Law firms team up for interest rate swap venture

TWO small Manchester law firms have teamed up in a joint venture aimed at helping businesses mis-sold interest rate swap products gain redress.

Farley Hilton Dwek comprises Spinningfields-based Hilton Law and Farley Dwek, which is located at the Great Universal building in Ardwick.

The new venture will compete with Haydock-based Seneca, Berg Legal and Hermes Advisory, a sister company of EOS Law, the firm founded by Simon Woolley.
 
Interest rate swaps, also known as caps, collars and structured collars were intended to safeguard businesses against rising interest rates but in some cases they were wrongly sold to small firms, who ended up having to pay thousands of pounds in extra fees and charges.

The Financial Conduct Authority has already given Britain’s biggest banks permission to start paying an estimated £2bn in compensation owed to small firms.
 
Farley Hilton Dwek is already looking to recruit specialist financial and banking professionals and support staff in the next 12 months while also expanding its commercial litigation services.

Jonathan Dwek said: “Not only did the banks mis-sell interest rate swaps but they did so knowing that the average business owner or finance director didn’t understand the risks they were taking on. This particular type of hedging product is so complex that the FSA (Financial Services Authority) even had to define which type of businesses they felt were capable of making an informed decision.”

Mark Hilton added: “We believe there are hundreds of businesses in the North West that may be eligible for compensation as a result of the wilful mis-selling of these financial products. They will be approached by their banks with offers to settle during the next 18 months but they should not be tempted by the first offer from the bank but should first seek specialist advice.

“As well as offering inadequate recompense the settlements are often proposed in such a way as to place even more onerous conditions on the business if they accept.”

Between the two firms a team of seven are being assigned to the venture. If demand meets expected levesl it could grow to 25 within 12 months.

Andrew Farley and Jonathan Dwek founded Farley Dwek Solicitors in 2007 and have specialised in processing claims including personal injury, medical negligence and care costs cases. The firm currently employs 15 staff. The pair met working at Rowe Cohen in the 1990’s.

Mark Hilton founded Hilton Law in 2009 and, with his partner Nick Scott and team of five support staff advises businesses on litigation and commercial law issues.