Financial services litigation—United Kingdom—Q&A guide
Financial services litigation—United Kingdom—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Financial services litigation—United Kingdom—Q&A guide
  • 1. What are the most common causes of action brought against banks and other financial services providers by their customers?
  • 2. In claims for the mis-selling of financial products, what types of non-contractual duties have been recognised by the court? In particular, is there scope to plead that duties owed by financial institutions to the relevant regulator in your jurisdiction are also owed directly by a financial institution to its customers?
  • 3. In claims for untrue or misleading statements or omissions in prospectuses, listing particulars and periodic financial disclosures, is there a statutory liability regime?
  • 4. Is there an implied duty of good faith in contracts concluded between financial institutions and their customers? What is the effect of this duty on financial services litigation?
  • 5. In what circumstances will a financial institution owe fiduciary duties to its customers? What is the effect of such duties on financial services litigation?
  • 6. How are standard form master agreements for particular financial transactions treated?
  • 7. Can a financial institution limit or exclude its liability? What statutory protections exist to protect the interests of consumers and private parties?
  • 8. What other restrictions apply to the freedom of financial institutions to contract?
  • 9. What remedies are available in financial services litigation?
  • More...

Financial services litigation—United Kingdom—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to financial services litigation in United Kingdom published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: Stewarts—Aleks Valkov; Elaina Bailes; Tom Otter

1. What are the most common causes of action brought against banks and other financial services providers by their customers?

Common claims include those for mis-selling and breach of duty. Retail (rather than institutional) customers often bring misrepresentation claims (negligent or fraudulent) in mis-selling cases. Claims also arise from suspected criminal activity (eg, freezing of an individual’s account or banks’ employees or agents’ involvement in bribery or other criminal schemes). Claims in fraud and conspiracy are not uncommon.

Institutional customers more commonly bring claims related to breach or interpretation of contracts (such as structured products or debt instruments) or claims based on statutory provisions giving rise to liability for securities actions.

Retail clients and consumers benefit from greater regulatory and legal protection when dealing with financial services firms compared to businesses (and sophisticated individuals).

The Financial Conduct Authority (FCA) regulates the conduct and behaviour of financial firms. Regulated financial services providers must comply with the applicable rules contained in the FCA’s Conduct of Business Sourcebook (COBS) and relevant provisions of the Financial Services and Markets Act 2000 (the FSMA 2000). Breaches of COBS and the FSMA

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