Deutsche to ask law firms for rebates

The Lawyer understands that Deutsche is considering various fee structures as part of a global review of its external legal advisers, with the rebate system currently emerging as the most popular.

The bank also considered the introduction of a single global fee rate, but dismissed it for being too convoluted.

As first reported in The Lawyer (20 September 2004), the leading German investment bank kicked off a global review of its firms which is expected to result in the launch of a legal panel or a tightly policed and approved list of preferred advisers.

If a rebate system is introduced, Deutsche will aim to give firms that secure places on the panel or the approved list instructions with a pre-agreed value. If the amount billed by each firm reaches the limits set in advance, the firm will be required to give Deutsche a rebate.

It is understood that, historically, Barclays Bank had a system of rebates. However, Barclays abandoned the system when it concluded its last panel review in the summer of 2003 as it proved too difficult to police.

Deutsche Bank declined to comment.