LAW SOUTH EAST 15
Mis-selling of interest rate hedges is rife
A south coast law firm has formed a specialist banking department to handle more than 40 cases involving the mis-selling of interest rate hedge products
Ellis Jones Solicitors, which has offices in Bournemouth, Canford Cliffs, Ringwood and Swanage, is acting nationally for care home owners, caravan park operators, hoteliers, pub owners and property developers. Some of the cases are progressing to the High Court.
The mis-selling involves interest rate hedges, a complicated form of derivative sold to small and medium-sized businesses (SMEs).
Often known as ‘interest rate protection‘ they were sold by the UK‘s biggest banks on the basis that they would act as a hedge or a form of protection against a rise in interest rates. However, due to the complexities of the structured product, the customer
often did not appreciate or was not even aware of the significant risk they were taking on.
Headed by solicitor William Fox Bregman, the specialist banking department is advising on cases where the client‘s exit fee under the swap exceeds £700,000. The exit fee can be triggered simply by the sale of the business and/or repaying the loan.
He said: “The worst examples involve business owners in their 60s or 70s who have been encouraged to take out complex forms of derivative exceeding 20 years. One client has to reach the age of 93 before being able to retire and sell the business without a breakage cost in excess of £400,000.
What happens to our online life, after life?
When lives are increasingly lived online, by socialising on Twitter or Facebook or using online purchasing and banking, the emergence of the cloud means that photos, music and personal information are part of a new digital property, leading to people questioning who owns this when they die.
“If the issue is not considered the information could be misused,“ warned Claudia Roberts, partner in the wills, trusts and probate department at Glanvilles, which has offices at Fareham, Havant and Isle of Wight.
“Also, online assets and accounts can easily be missed if there is no paper record and the executors have no knowledge of them. Neither Facebook nor Twitter will hand over login information to executors. On receipt of a death certificate, Twitter will delete an account and Facebook will either memorialise the account or
delete it on request. With other sites it depends on their terms and conditions.“
Legislation is currently being drawn up both in the EU and the US to address these complex issues.
Neither Facebook nor Twitter will hand over login information to executors
She added: “Increasingly people include login details and passwords in their wills, however, unless securely stored, this could create serious security issues and makes it cumbersome to keep records up to date.
“Alternatively, the will could refer to a sealed envelope securely stored with the will to contain relevant information. This may be more secure and allow for details to be updated in a simpler and quicker way.“
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2012
“The highest volume of recorded sales was during 2006 and 2007, shortly before interest rates fell sharply. The structured products were often referred to as ‘sexy new products‘ with, typically, only the benefits being emphasised. The substantial risks were regularly not even mentioned during the sales process or sufficiently dealt with in the paperwork.“
An investigation by the Financial Services Authority (FSA) has found evidence of poor practices by four of the UK‘s biggest banks, and has reached agreement with them to provide appropriate redress where mis-selling has occurred. However, the move, involving banks reviewing each case individually under the supervision of an independent adjudicator, has been criticised in some quarters.
Boat syndicate agreements in demand
Following the recent PSP Southampton Boat Show, Moore Blatch has reported seeing a rise in enquiries from people keen to learn more about the intricacies of boat syndicates.
“Buying and maintaining a boat takes substantial investment, and we are finding that people are increasingly considering the benefits of shared-ownership agreements as an alternative way to get on the water,“ explained Dorothy Agnew, senior solicitor at the firm.
“As with any shared ownership arrangement, there will always be potential risks as well as benefits, so having a formal written agreement in place from the start is vital. Written agreements can cover all eventualities, including setting out the rights and responsibilities of all parties involved and what would happen if the arrangement was to end.“
CoffinMew
Services include: Charity & Community
Commercial Property Commercial Services Corporate
Dispute Resolution Employment Family
Healthcare
Insolvency/Business Recovery Intellectual Property/ICT PI/Clinical Negligence Residential Property Social Housing
Wills, Trusts, Probate, Wealth Management For more information see:
www.coffinmew.co.uk
SOLICITORS
Legal Services - For business and your life
Southampton & 1000 Lakeside Portsmouth
T: 0800 827168 Office also in Gosport
www.coffinmew.co.uk Authorised and Regulated by the Solicitors Regulation Authority. Lexcel Accredited.
www.businessmag.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36