The City’s top law firms have won a major battle in their quest to overhaul conflict rules after the Law Society agreed to make it easier for advisers to gain consent to take on potentially conflicting roles. The Law Society’s ethics committee last week agreed to amend guidance on its conflict rules to allow firms to obtain upfront client consent through standard engagement letters. The move, which would require firms to erect information barriers and would still bar advisers from acting for opposing clients on a related matter, is regarded as a major victory for the group of top City firms that have lobbied on the issue. The firms — Slaughter and May, Freshfields Bruckhaus Deringer, Linklaters, Allen & Overy, Clifford Chance and Herbert Smith — had argued that over-zealous terms in new conflict and confidentiality rules introduced this April required reform. However, the move will not be without controversy. Richard Wiseman, general counsel for mergers & acquisitions at Shell, told Legal Week: "A lot of the conflicts debate has been motivated by greed and not by what is in the best interests of the client. One hears a lot from firms saying it is not fair that their longstanding clients should be denied access to them because they are acting for a new client. The solution is very easy: they should not act for either."

Microsoft has boosted its in-house legal team in the UK with the appointment of Paul Shields, formerly a senior associate at Bird & Bird. Mr Shields took up his role supporting various business units within the group this week and will be reporting to Gillian Austin, UK head of legal, reports Legal Week.

SJ Berwin is to enter into formal best friend referral relationships in the US, China and India following a radical review of the firm's international strategy. SJ Berwin has turned its back on thoughts of a transatlantic merger, but will break with its historically staunch UK and European focus and potentially open its first international office in Hong Kong. Jonathan Blake, senior partner, told The Lawyer: "The US affects everything and firms can't ignore that. We have a US strategy of developing a few close connections and not merging and we're moving forward with that." An exploratory trip will be made in the first quarter of 2007 to discuss formal alliances with several US firms.

Berwin Leighton Paisner (BLP) has finalised its alternative to partnership, creating an associate director position and appointing nine senior associates to the role. The firm is among the first to adopt the practice, with a number of firms set to make the move from May 1, 2007. Herbert Smith, which announced an of counsel role as its partnership alternative in June, promoted seven to the position in September. The associate directors will be remunerated at a similar level to junior equity partners and will have access to "'shadow equity points", meaning their pay will be tied to the firm's profitability but without a share in the equity, reports The Lawyer.

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