BoE and PRA Annual Reports

The Bank of England and the Prudential Regulation Authority have published their 2015 annual reports. The PRA continues work on the implementation of the EU Capital Requirements Directive to put Basel III into place, on changes to Pillar 2 capital requirements, on depositor protection policy, and the new liquidity ratios. The PRA has increased its work on governance standards, and sees its discussions with boards of firms on its supervisory objectives as a priority.

Bank of England, 15 June 2015


Bank branch use falls

Bank branch use has fallen by 6% in the last year as customers turn to telephone and internet banking.

The Guardian, 14 June 2015

Mortgage Lenders and Administrators Statistics Q1 2015

The Bank of England jointly with the FCA has published a release of the latest Mortgage Lenders and Administrators Return statistics for the UK covering Q1 2015.

Bank of England/ Financial Conduct Authority,  9 June 2015


Unfair relationships and partners' capital loans

In the context of partners' capital loans, the High Court considered whether (1) an unfair debtor creditor relationship existed under section 140A of the Consumer Credit Act 1974 including the recent decision of the Supreme Court in Plevin v Paragon Personal Finance Ltd [2014] UKSC 61, and (2) if the loan had in fact been made to the partnership. In finding for the bank on both issues, the Court found that the structure of the loan, which was negotiated on behalf of all the partners of the firm, was in line with partners capital subscription loans in many professional firms, and that it was clear from the contractual documents that the individual was the borrower.

Barclays Bank plc v L Londell McMillan [2015] EWHC 1596

Without prejudice and FCA settlements

The claimant alleged that the bank had made misrepresentations about LIBOR which induced it to enter into swap agreements with LIBOR as a reference rate. The Financial Conduct Authority had issued a Final Notice pursuant to a settlement of a related regulatory investigation. It was held that by its defence, that the bank had put in issue the basis on which the Final Notice was published by the FCA. In this respect, a significant issue was the scope of the disclosure owed by the bank and the availability of privilege for  its settlement negotiations with the regulator. The Court confirmed that a firm which is the subject of an investigation by the FCA has the right to withhold inspection of communications if they are part of genuine settlement discussions with the FCA. The right arises by analogy with the without prejudice rule and although it was convenient to use that expression it was not identical with the normal rule in civil litigation. However, this right is not available in civil proceedings where the basis on which the Final Notice was decided is itself in issue and the content of the settlement discussions would be admissible evidence.

Property Alliance Group v RBS [2015] EWHC 1557 (Ch)