Updated 23 November 2010

Lloyds Banking Group Conveyancers Panel – FAQs What are these cuts? (LBG) has introduced a requirement for member firms to have carried out a minimum number of transactions for the various lenders comprising the Group over the course of the last 12 months.

The Group's lenders are LloydsTSB plc, Bank of , Cheltenham & Gloucester, , , Intelligent Finance, St James' Place Bank, Lloyds TSB Scotland plc and Bank.

Who is affected? LBG has written to firms which have not met the threshold to inform them of their removal from the Panel, which has immediate effect. LBG has not been prepared to disclose the number of firms affected or the threshold, although the Society understands that the threshold volume is in single figures, with a lower threshold in rural areas.

Why is LBG removing firms? LBG’s reason is that it wants to better manage its panel and ensure solicitors’ firms acting for the Group are fully familiar with its processes and requirements.

Are any further cuts likely?

Following discussion with LBG, we know that the Group has not ruled out making further reductions to its panel in the future.

Can I appeal the decision? Yes. Although there is no mention of an appeal process in the letters sent out by LBG, it has confirmed to the Society that it will consider appeals from affected firms which can demonstrate that:

(i) they have carried out at least 10 new mortgage transactions for LBG lenders within the past 12 month

(ii) there will be a lack of local panel representation if they are removed or affect provision of legal services in their area

Firms should also specify whether they provide specialist legal services and the detail their overall relationship with Lloyds Banking Group.

Write to: Conveyancing Panel Management, Lloyds Banking Group plc, 1 Lovell Park Road, Leeds , West Yorkshire, LS1 1NS

What else should I do?

Any firms or solicitors who have been affected should contact the Society to allow us to gauge the scale of this issue. Please email John Scott in Professional Practice: [email protected]

The Society’s president has written to MSPs and MPs and we would encourage you to write to your local representatives.

What about ongoing business? Affected firms are to be allowed to complete ‘pipeline mortgage business’ i.e. where loan instructions have already been issued. If you have concerns please contact LBG and also alert the Society.

Did Lloyds Banking Group consult the Society about this decision? No, we were informed about it in late October.

What is the Society doing? The President Jamie Millar wrote to LBG to ask for an urgent meeting. Mr Millar, Janette Wilson, Convener of the Society’s Conveyancing Committee and Chief Executive Lorna Jack then discussed the matter with senior LBG staff on 19 November 2010. LBG remained unwilling to revise its position despite the strong representations made on the basis of the Society’s robust regulation and low risk of its members to lenders, and the profession’s commitment to the ARTL system which would also lower risk.

The Society has secured the support of the Cabinet Secretary for Justice Kenny MacAskill on the issue and has written to MSPs and Scottish MPs to alert them to the potential long-term consequences of LBG’s actions. The Society also plans to meet with MPs from the Scottish Select Committee and contact other stakeholders.

The Society believes LBG’s decision is not only contrary to previous advice given earlier in 2010 that its conveyancing panel in Scotland would not undergo any restrictions, but will impact on the livelihood of our members and be detrimental to the provision of legal services in Scotland, reducing client choice particularly in rural areas.