New Code of Ethics And Increased Visibility of The Big Four (August 2016)

Irmantas Norkus, the Managing Partner of Cobalt’s office in Lithuania, describes the new Code of Ethics approved by the General Meeting of Advocates of the Lithuanian Bar Association on April 15, 2016, as “a significant move forward.” The previous Code of Ethics was created in 2005, and the rapid growth and substantial changes in the market since then required that the Code be modernized. Changes affect the rules applicable to conflict of interests and the ability of firms to represent multiple clients in matters upon informed consent, among other things.

Turning to changes in the legal market itself, Norkus refers to the recent decision by the Varul office in Lithuania to rebrand as part of Primus as part of the extended fall-out of Varul’s Estonian office deciding to leave the network in favor of Tark Grunte Sutkiene. In addition, he reports that the law firms associated with PWC, Deloitte, and Ernst & Young – and, to a lesser degree, KPMG – are increasingly promoting their legal competencies and capabilities in Lithuania in an effort to compete more effectively with the traditional law firms in Lithuania. At the moment the increased visibility seems to be related more to marketing and communications than to actual presence on deals/transactions of significance, but as the firm associated with PWC in particular has publicly announced its intention to be among the top four or five firms in the country within five years, Norkus is keeping a look out. In addition, the PWC-related firm recently successfully appealed the Bar Association’s refusal to allow it to use the PWC trademark in its official name, meaning it is now able to more prominently display the PWC brand in its marketing efforts.

In terms of practices, Norkus reports that the Real Estate and Infrastructure practices are “really hot” at the moment, particularly related to three significant ongoing privatizations, including, most significantly, the government’s plan to offer three Lithuanian airports for operation by one concessionaire for the next 25 years. That concession should be announced soon, and at the moment a number of Lithuanian law firms – and at least five larger international firms – are representing potential concessionaires participating in the tender. Other privatizations of significance include the PPP project for a new National Stadium and another PPP project for the Utena National Road.

Other dynamic practices in Lithuania at the moment are those involving the Financial Services industry, which is seeing a great deal of consolidation and loan portfolio sales, and Data Protection, as companies try to prepare for the upcoming changes in applicable EU law.