On 30 May 2018, the Financial Ombudsman Service (“FOS“) published its 2017 / 2018 Annual Review.
Court of Appeal guidance on when the limitation period can be extended for negligence claims under s14A of the Limitation Act 1980
The Court of Appeal decision in Mr Nobu Su v Clarksons Platou Futures Limited and another [2018] EWCA Civ 1115 from earlier this month concerns the interpretation and application of s14A of the Limitation Act 1980 (“s14A”) and when a claimant is deemed to have ‘knowledge’ of the negligence in order to extend the limitation period under s14A.
FSCS, changes afoot
It was reported last week that the FCA has confirmed that providers will be required to contribute 25% of the bills of the financial advisers’ Financial Services Compensation Scheme (“FSCS”).
Court guidance on whether “first past the post” is really a legal principle
The Commercial Court has recently handed down its judgment in the case of Midtown Acquisitions LP v Essar Global Fund Limited and Others [2018] EWHC 789. The decision provides useful guidance on whther “first past the post” is really a legal principle when it comes to charging orders.
Court of Appeal decision brings reassuring clarity for judgment creditors
The Court of Appeal recently heard an appeal from the Central London County Court, in which a judgment debtor (“L”) appealed a decision than an application to pay a judgment debt by instalments had been refused – Diana Loson v Brett Stack, Newlyn Plc [2018] EWCA Civ 803.
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.
Financial Ombudsman Service releases plans and budget for 2018/19
On 28 March 2018, the FOS published its plans and budget (“Plan“) for the 2018/2019 financial year. The Plan follows a formal consultation by the FOS with its stakeholders in December 2017.
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:
- Can a determining party make a second determination of a close-out amount?
- 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)?
FCA publishes approach to enforcement consultation document
Last week the FCA published for consultation a paper describing its approach to enforcement. It has invited feedback on the paper by 21 June 2018.
