The Commonwealth Bank is about to start a review of its law firm panel, while also consolidating the Bankwest panel. CBA bought Bankwest from British–based HBOS in late 2009 and has been merging its various departments with CBA during the past six months.

Group general counsel for Commonwealth Bank Group, David Cohen, said CBA currently has a panel of about 14 firms, while Bankwest had a larger number of firms on its panel. The new panel will be substantially smaller than the aggregate of these two panels and will include between 12 and 15 firms, said Cohen. “Because of the range of work and volume of work, we need to have a number of providers, otherwise you will have too much concentration within a couple of firms,” he said. 

He added that he did not want too many firms on the panel either, as he liked to be in the position where CBA is considered a “top-five client” amongst all the firms on the panel. “Our philosophy is that we want to be very important to every firm on the panel,” he said. 

The previous panel has been in place for two years and the new panel will be in pace for around three years, according to Cohen. “Provided we have regular ongoing evaluation, I think it will be for three years. But it’s important to test how the relationship is working – giving the firms feedback and also getting feedback.”

“Around the half-way mark we also give them the option to review their fees,” said Cohen. “I think it’s important to have ongoing management of the relationship.”

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