Lloyds Banking Group panel shrinks from ten firms to eight
Last month saw DLA Piper and Norton Rose Fulbright (NRF) lose out as Lloyds Banking Group (LBG) reduced its UK legal roster from ten to eight firms.
Addleshaw Goddard, Allen & Overy, Ashurst, CMS Cameron McKenna, Eversheds, Herbert Smith Freehills, Hogan Lovells and Linklaters all retained their spots on the panel in a process that was described as ‘robust’ by one partner involved.
Another partner described the procurement team, which led the review alongside group general counsel Kate Cheetham, as ‘excellent’, adding: ‘From my point of view it was a very fair and transparent process. The online rates auction was new for Lloyds, but something we are familiar with for other clients. Reducing the core panel from ten firms to eight potentially creates new opportunities and helps keep everyone on their toes.’
An LBG spokesperson added: ‘The panel will include eight firms which have been designated core as they are able to offer either alternative resourcing options, technology solutions and or the ability to offer a wide range of complex legal advice. Our decision on specialist panels will be made later in the year.’
LBG’s last panel review was carried out in 2014 and saw DLA and NRF win slots in addition to the eight firms retained in 2016.
That review was conducted by then group GC Andrew Whittaker alongside Cheetham, who served as deputy legal chief at the time.
LBG has an annual legal and regulatory spend of around £400m, not including the cost of external advice for its internal restructuring, which resulted in multiple redundancies, as well as preparing for looming ring-fencing reforms in 2017.
The bank also established a specialist sub-panel earlier this year for commercial mortgage-backed securities work. Core firms to secure a spot included US firms K&L Gates and Paul Hastings, as well as Clifford Chance, A&O, Ashurst, and Berwin Leighton Paisner.
kathryn.mccann@legalease.co.uk, sarah.downey@legalease.co.uk