LEXLAW Solicitors & Barristers
The Tomlinson Report accuses RBS and Lloyds of unscrupulous practices through their turnaround divisions. It found the banks deliberately distressed viable businesses, charging excessive fees to force insolvency and acquire assets cheaply via property divisions like RBS West Register. The report describes these actions as systematic and institutional, damaging SMEs.
The Home Affairs Committee reported a UK Border Agency backlog of over 432,000 immigration cases, with only a small reduction after years of delays. The UKBA has been replaced by two new bodies aimed at improving decision quality and enforcement. The backlog severely affects visa applicants’ ability to work, study, or access services while awaiting decisions. Clearing this backlog remains a critical priority for the Home Office.
The Court of Appeal dismissed Barclays’ appeal in the ‘LIBOR test case’ (Graiseley v Barclays), allowing claims that banks made fraudulent implied representations regarding LIBOR’s honesty to proceed to trial. The judgment rejects Barclays’ argument that there is no cause of action for failing to disclose dishonesty. The court held that banks proposing LIBOR-based transactions arguably represented the rate’s integrity. This ruling opens the door for LIBOR manipulation claims to be tried in court.
BBC Panorama featured LEXLAW as we helped expose a major bank swap scandal, with widespread mis-selling of complex derivatives to SMEs. Despite a Financial Conduct Authority (FCA) redress scheme reviewing nearly 30,000 cases, only 32 businesses had received payouts at the time of the report.
Our client was awarded about £1 million in a swaps mis-selling settlement with Lloyds after being sold a complex multi-cancellable swap they did not understand. The product allowed Lloyds to cancel the contract if interest rates rose, removing the protection at critical times. The case highlights how banks have been settling many swaps claims discreetly.
The Court of Appeal in Green & Rowley v RBS confirmed that a bank does not owe a common law duty to ensure that customers fully understand the risks of interest rate swaps beyond the regulatory requirements. The case involved claims of mis-selling, particularly around inadequate disclosures. The court upheld that the bank’s compliance with the Financial Services Authority’s Conduct of Business Rules was sufficient, and the customers were considered knowledgeable enough to understand the transaction.
Directors disqualified for 18 years under the Company Directors Disqualification Act 1986 for selling but failing to deliver event tickets while continuing to trade insolvently. Lexlaw offers specialist legal defence for directors facing disqualification and guidance on court applications to act despite disqualification.
The FCA’s update on the IRHP mis-selling review reveals severe delays, with only 10 final redress offers accepted out of over 30,000 cases after 14 months. RBS, with the largest review population, lags behind, still classifying many customers. Only 2% of sales have completed compliance assessment, with 93% found non-compliant.
The Serious Fraud Office has brought its first charges under the Bribery Act 2010 against a UK company involved in a £23 million bio-fuel investment fraud. This concerns the offences of making and accepting a financial advantage, where individuals give or receive improper financial benefits connected to the performance of their functions. Convictions can result in imprisonment of up to 10 years and substantial fines. The Act also includes corporate liability for failing to prevent bribery, though companies can defend themselves by showing adequate anti-bribery procedures.
The Court of Appeal dismissed the Green & Rowley appeal against RBS regarding swaps mis-selling. The appeal failed mainly because the claimants abandoned their section 150 FSMA claim, likely due to mistaken limitation concerns. The court found no common law advisory duty beyond regulatory compliance in this case. The decision highlights the critical importance of correctly calculating limitation periods.