Feature

The rule in Clayton’s Case: its application in non-banking relationships

The rule in Clayton’s Case  originated in banking relationships and its application is most often seen in that context. Recently there has been a trend to disapply the rule, in cases where multiple claimants seek to trace into a single fund. This article looks at a recent decision of the Court of Appeal which turned on the application of the rule in a non-banking context, and in particular on the timing of the appropriation of payments which is deemed to take place pursuant to the rule.

Non-notification receivables financing: can the assignor sue without joining the assignee?

Generalised statements in recent cases appear to say that an assignor cannot sue the debtor without joining the assignee to the action. This article argues that this should not be the case where the debtor has not been notified of the assignment, and that the statements in the cases are weak, if any, authority in relation to non-notification receivables financing. 

This article is based on the full chapter published in Peel and Probert: Shaping the Law of Obligations: Essays in Honour of Professor Ewan McKendrick KC,  OUP 2023, ISBN: 9780198889762. 

Does the restoration of Crown preference mean that guarantors can get off the hook?

When the economic landscape changes, people often look to wriggle out of their financial commitments. Just such a change occurred in 2020, when HMRC’s status as a preferential creditor of insolvent companies was restored.

Joining the dots: a wider use for AML e-verification tools?

Everything is electronic nowadays. Globalisation, technology and Covid have all played a significant part in driving legal changes that mean it is rare not to be able to sign documents, open bank accounts or indeed do most things using just a keyboard or a click. But can established processes help to mitigate the risks of more newly permitted e-signatures? This article looks at how anti-money laundering identity verification processes can help with verification of document signatories.

ETFs: could crisis be looming?

Exchange traded funds, or ETFs, are one of the most successful financial innovations in the modern era; of similar vintage and, arguably, significance to mortgage-backed securities, but to date thankfully not (yet) as contorversial. 

This article looks at their key features, contextualises their inexorable rise by reference to some performance figures and, by reference to two examples of their higher risk synthetic variants, leveraged and inverse ETFs, highlights both the potential systemic risks they pose to the stability of global financial markets and regulators’ preparedness to address those risks.  

Merricks v Mastercard: the litigation risks for the financial services sector

The recent decisions in the Merricks v Mastercard  litigation will most obviously have a significant impact on the competition class actions regime, but may also have repercussions for the wider litigation landscape, particularly in relation to mass consumer claims. In this article, we consider the potential litigation risks for the financial services sector.

Contractual continuity for “tough legacy” contracts

With time ticking until the end of 2021 when at least certain settings of LIBOR will cease, the UK authorities are finalising their plans for “tough” legacy through the means of legislation and powers granted to the FCA. In this article, we examine such legislation and powers with a comparative eye to alternative solutions in the US and the EU.

The approaches of different jurisdictions to the legal recognition and enforceability of electronic signatures

In this article, Annabel Akintomide considers the approaches of different jurisdictions to the legal recognition and enforceability of electronic signatures and the key themes that emerge.

Bridging the gap: high yield bridge loans in leveraged buyouts

In this article the authors examine the key features of high yield bridge loan documentation and latest trends in the leveraged buyout market.

The role of the sustainability co-ordinator in sustainability linked loans

In this article the authors consider how the increasing prominence of sustainability linked loans has afforded new opportunities for banks to take on the role of sustainability co-ordinator and take a closer look at what this role entails.