LEXLAW Solicitors & Barristers
In the case of Scott v Government of the United States of America [2019] 1 W.L.R. 774, the High Court (Lord Burnett LCJ, Males J) exhibited an evolving…
The APPG on Fair Business Banking launched their highly anticipated dispute resolution report on 11 July 2018. The report, authored by Kevin Hollinrake MP and undertaken by the Centre…
Ali Akram and Jaron Dosanjh attended Parliament on LEXLAW’s behalf at the New City Agenda Event, Tuesday 10th July 2018, Committee Room 14, House of Commons
UK Parliament unanimously condemned RBS’s Global Restructuring Group (GRG) for its systemic mistreatment of SMEs, describing it as a parasitic unit engaged in asset stripping and aggressive litigation tactics. MPs highlighted GRG’s role in artificially distressing viable businesses, undervaluing assets, and employing harsh recovery strategies during 2008-2013, leading to widespread financial harm. The FCA’s delayed and redacted report faced heavy criticism, with calls for transparent accountability, a Financial Services Tribunal, whistleblower protections, and full release of investigations.
The leaked 2009 internal memo from RBS’s Global Restructuring Group (GRG), titled “Just Hit Budget!”, reveals aggressive tactics aimed at extracting maximum profit from struggling SME customers. The memo outlines a systematic approach to pressure businesses, including leveraging fees, forcing deal signings, and deliberately letting customers fail – referred to chillingly as “let customers hang themselves.” This memo exemplifies the toxic culture within GRG that led to severe financial distress for many SMEs.
LEXLAW has launched an online petition urging the government to establish a Financial Services Tribunal to resolve disputes over financial product mis-selling. The petition highlights the limitations of costly court processes, the inadequate Financial Ombudsman Service, and the FCA’s lack of dispute resolution powers. The tribunal would provide fairness, judicial scrutiny, and deter misconduct by major banks and financial institutions. The campaign follows parliamentary support for a commercial financial dispute resolution platform and aims to give customers better protection and access to justice
The High Court ruled that fraud allegations against RBS concerning LIBOR manipulation in a derivatives mis-selling claim were “properly arguable,” affecting SMEs sold IRHPs by major banks. LIBOR, a crucial interest rate benchmark, had been rigged by banks including RBS, resulting in hefty fines. RBS admitted misconduct in its LIBOR submissions. Property Alliance Group’s (PAG) case against RBS may set a precedent for extending time limits on claims, emphasizing the importance of seeking legal advice on mis-selling claims affected by LIBOR fraud.
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 ruled unanimously that RBS procured a previous judgment by fraud, deliberately withholding key documents and misleading their client, lawyers, and the court. The case involved a “sham auction” of loans to create a notional £1.44 billion profit. The judgment raises serious concerns about RBS’s corporate culture and litigation conduct.