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Law Firms and Michael Reiss von Filski1
Multidisciplinary Networks
Global CEO, GGI Geneva Group
International
For the past five decades, law firms as well as accounting firms have tried to achieve
broader coverage and obtain referrals through establishing and joining networks and associations
of professional firms. The prevailing legal structures are mainly companies limited by guarantee,
Delaware member corporations, and Swiss Vereins.2
The collapse of Italian dairy product giant Parmalat and the Enron case led to a
restructuring of the regulatory framework for accounting Transnational Organisations and
Practices (TOPS), resulting in higher regulation through the 8th EU Directive and the Statutory
Audit Directive from 2006 as well as in the commonly accepted network definitions according to
the International Federation of Accountants (IFAC). Consequently, there needs to be a
differentiation between integrated networks of accounting firms and loose networks of accounting
firms referred to as “alliances” or “associations,” regardless of their effective legal structure.
Integrated networks of accounting firms require thorough independence checks prior to accepting
new clients and are potentially exposed to more vicarious liability.3
Organisations consisting purely of law firms enjoy much more flexibility and are not yet
subject to global regulations, restrictions, or limitations. It is unavoidable that potential conflicts
arise from the different corporate structures chosen; in particular, conflicts of interest can even
lead to malpractice suits against law firms, members of TOPS. The choice of the legal structure
has, however, very little impact on vicarious liability for law firm networks. A substantial conflict
can be identified by the market perception of clients and by elements of misrepresentation, in
particular if networks of law firms label themselves as global law firms when in fact they are Swiss
1 Michael Reiss von Filski is the global CEO of GGI and director of a Swiss-based family office and consulting firm, having more than 15 years’
experience in advisory services. He is accredited as observer to the European Parliament and serves in the Advisory Committee of EGIAN
(European Group of International Accounting Networks and Associations, www.egian.eu) and is the chairman of AILFN (Association of
International Law Firms Network, www.ailfn.com). Michael is a member of the International Advisory Board of LSM, the Louvain School of
Management. He was a member of the Editorial Board of the International Accounting Bulletin and publishes articles on a regular basis. In his
leisure time Michael enjoys classic cars, art and antiques, literature, heraldry, and nobiliary law, as well as shooting, fencing, and some sailing and
horse riding.
Michael has a truly international background. His activities include several selected board memberships of national and international companies
including holding companies, real estate companies, financial services providers, and luxury good corporations. He has executed many cross-border
M&A transactions and participated in transnational tax and estate planning for individuals of high net worth. Michael was executive director of the
Spanish Chamber of Commerce in Switzerland. Prior to that, he worked as a diplomat in Rome, New York, and Buenos Aires, finishing his
diplomatic career in the rank of First Counsellor.
Michael studied international law, history, and modern literature in Zurich, Hagen, Madrid, and Manchester and holds an LL.M. in international
commercial law. He is an honorary professor of international law.
Michael received the Presidential Lifetime Achievement Award from the Hon. President Barack Obama in 2016. He has been awarded several
grand crosses, honours, and knighthoods from the Vatican, Spain, Portugal, Italy, Georgia, Hungary, Indonesia, and Vietnam, among others.
2 Douglas R. Richmond & Matthew K. Corbin, Professional Responsibility and Liability Aspects of Vereins,
the Swiss Army Knife of Global Law Firm Combinations, 88 ST. JOHN’S L. REV. 917 (2014).
3 BDO Seidman, LLP, v. Banco Espirito Santo International, etc., et al., Nos. 3D09-324, 09-
197, 07-2746, 07-2472 (2010).
137
Multidisciplinary Networks
Global CEO, GGI Geneva Group
International
For the past five decades, law firms as well as accounting firms have tried to achieve
broader coverage and obtain referrals through establishing and joining networks and associations
of professional firms. The prevailing legal structures are mainly companies limited by guarantee,
Delaware member corporations, and Swiss Vereins.2
The collapse of Italian dairy product giant Parmalat and the Enron case led to a
restructuring of the regulatory framework for accounting Transnational Organisations and
Practices (TOPS), resulting in higher regulation through the 8th EU Directive and the Statutory
Audit Directive from 2006 as well as in the commonly accepted network definitions according to
the International Federation of Accountants (IFAC). Consequently, there needs to be a
differentiation between integrated networks of accounting firms and loose networks of accounting
firms referred to as “alliances” or “associations,” regardless of their effective legal structure.
Integrated networks of accounting firms require thorough independence checks prior to accepting
new clients and are potentially exposed to more vicarious liability.3
Organisations consisting purely of law firms enjoy much more flexibility and are not yet
subject to global regulations, restrictions, or limitations. It is unavoidable that potential conflicts
arise from the different corporate structures chosen; in particular, conflicts of interest can even
lead to malpractice suits against law firms, members of TOPS. The choice of the legal structure
has, however, very little impact on vicarious liability for law firm networks. A substantial conflict
can be identified by the market perception of clients and by elements of misrepresentation, in
particular if networks of law firms label themselves as global law firms when in fact they are Swiss
1 Michael Reiss von Filski is the global CEO of GGI and director of a Swiss-based family office and consulting firm, having more than 15 years’
experience in advisory services. He is accredited as observer to the European Parliament and serves in the Advisory Committee of EGIAN
(European Group of International Accounting Networks and Associations, www.egian.eu) and is the chairman of AILFN (Association of
International Law Firms Network, www.ailfn.com). Michael is a member of the International Advisory Board of LSM, the Louvain School of
Management. He was a member of the Editorial Board of the International Accounting Bulletin and publishes articles on a regular basis. In his
leisure time Michael enjoys classic cars, art and antiques, literature, heraldry, and nobiliary law, as well as shooting, fencing, and some sailing and
horse riding.
Michael has a truly international background. His activities include several selected board memberships of national and international companies
including holding companies, real estate companies, financial services providers, and luxury good corporations. He has executed many cross-border
M&A transactions and participated in transnational tax and estate planning for individuals of high net worth. Michael was executive director of the
Spanish Chamber of Commerce in Switzerland. Prior to that, he worked as a diplomat in Rome, New York, and Buenos Aires, finishing his
diplomatic career in the rank of First Counsellor.
Michael studied international law, history, and modern literature in Zurich, Hagen, Madrid, and Manchester and holds an LL.M. in international
commercial law. He is an honorary professor of international law.
Michael received the Presidential Lifetime Achievement Award from the Hon. President Barack Obama in 2016. He has been awarded several
grand crosses, honours, and knighthoods from the Vatican, Spain, Portugal, Italy, Georgia, Hungary, Indonesia, and Vietnam, among others.
2 Douglas R. Richmond & Matthew K. Corbin, Professional Responsibility and Liability Aspects of Vereins,
the Swiss Army Knife of Global Law Firm Combinations, 88 ST. JOHN’S L. REV. 917 (2014).
3 BDO Seidman, LLP, v. Banco Espirito Santo International, etc., et al., Nos. 3D09-324, 09-
197, 07-2746, 07-2472 (2010).
137
