Mis-selling Update: Crestsign v Natwest & RBS

Financial services cases, including those concerning mis-selling, remain in focus – Crestsign Limited v Natwest & RBS [2014] EWHC 3043 (Ch) ("Crestsign") being the most recent example.

Pared back to its simplest form, Crestsign was a negligence claim in which the claimant alleged loss suffered by reason of advice given and statements made by Natwest/RBS (Banks) in relation to an interest rate hedging product (IRHP). At its core, the allegation was that the Banks had mis-sold the IRHP.

Despite the finding in favour of the Banks, the case reinforces the challenges faced by financial institutions when selling financial products.

Yet, the decision also serves as a useful roadmap to claimants when it comes to the hurdles they may have to overcome when making out a mis-selling claim.