Everywhere you look right now, financial services organisations seem to be stepping on litigation landmines—and they are ill-prepared to cope with it. Whether it is the LIBOR rate fixing scandal, rogue traders working wild, or the mis-selling of financial products to unsuspecting people in the street, the financial services industry is being brought to task by the Financial Services Authority (FSA) and other bodies for their misdemeanours.
With the economy in a state of crunch, crash, or conundrum depending on your point of view, money is tight in the market right now. However the legal departments in these organisations are regularly paying out multi-million pound sums—in some cases tens of millions—for litigation-related work whenever they are investigated.
So why are they having to pay so much in legal and review fees—and what can they do about it? You don’t need to look far to find answers to both questions. Whenever an...