella Chan Professional Assistant Director, (until October) Professional Assistant Director, Indemnity Scheme Development Communications & IT Consultant Assistant Director, Member Services (II) Gigi Liu Iris Cheung External Affairs Damon Lam Robert Chan Banbi Chen (from March) Ronald To (until April) 19

The Law Society of Hong Kong SAFEGUARDING THE RULE OF LAW One of The Law Society’s most following due process which would resulted in violent conflicts in Hong important roles is to safeguard the Rule prevent public perception of possible Kong since June. of Law and to uphold the principles bias or political considerations. On on which this core value is founded. 14 February, The Law Society issued On 5 June, The Law Society a public statement highlighting that issued lengthy submissions to Among those principles are the current Prosecution Code (2013 the Government warning that the transparency and accountability. In edition) is silent on any briefing out legislative exercise must not be February, queries and comments policy and as such, could justifiably rushed, as the Bill had far-reaching were raised in the community on invite skepticism on preferential ramifications. The Law Society the decision of the Department treatment on prosecutions and urged the Government to allow of Justice (“DoJ”) in not seeking undermine public confidence in the sufficient time for all stakeholders an external legal opinion, when it system of justice. The DoJ was urged to examine the Bill carefully and made its decision not to prosecute to adopt or incorporate the relevant thoroughly to enable full discussion in a high-profile case of public criteria in briefing out criminal and analysis in a calm, rational and interest. The Law Society took the cases referred to in the Legislative constructive manner with a view view that when the DoJ exercises Council paper of February 2018 in to finding a suitable solution for the its constitutional power to control the Prosecution Code as soon as benefit of Hong Kong as a whole. criminal prosecutions free from practicable. The submissions also provided any interference, it is of paramount constructive proposals on ways importance for the DoJ to enhance It is sad and regrettable that matters to address the concerns raised in public confidence in the impartiality of in respect of the Fugitive Offenders connection with the Bill in the event its decision and adhere to the cardinal and Mutual Legal Assistance that the Government decided to principle of “Justice must be seen to in Criminal Matters Legislation proceed with the legislative exercise be done”. This could be achieved by (Amendment) Bill 2019 (“Bill”) despite The Law Society’s advice. 20

Safeguarding the Rule of Law / Annual Report 2019 condemning violence in the areas of detailed analysis on which a court’s Central and Admiralty on 12 June, decision is made is set out in the the violent siege of the Legislative court’s reasoned judgment, which is Council building on 1 July, the publicly accessible. open defiance of court orders by paralyzing access to the Hong Kong It is regrettable that the politically International Airport, blocking roads charged circumstances in the latter and vandalizing public transport and half of the year led to the publication railway stations on 1 September and of impulsive comments alleging the throwing of petrol bombs at court that some judicial decisions were buildings on 8 December. influenced by political considerations. Hong Kong is a civilized society The violent clashes in society On 13 September, comments were with a diverse population, where could affect confidence in both published in the media criticising the engagement through rational debate the maintenance of law and order leniency of judges in their handling to resolve differences has always and the Rule of Law in Hong Kong. of the protest-related cases and been respected. Order and security is While condemning violence and demanding the resignation of the Chief one of the defining aspects of a Rule calling all forms of violence to stop, Justice. The Law Society immediately of Law society. It is a pre-condition The Law Society also proactively issued a public statement condemning for the realisation of the rights and offered possible ways to resolve the unfounded comments that judicial freedoms that the Rule of Law seeks conflicts and address the concerns decisions were made or influenced by to advance. However, the public of society. On 1 August, The Law political considerations, as they were order events in the latter half of the Society issued a public statement unjustified and could be damaging to year involving acts of violence in supporting the commission of an our legal system. scattered locations has threatened to independent inquiry by a committee damage this very important pillar of (“Committee”). Suggestions were Nothing should be said or done that order and security of society. made on the scope of tasks and the will undermine or will be perceived chairmanship of the Committee, to undermine, judicial independence The Law Society issued various public the protection for people coming and the Rule of Law in Hong Kong, statements condemning violence in forward to give evidence and the both of which are fundamental to the all forms as violence only aggravates commitment of the Government to city’s common law legal system. The differences and endangers order and the inquiry. Further, The Law Society Law Society has been vigilant and stability, and should have no place also set up a Task Force to study and prompt in sending clear reminders in a civilized society. On each of 13 make recommendations on initiatives to the public. Such a reminder was June, 2 July, 3 September and 9 that could be deployed to resolve considered necessary in response December, The Law Society issued civil, social and community disputes to the comments reported to a public statement respectively arising from the confrontations and have been made on behalf of the conflicts. A Mediation Pilot Scheme Legislative Affairs Commission of the was formulated to assist in the Standing Committee of the National resolution of these disputes. It was People’s Congress on 19 November, submitted to the Chief Executive for concerning the High Court judgment consideration in August. In October, dated 18 November in relation to the The Law Society held a Members’ Emergency Regulations Ordinance. Forum on “Rebuild Hong Kong & On 21 November, The Law Society Find Ways Forward – From a Legal issued a public statement highlighting Perspective”. Members were invited Articles 85 and 158 of the Basic Law to submit views on sub-topics and reiterating its full confidence including Prohibition on Face Covering in the independence and the role Regulation and the Emergency of the Hong Kong courts and the Regulations Ordinance, Amnesty and proper functioning of the judicial and independent inquiry. The Law Society legal systems of Hong Kong under consolidated members’ suggestions “One Country, Two Systems” in and ideas and shared them with accordance with the Basic Law. relevant stakeholders. The Law Society will continue its Article 85 of the Basic Law provides tireless efforts to defend the Rule that the Hong Kong courts shall of Law, the key to social stability, exercise judicial power independently, economic success and overall well- free from any interference. The being of Hong Kong. 21

The Law Society of Hong Kong IMPROVING PRACTICE ENVIRONMENT IMPROVING PRACTICE ENVIRONMENT The fiercely competitive legal in accordance with a statutory (“PIS”) contributions payable by services industry landscape formula stipulated in the Solicitors law firms were reduced by one- continues to pose many challenges (Professional Indemnity) Rules (Cap. third in the indemnity years 2010/11, to solicitors in practice. A key role 159, sub leg) (“PIS Rules”). The 2011/12, 2013/14, 2014/15, 2015/16, of The Law Society is to ensure Council had no discretion to deviate 2017/18 and 2018/19 and by 50% in the sustainable development of the from the statutory formula until 2010 the indemnity year 2016/17. In 2019, local practice environment so the when the PIS Rules were amended on the basis of the projections, legal profession can remain strong, to enable the Council to reduce the the Council exercised its power to independent and effective and total amount of contributions due for reduce the contributions for the continue to thrive. the next indemnity year. Since then, indemnity year 2019/20 by 50%. The with the assistance of professional amount of reduction provided to the REDUCTION OF actuarial projections, the Council profession over these nine indemnity OVERHEADS annually considers the projected years totaled about HK$1.4 billion. Fund surplus for the following five One of the substantial overhead years under different economic costs for operating a law firm is the scenarios in conjunction with the mandatory contributions payable by Fund’s loss history and investment the firm to the Hong Kong Solicitors returns and decides if an adjustment Indemnity Fund (“Fund”). The to the contribution can be made. amount of contribution is calculated The Professional Indemnity Scheme 22

Improving Practice Environment / Annual Report 2019 IMPROVEMENTS rise in property values over the last the indemnity which the LLPs are TO PRACTICE 20 years, PIS claims statistics, the entitled under the PIS, a policy of ENVIRONMENT financial position of the Fund and the insurance which provides indemnity compulsory professional indemnity up to an amount not less than HK$10 Indemnity limit of the limits in overseas jurisdictions, the million in respect of any single Professional Indemnity PIS indemnity limit was increased claim. With the increase of the PIS Scheme to HK$20 million per claim effective indemnity limit, the threshold that from the 2019/2020 indemnity year triggers the requirement on LLPs to In general terms, the purpose of the (i.e., from 1 October 2019). take out an additional professional PIS is to provide indemnity against indemnity policy will be moved loss arising from claims in respect of The formula for calculating PIS further up, and this may result in any civil liability incurred by a solicitor contributions payable by law firms premium savings for the LLPs. in connection with his/her practice. remains unchanged. The increased The PIS covers all Hong Kong law limit of indemnity will not result in an PIS contribution formula firms. increase of PIS contributions and the cost of providing the additional cover RFLs are required under the Foreign The PIS indemnity limit of HK$10 will be borne by the Fund. Lawyers Registration Rules to million per claim has been in maintain a policy of insurance which place since 1994. After careful Some firms with a relatively smaller provides indemnity, in respect of consideration of factors such as the scale of operation may not currently services rendered by him/her while purchase top-up professional practising as a foreign lawyer, in a indemnity insurance in the manner and to the extent similar to commercial market. This increase the indemnity provided to a solicitor in the indemnity limit will therefore under the PIS. The increase of the provide additional protection to the PIS indemnity limit to HK$20 million public. per claim will indirectly increase the level of indemnity required of foreign For those Hong Kong law firms lawyers and foreign law firms and that operate in the form of LLPs, provide better protection to the they are required under the LPO public. to have in existence, in addition to 23

The Law Society of Hong Kong The number of RFLs employed Information Technology CONTRIBUTIONS TO by Hong Kong law firms (and Strategy Plan of the LAW REFORMS covered under the PIS) has grown. Judiciary Further, in view of the growing The Law Society, through the trend of solicitors expanding their The Judiciary has been consulting valuable input of the various multi-jurisdictional practices, it is The Law Society and other specialist committees under the anticipated that the number of stakeholders on its Information Standing Committee on Practitioners RFLs practising in Hong Kong law Technology Strategy Plan. Under Affairs, reflects the views of the firms will continue to increase. The the proposal, electronic services solicitors’ profession to consultations areas of practice of RFLs are also and facilities of various types will be on law reforms. In 2019, 21 public very diverse. They may range from introduced as an additional option to submissions were made on a wide conveyancing transactions in the the existing channels, to be used on range of reforms, which are set out People’s Republic of China to large a voluntary basis by court users; in below: scale overseas listing of companies their interaction and communication in the United States. with the court. (1) Consultation Paper on Draft Guideline on Exercising Power There is thus a need to account for The Law Society has set up a to Impose Pecuniary Penalty in RFLs as qualified members of staff dedicated working party to review Respect of Regulated Persons of a firm (as opposed to unqualified the Judiciary’s proposals including Under the Insurance Ordinance staff under the existing PIS the Court Proceedings (Electronic (Cap. 41) contribution formula and calculations) Technology) Bill that was gazetted so that their risk exposure to the on 27 December. (2) Consultation Paper on Proposed PIS may be properly reflected in the Licensing Regime for Property PIS contributions and deductibles Deemed CPD accreditation Management Companies payable by their firms. system and Property Management Practitioners The PIS Rules have therefore been Having reviewed the CPD Schemes amended so that with effect from in different jurisdictions, The Law (3) Government Budget 2019–2020 1 July, RFLs employed by a Hong Society has developed a deemed Law Society Kong law firm are accounted for in accreditation system whereby the PIS contribution formula and practitioners could claim a maximum (4) Non-Refoulement Protection: deductible calculations in the same of 3 CPD points out of the annual The Government’s Proposal manner as an assistant solicitor or requirement of 15 CPD points to Amend the Immigration consultant practising in a Hong Kong by attending courses which fall Ordinance (Cap. 115) law firm. within the accreditation criteria stipulated under the system without (5) Law Reform Commission’s the need of having the courses Consultation Paper – Archives accredited by The Law Society. Law The deemed accreditation system will be launched in January 2020. (6) Law Reform Commission’s This serves to streamline the CPD Consultation Paper – Access to Scheme allowing more flexibility to Information practitioners to target training that suits their own needs. (7) Evidence (Amendment) Bill 2018 24

Improving Practice Environment / Annual Report 2019 (8) Consultation Paper on the (14) Consultation Paper on Draft Mainland Judgments in Codes of Conduct for Licensed Matrimonial and Family Cases Insurance Agents and Brokers (Reciprocal Recognition and Enforcement) Bill and (15) Consultation Paper on Review the Mainland Judgments in of the Environmental, Social and Matrimonial and Family Cases Governance Reporting Guide (Reciprocal Recognition and and Related Listing Rules Enforcement) Rules (16) Joint Consultation on a (9) Judiciary’s Information Revised Operational Model for Technology Strategy Plan: Implementing an Uncertificated Consultation Paper on the Securities Market in Hong Kong Proposed Legislation and Practice Directions (17) The Chief Executive’s Policy Address (10) Joint Consultation On A Revised Operational Model For (18) Law Reform Commission: Implementing An Uncertificated Causing or Allowing The Death Securities Market in Hong Kong or Serious Harm of a Child or Vulnerable Adult (11) National Anthem Bill (19) Consultation on Codification (12) Joint Consultation Paper on of General Waivers and Enhancements to the OTC Principles Relating to IPOs and Derivatives Regulatory Regime Listed Issuers and Minor Rule for Hong Kong to: (1) mandate Amendments the use of Unique Transaction Identifiers for the reporting (20) Consultation Paper on End-of- obligation, (2) revise the list of Life Care: Legislative Proposals designated jurisdictions for the on Advance Directives and masking relief of the reporting Dying in Place obligation and (3) update the list of Financial Services Providers (21) Consultation Paper on Proposed under the clearing obligation Group-Wide Supervision Framework for Insurance (13) Fugitive Offenders And Groups in Hong Kong Mutual Legal Assistance In Criminal Matters Legislation (Amendment) Bill 2019 25

The Law Society of Hong Kong MAINTAINING THE HIGHEST STANDARDS MAINTAINING THE HIGHEST STANDARDS The solicitors’ profession is self- The RME Programme’s aim is to During the year, The Law Society regulatory. The Council is obliged raise awareness of risk issues and also accredited five postgraduate to ensure the establishment and promote good risk management and other law courses, 23 legal promotion of high standards of work practices amongst legal practitioners. journals and books, 75 legal research within the profession, which includes projects, one dissertation, six encouraging legal practitioners to In 2019, The Law Society and committees and working parties for continue to study and acquire legal Hong Kong Academy of Law CPD purposes. knowledge and skills. Limited conducted a total of 357 CPD, out of which 263 were also Apart from the regular core NURTURING LIFE-LONG RME accredited. They attracted an courses and 17 electives offered LEARNING attendance of 17,362 participants. under the RME Programme, ad Further, The Law Society accredited hoc risk management courses on The Law Society has implemented 4,683 CPD courses. the following specific areas were the CPD Scheme since 1998 and conducted during the year: the RME Programme since 2004. The Law Society has taken into The CPD Scheme’s aim is to provide consideration the need for busy • Anti-Money Laundering and a convenient framework for legal practitioners to have a variety of Client Due Diligence professionals to acquire new legal means by which they can comply knowledge and skills so that the with the CPD requirements by • Cyber Security profession as a whole can continue permitting and encouraging methods to meet the demands of clients and of learning other than attendance • Compliance Risk society, which are ever changing. at traditional lecture based courses. 26

Maintaining the Highest Standards / Annual Report 2019 Seminar on “Data Privacy, Cybersecurity, the Lawyer” in June Seminar on the Internet of Things and Privacy in June Cross Strait Four Regions Young Lawyers Forum 2019 • Challenges of InsurTech • Common Pitfalls in Modern • Checking Title Deeds and Raising Requisitions Commercial Drafting Further, two new RME electives • Techno-ethical Threats were introduced during the year, namely, “Data Privacy and the Law • Risks and Common Mistakes Firm” and “Practice Management”. In addition, new part-time tutors for • Data Privacy and Managing Data in Will Drafting and Probate RME courses were recruited during the year. Breach Practice To broaden members’ exposure • Fintech: Regulation and • Law Firm’s Risk Management to legal developments around the world, The Law Society also invited Compliance eminent speakers from overseas to participate in seminars and • Market Misconduct – Key conferences held in Hong Kong. This included the training on the Unified • Property Fraud Considerations for Solicitors’ Screening Mechanism from 16 to 18 September at which Professor Practice James C. Hathaway, the James E. and Sarah A. Degan Professor • Solicitors’ Accounts Rules • Preventing Disability and • Global Anti-Corruption Risks Discrimination in Workplace Comparison and Conducting Cross-Border Compliance • Conflicts in Action Investigation • PIS and Claims Handling • Guardian Role of Professional in process Upholding Ethical Governance • Starting and Managing Your Professional Practice 27

The Law Society of Hong Kong would be given regarding relevant proposals which, in any event, would not be implemented in the academic year of 2019/2020. ENSURING COMPLIANCE WITH RULES AND REGULATIONS Training on the Unified Screening Mechanism in September As a legal service hub in Asia, Hong Kong is blessed with legal talent of Law and Director of Program in In respect of the overseas lawyers from around the world. As of the end Refugee and Asylum Law of the qualification route, The Law Society of the year, there were 91 foreign University of Michigan, USA, and the is responsible for administering the law firms and 1,688 RFLs from Hon. Sir Nicholas Blake, Associate OLQE which is held annually. 33 overseas jurisdictions. For the Member of Matrix Chambers, UK protection of the public, foreign law were invited as speakers. It also In 2019, The Law Society firms and foreign lawyers who are included the practice management administered the 25th OLQE since its qualified to practise the laws of their seminar on 20 September at which launch in 1995. 238 candidates sat the overseas jurisdictions of admission Mr. Tony Williams, a UK-based OLQE from 20 jurisdictions including are prohibited from practising Hong legal management consultant, gave Hong Kong (12 were common law Kong law. an enlightening presentation to jurisdictions and 8 were non-common members. law jurisdictions). Three candidates In late 2015, concerns were were Hong Kong barristers. The expressed to The Law Society GATEKEEPER OF overall pass rate was 45%. regarding some RFLs practising ADMISSION STANDARDS Hong Kong law and holding For the trainee solicitor route, themselves out to do so on their The Law Society is empowered prior to entering into a trainee official websites. As a result, in 2016, under section 4 of the LPO to solicitor contract, a person is the Council decided to conduct an prescribe the requirements for currently required to complete the overall review of the foreign lawyers’ admission as solicitors of Hong Postgraduate Certificate in Laws regulatory regime. Consequently, Kong. Solicitors are the backbone of provided by the three law schools some proposed amendments to the society tasked with the important in Hong Kong. Under rule 7 of the LPO and its subsidiary legislation responsibility of ensuring the fair Trainee Solicitors Rules (Cap. 159, relating to the practice of RFLs and administration of justice and The sub leg), The Law Society is also foreign law firms in Hong Kong were Law Society has a statutory duty to empowered alternatively to set put forward. The Law Society then prescribe admission requirements and/or approve an examination conducted a consultation in late to ensure those who enter the for anyone wishing to enter into 2018 on some major proposals. solicitors’ profession are of the a trainee solicitor contract. During highest standards. the year, The Law Society had The consultation closed on been considering proposals on 31 December 2018. It provided a There are two routes to admission the examinations required, set or good opportunity for the Law Society as a solicitor of Hong Kong, via approved under rule 7(a) of the to explain the underlying objectives the trainee solicitor route and the Trainee Solicitors Rules and had of the proposed amendments; and overseas lawyers qualification route. announced that advance notice for members and, in particular, RFLs and foreign law firms, to explain how the proposed amendments might impact their practice. All the 28

Maintaining the Highest Standards / Annual Report 2019 responses to the consultation were were conducted by inspectors at ANTI-MONEY carefully reviewed in detail in the magistrates’ courts. For these court LAUNDERING EFFORT early months of the year. inspections, the Council appointed inspectors to verify compliance with One of the most prominent While the responses reaffirmed rule 5D of the Solicitors’ Practice international bodies focusing on the consensus on the fundamental Rules and to monitor the proper combatting money laundering is principle that persons not qualified as completion of court attendance the FATF. The FATF conducts peer Hong Kong legal practitioners should forms. The Monitoring Accountants reviews (“Mutual Evaluation”) of not practise or advise on Hong Kong paid visits to law firms to provide each member on an ongoing basis laws, many of them presented assistance in their accounting to assess how each jurisdiction is compelling arguments against the procedures/systems and to inspect performing in preventing criminal proposed legislative amendments, their books and accounts to ensure abuse of the financial system. The other than those relating to compliance with the rules relating assessment result is considered registration fees. to solicitors’ accounting. 91 visits an important factor in evaluating a were made to 66 solicitors’ firms jurisdiction’s international reputation Accordingly, subject to some slight and foreign law firms; some firms as a financial centre as it reflects modifications, the Council decided required more than one visit. the level of integrity of its financial to proceed with the amendment system. exercise on the Foreign Lawyers A Solicitors Disciplinary Tribunal Registration (Fees) Rules and to is a statutory tribunal established The Mutual Evaluation of Hong Kong seek approval from the Chief Justice by the LPO. It is independent of took place in 2018 and the Report on the fee proposal. However, with The Law Society which is the was published on 4 September. respect to the remaining proposed prosecuting body. Members of the Hong Kong has been rated overall amendments, taking into account Solicitors Disciplinary Tribunal Panel compliant by FATF, which is the overwhelming objections are appointed by the Chief Justice. considered quite an achievement raised in the responses and the The Chief Justice also appoints the because so far, out of the 25 supporting justifications, the Council Tribunal Convenor and the Deputy jurisdictions that were evaluated in was convinced that there could Tribunal Convenors who have the the fourth round of Mutual Evaluation be unintended consequences that responsibility to appoint a panel of by FATF, only seven (including adversely affect the development three or four members to sit as a Hong Kong) have been rated overall of the legal profession and the legal Tribunal to determine applications, compliant and Hong Kong is the services market in Hong Kong if such and who have the power to dispose only Asian jurisdiction among the proposed amendments were made. of certain classes of complaint on a seven. The Law Society team, under Hence, the Council decided not to summary basis. the guidance of the Anti-Money pursue those remaining legislative Laundering Committee have put in proposals. In 2019, a total of nine matters were substantial time and effort in seeing submitted to the Tribunal Convenor through the evaluation process. During the year, the Investigation and nine disciplinary proceedings Extensive exchanges and meetings Counsel of The Law Society made 16 were determined by the Solicitors have been held with the relevant visits to 13 law firms. Three of these Disciplinary Tribunal. government bureau as well as the visits were made under section 8AA FATF assessment team explaining of the LPO to verify compliance with The Law Society is empowered the AML regulatory and operational the provisions of the LPO or any under the LPO to intervene in the measures that have been put in Practice Direction issued by The Law practice of a law firm to protect the place for solicitors. Society, and to determine whether interests of the firm’s clients and the the conduct of those against whom public. The Law Society exercised its an inspection was made should statutory power to intervene in the be inquired into or investigated. In practices of three Hong Kong law addition, three court inspections firms in 2019. 29

The Law Society of Hong Kong EXPLORING NEW OPPORTUNITIES EXPLORING NEW OPPORTUNITIES Exploring new business opportunities Titled “Harmonisation through Adopting the joint meeting system for members is one of The Law Synergy”, the 32nd LAWASIA established by The Law Society Society’s important tasks. Conference, co-organised by The and the lawyers associations in the Law Society and LAWASIA from 6 to Greater Bay Area in 2018, The Law The Law Society has been actively 8 November in Hong Kong, attracted Society chaired the second joint promoting Hong Kong legal services over 600 participants from 30 meeting on 11 May and invited to the international community at jurisdictions around the world. The over 30 legal practitioners from every possible opportunity. We are Conference featured topics including the Greater Bay Area to attend the also putting in substantial efforts to alternative dispute resolution, the meeting in Hong Kong. Attendees enhance the global understanding of Belt and Road Initiative, cross-border shared the latest industry updates in the unique position of Hong Kong as issues and investment, technology their cities and exchanged views on a Special Administrative Region of and data protection, intellectual achieving maximum synergy through the People’s Republic of China under property, human rights, and others. cooperation, as well as ways to “One Country, Two Systems”. By enhance the level of practice in the sending representatives to attend The Law Society continued its work region through training and internship selected international conferences, in enhancing the role of Hong Kong programmes. The third joint meeting The Law Society remains abreast of legal professionals in the Belt and was held in Macau on 12 October. major global developments across Road Initiative and the Guangdong- Close to 30 representatives from legal markets. Hong Kong-Macao Cooperation in lawyers associations in the Greater the development of the Greater Bay Bay Area attended the meeting. Area. 30

Exploring New Opportunities / Annual Report 2019 32nd LAWASIA Conference in Hong Kong in November A 20-member delegation from The 2nd Joint Meeting with the Lawyers Association in May Law Society visited Hainan Free Trade Zone from 28 to 30 August to explore the province’s market potential after the State Council unveiled the blueprint to establish Hainan province as a free trade zone in its latest move to open up the economy in 2018. Apart from meeting with the representatives from the Hainan Department of Justice and Hainan Lawyers Association, The Law Society also co-organised a full-day seminar with Hainan Lawyers Association. 3rd Joint Meeting with the Lawyers Associations in October 31

The Law Society of Hong Kong From March to June, The Association and the Macao Bar (a) 1st LAWASIA Human Rights Law Society offered an eight- Association to organise a Sports Conference in New Delhi in session programme entitled “An Meet, which is held once every two February; Introduction to Legal Services and years for all lawyers in the three Risk Management for Cross-border jurisdictions. The annual Cross (b) Hong Kong Business and Transactions” for undergraduate and Straits Four Regions Young Lawyers Professional Delegation to postgraduate law students in Peking Forum held on 20 September was Georgia and Hungary in March; University in Beijing. another opportunity for lawyers in the Mainland, Hong Kong and Macao (c) Study Tour with Mongolian Bar The frequent collaboration between to network and mingle with one Association in Hong Kong and Hong Kong lawyers and Mainland another. Ulaanbaatar in March and June; lawyers is not only confined to professionally related matters. To During the year, The Law Society (d) 21st Commonwealth Law foster deeper mutual understanding also took the opportunity to promote Conference in Livingstone in between lawyers in the Greater Hong Kong legal services to the April; Bay Area, The Law Society takes international community on the turns with the Guangdong Lawyers following occasions: (e) 29th IPBA Annual Meeting and Conference in Singapore in April; (f) 2nd Belt and Road Forum for International Cooperation in Beijing in April; (g) Hong Kong-Mainland Joint Investment and Partnership Mission to Spain, Serbia and UAE in June; “An Introduction to Legal Services and Risk Management for Cross-border Transactions” Programme for law students in Beijing 8th Guangdong-Hong Kong-Macau Lawyers Sports Meet 32

Exploring New Opportunities / Annual Report 2019 (h) 30th Presidents of Law (o) 32nd LAWASIA Conference in (b) Peking University Law School in Associations in Asia (“POLA”) Hong Kong in November; April; Conference in Kunming in late July to early August; (p) 63rd UIA Congress in (c) AIJA in May; Luxembourg in November; (i) 2nd China (Guangdong) “Belt and (d) Huizhou Lawyers Association in Road” Legal Services Forum in (q) Hong Kong Business and May; Guangzhou in August Professional Delegation to Malaysia and Thailand in (e) Jiangmen Lawyers Association (j) SmartHK organised by the November; and in May; Hong Kong Trade Development Council (“HKTDC”) in (r) Global Lawyers Forum 2019 in (f) Zhaoqing Lawyers Association Guangzhou in August; Guangzhou in December. in May; (k) HKTDC Belt and Road Summit Through networking with law (g) Florida Bar International Law in Hong Kong in September; societies and bar associations around Section in May; the world, The Law Society has (l) 57th AIJA Annual Congress in established extensive connections (h) Hainan Lawyers Association in Rome in September; with legal professional organisations August; in different overseas jurisdictions, (m) HKTDC “Think Asia,Think laying a good foundation for us to (i) Seoul Bar Association in Hong Kong” in Los Angeles in collaborate on future initiatives that September; and September; could benefit of our members. In 2019, The Law Society entered into (j) Hyogo-Ken Bar Association in (n) IBA Annual Conference in Seoul a MOU with each of the following: November. in September; (a) Guangzhou Lawyers Association Opening up new areas of work for in February; our members is another priority for The Law Society. Hong Kong Business and Professional Delegation to Georgia and Hungary 1st LAWASIA Human Rights Conference in New Delhi in February 33

The Law Society of Hong Kong The Belt and Road Initiative brings Study Tour with Mongolian Bar Association in Ulaanbaatar in June increased opportunities for members in different practice areas. There has been an increased demand for quality international and cross- border dispute resolution services. Mediation is one popular model for resolving international and cross- border disputes. It is also a fast growing practice area for solicitors. To actively promote the services of solicitor-mediators, The Law Society has established the Panel of International General Mediators and the Panel of International Family Mediators to serve as a key database to showcase the multi-jurisdictional mediation services that Hong Kong solicitor-mediators can offer. There were 17 solicitors on the Panel of International General Mediators and eight solicitors on the Panel of International Family Mediators as of the end of December. Further, to assist junior solicitor- 2nd China (Guangdong) “Belt and Road” Legal Services Forum in Guangzhou in August mediators to gain more practical experience, The Law Society With respect to arbitration, a number Commission to allow solicitor- approved, in October, to offer of initiatives have been launched arbitrators of The Law Society to sponsorships to join the Mediator during the year to help promote apply for admission to their panels of Mentorship Scheme organised by solicitors’ arbitration services in arbitrators. the Joint Mediation Helpline Office Hong Kong and the Mainland and, (“JMHO”) to those who have been in particular, the Greater Bay Area. The Law Society has also closely admitted on The Law Society Panel The Law Society has successfully worked with reputable legal and of General Mediators for not more procured the agreement of the dispute resolution institutes in the than seven years or who have Shenzhen Court of International Greater Bay Area. The Arbitration conducted less than 10 mediation Arbitration and Nanjing Arbitration Committee held a meeting with the cases within three years prior to their applications for participation in the JMHO Mediator Mentorship Scheme. 34

Exploring New Opportunities / Annual Report 2019 MOU signing with Florida Bar International Law Section in May Macau Lawyers Association and the WTC Macau Arbitration Centre to exchange views and initiatives on the development of arbitration practices in the Greater Bay Area. To promote the use of arbitration MOU signing with Hainan Lawyers Association in August as an effective dispute resolution model for commercial disputes to roadmap to promote Islamic Finance, advocates, 2,200 civil celebrants and the business sector, meetings have FinTech and Arbitration in Islamic 448 reverse mortgage counsellors. also been held with members of Finance for Belt and Road countries. the business community, including The Law Society will continue its the EMBA Class students, who Other new areas included the efforts to secure more opportunities were decision-makers in middle to work of solicitor advocates, civil for our members and maintain the senior management of reputable celebrants of marriages and reverse healthy and sustainable development companies and institutes. mortgage counsellors. As of the end of our profession. of the year, there were 72 solicitor While Hong Kong is late in joining the race to develop Islamic finance capabilities, there is still an opportunity for Hong Kong to catch up at a low cost. The Law Society has set up a Working Party on Islamic Finance to explore this new practice area for members. During the year, the Working Party has developed a 35

The Law Society of Hong Kong 10 THE LAW SOCIETY’S 19 DD 7 T X 26 GLOBAL NETWORK AA 14 24 RA P Overseas J 28 Y 30 CC 5 22 E 12 EE Q 18 L 12 MOUs signed with overseas organisations prior to 2019 International conferences and events attended in 2019 A. Czech Republic - Czech Bar Association 1. Opening of the Legal Year of Singapore (6-7 Jan) 8 B. Australia (Victoria) - Law Institute of Victoria C. Australia (Queensland) - Queensland Law Society 2. Opening of the Legal Year of Malaysia (10-11 Jan) D. Republic of Korea - Korean Bar Association E. Croatia - Croatian Bar Association 3. 1st LAWASIA Human Rights Conference, New Delhi (9-10 Feb) F. Cambodia - The Bar Association of the Kingdom of Cambodia G. Australia - The Law Council of Australia 4. LAWASIA Business Law Conference, Manila (14-16 Mar) H. Japan (Tokyo) - Tokyo Bar Association 5. Hong Kong Business and Professional Delegation to Georgia and I. Japan - The Japan Federation of Bar Associations J. Luxembourg - Le Barreau de Luxembourg Hungary (18-23 Mar) K. Japan (Osaka) - Osaka Bar Association 6. Study Tour with Mongolian Bar Association (inbound), Hong Kong L. Italy (Milan) - Milan Bar Association M. Japan (Okinawa) - Okinawa Bar Association (28-29 Mar) N. Russia - Federal Chamber of Lawyers of the Russian Federation 7. Seminar on Special Lawyers Mailbox and 4th International O. Malaysia - The Malaysian Bar P. Hungary - Hungarian Bar Association Lawyers’ Forum, Berlin (4 -5 Apr) Q. Spain (Madrid) - Madrid Bar Association 8. 21st Commonwealth Law Conference, Livingstone (8-12 Apr) R. Germany - German Federal Bar S. Sri Lanka - Bar Association of Sri Lanka 9. 29th IPBA Annual Meeting and Conference, Singapore (25-26 Apr) T. Poland - Polish National Bar of Attorneys U. India - Bar Association of India 10. St. Petersburg International Legal Forum, St. Petersburg (14-18 May) V. Mongolia - Mongolian Bar Association W. Indonesia - Indonesian Advocates Association (“PERADI”) 11. AIJA Half-Year Conference, Hong Kong (22-25 May) X. Poland (Gda㶠sk) - Bar of Attorneys in Gda㶠sk 12. Hong Kong-Mainland Joint Investment and Partnership Mission to Y. France - French National Bar Council Z. Australia (New South Wales) - The Law Society of New South Wales Spain, Serbia and UAE (9-18 Jun) AA. UK (England and Wales) - The Law Society of England and Wales 13. Study Tour with Mongolian Bar Association (outbound), BB. Georgia - Georgian Bar Association CC. Slovenia - Slovenian Bar Association Ulaanbaatar (13-16 Jun) DD. Belgium - AIJA 14. International Women in Law Symposium, London (20-21 Jun) EE. United States (Florida) - The Florida Bar International Law Section FF. Republic of Korea - Seoul Bar Association 15. Hong Kong Business Mission to Thailand (24-26 Jul) GG. Japan - Hyogo-Ken Bar Association 16. 30th POLA Conference, Kunming (31 Jul- 2 Aug) 17. IBA-PERADI Corporate Counsel Conference, Bali (8 Aug) 18. 57th AIJA Annual Congress, Rome (3-7 Sep) 19. International Conference of Legal Regulators, Edinburgh (5-6 Sep) 20. East-West Economic Partnership: Tbilisi Legal Forum, Tbilisi (6-7 Sep) 21. IILACE Conference, Tokyo (18-21 Sep) 22. HKTDC “Think Asia, Think Hong Kong”, Los Angeles (20 Sep) 23. IBA Annual Conference, Seoul (22-27 Sep) 24. Opening of the Legal Year of England and Wales (30 Sep - 1 Oct) 25. LAWASIA Constitutional & Rule of Law Conference, Petaling Jaya (4-5 Oct) 26. AEA- EAL Business Legal Forum, Łód㶈 (17-19 Oct) 27. 32nd LAWASIA Conference, Hong Kong (6-8 Nov) 28. 63rd UIA Congress, Luxembourg (6-10 Nov) 29. Hong Kong Business and Professional Delegation to Malaysia and Thailand (25-29 Nov) 30. Opening of the Legal Year of Paris (27-30 Nov) 36

Exploring New Opportunities / Annual Report 2019 N 5 V BB 13 20 D FF 23 12 H I K M GG 21 3 16 6 11 27 U 15 29 4 F S 2 25 29 O W 17 19 BCG Z 37

The Law Society of Hong Kong Greater China Region 38 MOUs signed with following organisations in 27. Shaanxi Lawyers Association the Greater China region in 2019 28. Shandong Lawyers Association 29. Shanghai Bar Association a. Guangzhou Lawyers Association 30. Shanxi Lawyers Association b. Hainan Lawyers Association 31. Shenzhen Lawyers Association c. Huizhou Lawyers Association 32. Sichuan Lawyers Association d. Jiangmen Lawyers Association 33. Taichung Bar Association e. Peking University Law School 34. Taipei Bar Association f. Zhaoqing Lawyers Association 35. Taiwan Bar Association 36. Tianjin Lawyers Association MOUs signed with the following 37. Xi'an Lawyers Association organisations in the Greater China region 38. Xinjiang Lawyers Association 39. Zhejiang Lawyers Association The Law Society signed an MOU with All China Lawyers Association in 2013 (lawyers association on Conferences and events participated in 2019 national level) A. Opening Ceremony of Taichung Bar Association’s 1. Anhui Lawyers Association New Office, Taichung (9-11 Mar) 2. Beijing Lawyers Association 3. Changhua Bar Association B. Exchange Meeting for Heads of Business 4. Changzhou Lawyers Association Chambers in Hong Kong, Shenzhen (20 Mar) 5. Chongqing Lawyers Association 6. Dalian Lawyers Association C. Lectures for the Peking University Law School, 7. Dongguan Lawyers Association Beijing (30 Mar, 20 Apr, 25 May, 8 Jun) 8. Foshan Lawyers Association 9. Fujian Lawyers Association D. Lecture for Trainee Lawyers in Guangzhou (8 10. Guangdong Lawyers Association May, 1 Jul) 11. Guangxi Lawyers Association 12. Hangzhou Lawyers Association E. IAPH World Ports Conference, Guangzhou (9 13. Hebei Lawyers Association May) 14. Henan Lawyers Association 15. Hubei Lawyers Association F. Straits Law Forum, Xiamen (18 Aug) 16. Hunan Lawyers Association G. The Second China (Guangdong) “Belt and Road” 17. Jiangsu Lawyers Association 18. Jiangxi Lawyers Association Legal Services Forum, Guangzhou (23-24 Aug) 19. Jilin Lawyers Association H. SmartHK, Guangzhou (27 Aug) 20. Kaohsiung Bar Association I. Visit to Hainan (28-30 Aug) 21. Liaoning Lawyers Association J. Visit to Kaohsiung and Nantou (6-9 Sep) 22. Macau Lawyers Association K. Macau Lawyers Forum (20 Sep) 23. Nanjing Lawyers Association L. The Third Joint Meeting for Lawyers Association 24. Nantou Bar Association 25. Ningbo Lawyers Association in the Greater Bay Area, Macau (12 Oct) 26. Qingdao Lawyers Association M. The Second China Guangzhou Legal Service Fair, Guangzhou (25 Oct) N. The 11th Mainland, Hong Kong and Macao Legal Seminar , Guangzhou (9-11 Nov) O. Forum on Case Law, Beijing (8 Dec) P. Global Lawyers From 2019, Guangzhou (9-10 Dec) 38

Exploring New Opportunities / Annual Report 2019 19 2e 21 CO 36 6 13 26 30 28 37 17 14 27 23 29 14 32 15 12 5 25 39 16 18 9 34 F A 33 35 DEGH 10 3 24 J MN P a f87 c J 20 d 11 B 31 22 K L I b 39

The Law Society of Hong Kong PROVIDING RELEVANT AND EFFECTIVE SUPPORT TO MEMBERS PROVIDING RELEVANT AND EFFECTIVE SUPPORT TO MEMBERS The Law Society is dedicated to Ethics complicated enquiries are referred providing relevant and effective to The Law Society’s Guidance support to our members, which The Law Society handles daily Committee for consideration. includes professional development enquiries from members on and sector-specific initiatives, as matters relating to the LPO and During the year, the Guidance well as programmes and activities its subsidiary legislation, The Law Committee considered 11 enquiries designed to ensure the well-being of Society’s Practice Directions and on professional conduct issues that individual members’ needs. the Hong Kong Solicitors’ Guide to were raised by members or referred Professional Conduct. “Members’ from other Law Society committees. PROFESSIONAL Online Enquiry Services” platform SUPPORT featuring five areas of commonly Further, Hong Kong Academy of asked questions is available to Law has commissioned course Law assist members. Members can developers from Australia to simply log in to the Members’ develop checklists on the ethical The Law Society and the Academy Zone to access the platform. All requirements set out in the core regularly organise seminars to necessary personal information of courses and RME electives for update members on imminent the member making the enquiry is practitioners’ easier reference. changes to the law and their embedded in the enquiry form and practices. In 2019, we organised 357 the member only needs to write the Practice management CPD and RME courses on a diverse query and click “Send”. All enquiries range of topics. will automatically be forwarded to During the year, the following the responsible Secretariat staff initiatives were implemented to for timely handling. The more assist members in enhancing their practice management skills: 40

Providing Relevant and Effective Support to Members / Annual Report 2019 Crossover Community Roundtable in November Members’ Forum and Dinner Gathering (a) Various seminars and courses membership. Since then, 15 aspect in the administration of a were organised including: courses have been delivered to legal practice and practitioners the general membership. should be familiar with it. The – Seminar on “Increased PIS website which is accessed Competition brought on Further, additional part-time via the Members’ Zone of by the Big 4 in the Legal tutors with experience in The Law Society website Market” on 20 September; management of law firms were provides useful information recruited to conduct the practice to practitioners. During the – Seminar on “The race management course. year, claims statistics including for artificial intelligence the following were made and smart contracts: can (b) An article titled “Why available on the PIS website for the law keep up?” on 29 Succession Planning is a Key to members’ information: October. Success” was commissioned for publication in the November – Number of claims/ The Academy of Law launched issue of The Law Society’s notifications received in a practice management course official journal, Hong Kong different categories (e.g. in February as a regular RME Lawyer. litigation, conveyancing and elective. The course developers commercial, etc.) in the from Australia were invited to (c) PIS serves to provide indemnity current indemnity year; Hong Kong to conduct train- against loss arising from the-trainer courses and to claims in respect of any civil – Number of claims/ deliver courses for the general liability incurred by a solicitor notifications received in the in connection with his/her past 10 indemnity years; practice. This is an important 41

The Law Society of Hong Kong – “From Internet Investigation to Digital Forensics” on 1 March; – Briefing sessions on Cyber Security on 22 March and 16 April; Spring Reception – “RME Elective – Data Privacy, Cyber Security, the Lawyer” on 25 June; Swimming Gala Visit to the Court of Final Appeal – “How Law Firms and on 11 September Lawyers Leverage Technologies to Operate More Efficiently” which was a product workshop presented by IT product suppliers on 12 September; and – Comparison of number of (a) the “Innovation Value Chain – “Bootcamp: Coding for conveyancing, litigation Survey” was conducted Lawyers” on 17 and 23 and commercial claims/ between August to October to October. notifications received in the survey the innovation priorities past 10 years. of Hong Kong solicitors; (d) an InnoTech section was introduced in the monthly Accounts (b) six Community Roundtables journal of The Law Society, were held where stakeholder Hong Kong Lawyer, and One of the roles of The Law groups including local and the following articles were Society’s Monitoring Accountants overseas lawyers and published during the year: is to pay routine visits to newly practitioners of SME firms were established law firms, both local invited to exchange ideas on – “InnoTech Law Hub and foreign, to provide guidance on how to explore and embrace Launches!” (August issue); how to ensure compliance with the legal innovation; Solicitors’ Accounts Rules (Cap. 159, – “Artificial Intelligence For sub leg). In 2019, they conducted (c) the following IT related Good” (September issue); a total of 91 visits to 66 Hong Kong seminars, briefing sessions and and foreign law firms. workshop were organised: – “Re: SFC Statement on Security Token Offerings” Technology – “Crypto currency (October issue); and Economics and Bitcoin To raise awareness of the effective Imminent Risk of – “Survey Results: Innovation application of technology and to Shutdown” on 28 January; Priorities of Law Society assist members in keeping abreast Members” (December with the technological tools that are – “What You Should Know issue). relevant to their practices, The Law About Digital Forensics” on Society actively engaged members 30 January; Further, enhancements were made in the following ways during the to The Law Society App to allow year: 42

Providing Relevant and Effective Support to Members / Annual Report 2019 A variety of members’ functions were also organised, including: (a) Chinese art workshops in celebration of the Chinese New Year on 16 and 21 January; (b) 15km Open Water Extreme Marathon Swim – Cold Half 2019 on 26 January; (c) Valentine’s Day Special: Chocolate Cake Baking Workshop on 13 February; 9th Members and Family Fun Day (d) Spring Reception on 21 February; members to access the online materials for research. Individual (e) Health Talk on Conquering registration and payment system stories (or the entire journal) can also Sports Injuries and the Seven of member services events via The be conveniently shared with others Summits on 11 April; Law Society website and The Law via social media and email. Society App (as of the end of the (f) Mother’s Day Baking Workshop year, there were 7,945 users of The SUPPORT FOR on 1 May; Law Society App since its launch in MEMBERS’ WELL-BEING 2013); (g) Father’s Day DIY Workshop on Maintaining a work-life balance 13 June; Legal development updates is important to the well-being of via monthly journals our members. The Law Society (h) Swimming Gala on 11 August; provides a framework for members The Law Society publishes a to participate in different kinds (i) Visit to the Court of Final Appeal monthly journal, Hong Kong Lawyer, of sports, recreational and social on 11 September; which contains analysis of recent activities and to have some fun in law and legal practice-specific between their busy work schedules. (j) YSG Joint Professional advice, with priority given to matters Networking Event “Exploring affecting legal practitioners in Hong In 2019, The Law Society the World of Wines” on Kong. With the digital version of administered 14 sports teams and 21 September; Hong Kong Lawyer available on both nine recreational groups, who held The Law Society App and the Hong practice sessions and competitions (k) Inaugural Seminar in Kong Lawyer website, members for members throughout the year. Collaboration with Law Firms can read it online via a computer, During the year, team members took and Sweat & Glory Panel smart phone, tablet or other mobile part in around 750 activities including Discussion on 15 October; device. Not only does it contain the classes and training sessions and same content as the print journal, 50 competitions, one of which (l) Health talk on stress it also contains additional insights involved sending a team of over management on 20 November; and articles from legal experts. The 100 lawyer athletes to participate and online version of the in-print content in the 8th Guangdong-Hong Kong- is also searchable with hyperlinked Macau Lawyers Sports Meet from (m) Laughter yoga workshop on sources. The e-Journal thus also 11 to 13 October in Macau. 13 December. serves as a good source of reference 43

The Law Society of Hong Kong The online research platform Joint Professional “LawSociety Lexis” free of up- Networking Event front charge continued to be in September available exclusively for Law Society members, RFLs and trainee solicitors for the 8th year since its launch in 2011. A range of products and services under the various categories of Culture & Lifestyle, Dine & Wine, Education & Learning, Health & Leisure, Household & Living and IT products and services sourced for the benefit of members were posted on The Law Society website and The Law Society App. Other member benefits included the offer of free Chinese New Year red packets. SUPPORT FOR Annual Conference for In-house Lawyers SECTOR-SPECIFIC NEEDS – “Weaving a Luxury Bag or Further, a new Working Party has Brand? An Up-close Encounter been formed to study the long-term In-house lawyers with the Luxury Retail Industry” strategies to enhance the connection on 11 July; and among in-house practitioners, An increasing number of our The Law Society and private members work as in-house lawyers. – “The E-commerce Boom in practitioners. At the end of 2019, around 26.6% Hong Kong” on 23 October. of our members holding a practising Small to medium law firms certificate were not in private The “In-House Lawyers Training (“SME firms”) practice. Programme (in collaboration with law firms)” was also introduced to co- About 89% of law firms in Hong In September, The Law Society organise seminars with law firms on Kong are sole proprietorships and held its Annual Conference of In- different topics relevant to in-house firms with up to five partners. The House Lawyers, which featured lawyers including the following: Law Society has set up a dedicated topics of common interest to in- working party to consider issues house solicitors and attracted over – “Legal Privilege and the Client relevant to SME firms. During the 400 participants. In addition, we under English and Hong year, The Law Society organised two organised a variety of seminars for Kong Law: A refresher for in- sharing sessions for SME firms in in-house solicitors throughout the house legal professionals” on January and a Crossover Community year, where they could discuss their 15 October; and Roundtable in November to create shared professional experiences opportunities for practitioners in including: – “Legal Issues Relating to Use SME firms to exchange ideas and of Social Media, WeChat, and concerns arising from their practice. – “It isn’t all Glitz & Glamour: An e-Commerce to do Business Towards the end of the year, visits Inside Story of the Media and and Possible Pitfalls” on to SME firms were planned with a Entertainment Industry” on 13 December. view to understanding their needs 27 March; and one SME law firm visit was completed in 2019. 44

Providing Relevant and Effective Support to Members / Annual Report 2019 2019 CONNECTED kick-off event IBA Annual Conference in Seoul Young solicitors and Sponsorships are offered to young satisfaction of the presiding mock trainee solicitors lawyers to encourage them to attend court judge, who is a directorate international conferences, visits counsel of the Prosecutions Division, About 23.5% of our members were and exchange tours to gain more that the participant’s trial preparation admitted on or after 1 January exposure. In 2019, The Law Society and legal knowledge is up to an 2015 (i.e., with five years or less provided 10 sponsorship offers to acceptable prosecutorial standard, post-admission experience). The young lawyers to participate in the subsequent work arrangement at Law Society’s YSG was set up to AIJA Annual Congress in Rome, the the magistrates’ court will be made. support the needs of this segment Commonwealth Law Conference On 30 March and 14 December, two of our membership. In addition in Livingstone, the IBA Annual such session were organised for to organising activities for young Conference in Seoul, the IPBA young solicitors. members to encourage them to Annual Meeting and Conference network with other solicitors as in Singapore, the UIA Congress in A form-completion software was well as events to reach out to law Luxembourg and The Law Society introduced during the year to students and trainee solicitors, The delegation to visit the Hainan Free assist applicants in completing the Law Society also helps promote the Trade Zone. Further, The Law application forms for registration as a culture of sharing in the profession. Society also collaborated with the trainee solicitor and to minimize the In 2019, the CONNECTED Japan Federation of Bar Associations common mistakes and facilitate the Programme continued for the 9th and the Korean Bar Association registration process. year. The purpose of the Programme in conjunction with the Ministry was to provide trainee solicitors of Justice of Korea to organise Student members with opportunities to interact with internship programmes for young both younger members (their lawyers to intern in law firms in As of the end of December, there “buddy”) and senior members (their Japan and Korea, respectively. were 371 Student Members. In “mentor”) of The Law Society in September, The Law Society hopes of facilitating a better mutual Further, The Law Society regularly participated in the Hong Kong Law understanding among members with co-organises training sessions for Fair to help answer any enquiries different backgrounds. young lawyers with the DoJ and that law students had on the legal the Bar Association. The training is profession. Further, in November, a A Survey on Young Members’ open to, among others, solicitors career talk for law students was held Needs and Preferences is conducted with less than five years’ admission to share insights on the range of after every event organised by the in the private practice who have career options open to law students. YSG. The feedback collected in this acquired some advocacy or criminal regular survey is used to improve the experience since his or her post- The Law Society will continue its work we do for our junior members. admission. Upon completion of the efforts to identify the needs of our training, which comprises lectures members and provide relevant and and mock court exercise, and upon effective support to them. 45

The Law Society of Hong Kong GIVING BACK TO COMMUNITY GIVING BACK TO COMMUNITY Our members have been actively produced for public viewing to of the People’s Republic of participating in pro bono and promote a better understanding China in Hong Kong, the Court community work, often quietly of these legal regimes; of Final Appeal and Sha Tsui fulfilling their social responsibilities Correctional Institution; in different meaningful ways. The • our Free Legal Helpline, which Law Society helps members to was manned by over 126 • members shared their legal do so by providing for structured solicitor volunteers, handled knowledge through 13 school opportunities. During the year: over 570 requests for legal talks and 26 community talks, assistance via telephone in as well as through online • The Law Society organised a the areas of personal injury, media and newspaper columns series of community projects, matrimonial law, criminal law (e.g., contributing articles in including Law Week where five and mediation; the “Legal Mailbox” weekly online videos featuring different columns in SingTao Daily) legal topics like Employees’ • the “Legal Pioneer Mentorship throughout the year; Compensation, Mediation, Programme” enlisted over Wills and Enduring Powers 43 mentors for 18 school • The Law Society collaborated of Attorney, Ill-treatment or teams comprising 122 student with various organisations on Neglect by Those in Charge of mentees who participated different voluntary projects Child or Young Persons and in activities like attending benefiting different sectors of Mainland-Hong Kong Cross Day Camp and visiting the the community. These included: Boundary Marriages were Ministry of Foreign Affairs 46

Giving Back to Community / Annual Report 2019 “Legal Pioneer” Mentorship Programme Day Camp • the “NGOs Governance Law Week Video Shooting 47 Platform Project” with the Hong Kong Council of Social Service Seminar for HKCSS NGO to promote best practice and Corporate Governance Platform Project experience sharing among in June board members of their NGO members. A seminar on “Fiduciary Duties and Legal Liabilities of NGO Directors” was jointly organised in June; • the “Governance Connect Program” with the Hong Kong Council of Social Service to further assist NGOs with strengthening their governance capacity. The Program has successfully matched volunteer lawyers as honorary legal advisors to eight small to medium-sized NGOs which Governance Engagement Day

The Law Society of Hong Kong Children programme on 7 December Social Enterprise Seminar The Legal Forms and Corporate Governance of Social Enterprise Visit to Po Leung Kuk on 3 August provide assistance to target consecutive years to help social the world, employment and groups including chronic enterprises understand the legal entrepreneurship and to inspire patients, people with mental aspects of their operations. A and prepare them to succeed health problems/intellectual seminar titled “Social Enterprise in a global economy. During disabilities and women/children Seminar: The Legal Forms the year, The Law Society from grass-root families. The and Corporate Governance of coordinated a guided visit to a “Governance Engagement Social Enterprises” was held on law firm with a sharing session Day” to connect volunteering 22 February; in January; Law Society members and board members of participating • the “Business-School • the “Free Legal Advice Service NGOs was successfully held on Partnership Programme” on Building Management” with 11 July; with the Education Bureau to the Home Affairs Department, promote better cooperation where The Law Society assisted • the “Social Enterprise Legal and closer alliances between owners’ corporations and Seminar Series” with the the business sectors and the building owners and facilitated Hong Kong Council of Social schools to provide students the processing of 182 cases; Service has been held for eight with a broader perspective of 48