SRA warns against excessive legal fees for PPI claims

The Solicitors Regulation Authority (“SRA“), the regulatory body of solicitors in England and Wales, has conducted a thematic review of law firms acting on claims alleging “mis-sold” PPI. The review highlighted what the SRA regards as two significant shortcomings of such firms: (i) overcharging clients, and (ii) the use of standardised letters.

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Squire Patton Boggs to host financial services conference on 18 April in London

Squire Patton Boggs’ London office will be welcoming over 100 legal and compliance professionals from a range of banks and financial institutions next week for a major financial crime and regulatory risk conference. We are hosting the event for the leading industry forum, MLROs.com. There will be a full programme of speakers covering a wide range of topics including:

  • A regulator’s view of AML regulation.
  • An update on the GDPR roll out with just five weeks to go.
  • How to respond to a visit from the FCA.
  • The role of metadata in tackling financial crime.
  • A mock AML trial.
  • The FCA’s approach to anti-bribery.

See the full programme and event details here.

We are looking forward to meeting all our guests on 18 April at what should be a thought-provoking event. There are a limited number of tickets still available via the MLROs.com website or available to clients and friends of the firm – please get in touch with your SPB contact.

Commercial Court evaluates the mechanism for calculating “close-out amounts” in transactions for derivatives under the 2002 International Swaps and Derivatives Association Master Agreement

Introduction

In Lehman Brothers Special Financing Inc. v National Power Corporation and another [2018], the Commercial Court was tasked with evaluating the mechanism for calculating “close-out amounts” in transactions for derivatives under the 2002 International Swaps and Derivatives Association Master Agreement (“2002 ISDA”). The 2002 ISDA is a standard market agreement used to set out the standard terms in transactions for derivatives; this replaced the 1992 ISDA Agreement (“1992 ISDA”). The 2002 ISDA is used widely in international markets for sales of derivatives including bonds, stocks and commodities.

In this case, the Court was faced with two challenging questions:

  1. Can a determining party make a second determination of a close-out amount?
  2. Does the 2002 ISDA impose an obligation on the determining party to act in an objectively reasonable manner (as opposed to a “rational” manner as stated under the 1992 ISDA)?

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The Court looks again at the rights of third parties identified in FCA notices

In the recent case of FCA -v- Grout [2018] EWCA Civ 71, the Court of Appeal confirmed the restrictive approach to third party rights pursuant to FCA notices previously laid down by the Supreme Court in Macris -v- FCA [2017] UKSC 19. We previously reported on the Macris decision on its way to the Supreme Court and following the judgment.

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