Charlie Beauchamp, head of the investment banking and capital markets legal team at global financial services giant Citigroup told the US-based Financial News web site that the in-house role is ‘more critical than ever’.
Mr Beauchamp added that that by understanding legal, political and regulatory issues, a legal team ‘adds value’.
‘We sit in the middle of the information flow. We’re involved in all the deals, we understand the risk appetite, we understand the business imperative,’ said Mr Beauchamp. ‘We are positioned right at the centre of things.’

Emphasis on control

Bert Suer, head of the investment banking legal team for Europe, the Middle East and Africa at Switzerland’s largest bank, UBS, commented: ‘Post crisis, there has been a greater emphasis on control rather than just legal advisory and execution. The job now requires us to identify risk in the broadest sense, rather than just advise on the law and execute transactions.’
Mr Suer continued: ‘Ten years ago, in-house transactional lawyers were seen really as part of the deal team, with the main objective being to get the deal over the line. That is clearly still important, but now there is a real recognition we need to perform more of a challenge function.’]

More for less

The increased focus on in-house capabilities has also changed the nature of the relationship between companies and external counsel, with some lawyers complaining the banks expect more for less.
Mr Beauchamp said: ‘Costs are under the microscope, and we certainly do seek to receive value from our external law firms. I use the word value deliberately. It isn’t just a matter of low cost, although this is important.’