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BANKING & FINANCE LITIGATION UPDATE

Issue 61

We wish to establish a dialogue with our readers. Contents Please contact us at &FL Update and let us know which particular areas you are interested in and what Domestic Banking ······································ 2 you would find helpful. Domestic General······································· 3 The Banking & Finance Litigation Update is published monthly and covers current developments European Banking ······································ 5 affecting the Group's area of practice and its clients during the preceding month. European General······································· 6

This publication is a general overview and discussion International Banking ·································· 7 of the subjects dealt with. It should not be used as a International General ··································· 8 substitute for taking legal advice in any specific situation. DLA Piper UK LLP accepts no Legislation··············································· 9 responsibility for any actions taken or not taken in reliance on it. Press Releases··········································· 9

Where references or links (which may not be active Case Law ··············································· 12 links) are made to external publications or websites, the views expressed are those of the authors of those publications or websites which are not necessarily those of DLA Piper UK LLP, and DLA Piper UK LLP accepts no responsibility for the contents or accuracy of those publications or websites.

If you would like further advice, please contact Paula Johnson on 08700 111 111. DOMESTIC BANKING 6. Sir Hector Sants, the new Head of Compliance at , has spoken to the Parliamentary OF Commission on Banking Standards prior to taking up his post. He emphasised that his appointment 1. The new Financial Policy Committee of the Bank will drive Barclays to change its culture from of England has been given the power to stop within, whilst also denying that there were any excessive increases in house prices and to keep ethical issues relating to his appointment resulting mortgage lending under control in a bid to from his previous position as the head of the maintain stability in the economy and push up Authority ("FSA"), where he house sales. The Bank will be able to use its new would have seen the accounts of Barclay's rivals. powers, which include the ability to force to build up capital, from June 2013. Daily Telegraph, 10 January 2013

Guardian 15 January 2013 7. Barclays is hoping to save billions by reducing its IT budget by up to 90 per cent. The bank has 2. As predicted by financial analysts, the Bank of developed its own network of computer servers England's Monetary Policy Committee has and has started to use Linux to run significant decided against raising interest rates, keeping areas of its business. The system, which was them at a level of 0.5 per cent. No changes have developed under Antony Jenkins when he was the been made to the level of quantative easing either, retail side's chief executive, will now be rolled out which remains at £375 billion. to the rest of Barclays.

Daily Telegraph, 10 January 2013 Sunday Times, 6 January 2013

BARCLAYS 8. Barclays has emerged as the leading UK investment bank in a league table produced by 3. WaheedLuqman,oneoftwobrothers who Dealogic, rising from third place in 2011 and defrauded Barclays bank of £100 million before overtaking rivals and JP Morgan. fleeing to Pakistan to avoid trial after the collapse In the global league, Barclays of their company, Lexi Holdings, in 2009, has maintained its position as eighth overall. been sentenced following a trial at Manchester Crown Court. He was sentenced to seven and a Daily Telegraph, 27 December 2012 half years in absentia, following his conviction for fraud and false accounting. CO-OPERATIVE BANK

Independent, 18 January 2013 9. The Cooperatve Bank may drop its plans to introduce a new IT platform, Finacle, if its 4. The new chief executive of Barclays, Antony purchase of 632 branches goes Jenkins, has told staff at the Bank that following ahead. If the acquisition proceeds, then the the scandal over the manipulation of the Libor rate Cooperative is prepared to take a £200 million they must commit to a new set of standards loss on the £700 million it has so far spent on the against which performance and values will be system as it will instead adopt the IT platform measured. He said those unable to follow these already in place at Lloyds. As a result, the mutual measures and to support the new ethical values of bank’s profits may be severely reduced. the company would be told "Barclays is not the place for you". The Times, 21 January 2013

Guardian, 18 January 2013 HSBC

5. A husband and wife who claimed that Barclays 10. Ruth Horgan has been appointed as head of misinformed credit reference agencies about the compliance and group general manager by HSBC. level of an agreed overdraft limit, allegedly Ms Horgan joins from KPMG and will be based in causing the husband to get a bad credit rating and , working with head of financial crime resulting in them being declared bankrupt, have compliance and money laundering reporting, Bob lost their case for damages. Werner.

Daily Telegraph, 15 January 2013 The Times, 22 January 2013

02 | Banking & Finance Litigation Update—Issue 61 11. HSBC agreed in December to sell its 15.6 per cent Antonio Horta-Osorio, is in line for a bonus of up stake in Chinese life insurer Ping An to Thai to £4 million. conglomerate Charoen Pokphand, in a deal set to make the bank $2.6 billion. However, financing Sunday Times, 13 January 2013 for the deal appears to have collapsed and China's regulator is widely expected to reject THE ROYAL BANK OF the proposed sale. 17. The investment arm of RBS is set to be split into The Times, 10 January 2013 two divisions, a markets business and an international banking arm, with the head of each 12. Hundreds of thousands of customers at HSBC division reporting straight to chief executive who made ATM withdrawals but forgot to take Stephen Hester. their cash, are to receive compensation from the bank. HSBC is following The Royal Bank of Sunday Times, 20 January 2013 Scotland ("RBS") in making the move. 18. The European Commission will be approached by Times.co.uk, 27 December 2012 the Treasury to request a delay in the deadline imposed by the European authority on the sale of over 300 branches of RBS. This follows a first round of offers for the branches in December 13. Lloyds Bank issued an apology to its customers which resulted in only two bids - one from Virgin after the Faster Payments system failed on Money and the other from JCFlowers, a US Monday 20 January. The system, which allows private equity business. At present RBS has until customers to transfer money from accounts in a the end of 2013 to sell off the branches. matter of hours, was back up and running again by 5pm and banking staff were working through the Sunday Times, 6 January 2013 backlog of payments to process them by the next day. 19. The five year plan to wind down RBS's £258 billion non-core business, which began in 2008 as Daily Telegraph, 21 January 2013 a proviso of the part-nationalisation of the bank, has continued apace. Now entering its fourth 14. Small and medium-sized enterprises can expect to year, the bank has only about £20 billion of the receive more assistance in starting up from Lloyds portfolio remaining, with the man in charge of the Bank, which has announced that it will cap its project, Rory Cullinan, saying "We've made loan and overdraft arrangement fees at 1.5 per excellent progress". cent. The bank has said it intends to aid 100,000 businesses in 2013, more than its competitors, as , 3 January 2013 part of its charter.

Daily Telegraph, 21 January 2013 DOMESTIC GENERAL

15. The has said that Lloyds and 20. According to an internal FSA memo seen by the RBS have until March to inject much-needed Financial Times, seven of the 50-strong staff capital to bolster their balance sheets whilst working on the financial watchdog's Libor conceding that the UK Government paid too much investigation are turning their attention to the when it bailed out the banks during 2008. Lloyds world's largest interdealer broker, ICAP, for is contemplating selling off parts of its wealth possible breaches of market conduct rules, as it management arm to generate the capital. becomes a focus of the ongoing investigation into Libor rate-rigging. Daily Telegraph, 16 January 2013 Daily Telegraph, 24 January 2013 16. Shares in Lloyds Bank have risen by more than 100 per cent in the past 12 months, up from 25p a 21. Andy Haldane, financial stability director at the share in May 2012 to 54p. This, coupled with a Bank of England, has proposed to the Banking reduction in customer complaints and the Standards Commission that bank bonuses should successful introduction of a plan to turn the bank's be deferred for a period of five to 10 years in fortunes around, mean that the chief executive, order to help recapture the "old partnership

www.dlapiper.com | 03 model" where bankers had to make the long-term 27. Anthony Browne, chief executive of the British health of their institutions their priority. Bankers' Association, has called for the establishment of an independent Banking Financial Times, 22 January 2013 Standards Review Council.

22. AnewreportfromtheBankofEngland has Financial Times, 15 January 2013 revealed that, during the three months to November, whilst conditions in the mortgage 28. Amid a clampdown by the regulator on market showed some signs of improvement, there wrongdoing last year, sackings and suspensions was a contraction in business lending, even with hit a five-year high in the City as the financial the Government's Funding for Lending Scheme crisis continued to take a toll on employment. having been introduced. 1,373 staff in the City were suspended or dismissed in 2012, a 56 per cent increase on the The Times, 22 January 2013 previous year.

23. Attempts by the banks to get agreement on the The Independent, 14 January 2013 fixing of a deadline for compensation claims over PPI mis-selling have hit a setback following 29. Figures have shown that the number of frontline discussions between the FSA and the British workers in the banking industry has declined to an Bankers' Association. Following talks, the FSA eight-year low. 152,000 "approved" staff now said it needed to be convinced that any deal would work in the financial services industry, a fall of be in the "interests of consumers". The banks had nearly 20,000 since the financial crisis began in wanted a May 2014 deadline for the lodging of 2008. claims. Daily Telegraph, 8 January 2013 Daily Telegraph, 19 January 2013 30. The final cost to banks of the PPI mis-selling 24. Tough new capital rules imposed on banks by the scandal is likely to be around £25 billion. This is City watchdog will see commercial property nearly twice as much as has been set aside so far. developers in the UK facing higher costs which Industry estimates indicate that the final bill could may make them abandon many projects outside of be up to £40 billion in a worst-case scenario London. Banks and property companies have where banks are made to reimburse every fee warned that the rules, which will make banks hold generated over more than a decade. significantly more capital against loans secured on shops and offices, risk hampering a recovery in The Times, 7 January 2013 commercial real estate values. 31. Finance firms, brokers and business groups are to Financial Times, 17 January 2013 hold a summit aimed at restoring asset-based lenders tainted reputation by proposing 25. Two businessmen have been convicted of independent scrutiny and audited operating conspiracy to defraud and Bank standards for the unregulated industry. Financiers of Scotland. will also discuss creating both a code of practice and a complaints procedure to encourage more Financial Times, 17 January 2013 small businesses to feel confident about using asset-backed lending. Banks such as HSBC and 26. New guidelines published by the FSA warn banks Lloyds, as well as larger independent lenders and that customers are more liable to become victims officials from Treasury, Business Department and of mis-selling if staff are awarded large bonuses to the Insolvency Service have also been invited to achieve sales targets. The guidelines also suggest participate. that banks should contemplate ending such incentive schemes. According to Martin Daily Telegraph, 4 January 2013 Wheatley, chief executive designate of the Financial Conduct Authority ("FCA"), the new 32. The Bank of England's latest poll of lenders guidelines mark a "key step" in avoiding future suggests it will become easier to access credit in mis-selling scandals. The FCA replaces the FSA the coming months, as the government's flagship in April. lending scheme starts to bear fruit.

Daily Telegraph, 17 January 2013 Financial Times, 4 January 2013

04 | Banking & Finance Litigation Update—Issue 61 33. The FSA handed out a record£312 millionin fines during 2012, including its two largest ever fines which were given out as a result of the Libor 39. A judge has ruled that the extradition of Kareem scandal. Serageldin, a former Credit Suisse trader, for fraud offences is lawful and is expected to be Financial Times, 3 January 2013 approved by the , Teresa May. If extradited, Mr Serageldin, who was global head of 34. A report from Euromoney says that there has been Credit Suisse's structured credit group working an increase in the risks faced by British banks in with mortgage-backed securities, will become the the last 12 months. The report suggests that there first banker to be sent to the US from the UK as a is an under-reporting of levels of pain from result of charges relating to the credit crunch. various mis-selling scandals, as well as losses from underperforming assets not yet being The Times, 15 January 2013 acknowledged on balance sheets. The Country Risk survey scores the banking sector at six out of 40. Credit Suisse is to introduce a system, called the ten, making it more risky than peers in some other Plus Bond scheme, whereby it will issue its European countries, and marking a 0.6 percentage bankers with toxic loans instead of monetary point decline over the year to November. bonuses. The bank has already had two earlier programmes which resulted in large profits, on The Times, 2 January 2013 paper, for the bankers who received them.

35. Since the rules were introduced three years ago, Sunday Times, 6 January 2013 no single enforcement action against any regulated business has been launched by the FSA for failure to comply with its remuneration code. Instead the regulator has preferred to have regular 41. Amid an investigation by Germany's financial informal conversations with banks and brokers. regulator into the possible effects of breaking up large European banks, Anshu Jain, co-chief Daily Telegraph, 31 December 2012 executive of Deutsche Bank, has warned against attempts to force such a move. According to Jain, 36. The Treasury has been warned privately by some banks like Deutsche, which combine investment of the largest banks in the City that moves towards banking with more traditional banking business, leaving the European Union would put confidence are "in the best interests of Germany" and it would in the economic recovery in jeopardy and would be a "burden on society" to split them up. be a disaster for the City. Those most concerned over the political campaign for Britain to leave the Financial Times, 23 January 2013 EU are large foreign banks based in London. 42. Deutsche Bank and Credit Suisse have been hired Sunday Telegraph, 30 December 2012 to refinance the debt of Infinis, one of the country's largest green energy firms, before the 37. Regulatory filings by leading banks, required by group is sold or floated by private equity baron the EU following the banking crisis in 2008, have Guy Hands. Infinis is one of two investments Mr shown that the top 1,500 bank staff in the UK in Hands will cash in during the coming months as 2011 earned £1 million each on average. he looks to recoup huge losses following the bungled buyout of EMI. Guardian, 29 December 2012 Sunday Times, 13 January 2013 EUROPEAN BANKING EUROPEAN CENTRAL BANK BANK OF ITALY 43. Senior bankers are increasingly concerned that the 38. Electronic payments inside the Vatican City have European Central Bank's ("ECB's") special longer been halted after the Bank of Italy grew concerned -term funding scheme could backfire, a year after that the Vatican City was not ready to follow new its launch. Banks can begin repaying the cheap anti-money laundering rules introduced following three-year money they borrowed under the recent issues with money laundering there. scheme from the end of January, but with weaker banks still needing funds and stronger ones Daily Telegraph, 4 January 2013 expected to repay, there are fears among bankers

www.dlapiper.com | 05 that the start of a two-tier banking market will be overhauling its culture and is "serious about brought closer. putting integrity over profit".

Financial Times, 25 January 2013 Financial Times, 10 January 2013

44. The ECB believes the economy in the Eurozone is 49. The recent troubles faced by UBS have given an now strong enough to heal itself, frustrating hopes impetus to chief executive and his of any more stimulus to fight record plans to drop the bank's longstanding ambition to unemployment and pull the area out of recession. become a global full-service investment banking The president of the ECB, Mario Draghi, powerhouse. Winding down most of the bank's suggested that the financial landscape has been fixed income business may well give the transformed citing a sharp drop in bond yields, a management headaches for a few years yet stock market rally and the recovery of bank however. deposits in Spain and Greece. The ECB governing council "unanimously" agreed to hold interest Financial Times, 3 January 2013 rates at 0.75 per cent.

Daily Telegraph, 10 January 2013 EUROPEAN GENERAL

45. The ECB is to issue a new series of notes, to 50. Jens Weidmann, president of Germany's be phased in across the 17 Eurozone countries Bundesbank, who also sits on the Governing over a number of years, beginning in May with a Council of the ECB, has warned that the erosion new five-euro note. The new series is 'Europa', of central bank independence could lead to a new with the Greek goddess appearing on security currency war. Mr Weidmann is the latest holograms and watermarks. No date has been policymaker to warn of the threat caused by given by the ECB for the termination of the first competitive currency devaluation. series, and the two will circulate in parallel. Daily Telegraph, 22 January 2013 Daily Telegraph, 10 January 2013 51. The possible manipulation of Nibor, the local 46. Mario Draghi has been named by The Times as its interbank lending rate, is being investigated by the Business Person of the Year. Mr Draghi was Norwegian financial regulator following a credited as establishing the ECB as one of the complaint from a foreign bank. only credible voices in the Eurozone. Financial Times, 17 January 2013 The Times, 31 December 2012 52. Eurozone countries facing bank collapses like SANTANDER those experienced by Ireland who want to get aid from the eurozone's €500 billion rescue fund will 47. Santander has refuted claims that it is in still have to take responsibility for a large share of negotiations to purchase some of the 300 branches future . Under a plan circulated amongst owned by two subsidiaries of National Australia eurozone finance ministry officials, struggling Bank. The Sunday Times had earlier reported that countries would have to invest in failing banks Santander was looking to make a £2bn bid for alongside the rescue fund, or guarantee the fund Clydesdale and . Commentators against any losses. believe that following the breakdown of negotiations with RBS to buy 316 of its branches Financial Times, 14 January 2013 in October 2012, Santander remains interested in making an acquisition. 53. Pär Boman, chief executive of , and one of Europe's leading bankers, has said that Independent 22 January 2013 banks should look to retailers and media companies for inspiration rather than comparing UBS themselves with other lenders. Mr Boman said this attitude has been essential to his bank's rapid 48. Andrea Orcel, chief executive of UBS's expansion in the UK. investment bank, has spoken about how the banking industry must change and how UBS is Financial Times, 14 January 2013

06 | Banking & Finance Litigation Update—Issue 61 54. The question over whether BaFin, the German 59. Brian Moynihan, chief executive of Bank of bank regulator, might be preventing the free America, has called on the bank to be "more movement of capital by placing a limit on the aggressive" in its corporate lending. After two amount of funds that foreign banks can pull out of years concentrating on its capital levels and the country, is being looked at by the European reducing costs, the bank is intending to increase Commission. Pan-European lenders have both its corporate and mortgage lending in an era criticised BaFin's policy that banks, including of increasing confidence for the company. foreign lender subsidiaries, must have sufficient liquidity for their German operations. Financial Times, 3 January 2013

Daily Telegraph, 2 January 2013

55. Commissioner Michel Barnier has sanctioned a 60. Fourth quarter net profit of $1.2 billion was review of the controversial International Financial announced by Citigroup, up from $933 million for Reporting Standards (IFRS). Critics say that the same time last year. The results were seen as Britain's banks have been left uniquely vulnerable disappointing in what new chief executive due to the way the rules were adopted. Michael Corbat called a “challenging” environment. Daily Telegraph, 2 January 2013 Daily Telegraph, 17 January 2013 INTERNATIONAL BANKING CLOSE BROTHERS 61. Over the five months to the end of the year, Close Brothers' loan book rose by 6 per cent to £4.4 56. Bank of America's net income dropped from $2bn billion and assets under management increased by in the fourth quarter of 2011 to $732 billion in the 3 per cent to £8.5 billion. The bank was restrained corresponding quarter for 2012. The fall was a by low trading at its securities division. result of settlements the bank made in relation to claims that it improperly foreclosed on millions of Times, 24 January 2013 US mortgages. GOLDMAN SACHS Independent, 18 January 2013 62. A combination of stronger global stock markets 57. A deal that will see Bank of America sell $306 and low interest rates, that spurred companies to billion of its mortgage servicing rights has been refinance their debt and homeowners in the US to announced. The service costs the bank $12 billion refinance their mortgages, has led to fourth- to run and involves the employment of up to quarter profits surges for Goldman Sachs and JP 50,000 people. It is expected that Nationstar Morgan that exceeded expectations. Mortgage will purchase $215 billion worth of the rights and the rest will be bought by Walter Daily Telegraph, 17 January 2013 investment Management. 63. Goldman Sachs has abandoned plans to delay Financial Times, 13 January 2013 bonus payments until the new tax year, following criticism and opposition from the Bank of 58. Fannie Mae and Bank of America have agreed a England and the Treasury. The plan would have settlement worth over £6 billion in relation to the allowed bankers to benefit from a drop in the top mis-selling of home loans in the US before the rate of income tax. credit crunch. Many of the loans covered by the settlement were from the purchase, in July 2008, Financial Times, 16 January 2013 of the Countrywide business by Bank of America. Bank of America said its pre-tax profits for the 64. Goldman Sachs is pursuing Rajat Gupta, a former fourth quarter would be over $2.5 billion less as a board member convicted of insider trading, for $7 result of the settlement. million (£4.3 million) to cover its legal fees and expenses. Daily Telegraph, 8 January 2013 Daily Telegraph, 5 January 2013

www.dlapiper.com | 07 65. Goldman Sachs chief, Lloyd Blankfein, and nine LAZARDS other executives at the bank have exercised $65 million (£40 million) of stock options. The grants 70. Lazards has hired Jesse Bhattal to work in their of stocks are traditionally given in January, but Singapore office, where he will look to boost the were brought forward, enabling executives to bank's financial advisory and asset management avoid a higher rate of tax brought in as part of the business in Asia. Bhattal previously worked at deal that saw the US avoid the "fiscal cliff". Nomura, where he was the most senior non- Japanese executive ever appointed and led an Daily Telegraph, 3 January 2013 ambitious international expansion of the bank.

JP MORGAN Financial Times, 23 January 2013

66. Addressing the World Economic Forum in Davos, MORGAN STANLEY Jamie Dimon, chief executive of JP Morgan, criticised regulators saying they are 71. The fourth quarter of 2012 saw Morgan Stanley "overwhelmed with rules and regulations". He return to profit, posting a net profit of $481 also said that banks had provided a service million (£302 million). This compares to a $275 through the financial crisis by not deserting million loss in the same quarter in 2011. troubled countries like Spain and Italy but continuing to lend to them. Daily Telegraph, 19 January 2013

Daily Telegraph, 24 January 2013 NATIONAL AUSTRALIA BANK

67. After examining JP's Morgan's multi-billion 72. has become the latest bank to pound trading losses, which includes the so called close its offshore operations in Guernsey after "London Whale" trade, the FSA has launched a announcing the closure of Clydesdale Bank formal investigation. This came as the bank was International. The bank will no longer accept new confronted with official sanctions in the US. It has customers and existing ones wait to hear how the been given 60 days by the Federal Reserve and the closure will be managed. Many savers have fixed Office of the Comptroller of the Currency to rate deals so the bank may have to make present a plan to improve its internal risk arrangements for these deals to continue to oversight and audit. maturity.

Daily Telegraph, 15 January 2013 Daily Telegraph, 22 January 2013

68. JP Morgan is one of ten American mortgage NOMURA providers who have agreed to a $8bn (£5.3bn) settlement with regulators over allegations of 73. According to Italian media reports, Banca Monte improper foreclosure on millions of US dei Paschi di Siena, the world's oldest bank, will homeowners after the financial crisis. Over 3.8m make a loss of around £185m from a mortgage- borrowers who had their homes repossessed backed derivatives deal with Nomura. between 2009 and 2010 will receive Daily Telegraph, 23 January 2013 compensation.

Daily Telegraph, 8 January 2013 INTERNATIONAL GENERAL

69. In the global investment banking league table for 74. New rules to guide financial institutions in the 2012 compiled by Thomson Reuters, JP Morgan way they market their products and services via has maintained its position as the world's leading social media such as Facebook and Twitter, have investment bank. Its overall percentage of the been proposed by bank regulators in the United market rose by 0.1 per cent to 7.5 per cent and it States. The aim of the guidelines is to ensure that took over $5.5 billion in fees. the social media boom is in line with rules governing the marketing of financial products to The Times, 4 January 2013 consumers.

Financial Times, 23 January 2013

www.dlapiper.com | 08 75. Transcripts of meetings held in 2007 by the US 80. Under a plan being considered by the US Federal Federal Reserve have revealed that warning signs Reserve, large foreign banks could avoid costly of impending trouble were misjudged, with regulatory changes that were aimed at preventing officials believing that any troubles in banking derivatives trading from being subsidised by US and housing would be short-lived and isolated. taxpayers. The changes, known as the Lincoln amendment, come from a measure that was Telegraph.co.uk, 18 January 2013 included in Dodd-Frank that overhauled US regulation in 2010. 76. The government of Zimbabwe, led by President Robert Mugabe, is pushing ahead with its plans to Financial Times, 9 January 2013 indigenize foreign banks, including Barclays and , following an agreement 81. Regulators have revealed that the first ever global reached with Ecobank, a major African bank with liquidity standards will not be fully enforced until over 30 branches in the continent. The law which 2019, four years later than expected. Nor will they came into being in 2007, forces foreign owned be as onerous as expected, giving international companies to sell a majority of their shares to banks a New Year fillip. The measure is the Zimbabwean investors. second plank of the Basel III reforms.

Daily Telegraph, 16 January 2013 Financial Times, 7 January 2013

77. Several US counties have filed lawsuits against 20 82. Banks may be forced to paycompensation worth banks, including Barclays and UBS, in relation to hundreds of millions of pounds to economically allegations that the banks manipulated the Libor hit regions of Italy as a result of a fresh wave of rate. The papers, lodged in California, claim that legal action over billions of pounds of complex the banks broke antitrust laws, were negligent and derivatives contracts struck with local authorities unjustly enriched themselves. in Italy since 1990. The lawsuits have begun in Italy but involve UK-registered entities of Daily Telegraph, 11 January 2013 investment banks such as Nomura, Deutsche Bank, Bank of America, JP Morgan and UBS. 78. The decision by the Basel Committee on Banking Supervision to allow "high quality" mortgage- The Times, 2 January 2013 backed securities to count towards required stocks of assets which are easy to sell has been praised by bankers and traders. However, two of the most LEGISLATION important changes made to the first worldwide liquidity rules are tailored so narrowly that many 83. The Financial Services Act 2012 banks will not benefit from the softened (Commencement No. 1) Order 2013 requirements. Almost all US residential mortgage- backed securities will not qualify. SI Number: 2013/113 This Order brings into force certain provisions of Financial Times, 10 January 2013 the Financial Services Act 2012 (c.21). This is the first commencement order to be made under the 79. Global borrowers have rushed to the US debt Act. markets at the start of 2013, with total bond sales The text of the SI can be found on in the US getting to $40 billion in less than a legislation.co.uk: week. Banks and financial institutions have led http://www.legislation.gov.uk/uksi/2013/113/pdfs/ the surge. uksi_20130113_en.pdf

Financial Times, 10 January 2013 PRESS RELEASES 84. OFT says major change still needed in personal current account market

A review of the personal current account market has concluded that further significant changes are still required to tackle longstanding competition concerns and a lack of focus on customers' needs.

09 | Banking & Finance Litigation Update—Issue 61 The OFT has published a review of the £9 billion British Bankers' Association chief executive market today as part of its ongoing programme of Anthony Browne said: work on . It found that since the OFT last looked at current accounts in 2008, the "The single market is the EU's greatest asset and major banks have increased their share of the is of crucial importance to the banking and market, entry by new competitors remains financial services industry in the UK. We are very infrequent and consumers still only rarely switch pleased that the Prime Minister has put the single to an alternative provider. market at the heart of his European vision which Office of Fair Trading, 25 January 2013 will help to protect London's position as a pre- Further information can be found on the OFT eminent global financial centre. "We are clear that website: we want the UK to remain an active participant in http://www.oft.gov.uk/news-and-updates/ the single market, helping to write the rules and press/2013/10-13#.UQI9XFKa8TI push for greater trade and economic growth."

85. Finalised guidance: Payment protection British Bankers' Association, 23 January 2013 products Further information can be found on the BBA The FSA and the OFT have jointly produced this website: guidance to firms in relation to payment http://www.bba.org.uk/media/article/bba- protection products. This follows a consultation statement-on-prime-ministers-eu-speech/ which closed in January 2012, resulting from statements/ joint work by both organisations in the light of emerging concerns about new products and 88. Suitability requirements with respect to the practices. distribution of complex financial products: Final report Financial Services Authority and Office of Fair Trading, 24 January 2013 The International Organization of Securities Commissions (IOSCO) has published a final Further information can be found on the FSA report on Suitability Requirements with respect to website: the Distribution of Complex Financial Products, http://www.fsa.gov.uk/static/pubs/guidance/fg13- which sets out principles relating to the 02.pdf distribution by intermediaries of complex financial products to retail and non-retail 86. Risk assessment of the European Banking customers. The report, which forms part of System IOSCO’s ongoing drive to promote customer protection, introduces nine principles that cover The EBA has published a risk assessment report the following areas related to the distribution of of the European Banking System. The report complex financial products by intermediaries. provides an update on risks and vulnerabilities in the EU banking sector. With this report and that Technical Committee of the International prepared in July 2012, the EBA discharges its Organization of Securities Commissions, 21 responsibility pursuant to Recital 43 of January 2013 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November Further information can be found on the IOSCO 2010 to monitor and assess market developments website: and provide information to other EU institutions http://www.iosco.org/library/pubdocs/pdf/ and the general public. IOSCOPD400.pdf

European Banking Authority, 23 January 2013 89. Big hitters appointed to business bank advisory group Further information can be found on the EBA website: The Government has appointed a group of http://www.eba.europa.eu/News-- respected banking, business and finance experts Communications/Year/2013/Report-on-the-risk- to advise on the direction and priorities of the Assessment-of-the-European-Bank.aspx business bank. In particular, the group will look at how to best address the long term problems 87. BBA statement on Prime Minister’s EU speech around the effective and efficient provision of

www.dlapiper.com | 010 finance to small and medium sized enterprises 92. ESMA and the EBA take action to strengthen (SMEs). Euribor and benchmark rate-setting processes

Department for Business, Innovation and Skills, The European Securities and Markets Authority 21 January 2013 and the European Banking Authority (EBA) have published the results of their joint work on Further information can be found on the BIS Euribor and propose principles for benchmark website: rate-setting processes. https://www.gov.uk/government/news/big-hitters -appointed-to-business-bank-advisory-group European Securities and Markets Authority, 11 January 2013 90. Final guidance: Risks to customers from financial incentives Further information can be found on the ESMA website: The FSA has published final guidance that will http://www.esma.europa.eu/news/ESMA-and- help financial firms avoid creating and operating EBA-take-action-strengthen-Euribor-and- incentives schemes that drive mis-selling. In benchmark-rate-setting-processes? September 2012 the FSA published a review of t=326&o=home sales incentives and asked for feedback on proposed guidance. At the same time Martin 93. Bank of England maintains Bank Rate at 0.5% Wheatley, managing director of the FSA and and the size of the Asset Purchase Programme CEO-designate of the FCA, addressed an at £375 billion audience of senior bankers and insurers to ask them to end reward schemes that encouraged bad The Bank of England’s Monetary Policy sales. The guidance remains largely unchanged Committee has voted to maintain the official but the FSA has clarified the wording in some Bank Rate paid on reserves at areas and provided further examples of good and 0.5%. The Committee has also voted to maintain bad practice. The guidance applies to all firms the stock of asset purchases financed by the that deal with consumers and have sales staff or issuance of central bank reserves at £375 billion. advisers who are part of an incentive scheme. Bank of England, 10 January 2013 Financial Services Authority, 16 January 2013 Further information can be found on the BoE Further information can be found on the FSA website: website: http://www.bankofengland.co.uk/publications/ http://www.fsa.gov.uk/static/pubs/guidance/fg13- Pages/news/2013/001.aspx 01.pdf 94. The Independent Commission on Banking: 91. BBA publishes options paper on banking The Vickers Report & the Parliamentary standards Commission on banking standards - Commons Library Standard Note Following BBA Chief Executive Anthony Browne's appearance before the Parliamentary This House of Commons Library Standard Note Commission on Banking Standards (PCBS), the gives a summary of the Vickers Report on the BBA publishes its submission to the PCBS which review of bank structure and outlines the new sets out a range of possible options to improve observations and recommendations of the standards of banking practice. The submission Parliamentary Commission. also includes industry proposals to rejuvenate the oversight and enforcement mechanisms to clamp House of Commons, 4 January 2013 down on rogue bankers and bad practice. Further information can be found on the British Bankers' Association, 15 January 2013 Parliament website: http://www.bankofengland.co.uk/publications/ Further information can be found on the BBA Pages/news/2013/001.aspx website: http://www.bba.org.uk/media/article/bba- publishes-options-paper-on-banking-standards/ press-releases/

11 | Filename CASE LAW had already been rejected by the court and there was no reason to suppose that another court 1. Issue estoppel would take a different view. Seeking to adduce evidence to that effect would be an abuse of Camerata, an investment vehicle for Mr process and a collateral attack on Andrew Smith Ventouris, brought a mis-selling claim against J's judgment. The judgment of Flaux J gave rise Credit Suisse alleging that three structured notes to an issue estoppel. that it had purchased from Credit Suisse were not suitable. A central feature of the claim was that Camerata argued that Andrew Smith J.'s judgment Mr Ventouris, in the shape of Camerata, was related to advice given or not given in 2008 extremely averse to risk and that only low-risk whereas in the third claim the mis-selling took investments were suitable for him. The three place in 2007. The issues and evidence would structured notes as the heart of the dispute were therefore be different and could lead to different medium risk and should not have been sold to findings. him. The judge concluded that Camerata was estopped Camerata had brought two previous claims from arguing that Andrew Smith J.'s findings as against Credit Suisse regarding structured notes to Mr Ventouris' attitude to risk did not extend to purchased prior to and after the collapse of 2007. Flaux J. had made a finding that the scope in September 2008. Andrew of Andrew Smith J.'s findings on Mr Ventouris' Smith J. dismissed the first claim in respect of a attitude to risk were not limited to 2008 but Lehman note in 2011 after a trial. Flaux J. then extended to 2007. That finding was an essential dismissed a further claim in respect of the same step in Flaux J.'s reasoning and Camerata was Lehman note in 2012 after a summary judgment bound by it. application. The issue as to whether Credit Suisse should The claim before Andrew Smith J. was based on recover summary judgment depended on whether the alleged failure to give Camerata advice in Camerata's claim had a realistic prospect of 2008 that Lehman was at risk of collapse. success in circumstances where there was no Camerata argued it would have sold the note had realistic prospect that Mr Ventouris' evidence as it been given such advice. The claim failed to his attitude to risk would be accepted and every because the judge held that Credit Suisse had not prospect that it would be found to have been as been negligent and Camerata had failed to already found by Andrew Smith J. establish that the note would have been sold. If the risk attached to the three structured notes The claim before Flaux J. was for the mis-selling was greater than the risk on the Lehman note it of the Lehman note. Flaux J dismissed that claim was possible that it exceeded the level of risk because in order to succeed on that claim Mr which was acceptable to Mr Ventouris. The notes Ventouris would have to give evidence on his might therefore have been unsuitable. The level of knowledge, experience and attitude to risk which risk associated with these three notes was an issue would contradict the findings that Andrew Smith which had not previously been investigated. In the J. had already made on those issues after a full circumstances the unsuitability claim in relation trial. That would amount to a collateral attack on to these three notes did have a realistic, albeit Andrew Smith J's judgment and an abuse of unlikely, prospect of success. process. The claim was dismissed as having no real prospect of success. The application for summary judgment in respect of the negligent mis-statement claim was Camerata's third claim involved allegations of dismissed for the same reasons. mis-selling, negligent mis-statement, lack of authority and mismanagement of Camerata's The claim that Credit Suisse had acted without investments. authority was based on a complaint that Camerata had only given authority for the purchase of a Credit Suisse applied for summary judgment on US$5m note whereas a US$8m note was the basis that none of these claims had a realistic purchased. It was strongly arguable that this prospect of success as there was no realistic complaint was fanciful given that no complaint prospect that the court would accept their factual was made about it until some three years later. foundation namely that Mr Ventouris was However Andrew Smith J. had made findings in extremely averse to risk. Evidence on that point relation to the Lehman note that the director of

www.dlapiper.com | 12 Camerata did not read monthly valuation The borrower argued that the mortgagee had statements and that Mr Ventouris did not see the breached its duty by setting the asking price much confirmation of the Lehman note or the monthly too low and by failing to appreciate the valuation statements. There was therefore a development potential of the property. He argued realistic possibility that such documents were not that a residual development assessment should seen in relation to the note at issue here. Whilst have been carried out which would have ascribed the judge was very doubtful that the claim based a much higher value. Also none of the marketing on lack of authority would succeed he was unable material made any mention of the development to find that it had no realistic prospect of success. potential.

Whilst the complaint about negligent mis- Whilst the judge had serious misgivings about the management of Camerata's portfolio faced real way in which the property was marketed, difficulty, the judge was not prepared to conclude particularly the strategy of putting the property on that it had no realistic prospect of success. the market at a low asking price so as to "generate interest", it was neither necessary nor feasible to Credit Suisse's application for summary judgment expect the mortgagee to commission a residual was therefore dismissed. development assessment which would be a relatively costly exercise. Camerata Property Inc v Credit Suisse Securities (Europe) Limited, Commercial Court, 23 January Despite the shortcomings in the marketing of the 2013 property, it was sufficiently exposed to the market to ensure that all possible potential purchasers 2. Mortgagee's duty to use reasonable care to were given notice of the sale and an opportunity obtain best price reasonably achievable for to make offers. The failure to mention the property development potential in the sale particulars had not had any deterrent effect on persons who might In this case a borrower claimed compensation have been interested in buying the property for from his mortgagee for allegedly selling the development. Likewise, the low asking price did mortgaged property at an undervalue. not deter potential purchasers from making offers above the asking price. The property was marketed at an asking price of £185,000. This generated offers at and above that There was no evidence to show that even on a figure. The asking price was increased to bare balance of probabilities that the price £245,000 but the property ultimately sold for obtained was less than the best price reasonably £221,500 to a well- known local developer. achievable. The property was inspected by many people, many of them developers, and many The borrower claimed that the "true market offers were made. Most of the people who viewed value" of the property at the date of sale was the property would have known that this was a £325,000. He relied on a so called "residual sale by a mortgagee and that the mortgagee would development assessment" which had been be required to try to obtain the best price prepared by an expert on his behalf. He sought an reasonably achievable. They could have put in order that he should be paid the difference higher offers but did not do so. between the price actually achieved and what he said was the true market value. The market value of a property is the price which a wiling purchaser is prepared to pay for the In marketing the property the mortgagee had property to a willing vendor after the property has relied on a whole string of apparently well been exposed to the market for a reasonable qualified valuers and an estate agent. It was period. The market value of the property in this therefore arguable that this was sufficient for it to case was the price that it sold for, namely have discharged its duties. However, the Court of £221,500. Appeal had previously made obiter comments to the effect that a mortgagee does not discharge his The borrower's claim was dismissed. duties by leaving a sale in the hands of reputable estate agents. As the judge was likely to follow Kayrul Meah v GE Money Home Finance these obiter comments, this point was not pressed Limited, Chancery Division, 18 January 2013 in argument but the point was reserved for possible argument in the Court of Appeal in the event of an appeal.

13 | Filename 3. Interest rate swap mis-selling claim fails

Mr Green ("G") and Mr Rowley ("R") Judgment on the Information Claim (collectively "G&R") alleged that The ("RBS") had mis-sold them an The judge considered the evidence in some detail, interest rate swap ("the Swap") as a form of noting that this was a highly fact-sensitive case hedge against their existing loan liabilities to which for the most part turned on what was said RBS. Their claim against RBS was that it had at a meeting (or in the period shortly before it) breached its common law duties of care: some eight years ago. Where there was a conflict of evidence the judge generally preferred the ▪ In a Hedley Byrne negligent mis-statement evidence of RBS to that of G&R. sense ("the Information Claim"); and/or The judge held neither the duty not to mislead under r.2.1.3 of COB, nor the duty under r.5.4.3 ▪ Because it gave negligent advice about the of COB to take reasonable steps to ensure that the Swap ("the Advice Claim"). private customer understands the nature of the risk involved, are encompassed within the Hedley Additional claims for breach of statutory duty Byrne duty. The duty under Hedley Byrne does under s. 150 of the Financial Services and not include a duty to give information, unless a Markets Act 2000 ("FSMA") alleging breaches of statement would be mis-leading without that the (then) relevant Conduct of Business Rules information. ("COB") had been abandoned because it was accepted that they were time-barred. On the evidence, the judge rejected the suggestion that there had been any mis-statement about the The Information Claim break costs. Whilst the break costs figures put to G&R years later no doubt came as a surprise, they G&R claimed that RBS had made various were wrong in thinking that RBS had mis-led negligent mis-statements namely that: them. Even if COB rules 2.1.3 and 5.4.3 had been relevant there would still have been no breach. ▪ The costs of breaking the swap would be The fact that there could be a cost had been given "modest" or "affordable" (alternatively if and illustrations were given in a brochure which RBS did not say this then it should have the judge found as a matter of fact had been given informed G&R further); to G&R. The statement that the Swap was separate was not The Swap was separate from the loans ▪ false. The failure to mention the "all monies" when in fact the Swap was linked by an clause and the "cross-default" clause did not "all monies" clause and a "cross- default" render what was said a half-truth. Even if COB clause; Rules 2.1.3 and 5.4.3 did apply, there was nothing unfair in not mentioning these points when ▪ The Swap would fix not only the base rate explaining the Swap. Nor was it necessary to do but also the margin rate on the loans; so when explaining the Swap. G&R should have known or be taken to have known that the charge ▪ The Swap was portable and could be contained an all monies clause. If they did, they moved to a different lender along with the would have appreciated that any liability to RBS loans. under the Swap would be caught by that clause. Whilst the cross-default clause was a term of the The Advice Claim Swap no COB duty of fair explanation would extend to a fairly standard form term like this. G&R alleged that RBS's representatives had advised G&R to enter into the Swap. This advice There was no breach of any Hedley Byrne duty carried with it a duty of care which was breached here. But even if there was G&R had not as the Swap was not suitable for G&R since it demonstrated on the balance of probabilities that was a clear requirement for them that the Swap had they been told of these points they would should fix both the interest rate and the margin, have declined to proceed. This element of the when in fact it fixed only the interest rate. claim would therefore fail on causation.

www.dlapiper.com | 14 RBS did not state to G&R that the Swap fixed the No advice had been given and therefore an margin as well as the base rate. One of RBS's actionable advisory duty had not arisen. representatives had said that she could not imagine the margin rising over the course of the Even if RBs had owed G&R such a duty there loans. That was not a statement of existing fact, if was clearly no breach of rule 5.2.5 in failing to it were a statement as to the intentions of RBS to take reasonable steps to ensure that RBS was in the effect that it had no intention in the possession of sufficient personal and financial foreseeable future of putting up its margin as far information about G&R, nor of rule 5.4.3 to take as G&R were concerned it would be impossible reasonable steps to ensure that the private to say that this was false on the grounds that RBS customer understood the nature of the risk did have such an intention. The statement might involved. In light of the facts as found by the also be regarded as an expression of opinion. The judge, G&R understood full well that the Swap predictions within that statement about RBS's itself did not fix the margin and they were not told margins had turned out to be false but the otherwise. Even if a requisite advisory duty did statement could only be actionable if there had exist there had in any event been no breach. been no reasonable basis for making the statement. No evidence had been adduced by The claim therefore failed in its entirety. G&R on this point. It followed that there was no (1) John Green (2) Paul Rowley v The Royal actionable mis-statement or there was no Bank of Scotland PLC, Mercantile Court negligence. Manchester District Registry, 21 December 2012 There was no mis-statement about the portability 4. Contributory negligence in lender claims of the Swap either. R had said that he understood that any transfer to another bank would require against valuers that bank's consent. Subject to that consent the Two recent valuer negligence cases Webb Swap was in principle portable. It was not Resolutions Limited v E.Surv Limited ("Webb") negligent of RBS to say that the Swap was and Blemain Finance Limited v E.Surv Limited portable without referring to the need for RBS to ("Blemain") involved the same defendant valuers, consent to such a transfer. the same legal teams, the same lending experts and the same judge. As there were a large number For all the reasons above the Information Claim of overlapping issues it was agreed that failed. judgments in the two cases should be handed Judgment on the Advice Claim down simultaneously and that the judgment in Webb should be regarded as the principal G&R alleged that RBS had positively judgment. The two cases are dealt with together recommended the Swap and that as a here. consequence RBS had a duty to advise. The judge was not satisfied that any recommendation or In both cases the valuations were found to be advice for the Swap was given. The fact that the negligent. The cases are of most interest for what relative advantages and disadvantages between they say about contributory negligence. the Swap and other products were discussed by reference to their features did not mean that the Webb Swap was recommended, nor did the fact that one The lender in this case was GMAC RFC Limited of RBS's representatives felt herself that G&R ("GMAC") which, at the time (2006 and 2007) should take it because she felt that it was in the was the largest centralised mortgage lender in the interests of both G&R and RBS. UK. The defendant valuer was E.Surv Limited ("E.Surv"). GMAC assigned its claims against A reference to the Swap being "suitable" in a typed note of the meeting meant that the Swap E.Surv to Webb Resolutions Limited. met G&R's requirements in the sense that as an The case concerned two separate mortgage interest rate protection product this particular transactions and valuations. The first ("Ali") product was suitable as it had no premium and involved a borrower called Mr Ali, the second gave them the desired fixed rate for the period ("Bradley") a borrower called Mr Bradley. concerned. It did not mean that advice had been given to take it. The judge found that both valuations prepared by E.Surv were negligent.

www.dlapiper.com | 15 In both Ali and Bradley the borrowers were been identified they would have made no treated as seeking mortgages on a self-certified difference. basis (whether the application expressly sought this or not); the lending was based on very high A reasonably competent centralised lender would LTV percentages; and the loans were based on a not have been expected to investigate the sub-prime lending product which was more performance of the borrower's other mortgages. A expensive for the borrower than a standard High Street lender might have done so but not a mortgage. centralised lender. The assumption that such mortgages were self-funding was in line with Before descending to the particulars of the marketplace practice in 2006. separate mortgage transactions the judge looked at the issue of contributory negligence in general Self-certified mortgages were commonplace at terms. He confirmed that when alleging the time when Mr Ali applied for his loan. They contributory negligence the burden is on the were not of themselves negligent. defendant to show that the lender had failed to look after its own interests and that its own GMAC was not negligent in making the loan to negligence in this regard has caused the lender its Mr Ali even though he had defaults of £2,477. loss. The standard against which the lender Defaults were an ordinary feature of the subprime should be judged is that of the reasonably market and the level of default was not such that competent professional or practitioner. GMAC should have decided not to lend to Mr Ali. The appropriate standard by which contributory negligence should be judged in this case was that In the circumstances the judge was not prepared of the reasonably competent centralised to make any deduction for contributory lender. negligence in relation to the loan to Mr Ali.

In considering and applying that test the judge In Bradley the judge concluded that an LTV ratio noted that he should consider what other relevant of 95% was too high. Evidence of the players in the market were doing at the relevant marketplace at the material time (2007) showed time and be "wary of concluding that practices that a reasonable centralised lender would not which were logical to centralised lenders at the have allowed an application for a re-mortgage at time or were common amongst them were in fact this LTV. illogical or irrational". Even if it was wrong to conclude as a matter of GMAC's business model at the time assumed principle that lending at 95% LTV was negligent three critical things: that what mattered most was in itself there were other factors in respect of this the speed with which the mortgage application loan which should have told a reasonably prudent was dealt with; that self-certified mortgages were centralised lender that a 95% LTV ratio was not an entirely appropriate product even for those appropriate in these particular circumstances. An who were "credit-impaired"; and that property equity cushion of 5% was simply not enough. prices would continue to rise. In particular, no cogent reason had been given as Whilst it might be easy to argue that such to why this application was treated as self- practices were inherently risky, the evidence certified. Mr Bradley's financial position made it showed that in some form or another all imperative that the application should not be centralised lenders acted in a broadly similar way treated as self-certifying. GMAC was negligent during this period. not to ask Mr Bradley's accountants to verify his income. Further questions should have been asked In the Ali the judge found that lending at a LTV about his financial position. ratio of 85.13% was not negligent in itself. It was within GMAC's policy limit and was also in line Further, Mr Bradley was plainly in financial with market practice place for a self-certified difficulty. The whole purpose of the re-mortgage mortgage. The centralised lending market was was to consolidate his debts. He had £18,000 lending at this LTV and no evidence had been worth of defaults as well as a County Court adduced that this was illogical or irrational. judgment for nearly £1,000.

Errors made on the application form were small The combination of these various features led to a and the judge was satisfied that even if they had finding that GMAC had been contributorily

www.dlapiper.com | 16 negligent. The judge regarded GMAC and E.Surv This bulletin is intended as a general overview and as being equally at fault and so made a deduction discussion of the subjects dealt with. It is not intended, of 50% for contributory negligence. and should not be used, as a substitute for taking legal advice in any specific situation. DLA Piper UK LLP will Blemain accept no responsibility for any actions taken or not taken on the basis of this publication. If you would like This case concerned a second mortgage secured by a further advice, please contact: second charge. The appropriate standard of care for the purposes of contributory negligence was that of a reasonably competent second charge lender. Leeds: Hugh Evans The background to the case was very different to the T 0113 369 2200 Webb case and concerned a prime or status mortgage which had been granted on the basis of accountant's E [email protected] evidence as to earnings. The borrowers were high- earning individuals. London: Jean-Pierre Douglas-Henry T 020 7153 7373 E.Surv's case on contributory negligence failed completely on the over-arching causation argument. E [email protected] E.Surv's lending expert could not say that no reasonable second charge lender would have made this loan if they Manchester: Stewart Plant operated a proper lending policy. The highest that the T 0161 235 4544 expert could put it was that a "reasonably competent E [email protected] lender may have taken the decision not to lend". As E.Surv could not demonstrate that the loan should not have been made it could not demonstrate that the allegations of contributory negligence caused Blemain's loss. The contributory negligence claim failed.

Webb Resolutions Limited v E.Surv Limited and Blemain Finance Limited v E.Surv Limited, Queen's Bench Division, Technology and Construction Court, 20 December 2012

This publication is intended as a general overview and discussion of the subjects dealt with. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper UK LLP and DLA Piper SCOTLAND LLP will accept no responsibility for any actions taken or not taken on the basis of this publication. If you would like further advice, please contact Hugh Evans (Leeds) T: 0113 369 2200 E: [email protected] or Jean-Pierre Douglas-Henry (London) T: 020 7153 7373 E: [email protected] or Stewart Plant (Manchester) T: 0161 235 4544 E: [email protected]

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