In Conversation with…
Filipe Lowndes Marques
From seeing the benefits of Brexit and the invaluable (business) learnings of a global pandemic to viewing AI as an invaluable asset rather than an insidious threat, Filipe Lowndes Marques exudes the sort of infectious positivity we’re all craving right now.
Filipe Lowndes Marques, Partner, Morais Leitão, Galvão Teles, Soares da Silva & Associados
flmarques@mlgts.pt
Q. We’re trying to leave Covid and Brexit behind in the issue but give us a flavour, if you would, of how you as a leading law firm have negotiated these seismic events?
FLM: It has been a rather intense year. Throughout the months we insisted on a balance between two priorities against extreme uncertainty over every single aspect of our lives.
On the one hand, we had to ensure the safety and health of the Morais Leitão community, which includes its lawyers and co-workers, but also their families. On the other, it was equally essential to safeguard our work - the obligations we have towards our clients, heightened by the needs resulting from the pandemic itself.
We had a very sturdy pipeline that was augmented with new specific challenges. The change to remote working was done very smoothly and, perhaps, had the added advantage of confirming what a lawyer’s job should truly be and that’s not necessarily sitting behind a desk all day but rather managing her or his life in the best way so long as all work is done - and clients are satisfied.
In Portugal, lawyers are historically deemed “liberal professionals” in the sense they are viewed as independent practitioners that are not employees and have solely deontological duties to their clients. The pandemic has shown, by working from home, that it is possible to organise your time and priorities in whatever way you think best so long as these duties are met.
In a way, Brexit functioned as a learning process for the pandemic: a very slow but eventful process, full of uncertainties. Investment depends upon minimised risks and stable indicators. We had to work with our clients to apprise them regarding new realities and anticipate their possible problems. As Britain’s oldest ally, I am confident strong relations between the UK and Portugal will be maintained and possibly grow considering the long relationship.
Q. For readers unfamiliar with Morais Leitão, tell us a little about the business; the size, specialties and reach?
FLM: The firm started in a very traditional way: two small offices of highly respected lawyers, founded in the 1930s and 60s, joined to create a successful story. Over the years, we integrated and merged with other firms, creating a leading, global firm. We created an international network in 2010, the Morais Leitão Legal Circle, that enables us to work with local firms in selected jurisdictions (mostly in Portuguese speaking Africa) under seamless and integrated teams.
Since the beginning, our calling has always been to offer full-service advice. Our founders were top litigation and corporate lawyers. Morais Leitão progressed from this auspicious start through a strong reputation in all core areas: banking and finance, corporate, tax, litigation, arbitration, competition, labour and public law. Looking into sectors, we take pride in pioneering their respective importance in the Portuguese economy; we had the first teams dedicated to energy and emerging companies/start-ups. Working in close partnership with the clients has enabled this kind of presence. We tend to be early players, shaping the industry.
Q. And, similarly, an overview of the legal market in Portugal?
FLM: The Portuguese legal market, despite its size, is fairly complex and compares well with the most recognised markets. It has stabilised over the last few years, with a strong small group of full-service firms that usually advise complex and cross-border mandates. In some areas, such as energy and sustainable finance, emerging companies and corporate and M&A, Portugal is a leading case, with some rather interesting milestones (in green bonds, for example).
Portuguese lawyers in my view are as technically competent as any in large multi-national firms. We have experience in many cases of working with clients not yet familiar with Portugal and who in absolutely no way see the work we offer as inferior to that with which they are familiar. Portugal has the additional advantage, due to its size, of not justifying the opening of local offices by the international law firms, so they work closely with us and other leading local law firms because they recognise the quality of the work delivered.
Q. Innovation was, of course, already at the forefront even before the pandemic and the ways we’re working have changed and will continue to do so. How is that impacting your legal services? And are you, as a team, excited about the possibilities?
FLM: The digital transformation process at Morais Leitão began its implementation several years ago with invaluable ingenuity and creativity from our IT team. The first steps of this process are practically invisible to everyone and tend to be undervalued: establishing a functional data management system; synchronising different platforms and sources of information; implementing collaboration tools compliant with top cybersecurity demands.
When the pandemic arrived, we already had everything prepared so lawyers and employees could work at home with the same level of access to the tools they have in the office.
And the pandemic was a great accelerator. Before COVID, we were discussing internally what was the best process to implement some new tools that were going to change the way we worked and communicated in the organisation. With the pandemic, that adoption took a few weeks.
This sudden technological explosion also created specific challenges such as harmonising digital literacy across all members of the organisation and when a regular usage of complex tools can’t be avoided.
However, I believe things are a bit easier for us. Our lawyers are known for having a rather creative approach to problems, frequently proposing out-of-the-box solutions. We have a healthy capacity for anticipating and resolving issues that are not normally identified, which represents an enormous added value for clients. And this has shaped our culture and approach to innovation: change and technology are never a problem. On the contrary, technology allows us to reduce repetitive or less valuable tasks, redirecting the lawyers' time to more complex matters, thus delivering to the client a better, more focused service.
All legal tech software implemented in the firm was born out of a certain need identified by a lawyer or a department. We never bandwagon or go with the flow in this matter.
“I like to think Brexit may even reinforce and strengthen the ties between Portugal and the UK as the partners and friends they have always been - and with a unique relationship.”
Q. Much has been written about things such as AI and its impact on careers. Some feel this is nothing to be feared and will, in fact, make jobs more rewarding by allowing lawyers and BD teams to dispense with the “routine” and focus energies more on the business. Would you agree?
FLM: As mentioned, technology reduces the less valuable tasks, opening up the possibility to deliver better advice. I therefore couldn’t agree more with your comment. AI has developed in an extraordinary way. Work itself has become increasingly more complex and denser, making it in some cases impossible to be analysed by human beings.
Consider the sheer volume of data in major due diligences or antitrust documentation - no human being can read through thousands of emails and documents as AI software does. Yet, the human work of lawyers will remain essential. Machine learning depends upon human action. Data and projections aren’t yet final products. They have to be reviewed and contrasted by people that can look at the broad picture, reach the necessary conclusions and provide advice on the best courses of action.
I’ve been hearing for many years that AI will replace lawyers - I am very sceptical about this. There are obviously areas where AI can do a lawyer’s work, such as preparing simple wills or lease agreements, but I don’t see how AI will replace lawyers in areas such as litigation or arbitration and, even in corporate matters, I think we are many years away from AI being able to structure complex transactions.
I often joke that when Siri starts understanding properly the supposedly simple instructions, we often give it then I will start to get worried!
Q. Infrastructure projects, certainly in the UK, are being talked about as one important way to restart an economy. You’ve vast experience in project finance in this area, from power plants to wind and solar farms through to football arenas. How do you view this in the context of global economic renewal?
FLM: Portugal has always been a big fan of infrastructure projects as a means to boost the economy, and we currently have some of the best motorways in the world, new bridges, and windfarms and hydro plants in probably every possible location (which shows Portugal’s commitment to renewables – already back in 2016 all Portugal’s energy needs were met for four straight days from renewable sources).
There was a great emphasis on PPPs, including some that perhaps were not particularly solid, and this made things very difficult when the financial crisis of 2009 hit. Although it is as yet unclear as to what structures will be used, it’s clear the Portuguese government is eyeing large infrastructure projects as a means of boosting the economy with the EU support facilities.
There is talk of a new airport in Lisbon, a TGV between Lisbon and Porto and/or Madrid, a new bridge over the Tagus and several new modern hospitals. While it is arguable whether these funds could be better used in other areas, such as education, historically it is a fair comment that the development of the Portuguese economy was very much boosted by these types of projects in the past, as they help businesses grow and make the country more attractive to foreign investment. The expectation and hope are that this will happen again.
Q. You head up Morais Leitão’s banking and finance team – what does your practice entail and what are the current trends?
FLM: Our banking and finance practice covers all the relevant sectors – project and structured financings, project bonds, securitisation, investment funds, regulatory and fintech. Although members of the team naturally have more experience in some areas than others, versatility over the various sectors is still an advantage (as there are few financial law sectors in Portugal that would justify a standalone team doing just that).
Portuguese banking and finance transactions have had an enormous development over the last 30 years. For example, the first project financing in Portugal was only signed in the early 1990s. As usual in developing markets, English law was very much the law of choice for these initial transactions but, as sponsors and lenders grew more familiar with Portuguese law and realised that in no way were their rights diminished as a result of this choice of law, it is now much more common to use Portuguese law in complex transactions.
As in many other jurisdictions, we are currently seeing an enormous growth in the Fintech sector, particularly as Portugal is seen as a very attractive destination for the so called “Digital Nomads” – good weather, security, a special tax regime for expatriates, qualified professionals with an excellent level of English and a love of new technologies make Portugal an ideal place from which to work.
“I often joke that when Siri starts understanding properly the supposedly simple instructions, we often give her, then I will start to get worried (about AI)!”
Q. Looking beyond Portugal, can you tell us about the firm’s international business development. How you approach it? And how the marketing and BD team fits within the business?
FLM: Morais Leitão has a threefold approach. Firstly, our natural areas of growth outside Portugal are linked to jurisdictions where Portuguese law has a strong influence – such as Angola, Mozambique, Macau and Cape Verde (where we have just partnered with a local office at the beginning of 2021) Several of our clients operate in these countries and we accompany them in their endeavours. The similarities in terms of legal systems are significant, making our local experience much easier.
Secondly, due to the absence in Portugal of local offices of almost all of the large international firms, we have very strong relationships with all of the large London and New York international firms, with whom we work closely. To give an example, in 2020 Morais Leitão registered 732 referrals (inbound and outbound) with international law firms (of course not all of them were successful but this gives an idea of the amount of business generated).
Last but certainly not least, Morais Leitão is privileged to be - since 2001 - the exclusive Portuguese member of Lex Mundi, the world’s largest international network of independent firms. This has been highly regarded over the years, not just in terms of the referrals and advice, but also for the opportunities it opens through networking and brainstorming. It also allows us to offer our clients a seamless service in almost any jurisdiction in the world as the quality of our Lex Mundi partner firms is exceptionally high.
Q. You studied at Oxford, are a member of the Law Society of England and Wales, and former president of the British Portuguese Chamber of Commerce. Portugal and the UK have always enjoyed a very strong bond on a cultural level. What about within the business community?
FLM: As I said above, Portugal and Britain constitute the oldest alliance in the world, first agreed in 1373 (and even earlier, English soldiers helped the first Portuguese king in the conquest of Lisbon in 1147), and the cultural and business links have always been very strong.
I myself am a result of this “cultural exchange” as my English grandmother married my Portuguese grandfather and both set up the first English language newspaper in Portugal (the only English newspaper published on the continent during the second world war, and whose claim to fame was Goebbels having ranted against it as “Churchill’s mouthpiece in Lisbon”).
It’s important to emphasise that despite the decision in 2016 to leave the European Union, the 648-year-old alliance between Portugal and the UK remains strong. The volume of bilateral trade has grown by almost 50 per cent in the past five years, and the UK is the fourth largest destination for our exports.
It’s necessary to have an optimistic view and see this moment as an opportunity. My view is that after Brexit, Portugal has to be at the forefront to show that although we would have preferred the UK to remain within the Union, our doors are open to continue the fruitful relationship between the two countries.
To that extent, I like to think that Brexit may even reinforce and strengthen the ties between Portugal and the UK as partners and friends that they have always been and with a unique relationship between countries in Europe.
Snap Shot
2017 –
Head of Banking and Finance Department
Morais Leitão 2007 –
Partner, Banking and Finance Department
Morais Leitão 2001 - 2007
Senior Associate
Morais Leitão
1995 - 2001
Junior Associate
Abreu & Marques 1994 – 1995
Magister Juris in European and Comparative Law
Balliol College, Oxford
1989 – 1994
Licenciatura in Law
Catholic University, Lisbon
Getting to Know You
Best bit of advice you’ve been given?
Cross each bridge when you come to it. Best bit of advice you’d give someone at the start of their career?
Never be satisfied with being the big fish in the small pond. Secret to being a good lawyer?
Always answer your clients promptly (even if it to say you have no news) – nothing annoys a client more than silence.
What led you to this career?
Both my parents are lawyers, so I didn’t really have a choice… (but my sister avoided it, so perhaps it wasn’t as inevitable as all that!) Best holiday destination?
Has to be Portugal! Go off the beaten track and visit Évora, Marvão or Coimbra. Favourite pastime?
Always loved reading (real ones – never electronic), with my favourites being the Flashman books by George McDonald Fraser (although they may be rather too politically incorrect for the current climate!)