Frenkels Forensics has significant and proven experience in assisting businesses assess their consequential losses and we have laid out some useful information on what those consequential losses are and what you should do if you believe you have been mis-sold an FX product.
Mis-sold FX Products: An overview
Companies and individuals trading in foreign currencies have been pressurised by banks and financial institutions to get protection from adverse currency movements by entering into some form of hedging arrangement.
A common and straightforward example of this is a forward contract, allowing for fixed currency exchange rates (costs) over the coming months or years.
However, some banks and financial institutions have sold SMEs inappropriate currency products which include complex derivatives that, instead of helping the customer protect itself from currency exchange risk, are speculative in nature and have the potential of exposing the customer to enormous liabilities.
How was this service mis-sold?
The associated risks involved in these unnecessarily complicated FX products often were not fully explained to customers. These risks include:
Ultimately, as well as a claim against a financial institution for a mis-sold FX product, there may well be consequential losses that businesses have suffered, for example:
Comparisons to the mis-sale of Interest Rate Hedging products
The mis-selling of FX products shares many similarities with the mis-sale of IRHPs by banks in the last 10 to 15 years, such as:
Frenkels Forensics has been involved for several years in assisting businesses with their consequential loss claims arising from IRHPs. We can do the same for your client who has been mis-sold a FX product. Contact us today.
What should you do if you think your client has been mis-sold an FX product?
Contact us. Frenkels Forensics|Chartered Accountants has a strong track record in supporting businesses and their legal advisors in the assessment of consequential losses following the mis-selling of IRHPs. As such, we are fully versed in the support businesses need to seek consequential losses from mis-sold FX products.
For consequential loss claims. Seek Frenkels Forensics.
Contact us today or call us for free on 0800 996 1680.