INTRODUCTION

There are a very wide range of scenarios and issues which have the potential to embroil a bank in a dispute due to factors such as:

• The highly regulated and closely scrutinised environment within which banks, funds and other financial institutions operate; and
• The wide variety and complexity of products that a bank offers.

Banking and financial litigation typically arise over specific loans, trades, transactions or financial products, and the other party could be a walk-in member of the public, a very wealthy and well-known individual or a multi-national corporate client. Banking disputes often attract significant public interest and media coverage and a lawyer needs to be cognizant of the reputational impact when advising the client. 

SUB-AREAS

• Mis-selling is where a financial product is misrepresented to a customer regarding its suitability, and can involve the deliberate omission of key information, the communication of misleading advice or the sale of an unsuitable product based on the customers’ expressed needs and preferences.
• Enforcement and Recovery Actions may be initiated by Lenders, Guarantors and Security Providers when a borrower defaults on its repayment obligations.
• Fraud cases may have to be investigated, reported, traced and/or unwound, with actions taken against the persons who may have used fraudulent identities, passwords and personal information to carry out such unauthorised fund transfers or purchases.
• Clients who are the subjects of Financial Regulatory Investigations may approach a lawyer on how best to navigate the investigation and respond to queries from  regulatory and governmental agencies.
• Banks may also be subject to foreign court orders and sanctions, requiring legal advice on how to comply, resist and/or appeal against such actions.

 WHAT YOU CAN EXPECT

 The work of a banking disputes lawyer may involve some industry and subject matter expertise, especially where it involves a particular product sold or contract negotiated by the bank. However, the steps and tasks involved bear much similarities with general commercial disputes work, such as: 

• Researching issues and writing memorandums to advise your client on the strength of their claim or defence;
• Gathering evidence and witnesses to support the client’s position, and conducting meetings with clients to prepare for the case;
• Counselling clients through the pleadings stage;
• Representing clients (usually banks or customers of banks) at pre-trial hearings and in court; and
• Assisting with enforcement and/or appeal of the judgment.

Some of the other departments that you may work closely with include Financial Services Regulation, Tax and Restructuring & Insolvency. Some law firms also maintain strong relationships with banks, which may provide associates with secondment opportunities to better understand the inner workings, products and processes of the bank.