Legal commentary

Joanna Gray

Journal of Financial Regulation and Compliance, 2011, vol. 19, issue 3, 298-306

Abstract: Purpose - The purpose of this paper is to discuss the High Court's rejection of claims made against a UK bank by a US‐based customer in relation to foreign exchange dealing it carried out as agent for its US affiliate based on common law and breaches of COBS Rules (BankLeumi (UK) plcv.Wachner, Queens Bench Division, Commercial Court; Mr Justice Faux). Design/methodology/approach - The paper discusses this action and counterclaim by the defendant. Findings - The Judge did not find any of the three causes of action underlying the counterclaim to have any foundation, and he found the defendant liable for the full amount of the claim. Originality/value - This paper draws attention to investors' attempts to shift trading losses onto the counterparties with or through whom they dealt through the use of common law, fiduciary principles or statutory tort claims. Such claims have no chance of succeeding unless the claimants can establish that they were incorrectly classified as an expert customer. Another point of interest to draw from this decision is to recall that product design and pre‐emptive restrictions on product innovation are once again a prominent feature of current debates on regulatory reform.

Keywords: Legal decisions; Financial services; Banks (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:v:19:y:2011:i:3:p:298-306

DOI: 10.1108/13581981111162228

Access Statistics for this article

Journal of Financial Regulation and Compliance is currently edited by Prof John Ashton

More articles in Journal of Financial Regulation and Compliance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().