The latest judgment handed down in a swaps misselling case (London Executive Aviation v RBS) represents another victory for the banks. In part, this is an inevitable reflection of the fact that the most egregious examples of misselling will have been settled or, in the case of smaller customers, dealt with under the Financial Conduct Authority (FCA) Review of Interest Rate Hedging Products (IRHPs). But it is also due, as explained in the judgment, to the fact that the courts have mostly rejected claimants’ attempts to expand the limits of banks’ duties of care. In particular, the courts are reluctant to import concepts from the regulatory sphere into the common law.
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