Singularis (In Official Liquidation)(Singularis) v Daiwa
Capital Markets Europe Ltd (Daiwa) [31.10.19]
This article was co-authored by Maya Rubinstein, trainee
solicitor, London
It is well established that a contract between a bank and its
customer includes an implied term that the bank will use reasonable
skill and care in and about executing a client's instruction
and will not execute instructions known to be dishonest or where
there are reasonable grounds to believe that the instructions were
given dishonestly. However, until recently, there was no reported
case where this duty (known as the Quincecare duty) was
found to have been breached.
The Supreme Court's ruling in Singularis v Daiwa is
of interest to both financial institutions and their errors and
omissions insurers and highlights the importance for financial
institutions to have appropriate procedures for verifying client
payments, particularly for higher risk clients or where there is
reason to
