Interest rate swap test-case update

Walker Morris’s earlier briefing explained that businessmen Rowley and Green had sought to pursue RBS for compensation following an interest rate swap deal that left them significantly out of pocket. The High Court held that RBS did not make any misstatements to Rowley and Green and did not provide any advice in connection with the interest rate swap, and as such the bank was not held liable for their losses. The case, which has been seen by some as something of a test case for the thousands of businesses that have accused Britain’s banks of financial mis-selling, was then referred to the Court of Appeal at the end of July.

The court’s written judgment has been reserved and is expected in the autumn, but while full details are awaited we do already know that the Court of Appeal unanimously dismissed Rowley and Green’s appeal and endorsed the High Court’s decision. It is also clear that the decision in this case was very much fact specific, and commentary to date suggests that the claimants and their representatives are keen to suggest that the decision is of limited wider application…

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