Treasury Select Committee. SME Lending Enquiry

Size: px
Start display at page:

Download "Treasury Select Committee. SME Lending Enquiry"

Transcription

1 Treasury Select Committee SME Lending Enquiry Written Evidence Submitted by Alison Loveday Berg (a Law Firm) 28 th March 2014 BERG 35 Peter Street Manchester M2 5BG Reference: AML/KPC/TSC

2 Page 2 of 19 Executive Summary 1. SMEs in the UK are faced with a negative net lending environment; 2. There is insufficient competition in the UK banking market (over 200), which has and continues to severely curtail the ability of SMEs to seek new lending; 3. There is insufficient information available with regards to lending practices of the top six banks; 4. As a result of the current banking practices the UK will miss one or two generations of entrepreneurs, which can only be a bad thing for banks; 5. RBS and Lloyds favour their own short term income needs at the expense of SMEs and this will have a damaging effect on the economy for years to come; 6. Barclays cathartic remodelling under Mr Jenkins has been short lived and has reverted to type; 7. SME lending is not generally subject to any regulatory influence; 8. What lending is available to SMEs is in practical terms inaccessible to SMEs and access to it is made harder by the efforts of the top six banks; 9. Even where there are regulations such as COB/COBS SMEs are not entitled to benefit from them or have protection under them; 10. SMEs have no rights to data and information; 11. Recommendations: 11.1 Government intervention to raise awareness amongst SMEs of the alternative means of financing available That the Government address the position that banks control almost three quarters of UK commercial banking That the Data Protection Act 1998 be extended to include rights of access to information by SMEs That there is a general over-haul of banking and banking regulation in order to try and bring some competition to the market and to provide SMEs with some protection, which at the moment is non-existent Questions need to be asked of why the Government appears to have ignored the issues happening at Lloyds and the sale by Lloyds of its loan portfolios to aggressive debt purchasers Review the issue of RBS use of GRG and the specialised lending units of the other Banks.

3 Page 3 of 19 Contents 1. About the Author 4 2. Access to SME Lending 4 3. The Banking Environment 5 4. The Royal Bank of Scotland 6 5. The Lloyds Banking Group 6 6. How Do Issues Raised Interplay with SME Lending? 7 7. Regulation 9 8. SME Lending What Needs To Happen? Schedule 1 11

4 Page 4 of 19 Who are we 1. Berg is a commercial law firm situated in Manchester. Berg has represented SMEs since 1980 in respect of commercial and corporate matters, including disputes with Banks. Berg is not on the legal panels of the Big 4 Banks and is therefore independent Berg represents a large number of clients with their banking disputes, including Interest Rate Hedging Product sales, RBS s use of GRG, Lloyds cases involving revaluations and other issues. 3. Alison Loveday is the managing partner at Berg. Alison has regularly appeared in the print media and on BBC Breakfast News, in addition to being interviewed by various radio stations, regarding SMEs and their banking disputes. Access to SME Lending 4. SMEs are openly acknowledged as the backbone of the British economy. The Federation of Small Businesses has consistently asserted that it is the endeavours of SMEs that will end this recession and secure sustained economic growth. However the green shoots of recovery face extinction at the hands of the Banks treatment of SMEs. One or two generations of entrepreneurs are now lost as a result of the Banks behaviour. Why would any entrepreneur re-build a business if, after 10 or 15 years of building one, it was trampled by banks such as RBS or Lloyds and ended in administration and a director s disqualification? 5. The main impediment to effective lending is that Santander, Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland represents 70% of stock lending to businesses. It is obvious that healthy competition equates to more customer lending choice instead of, in essence, the adoption of damaging monopolistic practices. Presently Banks are destroying small businesses, prohibiting them in practical terms from re-banking elsewhere, draining these businesses of cash and restructuring the businesses where the only discernible rationale is to augment the Banks fees and profits. 6. The approach to SME lending is dictated by the mind-set of the major Banks with the attitude of RBS and Barclays being highly illustrative RBS recently told a Treasury Select Committee 2 that it had never breached regulations in the sale of PPI policies to consumers. RBS is adamant that it is only historically seen as having breached the regulation as a direct consequence of the FSA implementing regulations retrospectively thereby changing compliant sales into non-compliant sales. It should be plain to anybody 3 that all of the Banks indulged in sales tactics that were not in their customers best interests in order to increase profit and remunerations for consumer facing employees of the Banks. For RBS to suggest that they have never taken part in sales practices that are in breach of relevant regulations reflects a complete lack of social and corporate responsibility. 7. All of the Banks have denied, some quite vigorously, that they have acted inappropriately in the sale of interest rate hedging products to SMEs. When reviewed (to the end of February 2014) it has been found that 96% of all sales of interest rate hedging products to SMEs breached the regulations imposed by the FSA. 1 Berg is on a residential conveyance panel for one building society. 2 See for example Parliamentary Commission on Banking Standards Written evidence from RBS : at section E E. RBS s Engagement with Regulators on PPI Issues from 2008 Onwards 3 See for example the latest Financial Ombudsman Service statistics:

5 Page 5 of Nor could customers rely on the Financial Ombudsman Service ( FOS ) to provide an effective bulwark of regulatory standards. In 2012 when the FSA announced the review into the sale of interest rate hedging products Barclays issued a press release on 29 June 2012 which stated 4, inter alia: Approximately 5,000 interest rate hedging products have been entered into by SMEs customers since To date, 48 complaints have been ruled on by the Financial Ombudsman Service. Nearly 90% where decided in favour of Barclays. 9. The failure of the FOS to adequately and properly help SMEs is perfectly evidenced with this press release. The FOS has now reversed its previous decisions and 50 to 70% of complaints regarding interest rate hedging products are now found in favour of the consumer. However, FOS, like the FCA, continues to be staffed by ex-bankers or by employees who have an inherent bias towards those institutions who might employ them in the future. To create an environment in which consumers, including SMEs, are offered justice this imbalance needs to be addressed, though that is not the subject of the present enquiry. 10. The most compelling indicator of the Banks unreasonable denial of wrong-doing is in connection with their manipulation of the Dollar, Yen and EURIBOR LIBOR rates. Barclays is currently fighting a case through the Court based upon this denial. It should be noted that the manipulation of Sterling LIBOR is mentioned a number of times within the regulatory findings of both of the US and the UK regulators. Despite this, Barclays denied any liabilities or wrong-doing to UK consumers as a consequence of this fraud. 11. The lack of regulation is patently evident in relation to the payment of excessive bonuses to Bank employees which must surely sicken those businesses who have been placed into GRG and paid crippling fees that have facilitated the payment of those bonuses or are facing the loss of their business. The conduct of the Banks in the period since 2005/06 has exacerbated the economic challenges already faced by SMEs. The Banking Environment 12. We will discuss further below the abilities of SMEs to borrow money from Banks. However, it is essential to understand the banking environment that SMEs find themselves in at present. It is of little use to an SME to be given a loan if the sums that are contemporaneously being demanded in repayment far out-strip the amount being lent. This is set out in a report by the Bank of England Lloyds and RBS find themselves in the position that they must continue to deal with the exceptional economic damage done during the Banking free for all in 2003 to It is understood that the Government is looking to sell its final holdings within Lloyds within the next 12 to 18 months. Lloyds has undertaken a significant turnaround to bring its finances back into acceptable confines. It appears that RBS is at least 24 to 36 months away from being in the same position. However, the Banks still face legal and regulatory challenges by SMEs as a consequence of the treatment of SMEs by both Banks since This legacy issue related to current banking practices by Lloyds, RBS and Barclays could still cause enormous financial damage to the Banks in future years. 4 Products-904.aspx 5 Trends in Lending ; Bank of Scotland ISSN: ; January 2014

6 Page 6 of 19 Royal Bank of Scotland ( RBS ) 14. RBS continues to exploit its SMEs clients. RBS is faced with serious, and potentially fatal, economic issues. 15. RBS strategy is to attempt to repair the damage done in 2007/08 by:-: 15.1 Raising as much liquid cash from SMEs; 15.2 Removing low margin loans and replacing them with loans that have significantly higher margin; 15.3 Converting all lending to LIBOR as the benchmark interest rate; 15.4 Removing medium to high risk loans and assets off its balance sheets; 15.5 Generating a future income stream and removing toxic debt; 15.6 Ensuring that publicly it does not cross over from questionable conduct into obvious fraud. 16. RBS Global Restructuring Group ( GRG ) is seen as a primary facilitator of the above aims. Lloyds Banking Group ( Lloyds ) 17. It would appear that the Lloyd s Banking Group has taken a similar, if not identical, approach to RBS to tackle legacy issues. 18. However the apparently greater urgency behind Lloyds methods suggests a more imminent sale of the Government s stake holding. 19. Berg has found over the last 2 years that Lloyds have been demanding new valuations on SME assets where the SME is asset rich and, usually, cash poor. Berg has challenged the validity of these valuations. Berg can evidence that most if not all of these valuations have resulted in a valuation approximating 50% (or sometimes lower) of the value given to the asset by the customer. 20. In a number of cases the customer has approached another bank and the valuation undertaken by that bank has correlated more closely with the customer s valuation expectations. 21. It was, for quite some time, unclear why Lloyds was instigating these valuations in the context of a forecast improvement in property valuations. The vast differential between valuation and expected value demands explanation. Recent events reveal a motivating factor. 22. Lloyds has entered into agreements to sell the loans to Cerberus Capital Management LP, and its UK subsidiaries, though it is also selling some of its debt to Deutsche Bank. For example, on 6 December 2013 Lloyds sold its Project East to Cerberus, and a similar tranche to Deutsche Bank. Project East is made up of Non- Performing corporate loan involving the hotel trade. Cerberus paid Lloyds 90m for this. This represents a 38.7% discount on the gross unpaid loan balance. Part of this non performing loan book included Berg clients.

7 Page 7 of Berg has questioned Lloyds intentions. Normal defaulting debt is sold at an average rate of 12p to 33p (though it can be as little as 5p). There is no commercial apparent rationale behind Cerberus paying 61.3p for alleged distressed debt where there is, according to Lloyds valuations, a significant shortfall between the debt amount and the value of the security. It is nonsense to pay a much higher rate than the industry standard., Many of these loans are classed as non-performing for the sole reason of an LTV breach, brought about as a result of the re-valuation. This surely cannot be mere coincidence and may point to an engineered default. Berg s Lloyds customers with significant property assets, including all of its hotelier clients, have had their loans defaulted as a consequence of the breach of the loan to value following a revaluation by one of Lloyds panel valuers. One even found out about the assignment and future administration as a result of a press release 6 by Cerberus 7 two weeks before the assignment (22/12/2013) and a month before the threat of administration (07/01/2014). 24. Some of Berg s clients have moved to other Banks, where the valuations have been well above the LTV covenant in stark contrast to the Lloyds valuations. Lloyds does not accept valuations from a valuer that is not on its panel, so it essential for such Lloyds customers to either pay for a valuation by a panel valuer long before Lloyds orders it (and without Lloyds or the valuer s knowledge) or it requires the customer to be able to arrange for another Bank to agree lending which can be impractical when there is an alleged default. 25. If one does a general search of the Cerberus website one can see numerous articles relating to the sale to Cerberus by Lloyds of significant loan debts. We refer the committee to Project East, Project Thames and specifically Project Indie. How Do These Actions Interplay with SME Lending? 26. The Bank of England s Trends in Lending report 8 in January 2014 shows that net lending is once again down. There has been a 0.8% increase in the amount of gross lending. However, the amounts being demanded for repayment by the Banks has, for the second year, outstripped the amounts being lent, providing a negative net lending environment. Please find below the 2012 and 2013 gross lending and repayment schedule. Month Gross lending 2012 Repayments 2012 Gross lending 2013 Repayments 2013 January February March April May June July August September Project East also includes up to 14 three-star Forestdale hotels, which Citibank s former global head of real estate, James Brent, acquired through Akkeron Hotels and up to five Hollybourne hotels. 8

8 Page 8 of 19 October November December During the period 2003 to 2007 indiscriminate lending by the Banks was accompanied by damaging interest rate arrangements and the imposition of inequitable loan agreements that were non-negotiable with manifestly unfair terms. Examples of such Bank-weighted contractual provisions include:-: 27.1 Any debt owed to any third party that may be in default. This can result in a late newspaper bill defaulting the whole loan, despite that the Bank s total lack of connection to the third party and taking into account the absence of any de minimus, sensible restriction upon the operation of this clause Making a single early repayment under a loan can bring to an end an interest rate hedging product, which would result in prohibitive break fees; 27.3 One clause causing major difficulties is where the Bank can subjectively determine that certain events may in the future be likely to cause the customer to default upon their obligations to the Bank. This can operate very unfairly and disproportionately. For example, a minor difference of opinion between two business proprietors could lead to (and did in one client case) to the Bank invoking this provision In the case of Lloyds, facility letters provide a waiver of any and all wrongdoing by the Bank and an undertaking by the borrower that it will not seek civil remedies against the Bank for wrong-doing. 28. The broad wording of these provisions has allowed RBS to find fault where none, on a common-sense analysis, exists. The contractual framework is a charter for capricious decision making by the Banks. Once defaulted, RBS can move the business into its Global Restructuring Group ( GRG ) with its attendant crippling financial penalties. 29. RBS has defaulted significant numbers of loans, so that it can generate immediate fees. Fees charged by RBS to businesses in GRG have been found to be approximately 327,000 per business 9, contrary to RBS s suggesting that GRG is used to restructure a business so that it is financially better. GRG instead bleeds an SME of cash. If the business continues to survive the Bank will continue to demand exorbitant fees, all of which put businesses at risk and none of which is undertaken in order to turn the business into a profitable business, contrary to RBS s stated position. 30. Consequently, SMEs now find themselves in the position where they cannot move Banks because of interest rate hedging products having caused significant damage to their business, or because Lloyds, Barclays or RBS has put them into their specialist lending units. As a result, new lending is almost impossible. 31. At the same time Barclays, RBS and Lloyds are requiring repayments of loans that are significantly over and above the contracted amounts. Businesses have suffered significantly between 2008 and As such it is, and has historically been, quite easy for the Banks to threaten or carry out a breach of the lending agreement. Loan to value ratios have been breached considerably, whether the covenant has in reality 9 Please see Bully Banks questionnaire and interim findings (previously provided to the Committee).

9 Page 9 of 19 been breached or not, EBITA ratio covenants have been breached, profit levels or turnover levels are in default and CAPEX costs on businesses have soared as a consequence of little or no investment in the preceding 5 years. 32. HSBC still includes a clause in facility letters making hedging a condition of lending. When challenged by Berg they refused to take the clause out of the facility, but promised not to enforce the clause. As can be readily understood, a promise from a Bank is worthless, and in 2013 that customer was forced to look to another Bank for lending, with the attendant costs of doing so. That customer had previously been forced into hedging by HSBC and was paid a significant sum of money by HSBC as a result, so the imposition of the clause was very inappropriate given the issues that have been raised over the last five years regarding this practice, and the damage it has done to SMEs and the economy. 33. The Banks have found themselves in a position of unassailable power where they can default loans or threaten to default loans at whim and extract from their customers payments that offend notions of commercial fairness. Any objection by an SME is met with the threat of administration. The Government appears unwilling or unable to intervene. 34. Once an SME has been defaulted, the charges imposed by the Banks causes them to be unable to re-bank. SMEs are faced with punitive Bank charges, the stigma of defaulted debtor and, additionally, interest rates of 8 to 11% above base rate or LIBOR, and for those with interest rate hedging products face prohibitive break fees. Other banks will not lend the amounts required to pay off charges imposed thus refinancing is not an option. 35. Therefore, one must question what use there is in having marginally more lending available when the amounts being demanded to be repaid outstrips this amount 10. This is the same when looking at the large businesses in addition to SMEs. The repayments received to November 2013 mirror almost exactly the amounts in The amount of gross lending in 2013 was only slightly above the gross lending in Regulation 36. SMEs are often astonished that there are no rules governing bank commercial lending. 37. SMEs (and often, their advisors) find the issue of regulation reflective of the total failure of the Financial Services & Markets Act 2000 and regulation implemented under it. Regulation exists under which SMEs have no power or protection, despite this being the aim of such regulation. 38. For example, SMEs must be classified under the terms of FSMA and the Conduct of Business Rules ( COB ) or (post 1 st November 2001) Conduct of Business Sourcebook Rules ( COBS ). The rules are very comprehensive. It states that a business must be classified as a private customer or a retail customer. However, businesses have no rights, at all, under these rules, despite that these rules are supposed to be there to protect them. Classification is intended to determine the level of protection the Bank must offer a customer, and so it is otiose if you cannot then invoke that protection in practical terms because only a private person (not a company) can bring an action for breach of the rules. 10 See footnote 7 above.

10 Page 10 of SMEs find it difficult to appreciate that a bank has no regulation when dealing with SMEs. There is no protection available to an SME customer, despite that there are regulations that exist, such as the COB/COBS rules, FSMA, Consumer Credit Act 1974 and Data Protection Act A level and equal playing field would enable customers to actively negotiate their lending terms but this moderating feature simply does not exist. The legal position is wholly pro-bank :-: 39.1 A bank owes no automatic duty of care; 39.2 A bank cannot generally be negligent; 39.3 A bank can largely impose highly unfair contractual terms; 39.4 If an SME objects their only option is to find another bank that will use similar bank-centric contractual terms. 40. SMEs are also surprised when they find that they have no rights in connection with Data. They must jump through hoops because of the Data Protection Act Everyone knows of the stringent rules regarding Data Protection Act 1998 when calling a bank. However, when SMEs seek to avail themselves of the Act they are somewhat surprised to find that the Act does not apply to them, it only applies to private individuals. Such clients then argue that the Act applies to their directors as individuals, and are as equally surprised to find that the directors have no rights (as directors) under the Act also only the attendant duties. 41. SMEs therefore find that when dealing with Banks, they have no rights to data. Obtaining information is simply not possible.. SME Lending: What Needs To Happen? 42. Berg recommends the following:- Berg 42.1 Government intervention to raise awareness amongst SMEs of the alternative means of financing available That the Government address the position that banks control almost three quarters of UK commercial banking That the Data Protection Act 1998 be extended to include rights of access to information by SMEs That there is a general over-haul of banking and banking regulation in order to try and bring some competition to the market and to provide SMEs with some protection, which at the moment is non-existent. This lack of competition and lack of oversight means that SME lending is so restricted that it is causing harm to the economic growth of the country and a lost generation of entrepreneurs Questions need to be asked of why the Government appears to have ignored the issues happening at Lloyds and the sale by Lloyds of its loan portfolios to aggressive debt purchasers Deal with the issue of RBS use of GRG.

11 Page 11 of 19 Schedule 1 Illustrative Cases/Themes A. RECURRING THEMES There are a number of recurring themes in the cases we are seeing as follows: Longstanding and excellent relationship between business and Bank involving considerable trust and confidence in the relationship manager. Indications that Bank, consistent with its marketing strategy, regards customer as its partner and wishes to work with customer in the best interests of the business. Bank indulging in what has been described as the engineering of defaults, particularly with LTV covenants (e.g. with a low unjustifiable valuation) so that customer placed into GRG and new products with much higher fees can be imposed. In some cases, customer not in default at all. In other cases, on any objective view, matters of complaint extremely trivial and not such as the Bank acting in good faith and in a rational commercial manner, would wish to treat as a default let alone use to close down the business. In some cases, no breach cited the Bank has just become uncomfortable with the sector. Here again, the Bank puts the customer under duress in a way designed not to continue/support the business but to force the business into GRG and ultimately insolvency process. Bank telling customer that GRG there to assist and not being truthful about what GRG would do. Customer given the impression that, consistent with the longstanding/ excellent relationship between the Bank/relationship manager and the customer, GRG s role is to assist the business and ensure its continuation. Turning overdrafts into loans and effecting other alteration of the facilities. This includes the imposition of fees/charges on the customer, increases in interest rates, insistence on expensive fees such as accountants, valuers and IPs all of which were claimed, quite wrongly, to reflect the Bank s increased risk but which inevitably and intentionally at the result of further stressing and ultimately destroying the business. In some cases, this involved the Bank reneging on past agreements to refinance etc. In circumstances where, given the previous good relationship, the customer reasonably expected its Bank and relationship manager to show commercial common sense and flexibility (and where the Bank had led the customer to believe that it would do so) but the Bank s whole approach changed without explanation leading to destruction of the business. IP / Valuation Expert very much acting for bank business owners not kept updated about what going on. Bank kept updated about imminent sale to third party but somehow supresses the sale only for sale to third party to happen later after company under the control of GRG and at an undervalue. Sale of assets generally at undervalue. Sale of assets to West Register / other customer of the Bank.

12 Page 12 of 19 B. SOME ILLUSTRITIVE EXAMPLES Property renovation business Banked with RBS since 1985 in other words over 20 years 25 employees. Overdraft facility of 20M with bank taking first charge on any properties purchased with max 70% LTV. No re-payment schedule. Turnover of 11M In Oct 2008 bank change attitude to business overnight asking it to re-value all properties, cutting facility to 2.5M, demanding payment on historic properties in unrealistic timeframe, imposing new arrangement fees of 128K and imposing cash covenants. Business had no choice but to sell a significant number of properties to pay back the bank. As business was robust and healthy it was able to withstand these pressures and fend off threatened GRG. Circa 150 properties sold for 18M when actual value was approximately 26M. Bank insisted on recovering 100% of pre 2007 properties. Group with Substantial Property Banked with RBS prior to employees Lending facilities inc mortgages of 2.75M against assets of 1.2M Turnover of 17M Breakeven / Group made 1 st ever loss in 2009 Informed of GRG in Feb 2010 No breaches cited by RBS they said uncomfortable with Group s exposure to Commercial Property sector and they were sending in someone to review. They said too complicated and GRG would need to be appointed. GRG said they would not do anything without a report from PWC and would in fact call in all lending if no report. PWC instructed at cost of circa 40K. PWC report a healthy business but bank still force closure of group with each company either being dissolved, wound up or in Administration. Group s property assets sold at alleged undervalue. Hotel Business (with Bank of Scotland) Banked with Bank of Scotland since employees Loan facility expired in Sept 2009, by then BoS transferred to Lloyds Banking Group. No new facility put in place in Bank explained that a transfer to BoS Business Support Unit in Edinburgh beneficial to Co in view of size of loan. IP appointed and Solicitors to do security review and Surveyors to do valuation. Co well advanced with refinancing with another bank when BoS send a demand with one hour to pay this prevents refinance deal and leads to IP selling property at undervalue. Family owned Commercial Property Business Own nursing care homes. Tenanted by national provider of care to elderly. Well known in industry that tenant is in financial difficulty. Tenant started to default on rent payments. Co s investigating whether another national care provider could take over business of tenant via Business Purchase Agreement.

13 Page 13 of 19 Aug 11 bank write contrived Reservation of Rights letter to Co seeking explanation for Director s resignation and on grounds of rent income reduction they want security review and valuation. Valuer appointed to do valuation indicative valuation of 18M this allows bank to assert a possible event of default necessitating a security review and leading to a letter of demand in mid Sept 11. By 18 Sept BPA well advanced but a further week was needed to finalise. Bank putting pressure on with numerous deadlines that kept being extended by a day. On 22 Sept after business hours the bank wanted an assurance the BPA would be signed that night. It was signed the next morning and returned. Bank said too late Administrators already appointed last night out of hours. Valuer does another valuation at 12.6M, some 5M less than the one it did a month ago.a week later the bank helps same interested purchaser of tenant s business finance a deal to buy properties from Administrators for 15M odd which is the exact amount the bank owed. Bank may have also agreed profit share agreement with purchaser. Properties not marketed and previous valuations had valued at over 21M. Commercial Trucks Business Banked with RBS since 1986 in other words for over 20 years Employees 40 Overdraft of 500K and 250K outstanding on Commercial Property Mortgage Breakeven profit Death of 50% shareholder led to request to restructure business going forward with increased overdraft facility to off-set liabilities of deceased shareholder. Restructure plan in place and Co had traded well in financial year since death of shareholder. Corporate Manager at Bank had approved all changes. Bank then change stance and made clear they would not renew overdraft facilities with existing business due to death of 50% shareholder. This led to appointment of GRG and subsequent appointment of IP. Co proposed a pre-pack that would lead to all creditors being paid in full and business carrying on. Bank indicated they supported this process. However, IP then put business into administration (not pre-pack) without reference to Co. Bank then demands repayment of all facilities and leads to closure of business and Co property sold at undervalue. Bank and IP paid in full. No other creditors get paid. Business destroyed. Property Business Bank account with RBS opened in Lending with RBS 700K with a rental property as security. No breaches cited RBS just required new terms and increased rates. July letter from RBS re GRG. Week later letter from IP appointed. Rental property sold to reduce indebtedness to bank. Other Co property was sold to West Register with no marketing for 500K despite conservative valuation of 1.2M. West Register still own, have renewed planning and acquired plans that company had prepared for it. SIIP Collective of Investors SIIP collective of 20 investors owning a property development of 30 mixed commercial and residential units. Set up in 2002.

14 Page 14 of 19 Loan of circa 4M. Exceeded covenants due to poor management by financial adviser. Bank insisting on levying a 7% surcharge on all sales. Investors offered a plan of purchasing five flats that were for sale bringing over a 1M reduction to the loan. Over a three year period the development would have become profitable and could have been refinanced. This was on basis that 7% surcharge dropped. Bank declined this refinancing package. Charges placed on properties in favour of West Register. Construction Business Banked with RBS for over 30 years. Lending facilities of 1.5M 30 employees Turnover varied but net profit of 326K as at entry to GRG Co reached a renewal point in loan and RBS refused to renew. Bank imposed their own Valuers and Quantity Surveyors. GRG appointed. Bank decided the project was not viable and brought in Administrators. Bank took the land owned by the business and other land owned personally by main Shareholder as a result of a PG. Co property then sold to West Register at alleged significant undervalue. Owner Managed Construction & Development Business First banked with RBS in Entered GRG in 2008 when turnover 1.275M. Original construction loan of 650K. Discussions with Bank about proposed development local Business Manager agreed there was adequate margin in the development to mortgage and rent out properties of the market changed. No breaches cited. Customer advised that GRG s involvement would be beneficial as they were experienced in property sales. Valuer appointed by Bank. Fees started to be applied to account - 15,000 lump sum, 3,000 arrangement fee, additional 500 per month etc. Mortgages placed on properties in favour of West Register. West Register would not release charges even though customer seeking to refinance through another lender who would need first charges. Eight properties sold for circa 925K with net surplus after fees of 700K. Customer considers properties worth circa 1.5M. Cheese Processing Business Banked with RBS since 2008 Employees - 30 Overdraft of 200,000 and invoice discounting with borrowings around 600,000 Profit in 11 months - 250,000 Company Solvent Failure to input a small number of credit notes by newly employed accounts clerk led to RBS demanding resignation of finance director and removal of confidentiality of invoice discounting - resulting in loss of creditor confidence. Offer by Lloyds to take over account that would have rebuilt supplier confidence thwarted despite RBS stating they would like to reduce borrowings. Directors induced to invest 375,000 of new capital. Squeeze on invoice discounting facility. Administrator appointed December Bank removed sales ledger documentation against wishes of

15 Page 15 of 19 directors they already had copies. Bank refused to allow directors to be involved in debt collection.- in spite of prior agreement to contrary. Bank collected debts in place of administrator. Fees of 142,000 charged by bank and others. 283,000 of sales ledger debts unaccounted for. No monies available for creditors. Directors being pursued under personal guarantees for outstanding overdraft of 200,000. GRG involved in background. Shopfitting Business Bibby Financial Services provided confidential factoring facilities since 2009 Employees 277 Amount borrowed as part of factoring in management accounts to 31/12/ ,000. Trading profit in nine months, before factoring and consultancy charges - 442,000. These charges amounted to 413,000 leaving a net profit of 29,000. A large proportion of the company s business was the provision of shop-fitting services to B&Q. B&Q agreed payment terms of 60 days later reduced to 30 days. These payment terms were routinely exceeded. Bibby applied excess factoring charges on overdue B&Q debts; required the company to use a firm of accountants to control accounting hence the consultancy charges; and also routinely dictated which creditors including HMRC should be paid. From October 2010 Bibby and B&Q were in direct touch. January 2011 Bibby appointed an administrator. Two days afterwards B&Q paid around 700,000 to the company. Bibby were advised by B&Q that the 700,000 was being paid 3 days before the administrator was appointed. Administrator s expenses (including associates and professionals) amounted to 729,000 for what appears to have been five weeks work for five people. Creditors received 10% of debts. HMRC lost around 420,000. Special Needs School 2 valuations within 4 weeks, the first at double the second In Administration 8 days later Small private sector fee paying school (130 girl students) banked with NatWest for last 20 years. Not for profit charity status entity. School been in business for 108 years. Main asset is school valued in 2007 at 1.3M for loan purposes for major re-fit, borrowings 239K new loan 247K. School is situated in exclusive suburb of major city. School has alternative use for alteration to residential apartments. New valuation (Sanderson Weatherall) is required by RBS on 29th December 2009, value is guaranteed minimum 1.05M, confirmed by Red Book VALUATION. The new valuation is addressed to RBS. Nat West refer the matter to GRG/RBS in January Borrowings at time of referral to GRG are 486K (confirmed by Stephen Hester) in letter to Governors on 12th Feb West Register (Realisations) ltd appoint Knight Frank to do an 'OPINION of VALUE' as defined by Red Book in an Estate Agency Role. The Knight Frank opinion is NOT a valuation. The Knight Frank opinion is NOT for RBS. The Knight Frank opinion is caveated to such an extent that a 3rd party cannot/should not rely on it. The Knight Frank opinion was between 500 to 600K. The Knight Frank opinion was based on an alternative use for residential as per the Sanderson Weatherall valuation. The Knight Frank opinion is dated 27th January 2010.

16 Page 16 of 19 The school was closed on 12th February The administrator was appointed (Grant Thornton) who had been advising the school prior to appointment. Grant Thornton reported that the bank debt was 557K in April 2010 (+ 71K in 2 months?). The school was sold as a school in January 2011 for 775K, despite having valuations of 1M+ as a school. The school was not sold to a West Register Co. Stephen Hester states in writing (12th Feb 2010) that the Governors instructed Sanderson Weatherall with regard to the first valuation. Stephen Hester states in writing (12th Feb 2010) that the second valuation (opinion) was carried out for RBS. Stephen Hester is silent with regard to West Register (Realisations) Ltd instructing Knight Frank. RBS instructed Sanderson Weatherall for the valuation (29th December 1.05M) West Register (Realisations) Ltd instructed Knight Frank for the opinion (27th January 500K to 600K) Notes The Knight Frank 'opinion' doomed the school. Grant Thornton who had been advising the school, did not query the second value opinion which was 50% of the first genuine valuation that Grant Thornton oversaw. Grant Thornton then became the Administrator. Farming, Industrial Property Rental, Multi Discipline Heavy Construction Services & Contracting Business 15 employees/ staff, all laid off in 2009, jobs lost & not replaced Banked with NatWest since 2002 as a sole trader business Long term Loan & Overdraft of 825 K converted from a fixed 14 year mortgage Bankers Reference received in Oct , confirming all prior commitments had been honoured and is good for normal business The business had never exceeded an account limit or failed to pay interest payment at any time before transfer to RBS GRG in July 2009 NatWest loans due for normal renewal on Feb 28 th 2008, 2 days after RBS announce largest Corporate loss in UK history & shortly after shares drop to just 10p from a former high of 600p After verbal agreement to renew the loans in Dec 2008 from relationship manager, head office then decline to renew the loans in Jan 2009, one month later. Transferred to RBS GRG in July 2009, bank says it is due to loss of plant hire contracts letter states that the intention is to return the account to the local relationship manager A far superior major contract guarantee was received one month before transfer to GRG. Transfer to GRG was not prevented, although this was the most profitable single work contract to date GRG s appointment is stated as to assist in the restoration of the business GRG increase bank charges 3 fold, which is the opposite to their claims of assistance. GRG state that the management charges are for increased risk and management costs All day to day banking had been removed from NatWest to another bank, so that there were no transactions to manage. The NatWest bank accounts were left & maintained within their formerly agreed limits

17 Page 17 of 19 RGB GRG were told that 3 6 months worth of future interest could be set aside to prove ability to pay future interest within an independent solicitors escrow account Although any need for management had been mitigated, and risk had been mitigated by the offer to put future interest payments aside, GRG would not back down and maintained the charges. When GRG were asked why they were continuing to apply the charges to the account, when they could not be legitimately justified, GRG manager Matthew Harvey stated It was to centre the business owner s attention and make him talk to them Eventually, the GRG management charges & increased interest payments were refused payment. This lead to a breakdown in the relationship, whereby an LPA Receiver was appointed. A formal demand for repayment had not been issued by the bank prior to the appointment of the Receiver. Around one week before the Receiver was appointed; an individual with privileged information was caught attempting to sell the property with no formal agreement from the bank. Hard copy evidence is retained by a third party. GRG s actions have destroyed the profitable business and lead to insolvency The stress of the incident incurred the owner to suffer a suspected stroke, leading to almost a week s admission within a hospital intensive care unit. Both the owner of the business and his elderly parents are at imminent threat of losing their homes. The owner s parents suffer with health issues and live in constant worry of being made homeless. Business selling Pet Identification tags and service Sales revenue retained by RBS until business failed Banked with Nat West and used RBS WorldPay credit card processing services (WPP) from November Very profitable, award winning business. Failed 30/11/07 - all 30 staff made redundant with 1 minutes notice. 01/2006 after review WPP wrote You are a valued Merchant! We hope your business continues to grow (the business sales processed by WPP had grown by 57% in the past year to circa 1M). 02/06 WPP then FALSELY claimed that circa 55,000 of the businesses 61,000 total sales ( 2.25M), potentially caused RBS a risk of chargebacks should the business fail in the future. WPP immediately terminated the business in breach of the agreement and retained all sales money, leaving the business insolvent and likely to fail. (which would crystallise the risk if it really existed!) Decision was reversed only after threat of injunction. KPMG instructed by RBS to prove risk that WPP already said existed. KPMG produced a completely FALSE report of the business chargeback risk to RBS. Business allowed to trade on, with totally unnecessary and costly security applied to the account. Exactly 1 year later RBS create another FALSE Credit Risk Report recommending Termination. 03/2007 RBS (ICE) Intensive Care Exposure Committee rejected the risk alleged, as fanciful. 04/07 RBS accepted that there was zero risk with current sales and calculate risk regarding all businesses sales as de minimis. RBS did not divulge this information to the ICE committee. 07/07 the business informed WPP that it was moving to Barclays Merchant Services.

18 Page 18 of 19 08/07 business received sale offer of 2.5M from Graham Dacre CBE. RBS risk manager for the business and the FALSE Credit Risk Reports, became Chairman of the ICE Committee in breach of committee rules with 2 conflicts of interest. In breach of a specific directive of the ICE committee, RBS Terminated the business again. 09/07 RBS told by (ICE) Committee to provide reason for Termination, (which Barclays required under VISA rules). No termination reason ever provided, preventing proposed move to Barclays. 10/07 RBS retained all business sales revenue, without explanation again leaving the business insolvent and likely to fail. 11/07 No answers provided by WPP to 102 questions asked by the business and its solicitors. 11/07 RBS solicitors agreed to release some retained funds to pay the business staff, conditional that the business agrees in writing not to pursue the bank with any claims against it. 30/11/07 business closed insolvent, with RBS holding all revenue from previous 6 weeks trading. 12/07 RBS solicitors FALSELY informed business s solicitors that an express agreement existed, whereby RBS would retain all business revenue if card processing facility required after 20/10/07. 02/08 RBS wrote FALSE letter to business landlords purporting to own business assets and requiring entry to business offices. RBS personnel caught in the act of stealing computers and decamped to waiting hire van. 01/09 businesses solicitor told by RBS that retention of funds would continue to prevent business having a fighting fund with which to sue RBS RBS perverted the course of justice with 232 demonstrably FALSE claims within 3 court statements signed as true RBS final disclosures proved the businesses multi million claim against RBS /WorldPay ATE Insurers suddenly pulled out having offered additional insurance, with no reason provided and in breach of insurance rules NSB s case against RBS WPP collapsed, unable to raise 84,000 per day cash, as security against RBS daily costs. (Equivalent to 10% of the annual business turnover for each day in court). C. CLAIMS AND CAUSE OF ACTION Having considered the matter with Leading and Junior Counsel, it is clear that the facts of these cases give rise to a considerable number of potential claims and causes of action. In this context, it has been very surprising to see suggestions in the media from banks that although there may have been moral wrongdoing, there has been nothing unlawful. It is clear to us that in relation to both civil claims and in relation to the regulatory/criminal aspects, this is clearly not the case. While obviously the nature/extent of the claims will vary from case to case, we would give the following general indications: In some cases, there have been breaches of the express terms of the underlying finance/security contracts; for example, where the bank has proceeded on the basis of a default where none existed. Similarly in those cases where its fees, penalties and punitive interest rates have been imposed unlawfully. In most, if not all, the cases, there have been serious breaches of express and/or implied terms of the contracts. These arise particularly in the context of the bank (a) engineering alleged defaults upon which it then purported to rely, (b) acting in bad

19 Page 19 of 19 faith, (c) exercising contractual discretions and powers in bad faith/unconscionably or in an arbitrary, capricious or irrational way. In those cases where the bank was a chargee, it has acted in breach of basic obligations of good faith. There has been misrepresentation and deceit in relation to a number of aspects of the parties dealings including the negotiation/imposition of replacement financing terms which were much more favourable to the bank. In cases where the bank has assumed advisory responsibilities, there has been (at least) negligence and generally far worse. In some cases, the conduct of the bank and other third parties, such as valuers and IPs, will need to be scrutinised very carefully and may give rise to claims in unlawful means conspiracy. There are many serious questions as to the conduct of the bank s valuers and insolvency practitioners. Clearly, where purported (but not genuine, arm s length) valuations have been relied upon to trigger alleged default through LTV provisions, this also interrelates with (1) and (2) above. Financing/refinancing documents were entered into as a result of duress. There are clear indications that the banks were in a dominant position in the relevant market and have abused that position. Serious concerns regarding factoring and card payment services treatment of clients, which appear to be in bad faith. March 2014

Sixth Statutory Managers Report

Sixth Statutory Managers Report Sixth Statutory Managers Report Aorangi Securities Limited 4 March 2011 Sixth Statutory Managers Report for Aorangi Securities Limited March 2011 2 Introduction History On 20 June 2010, Richard Grant Simpson

More information

Insolvency: a guide for directors

Insolvency: a guide for directors INFORMATION SHEET 42 Insolvency: a guide for directors This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

Investing in mortgage schemes?

Investing in mortgage schemes? Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

Tailored Business Loans What you need to know. the imaginative law firm. Tailored Business Loans What you need to know

Tailored Business Loans What you need to know. the imaginative law firm. Tailored Business Loans What you need to know Tailored Business Loans help@.co.uk the imaginative law firm www..co.uk Tailored Business loans Tailored business loans were once sold mainly by large corporate banks such as Clydesdale and Yorkshire Bank.

More information

CPD Spotlight Quiz September 2012. Working Capital

CPD Spotlight Quiz September 2012. Working Capital CPD Spotlight Quiz September 2012 Working Capital 1 What is working capital? This is a topic that has been the subject of debate for many years and will, no doubt, continue to be so. One response to the

More information

1. Background The Company traded as a provider of self storage facilities and operates 8 units throughout the UK.

1. Background The Company traded as a provider of self storage facilities and operates 8 units throughout the UK. Space Maker Storage Limited - in Administration ( the Company ) Information regarding the sale of all of the business and assets of the Company on 30 April 2010 as required by Statement of Insolvency Practice

More information

Secured loans - A guide

Secured loans - A guide Secured loans - A guide WHAT IS A SECURED LOAN? A secured loan is a loan in which the borrower pledges some asset such as a car or property as collateral for the loan, which then becomes a secured debt

More information

Guidance Note on Payment Protection Insurance Mis-Selling Claims

Guidance Note on Payment Protection Insurance Mis-Selling Claims Guidance Note on Payment Protection Insurance Mis-Selling Claims 1. Background 1.1 Payment protection insurance ( PPI ) is intended to cover a borrower s unexpected loss of income as a result of redundancy,

More information

Sydney Wyde Mortgage Fund ARSN 108 342 123

Sydney Wyde Mortgage Fund ARSN 108 342 123 Sydney Wyde Mortgage Fund ARSN 108 342 123 Benchmarks and Disclosure Principles Report for ASIC Regulatory Guide 45 as at 30 June 2015 The following report describes each of the benchmarks and disclosure

More information

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED This document is issued by Standard Life Investments Property Income Trust Limited (the "Company") and is made available by Standard Life Investments (Corporate Funds) Limited (the AIFM ) solely in order

More information

4R Business Recovery HMRC Debt Guide

4R Business Recovery HMRC Debt Guide 4R Business Recovery HMRC Debt Guide 4R Business Recovery Helping You Turnaround Your Business A Few Words From Kevin Here at 4R Business Recovery, we understand that no two businesses are the same. Every

More information

CML guidance for lenders the role of LPA receivers

CML guidance for lenders the role of LPA receivers CML guidance for lenders the role of LPA receivers Introduction This guidance has been produced for CML members and outlines the basic circumstances and considerations of appointing a Law of Property Act

More information

LIFETIME MORTGAGE LUMP SUM

LIFETIME MORTGAGE LUMP SUM LIFETIME MORTGAGE LUMP SUM Terms and Conditions (version 5) This is an important document. Please keep it in a safe place. LV= Lifetime Mortgage lump sum Terms and Conditions Welcome to LV=, and thank

More information

CONCERNING CONCERNING

CONCERNING CONCERNING LCRO 251/2010 CONCERNING an application for review pursuant to section 193 of the Lawyers and Conveyancers Act 2006 AND CONCERNING a determination of the Auckland Standards Committee 4 BETWEEN MS CX of

More information

INVESTING IN MORTGAGE FUNDS?

INVESTING IN MORTGAGE FUNDS? INVESTING IN MORTGAGE FUNDS? Independent guide for investors about unlisted mortgage funds Mortgage funds can also be called mortgage trusts or mortgage schemes. About ASIC The Australian Securities and

More information

Insolvency: a guide for directors

Insolvency: a guide for directors INFORMATION SHEET 42 Insolvency: a guide for directors This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and

More information

Guide For Directors Of Insolvent Companies In The Cayman Islands

Guide For Directors Of Insolvent Companies In The Cayman Islands Guide For Directors Of Insolvent Companies In The Cayman Islands This guide provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent. Any queries

More information

Response to Law Commission consultation on: Reforming Consumer Redress for Misleading and Aggressive Practices

Response to Law Commission consultation on: Reforming Consumer Redress for Misleading and Aggressive Practices Response to Law Commission consultation on: Reforming Consumer Redress for Misleading and Aggressive Practices Introduction The Consumer Credit Counselling Service (CCCS) is the UK s largest dedicated

More information

Short Guide to OFT Debt Collection Guidance

Short Guide to OFT Debt Collection Guidance Short Guide to OFT Debt Collection Guidance By Ray Watson (20 November 2012) An easy reference guide to the OFT's debt collection guidance prepared by former OFT official, Ray Watson. Please do not rely

More information

All you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers

All you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers All you need to know about the Seniors Money Lifetime Loan Information for you, your family and your advisers 1 Contents This brochure from Ireland s only specialist Lifetime Mortgage provider highlights

More information

The Code of Conduct for Business Lending to Small & Medium Enterprises Information Booklet

The Code of Conduct for Business Lending to Small & Medium Enterprises Information Booklet The Code of Conduct for Business Lending to Small & Medium Enterprises Information Booklet The Code of Conduct for Business Lending to Small and Medium Enterprises Information Booklet. Please read this

More information

4R Business Recovery Liquidation Guide

4R Business Recovery Liquidation Guide 4R Business Recovery Liquidation Guide 4R Business Recovery Helping You Turnaround Your Business A Few Words From Kevin Here at 4R Business Recovery, we understand that no two businesses are the same.

More information

INSOLVENCY AND AVAILABLE OPTIONS

INSOLVENCY AND AVAILABLE OPTIONS INSOLVENCY AND AVAILABLE OPTIONS Corporations Act 2001 - Section 95A 95A Solvency and insolvency (1) A person is solvent if, and only if, the person is able to pay all the person's debts as and when they

More information

Saffron Building Society Mortgages Savings Investments Insurance Loans. Residential mortgage conditions. www.saffronbs.co.

Saffron Building Society Mortgages Savings Investments Insurance Loans. Residential mortgage conditions. www.saffronbs.co. Saffron Building Society Mortgages Savings Investments Insurance Loans Residential mortgage conditions www.saffronbs.co.uk 0800 072 1100 Saffron Building Society Residential Mortgage Conditions (England

More information

Key issues in bank lending

Key issues in bank lending Key issues in bank lending Introduction Welcome to Keynotes. Keynotes is a monthly event and publication to help early stage businesses get to grips with key legal issues. A bit about us Keynotes is brought

More information

XXXXX XXXXX. and. LOWELL FINANCIAL LIMITED t/a RED DEBT COLLECTION SERVICES PARTICULARS OF CLAIM

XXXXX XXXXX. and. LOWELL FINANCIAL LIMITED t/a RED DEBT COLLECTION SERVICES PARTICULARS OF CLAIM IN THE WEST LONDON COUNTY COURT Case No: BETWEEN: XXXXX XXXXX Claimant and LOWELL FINANCIAL LIMITED t/a RED DEBT COLLECTION SERVICES Defendant PARTICULARS OF CLAIM 1. The Claimant is a company director

More information

Equity Release Guide. www.seniorissues.co.uk

Equity Release Guide. www.seniorissues.co.uk Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY

More information

Debt collection guidance

Debt collection guidance Debt collection guidance Final guidance on unfair business practices July 2003 (updated December 2006) OFT664 Further copies Further copies of this report can be downloaded from our website at www.oft.gov.uk

More information

Trading during difficult times for SMEs. November, 2009

Trading during difficult times for SMEs. November, 2009 November, 2009 Introduction In an effort to support small and medium sized enterprises (SMEs), which constitute the main fabric of the upstream oil and gas supply chain, the Supply Chain Forum of Oil

More information

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings.

Limited companies. Identifying a limited company. Liability for limited company debts. Information: formal insolvency proceedings. This fact sheet gives information about private limited companies. We will use the terms limited company and company for the rest of this fact sheet. We explain the responsibilities of limited company

More information

THE OFFICE OF FAIR TRADING (OFT) DEBT COLLECTION GUIDANCE

THE OFFICE OF FAIR TRADING (OFT) DEBT COLLECTION GUIDANCE THE OFFICE OF FAIR TRADING (OFT) DEBT COLLECTION GUIDANCE Published by the OFT July 2003 1 INTRODUCTION 1.1 The Office of Fair Trading (OFT) has a duty under the Consumer Credit Act 1974 to ensure that

More information

Paper F9. Financial Management. Fundamentals Pilot Paper Skills module. The Association of Chartered Certified Accountants

Paper F9. Financial Management. Fundamentals Pilot Paper Skills module. The Association of Chartered Certified Accountants Fundamentals Pilot Paper Skills module Financial Management Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Do NOT open this paper

More information

Duties of the directors of companies in financial difficulties. slaughter and may. October 2010

Duties of the directors of companies in financial difficulties. slaughter and may. October 2010 Duties of the directors of companies in financial difficulties slaughter and may October 2010 Contents 1. Introduction 01 2. Overview 01 3. Practical guidance 02 4. Common law, statutory and regulatory

More information

Article Accounting Terminology

Article Accounting Terminology Article Accounting Terminology Contents Page 1. Accounting Period... 4 2. Accounts Payable (Sundry Creditors)... 4 3. Accounts Receivable (Sundry Debtors)... 4 4. Assets... 4 5. Benchmarks... 4 6. B.O.S.

More information

Insolvency & Debt Recovery Glossary of Terms

Insolvency & Debt Recovery Glossary of Terms Insolvency & Debt Recovery Glossary of Terms Administration An insolvency procedure in which an Administrator is appointed to attempt to rescue an insolvent company. It s designed to protect the company

More information

Managing Cash Flow & Accessing Finance

Managing Cash Flow & Accessing Finance Managing Cash Flow & Accessing Finance A Presentation by Clive Lewis, Head of Enterprise, Institute of Chartered Accountants in England & Wales (ICAEW) Managing Cash Flow & Accessing Finance Presentation

More information

Fundamentals Level Skills Module, F8 (IRL)

Fundamentals Level Skills Module, F8 (IRL) Answers Fundamentals Level Skills Module, F8 (IRL) Audit and Assurance (Irish) June 2008 Answers 1 (a) Prior year internal control questionnaires Obtain the audit file from last year s audit. Ensure that

More information

JOINT INSOLVENCY EXAMINATION BOARD

JOINT INSOLVENCY EXAMINATION BOARD JOINT INSOLVENCY EXAMINATION BOARD Joint Insolvency Examination Wednesday 9 November 2011 PERSONAL INSOLVENCY (3.5 hours) ANSWER ALL FOUR QUESTIONS EACH QUESTION CARRIES TWENTY-FIVE MARKS SUBMIT ALL WORKINGS

More information

late payment The Late Payment of Commercial Debts (Interest) Act 1998: A User s Guide

late payment The Late Payment of Commercial Debts (Interest) Act 1998: A User s Guide late payment The Late Payment of Commercial Debts (Interest) Act 1998: A User s Guide Index Introduction The importance of prompt payment Legal Warning Section 1: Understanding the legislation What is

More information

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS

OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS These Guidelines have been issued by the Insolvency Service and endorsed by the Bank of Mauritius. OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS 1. INTRODUCTION It is a generally accepted global

More information

POLICY FOR THE BREATHING SPACE SCHEME

POLICY FOR THE BREATHING SPACE SCHEME POLICY FOR THE BREATHING SPACE SCHEME PREFACE The Council is participating in a regional scheme called Breathing Space. The scheme facilitates the provision of loans in accordance with powers given under

More information

Residential mortgages general information

Residential mortgages general information Residential mortgages general information Residential mortgages general information 2 Contents Who we are and what we do 2 Forms of security 2 Representative Example 2 Indication of possible further costs

More information

The Straightforward. Consumer IVA Protocol. 2014 version

The Straightforward. Consumer IVA Protocol. 2014 version The Straightforward Consumer IVA Protocol 2014 version Effective from January 2014 1 IVA PROTOCOL Straightforward consumer individual voluntary arrangement hereinafter referred to as a Protocol Compliant

More information

CORPORATE RECOVERY & INSOLVENCY

CORPORATE RECOVERY & INSOLVENCY Brochure Corporate-14:Layout 1 1/7/09 13:50 Page 1 CORPORATE RECOVERY & INSOLVENCY Directors Responsibilities Brochure Corporate-14:Layout 1 1/7/09 13:50 Page 2 Your responsibilities as a company director

More information

Your Mortgage Guide. The Exchange. Property Services Mortgage Services Letting & Management Services Conveyancing Services

Your Mortgage Guide. The Exchange. Property Services Mortgage Services Letting & Management Services Conveyancing Services The Exchange Property Services Mortgage Services Letting & Management Services Conveyancing Services Your Mortgage Guide Contents: Introduction... 3 The Financial Services Authority (FCA)... 3 What is

More information

IVA PROTOCOL Straightforward consumer individual voluntary arrangement

IVA PROTOCOL Straightforward consumer individual voluntary arrangement IVA PROTOCOL Straightforward consumer individual voluntary arrangement Purpose of the protocol 1.1 The purpose of the protocol is to facilitate the efficient handling of straightforward consumer individual

More information

General Mortgage Conditions for England and Wales

General Mortgage Conditions for England and Wales You can order all our publications in large print, Braille, audio cassette or CD. Your local branch will arrange this for you or you can contact us on 08457 30 20 10. If you have hearing or speech difficulties

More information

Information Paper for the Legislative Council Panel on Financial Affairs. Protection of Consumer Credit Data

Information Paper for the Legislative Council Panel on Financial Affairs. Protection of Consumer Credit Data LC Paper No. CB(1)691/03-04(01) Information Paper for the Legislative Council Panel on Financial Affairs Protection of Consumer Credit Data Purpose Pursuant to the request by the Panel vide the Clerk to

More information

Receivership: a guide for creditors

Receivership: a guide for creditors INFORMATION SHEET 54 Receivership: a guide for creditors If a company is in financial difficulty, a secured creditor or the court may put the company into receivership. This information sheet provides

More information

Mortgages Guide. From http://limetreefs.co.uk 1

Mortgages Guide. From http://limetreefs.co.uk 1 Mortgages Guide Mortgages revealed... The explanations below are intended to give you an insight into some of the more common terms associated with the mortgage process. Repaying the Mortgage Whichever

More information

Simple Interest. and Simple Discount

Simple Interest. and Simple Discount CHAPTER 1 Simple Interest and Simple Discount Learning Objectives Money is invested or borrowed in thousands of transactions every day. When an investment is cashed in or when borrowed money is repaid,

More information

ebrief for freelancers and contractors Borrowing company money

ebrief for freelancers and contractors Borrowing company money ebrief for freelancers and contractors Borrowing company money The facts behind the Directors Loan Account Taking money from the business for personal use when trading as a partnership or sole trader is

More information

Banking & Finance - Bulletin 60 December 2008

Banking & Finance - Bulletin 60 December 2008 Banking & Finance - Bulletin 60 December 2008 In this issue: Breaking a Fixed Rate Loan our approach to break costs Direct Debits on Transaction Accounts Maladministration and Secured Lending Dealing with

More information

INTEREST FREE NON REPAYABLE BUSINESS FUNDING. Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk

INTEREST FREE NON REPAYABLE BUSINESS FUNDING. Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk INTEREST FREE NON REPAYABLE BUSINESS FUNDING Charles Brooks Comprehensive BusinessManagement Ltd www.cbmgroup.co.uk 1 INTRODUCTION If you ve ever been involved in a start up venture you can probably remember

More information

Loan Contract Terms and Conditions booklet with:

Loan Contract Terms and Conditions booklet with: Loan Contract Terms and Conditions booklet with: Mortgage conditions; and Direct Debit Request Service Agreement This booklet contains some of the terms and conditions that apply to a loan we offer Borrower(s)

More information

Mortgage Conditions and Explanations

Mortgage Conditions and Explanations Mortgage Conditions and Explanations 1 Mortgage Conditions and Explanations Bath Building Society ( the Society ) The paragraphs headed Introduction and Membership Rights below are included purely for

More information

Collection of Tax Debts

Collection of Tax Debts Collection of Tax Debts The Collector-General outlines Revenue s approach Introduction Revenue, as the Irish tax and customs administration, plays a critical role in securing and delivering most of the

More information

Your Right. to Buy Your Home. A guide for Scottish Secure Tenants

Your Right. to Buy Your Home. A guide for Scottish Secure Tenants Your Right to Buy Your Home A guide for Scottish Secure Tenants Your Right to Buy Your Home About this booklet This booklet is for Scottish secure tenants. If you are not a Scottish secure tenant, you

More information

3 February 2010 Millbank Tower, Millbank, London SW1P 4QP

3 February 2010 Millbank Tower, Millbank, London SW1P 4QP Report on an investigation into complaint no against Thurrock Council 3 February 2010 Millbank Tower, Millbank, London SW1P 4QP Investigation into complaint no against Thurrock Council Table of Contents

More information

LEGAL GUIDE TO RECOVERING A TRADE DEBT

LEGAL GUIDE TO RECOVERING A TRADE DEBT LEGAL GUIDE TO RECOVERING A TRADE DEBT Howat Avraam Solicitors A: 154 160 FLEET STREET, LONDON, EC4A 2DQ T: 020 7884 9400 E: Matthew.Howat@hasolicitors.co.uk Unpaid invoicing is a fact of life for most

More information

Mortgage schemes improving disclosure for retail investors

Mortgage schemes improving disclosure for retail investors REGULATORY GUIDE 45 Mortgage schemes improving disclosure for retail investors September 2008 About this guide This is a guide for responsible entities, compliance committees, compliance plan auditors,

More information

Interest rate swaps on business loans

Interest rate swaps on business loans BRIEFING PAPER Number 06306, 24 June 2014 Interest rate swaps on business loans By Timothy Edmonds Inside: 1. Introduction 2. Interest Rate Protection 3. Redress? www.parliament.uk/commons-library intranet.parliament.uk/commons-library

More information

Personal Debt Solutions (Dealing With Debt) An Essential Guide by Debt Advisory Services (Scotland)

Personal Debt Solutions (Dealing With Debt) An Essential Guide by Debt Advisory Services (Scotland) Personal Debt Solutions (Dealing With Debt) An Essential Guide by Debt Advisory Services (Scotland) Why you should read this guide Many people living in Scotland, through no fault of their own, are struggling

More information

LIFETIME MORTGAGE LUMP SUM

LIFETIME MORTGAGE LUMP SUM LIFETIME MORTGAGE LUMP SUM Terms and Conditions (version 4) This is an important document. Please keep it in a safe place. LV= Lifetime Mortgage lump sum Terms and Conditions Welcome to LV=, and thank

More information

Contact us free on 0800 085 5070 or visit www.mw-w.com

Contact us free on 0800 085 5070 or visit www.mw-w.com turnaround finance t-ban turnaround business angel network how t-ban works In the past there has been no effective way of bringing together pro-active investors and distressed businesses but t-ban offers

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

Macquarie Shorting. Product Disclosure Statement 15 JUNE 2015

Macquarie Shorting. Product Disclosure Statement 15 JUNE 2015 Macquarie Shorting Product Disclosure Statement 15 JUNE 2015 Macquarie Bank Limited. ABN 46 008 583 542. Australian Financial Services Licence No. 237502. 1 This PDS This product disclosure statement (

More information

KEY GUIDE. Setting up a new business

KEY GUIDE. Setting up a new business KEY GUIDE Setting up a new business The business idea You have a business idea, but can you turn it into a viable enterprise? Is there a market for the goods you will produce or the services you will supply?

More information

The Business Credit Index

The Business Credit Index The Business Credit Index April 8 Published by the Credit Management Research Centre, Leeds University Business School April 8 1 April 8 THE BUSINESS CREDIT INDEX During the last ten years the Credit Management

More information

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper C&I LOAN EVALUATION & UNDERWRITING A Whitepaper C&I Lending Commercial and Industrial, or C&I Lending, has long been a cornerstone product for many successful banking institutions. Also known as working

More information

Business leases guide

Business leases guide Business leases guide BUSINESS LEASES GUIDE Contents What is a business "tenancy"? Creation of a tenancy Common terms in lease Repairing liability FRI terms Landlord's covenants Insurance Tenant's continuing

More information

Zurich Stocks and Shares ISA. Terms and conditions

Zurich Stocks and Shares ISA. Terms and conditions Zurich Stocks and Shares ISA Terms and conditions Contents Introduction 3 The Terms and conditions 3 Roles and responsibilities 3 Risks 3 Terms and conditions 4 21) Your contract with us 4 22) Roles and

More information

the debtor had been pressured into taking out PPI; it had not been made clear that PPI was optional;

the debtor had been pressured into taking out PPI; it had not been made clear that PPI was optional; Guidance Note on Payment Protection Insurance Mis-Selling Claims in Trust Deeds & Sequestrations 1. Background 1.1 Payment protection insurance ( PPI ) is intended to cover a borrower s unexpected loss

More information

Thompson Jenner LLP Last revised April 2013 Standard Terms of Business

Thompson Jenner LLP Last revised April 2013 Standard Terms of Business The following standard terms of business apply to all engagements accepted by Thompson Jenner LLP. All work carried out is subject to these terms except where changes are expressly agreed in writing. 1

More information

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 What is Help to Buy? Help to Buy is equity loan assistance to home buyers from the Homes

More information

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY

Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 BANKRUPTCY FACT SHEET NO. 10 NORTHERN IRELAND What is bankruptcy? Bankruptcy is a way of dealing with debts that you cannot pay.

More information

Legal charges on family home - repossession

Legal charges on family home - repossession Legal charges on family home - repossession Standard Note: SN/HA/4837 Last updated: 17 September 2008 Author: Lorraine Conway For the majority of people, their main asset is the family home. When they

More information

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio.

This guide is aimed to help you consider the right choices before adding new or further buy to let property to your investment portfolio. Buy to Let Guide It has now become common for a buy to let property to form part of an individual s investment portfolio. Property has always been easy to understand in that it is tangible and therefore

More information

Planning your cash flow

Planning your cash flow 5 Planning your cash flow PROFITS ARE NOT CASH 80 OPERATING CYCLE 81 CASH FLOW BUDGETING 82 TRADE DEBTORS 87 TRADING STOCK 89 OVERCOMING CASH FLOW PROBLEMS 91 MINIMUM CASH RESERVE 92 If the cash flowing

More information

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management

Cost of Credit. How much is customer credit REALLY costing your business? Tips & advice for effective credit management Cost of Credit How much is customer credit REALLY costing your business? Tips & advice for effective credit management Group UK The best advice any business can follow to ensure they do not experience

More information

Home Loan Facility Agreement Terms and Conditions

Home Loan Facility Agreement Terms and Conditions Home Loan Facility Agreement Terms and Conditions Terms and Conditions Effective 13th July, 2013 ABN 55 094 317 665, ACL 286655, AFSL 286655. All rights reserved. 1 2 ABN 55 094 317 665, ACL 286655, AFSL

More information

Risk in Construction

Risk in Construction Risk in Construction Market Research prepared for June 2014 In association with the Chartered Institution of Civil Engineering Surveyors, The Institution of Civil Engineers and the UK s leading Design

More information

Business Debtline www.businessdebtline.org 0800 0838 018

Business Debtline www.businessdebtline.org 0800 0838 018 BUSINESS DEBTLINE Business Debtline www.businessdebtline.org 0800 0838 018 DEALING WITH DEBTS OF A LIMITED COMPANY FACT SHEET NO. 5 NORTHERN IRELAND This fact sheet gives information about private limited

More information

TAXATION OF PRIVATE LANDLORDS

TAXATION OF PRIVATE LANDLORDS TAXATION OF PRIVATE LANDLORDS The Tax Position of the Small Private Landlord The private rented sector is possibly the only sector of the economy where the tax and regulatory systems work to prevent the

More information

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development.

Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. Financial Challenges and Pains faced by SMEs. The funding options available to them at different stages of their development. A Funding Whitepaper from HCBA www.hcba.co.uk 01932 244810 Pegasus Funding

More information

Heslop & Platt Solicitors Limited

Heslop & Platt Solicitors Limited TERMS OF BUSINESS Heslop & Platt Solicitors Limited 1. Introduction and Definitions 1.1 In these terms of business, the following words and phrases have the following meanings: Initial Client Letter Client

More information

TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING

TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING 1. BROKER INFORMATION TERMS OF BUSINESS AGREEMENT - INSURANCE BROKING Stephenson s (2000) Ltd T/As Cooke & Mason, Manor House 3 Low Moor Road Lincoln LN6 3JY is an independent Chartered Insurance Broker.

More information

Outlines matters to be discussed when entering a shareholders agreement.

Outlines matters to be discussed when entering a shareholders agreement. This information leaflet gives you introductory guidance to shareholders agreements. It does not however give you legal advice. If you need legal advice please contact Kay Waddington in our Corporate department

More information

Understanding gearing Version 5.0

Understanding gearing Version 5.0 Understanding gearing Version 5.0 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to gearing. This document has

More information

Services for Solicitors

Services for Solicitors Services for Solicitors About us Contents About us Who we are 1 What we do 1 Why CavanaghKelly? 2 3 Sector specialisms 3 Who we advise 3 Corporate & Commercial 4 Litigation & Dispute 6 Banking & Finance

More information

Care Home Fees: Paying them in Scotland

Care Home Fees: Paying them in Scotland Guide Guide 52 Care Home Fees: Paying them in Scotland Living in a care home can be expensive. Some people are able to pay their own care home fees, but others may need financial support from their local

More information

Resolution No. 391/2008 of the Polish Financial Supervision Authority. of 17 December 2008

Resolution No. 391/2008 of the Polish Financial Supervision Authority. of 17 December 2008 Resolution No. 391/2008 of the Polish Financial Supervision Authority of 17 December 2008 on issue of Recommendation S (II) concerning good practices related to mortgage-secured credit exposures Pursuant

More information

Insolvency Law Newsletter Switzerland Director's Duties & Liabilities in Distressed Companies

Insolvency Law Newsletter Switzerland Director's Duties & Liabilities in Distressed Companies Insolvency Law Newsletter Switzerland Director's Duties & Liabilities in Distressed Companies What steps should a Board undertake when it realises that a company is in financial difficulties from a management

More information