Law Update: City's advantage

A report on the competitive advantage of law and accountancy in the City of London has been published as part of the City Research Project, a three-year study of the City's international competitive position. The advantage of law firms rests, the report says, on the central role of English law in governing international transactions, and that played by City finance houses in international money markets. In contrast, the competitive advantage of accountancy firms has developed in response to 'the global spread of accounting regulations and multinationals'. The size and extensive office networks of accounting firms allow them to work for both the multinationals and local markets. The success of English law firms, the report says, is to a significant extent dependent on the success of City financial institutions. The diversification of accountancy firms, on the other hand, has led them into competition with City institutions.