CGL: unexpected, illogical and unfair

David McIlroy and Nathan Webb consider the recent Court of Appeal decision in CGL v RBS [2017] EWCA Civ 1073, which addressed the scope for small businesses bringing claims against banks for alleged mis-selling in breach of regulatory rules.
The decision involved three conjoined appeals and in each case the claimant alleged that it had been sold an interest rate hedging product in breach of the provisions in the FCA Handbook. The appellants had submitted claims to the redress scheme and contended that the banks in question had not dealt with their claims fairly and had not applied the rules which had been agreed with the FCA when the scheme was set up.
In considering whether banks owed companies a common law duty of care which paralleled the regulatory rules, Beatson LJ (giving the sole judgment of the Court) relied upon the previous decision in Green & Rowley v RBS [2013] EWCA Civ 1197 and held that there was no duty of care in relation to the redress scheme.
The article, which can be found here, explores Beatson LJ’s judgment and why, in the authors’ view, it was unexpected, illogical and unfair.

The article was originally published in the October 2017 edition of the Butterworths Journal of International Banking and Finance Law at page 548 and is reproduced here with permission and thanks.

January 2018

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The Perils of Crowdfunding

Darragh Connell considers the recent High Court decision, Re BBH Property 1 Ltd & Ors [2017] EWHC 2584. Roth J appointed the Official Receiver as the provisional liquidator of 13 separate companies where it was likely they would be wound up in the public interest. 


The companies in question were involved in one of two projects. Prospective investors were provided with various representations. On the front page of its investment brochure, BBH Property 1 Ltd characterised the UK project as “a spectacular investment secured by a spectacular asset”. 


However, security was not put in place and the investors’ monies were dissipated without the companies acquiring the properties. 

The Secretary of State presented petitions to wind up the  companies on the basis that it was expedient in the public interest to do so (s.124A IA 1986). The Court exercised its jurisdiction under s.135 to appoint a provisional liquidator.


This article was first published by Sweet & Maxwell, Provisional Liquidation in the Public Interest and the Perils of Crowdfunding “a spectacular investment” (2017) 30 Insolvency Intelligence, Issue 8 at p.129 and is reproduced by agreement with the Publishers.

January 2018

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FCA Acknowledges Widespread Adviser Failings in Pension Transfer Business

Susanne Muth considers the FCA's recent update on systemic failings in the provision of advice on pension transfers. 

The update focuses in particular
on the advice (or lack thereof) being given on transfers from defined benefits schemes to defined contributions personal pension schemes.

If you think you have lost out as a result of unsuitable pension transfer advice, we are able to advise you on your claim and on the best route to compensation.
Contact us for assistance.

November 2017

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Commercial Contracts – should there be a duty to act in good faith?

Ruhi Sethi-Smith writes on the question of whether there is or should be a duty to act in good faith in commercial contracts, an editorial piece for the Commercial Litigation Association's Newsletter.

April 2017

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Holmcroft Properties

It is a virtue of English contract law that in litigation it produces outcomes in line with commercial expectations. For this reason, Lloyd Maynard considers dissatisfied customers within the FCA Redress Scheme are unlikely to have a claim for breach of contract. Find out why, as Lloyd addresses Mitting J’s hypothetical question raised in the recent Holmcroft Properties judicial review hearing.
This article has been published in the June 2016 edition of the Journal of International Banking and Finance Law ((2016) 6 JIBFL 356). An earlier version of the article can be found 

June 2016

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