On 17 February 2017, the Hong Kong Court of Final Appeal brought to a close the long-running case of DBS Bank (Hong Kong) Limited v Sit Pan Jit (FAMV 45/2016).
The dispute concerned a claim by DBS Bank (Hong Kong) Limited (DBS) against its former customer, Sit Pan Jit, for failing to meet margin calls in respect of certain investments, and a counterclaim by Mr Sit against DBS for mis-selling such investments based on misrepresentation, breach of duties in contract and/or tort (common law and statutory) and breach of fiduciary duties.
In Gary Ronald Marshall v Barclays Bank plc  EWHC 2000 (QB), the bank applied to strike out a claim against it for alleged mis-selling of an interest rate hedging product (or to obtain summary judgment), the basis that the claim was barred by a general release in a pre-existing settlement agreement between the bank and the claimant. Continue reading
In a landmark decision dated 18 June 2015, the German Federal Supreme Court (Bundesgerichtshof, “BGH”) decided that pro-forma applications for conciliation (Güteverfahren) do not suspend the limitation period for misselling claims if the applications are too generic and do not contain details of the financial product concerned, the amount invested, the advice given and of the relief sought by way of the application. The cases determined by BGH related to private investors who had used model form applications for conciliation which had been drafted by lawyers, and offered to the wider public; they have been adopted by a significant number of investors. The BGH announced that the judgment will mean that a large number of misselling claims by private investors will now potentially be time-barred.
Mathias Wittinghofer, Friso Heukamp and Tilmann Hertel from our Frankfurt office consider the decision further below. Continue reading
The Financial Conduct Authority (FCA) has announced that it is proposing to use its temporary product intervention powers for the first time to restrict firms from distributing contingent convertible instruments (CoCos) to the mass retail market for a 12 month period from 1 October 2014. The FCA is not formally consulting on these proposals, but would nevertheless welcome comments, particularly those received before the temporary rules come into force on 1 October 2014. Continue reading
The ongoing regulatory investigations into the manipulation of LIBOR have prompted much speculation about the possibility of claimants bringing private law actions against banks based on the regulators’ findings. In the first cases to come before the UK courts, the Court of Appeal has recently granted permission to appeal two High Court decisions as to whether LIBOR-based claims could be introduced into existing actions alleging mis-selling of interest rate hedging products. Continue reading
The Court of Appeal has granted permission to appeal against the decision of the High Court, in Graiseley Properties Ltd & others v Barclays Bank plc & others  EWHC 3093, to allow the case to proceed to trial as a test case for claimants seeking to bring private actions ‘piggybacking’ off regulatory findings concerning the manipulation of LIBOR (London Interbank Offered Rate). Continue reading