On 15 May 2019, the Financial Ombudsman Service (“FOS“) published its 2018/2019 Annual Review and some key messages for the industry emerge from that Review which we highlight in this post.… Continue Reading
The Financial Conduct Authority (“FCA”) has just published an Industry Insights document (“Insights”) on cyber security. Whilst not containing any formal guidance or rules, the Insights highlight the risks of cyber attacks to FCA regulated firms and confirms industry best practice around the key areas relating to cyber resilience: governance, identification, protection, detection, situational awareness, response … Continue Reading
In The Federal Republic of Nigeria v JP Morgan Chase Bank, NA [2019] EWHC 347 (Comm), the High Court dismissed an interim application by the Defendant, JP Morgan Chase Bank (“JP Morgan“), for reverse summary judgment, finding that JP Morgan owed a Quincecare duty of care to the Claimant.… Continue Reading
The Financial Conduct Authority (“FCA”) has published a policy statement detailing that the Financial Ombudsman Service (“FOS”) compensation limit of £150,000 will increase to £350,000 from 1 April 2019. This follows a Consultation on the topic of the FOS award limit, which was open between October and December 2018. The new limit of £350,000 applies … Continue Reading
In ACL Netherlands BV and others v Lynch and another [2019] EWHC 249 (Ch) (“ACL“), the High Court said that an applicant is unlikely to be granted permission for collateral use of evidence disclosed in English civil proceedings, unless there are special circumstances amounting to ‘cogent and persuasive reasons’.… Continue Reading
The Court of Appeal in Elite Property Holdings Limited, Decolace Properties Limited v Barclays Bank Plc [2018] EWCA Civ 1688 considered the appellants’ Application for permission to appeal against the Mercantile Court Judge’s decision to strike out part of the Appellants claims against the Respondent Bank. Whilst the application concerned permission to appeal, this was the first occassion on which … Continue Reading
Background A recent interim hearing in the Commercial Court in BNP Paribas SA v Trattamento Rifiuti Metropolitani SPA [2018] EWHC 1670 (Comm) concerned the determination of jurisdiction where one party asserts that a dispute falls under the jurisdiction of the English Court under a standard form International Swaps and Derivatives Association (“ISDA“) documentation, and the … Continue Reading
At the recent Banking Litigation and Regulation Forum, the FCA’s Director of Enforcement and Market Oversight, Mark Steward, discussed the measures implemented by the FCA to tackle the loss of confidence and trust in the financial industry following the Financial Crisis.… Continue Reading
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 … Continue Reading
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.… Continue Reading
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.… Continue Reading
Last month the Supreme Court decided, on an appeal from the Scottish Inner House of Court of Session, that a borrower’s solicitors did not assume responsibility for, and thereby owe a duty of care to, the other side (the financier) in a commercial transaction.… Continue Reading
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.… Continue Reading
On 25 January 2018, the FCA fined Interactive Brokers (UK) Limited (“IBUK“) just over £1 million for “serious and systemic weaknesses” arising out of poor market abuse controls and failing to report suspicious client transactions during February 2014 to February 2015 (“Relevant Period“).… Continue Reading
During 2017, the FCA imposed fines for misconduct on regulated businesses and individuals totalling over £229,500, 000. Whilst 2017 did not see a return to the number or size of fines imposed by the FCA in 2014/2015 (when billions of pounds of fines were imposed following interbank rate and FX related misconduct), the year did see a tenfold increase in FCA fines from 2016 (total … Continue Reading
As discussed in a previous blog (3 May 2017), consumers seeking compensation in relation to any new payment protection insurance (“PPI“) complaint will now have until 29 August 2019 to complain to the Financial Ombudsman Service about any alleged mis-selling by lenders. The Financial Conduct Authority (“FCA“) has announced the final deadline in an attempt to draw … Continue Reading
Background The Court of Appeal has this week handed down judgment in three linked appeals (CGL Group and Others v Royal Bank of Scotland Plc and Others). These concerned interest rate hedging products (“Hedging Products“) that certain smaller businesses (including the Appellants) allege they were required to buy as a condition of loans made to them by three banks (in … Continue Reading
In 2016 the FCA undertook a study of the asset management market to assess whether retail and institutional investors get value for money when buying asset management products and services. The FCA published the following interim findings in November 2016:… Continue Reading
The Financial Ombudsman Service has sent a clear message to financial advisers that they must be vigilant to the risk of fraud when processing transactions on behalf of their clients. In its 23 August newsletter the FOS highlighted a recent case in which an adviser was ordered to pay fraud losses that the Ombudsman considered … Continue Reading
Claims Management Companies (“CMCs”) are businesses that offer legal claims management services to the public. Many CMCs typically process large numbers of complaints against financial services companies. PPI and interest rate hedging product complaints are of particular focus at present. In 2015, there were approximately 1,752 CMCs in the industry (down from a peak of … Continue Reading
The recent High Court decision in Property Alliance Group Ltd v Royal Bank of Scotland clarifies the meaning of the “dominant purpose” test in the context of the litigation privilege definition, and how it is applied where a party has obtained recordings of conversations through deception. Background The Court granted RBS’s application to inspect audio … Continue Reading
Investment mis-selling claims remain a prominent feature of the litigation landscape, particularly when it comes to interest rate swap products. In our experience, claimants often ask for specific disclosure of similar customer complaints by defendant financial institutions, in an attempt to strengthen a weak claim or to try to embarrass the institution into settlement. Compliance … Continue Reading