Freshfields LLP partners with HSBC to automate global liquidity

Freshfields LLP (Freshfields) is a prestigious multinational law firm headquartered in London, England. Established in 1743, it is one of the elite "Magic Circle" law firms in the UK and serves major corporations, financial institutions, and governments across the globe. With surplus balances sitting across multiple international subsidiaries, Freshfields’ priority was to embark on a global treasury transformation project to centralise liquidity and reduce reliance on FX to mobilise funds.

HSBC partnered closely with Freshfields’ treasury team to design and implement a pragmatic solution that delivered immediate benefits while remaining flexible to support Freshfields’ future growth.

The challenge

Freshfields held multi-currency balances with HSBC in the UK, alongside additional cash sitting with subsidiaries overseas. Local teams managed day-to-day cash, FX and funding needs, with limited consolidated visibility at group level. With the decentralised approach, Freshfields were unable maximise the interest on residual balances or use the excess funds to offset other accounts and currencies.

The solution

In partnership with HSBC, Freshfields have implemented an automated domestic and cross-border cash concentration solution, sweeping surplus cash from accounts in UK, Hong Kong, Singapore, and UAE into header accounts within the UK. A multi-currency notional pool encapsulates the header accounts, optimising interest by notionally offsetting credit and debit positions held in 6 different currencies, and applying improved interest conditions.

The success

Freshfields have transformed their treasury operations by adopting an automated, streamlined and centrally managed model. Beyond liquidity centralisation, the notional pool has also supported Freshfields’ debt management. When the timing of inbound funds from outside the UK, Singapore, Hong Kong and UAE is uncertain, Freshfields can temporarily draw GBP within the notional pool, with incoming balances in other currencies offsetting most of the interest cost on the overdraft.

Moving day-to-day cash positioning, FX and funding activity from local teams has freed up local finance teams to focus on higher-value priorities. Built with flexibility in mind, the solution is scalable and future-proof, enabling Freshfields to add new countries, entities, accounts and currencies as their requirements evolve.

Results delivered

• Centralised cash
• Reduction in FX requirements
• Increased efficiency
• Simple structure to support future growth
• Optimised interest