For Legal Week's extended analysis of the panel review, click here.

Barclays has cut its extended roster of legal firms by 30%, following a major review of its external legal counsel, which has seen five of eight new core advisory spots awarded to US firms.

The core list of advisers – known as 'preferred firms' – has grown to 19, with US-headquartered outfits Skadden Arps Slate Meagher & Flom, Latham & Watkins, Cadwalader, Boies Schiller & Flexner and Davis Polk & Wardwell joining a bench of existing UK and US-headquartered firms.

The appointments come amid greater pressure from US regulators, and less than a week after the bank was named in a major investigation for alleged misconduct by New York's attorney general.

UK firms TLT Solicitors, Matthew Arnold Baldwin and Eversheds are the three other new firms to have won 'preferred' status, given to firms with which Barclays has chosen to deepen its relationship and concentrate spend over time.

The panel, which will run from today (1 July) to 30 June 2016, was described by Barclays as more streamlined, and represents a move away from the previous multiple-panel model.

Barclays also said the list is made up of a mix of price points to better reflect current business and legal spend.

"I am pleased to announce the conclusion of our review of legal suppliers – a process that ensures we have the right choice of panel firms to meet our diverse needs, deliver excellent value and high standards," commented general counsel Bob Hoyt.

"Our simplified legal panel, made up of preferred and approved firms, will provide the broad range of expertise and in-depth knowledge of Barclays required to support our business lines globally."

Preferred firms will act on a similar range of matters to the bank's previous general advisory panel, whereas approved firms will be appointed to work in one particular practice area or jurisdiction.

The review, which had been scheduled to complete a year ago, was pushed back at the beginning of 2013, when the bank decided on a one-off extension of the terms of its review cycle from two to three years.

All firms previously appointed to the bank's main general advisory panel in 2011 were re-appointed, including Addleshaw Goddard, Allen & Overy, Clifford Chance (CC), DLA Piper, Freshfields Bruckhaus Deringer, Linklaters, Hogan Lovells and Simmons & Simmons.

That review saw first-time appointments for a number of firms, including US trio Cleary Gottlieb Steen & Hamilton, Shearman & Sterling and Sullivan & Cromwell.

In total, 117 firms were appointed to 13 panels and three UK sub-panels for Barclays' investment banking and markets arm.

This year's review is the bank's first since the appointment of former US Treasury GC Hoyt as head of Barclays legal team last October, replacing outgoing GC and former CC partner Mark Harding.

Barclays is one the largest financial services clients for large corporate firms on both sides of the Atlantic. In 2013, the bank more than doubled its legal provisions to £485m.

Major mandates for Barclays in the last three years have included CC's instruction on the Guardian Care Homes litigation, seen as the test case for Libor litigation in the UK. The magic circle firm also advised on its £59.5m Libor settlement with the then Financial Services Authority (FSA) in 2012.

For a number of Libor-related class actions in the US, the bank has used New York elite litigation outfit Boies Schiller, whose City launch last year was partly driven by a growing caseload for the bank.

Boies Schiller also advised Barclays on Anthony Salz's independent review of Barclays' business practices, for which Salz instructed Barclays panel firm Herbert Smith Freehills.

In the US, Barclays is working with a Sullivan & Cromwell litigation team over allegations that Barclays and more than a dozen banks accused of rigging rates in the foreign exchange market. The white shoe firm has also advised the bank on Libor issues.

Outside of direct instructions, firms are also required to partner with the bank on pro-bono and diversity initiatives, such as the bank's decision earlier this year to offer 80 work experience places to undergraduates interested in a career in law.

Preferred firms in full:

Addleshaw Goddard
Allen & Overy
Boies Schiller & Flexner
Cadwalader
Cleary Gottlieb Steen & Hamilton
Clifford Chance
Davis Polk & Wardwell
DLA Piper
Eversheds
Freshfields Bruckhaus Deringer
Hogan Lovells
Latham & Watkins
Linklaters
Matthew Arnold Baldwin
Shearman & Sterling
Simmons & Simmons
Skadden Arps Slate Meagher & Flom
Sullivan & Cromwell
TLT

  •  Should your law firm be doing more to keep you? Click here to provide confidential feedback in Legal Week Intelligence's annual employee satisfaction survey.