Posted on Apr 26, 2013 by | 0 Comments
The Financial Conduct Authority (the “FCA”) has intervened in a Royal Bank of Scotland interest rate swap mis-selling court action.
The Financial Times reports that the regulator will not take sides in the case but has written to the Court asking to enter the action as a Third Party in order to explain its rules and its interpretation of them.
The case involves Lancashire hotelier Paul Rowley and his business partner John Green, who were sold an interest rate swap by RBS in 2005. The small business owners sued RBS claiming they were mis-sold the swap., However RBS won the case by arguing it had properly explained the risks. Green and Rowley have appealed and the Court of Appeal action is due to be heard in mid-October 2013.
Clarke Willmott, who represent Rowley and Green, view the FCA’s intervention as a positive step and consider that any assistance that the FCA can provide to the Court of Appeal in determining the appeal is to be welcomed.
It is yet to be seen how big the FCA’s role in the upcoming Appeal Hearing will be. However, as most of the mis-selling cases hinge on the interpretation of the "COBS" (Conduct of Business Rules) (post 1 November 2007 swaps) or COB (pre 1 November 2007 swaps) Rules then any and all guidance from the FCA on the correct interpretation of the rules will in principle be helpful in determining how strong any given mis-selling claim against a Bank is
Please feel free to contact us if you have been affected by a swap. We act for a number of clients with swaps and can able to provide you with further information and assistance. Just call 0131 226 8200 and ask for a solicitor in the Financial Disputes Team.