LEXLAW Solicitors & Barristers
The door has been opened by the Court of Appeal in PAG v RBS [2018] for misrepresentation claims to be brought by a counter-party to a derivative which…
The Court of Appeal (Sir Terence Etherton MR, Longmore LJ and Newey LJ) handed down judgment in the highly anticipated appeal from Asplin J’s decision in Property Alliance…
The FCA regulates authorised firms under the Financial Services and Markets Act (FSMA) 2000, overseeing conduct and prudential standards. It authorises firms, supervises compliance, investigates breaches, and enforces rules via fines, bans, and public censure. The FCA’s remit focuses on “regulated activities,” but it also monitors firms’ overall behaviour, including some unregulated actions linked to regulated firms. It holds senior managers accountable under the Senior Managers and Certification Regime (SMCR). The FCA aims to protect consumers, uphold market integrity, and promote competition, balancing its powers with statutory limits set by Parliament and Government.
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.
The High Court ruled in Abdullah v Credit Suisse that the bank mis-sold complex structured products to a conservative Kuwaiti family, breaching statutory duties under sections 138D and 150 of the Financial Services and Markets Act 2000. The court found Credit Suisse failed to assess the clients’ risk tolerance and provided misleading advice, resulting in a $30 million loss. Key defences by the bank, including claims of contributory negligence and financial suicide, were rejected. This landmark case clarifies banks’ obligations under FCA Conduct of Business rules on suitability and fair communication in sales of complex financial products, offering hope for mis-selling victims.
Our client, the charity Wenta has gained ground in its claim against NatWest/RBS over the mis-selling of a derivative (IRHP). Wenta alleges the banks breached contractual, tortious, statutory, and fiduciary duties, causing financial loss. The case involves disputes over suitability, disclosure, and a flawed and unfair review process by the banks. Disclosure battles have forced the banks to reveal key sales training manuals and review materials. Litigation continues with trial or secret settlement expected soon.
LEXLAW’s Financial Services Litigation team provides expert legal support for high-value claims and complaints against Metro Bank Plc. The team has experience in prominent High Court cases against Metro Bank and all other major UK banks. Clients can access specialist London-based solicitors and barristers to protect their rights and manage complex bank litigation efficiently.
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
Petition for establishing a Financial Services Tribunal to resolve complex disputes between banks and customers. Courts are costly, the Financial Ombudsman Service is limited to low-value claims, and the FCA lacks dispute resolution powers. The Tribunal would provide judicial scrutiny, fairness, and public censure, helping SMEs and consumers secure justice and deter misconduct in the financial services industry. Supporters can register their backing on the UK Government site.