External supplier policy requirements

We're committed to introducing responsible business practices that make it easier for our suppliers to do business with us.

Working with Lloyds Banking Group


We work with suppliers who help us deliver resilient services, support good customer outcomes and meet our legal and regulatory obligations.

Our external supplier policy requirements explain the standards and expectations that apply to organisations providing goods or services to Lloyds Banking Group. Suppliers are expected to understand the requirements that apply to the services they provide and to maintain appropriate arrangements to meet them.

External supplier policy requirements

A simpler approach

We have brought our supplier-facing policy requirements together into a single document, creating one clear source for the requirements that apply when working with Lloyds Banking Group.

This approach is designed to:

  • Make it easier to identify and understand applicable requirements.
  • Improve consistency across policy areas.
  • Reduce the need to review multiple documents.
  • Provide clearer version control and governance.
  • Help suppliers access the latest published requirements from a single source.

  • Lloyds Banking Group carries out oversight and assurance activities to support ongoing compliance with applicable supplier policy requirements.

    These activities may include due diligence, ongoing monitoring, evidence reviews, assurance activity, audits and supplier assessments.

    Where applicable, suppliers may be asked to complete the Financial Supplier Qualification System, operated by Hellios.

    FSQS supports the assessment of selected supplier controls and requirements. Completion of FSQS does not replace a supplier’s obligation to meet applicable policy requirements. Lloyds Banking Group may request additional information, evidence or assurance where appropriate.

    Find out more about FSQS

  • To provide greater clarity and help suppliers plan for change, Lloyds Banking Group operates an annual review cycle for the external supplier policy requirements.

    Supplier-facing policy requirements are reviewed during quarter one each year. Updated requirements will be published following completion of that review.

  • In some circumstances, changes may be published outside the annual review cycle.

    This will only happen where Lloyds Banking Group determines that a material change is required.

    We define a material change as something that is reasonably expected to affect a supplier’s legal, regulatory, operational, risk management or contractual obligations.
     

    Examples of material changes may include:

    • New or amended legal or regulatory requirements.
    • New mandatory supplier controls or requirements.
    • Significant changes to existing policy requirements.
    • New reporting, oversight or assurance obligations.
    • Changes required to respond to emerging risk themes or regulatory expectations.
    • Significant changes to applicability criteria.
       

    The following would not normally be treated as material changes:

    • Administrative updates.
    • Typographical corrections.
    • Formatting changes.
    • Updates to contact details or references.
    • Clarifications that do not change supplier obligations.

    Where a material change is identified, Lloyds Banking Group will update the published requirements and communicate the change through appropriate supplier engagement channels.

As part of the move to a consolidated set of external supplier policy requirements, some policy names, structures and requirements have changed. Many requirements remain the same, while others have been renamed, combined, expanded or updated to reflect changes in risk, regulation and Lloyds Banking Group expectations.

To help suppliers understand these changes, Lloyds Banking Group has published a policy transition matrix. This document summarises previous and current policy names, highlights key changes to supplier requirements and identifies material updates that may be relevant to your organisation.

The policy transition matrix should be read alongside the external supplier policy requirements to help you understand the new structure and any changes that may affect your organisation.

View the policy transition matrix

Questions?

If you are unsure how any requirement applies to the goods or services you provide, please contact your Lloyds Banking Group supplier manager or usual business contact.