Mis-selling of interest rate swaps: Green and Rowley v RBS
In a ruling of interest to those institutions facing potential claims for mis-selling of interest rate swaps, the Court of Appeal has rejected an appeal by Paul Rowley and John Green in their action against RBS (the Bank), holding that the pair had not been advised to enter into the swap in question and, as such, the Bank owed them no common law duty of care. The case provides a measure of comfort to banks and other financial advisers, although its precedent value should not be overstated: judgments in such claims are, by their nature, highly fact specific.
Nevertheless, the case has some important lessons for banks and financial advisers, including a salutary warning as to the care needed when making representations to clients, for example, as to the portability of swaps.
We have also seen cases where banks are withholding consent to the transfer or assignment of swaps on a re-financing, as they may be entitled to do in accordance with the contractual documentation, which whilst securing continued revenue, should be judged in light of any representations at the outset that the swap was (unconditionally) portable, so as not to give borrowers ammunition enabling them to challenge refusals to assignment or transfer…
If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
For the tax year from 6 April 2014, the standard lifetime allowance has reduced from £1.5m to £1.25m.
One of the areas highlighted last year by the Regulator was the regulation of workplace DC pension schemes.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world