Financial services disputes
Helping clients navigate complex, contentious matters
Disputes in the financial services sector can be complex, with high volumes of transactions, intense regulatory oversight and an international reach. Efficiently resolving disputes is critical to the ongoing profitability and success of individual financial institutions.
The Financial Services industry handles large, complex, structured transactions and as a consequence can be subject to contentious issues around valuation, modelling and the commercial and economic rationale for the transactions. In an industry continually influenced by complex economic and technological factors, this can often lead to dispute. There are typically numerous transactions of high value and complexity, often subject to factors which are unique to the industry sector and require specialist industry experience and expertise to understand and interpret.
Deloitte’s financial services disputes team combines specialists in banking and capital markets and forensic technology with expertise in litigation support. We conduct detailed financial investigations, assess business losses and consider quantum and valuation issues in the financial services sector, both in formal dispute proceedings and in relation to alternative dispute resolution models, such as arbitration and mediation. We act as expert witnesses in financial services related disputes, as well as working behind the scenes to assist clients with potentially contentious matters.
How we can help
Our integrated team has a wealth of experience in translating complex information and analysis into understandable and concise language for use in a wide variety of contentious matters. Our involvement in financial services disputes has ranged from assisting clients in assessing the commercial and financial merits of any potential claim, through to providing full dispute advisory services and expert evidence.
We combine familiarity with complex financial instruments with experience of litigation protocols. Underpinning our capability is our Forensic Technology team with experience of making sense of the systems and data available, applying advanced data analytic techniques to present the information in a format that can be analysed by our dispute teams and in Court.
We are able to provide expert witness services as part of litigation, arbitration or dispute resolution processes in all types of financial services related disputes. Our team regularly works with law firms and directly with clients to provide independent, objective services in assessing the quantum of specific claims or considering liability issues in cases involving alleged accounting or audit negligence. In addition, our forensic technology specialists can assist clients with technically complex matters, for example conducting piracy scans or understanding how computer code has been used.
Our team includes a number of individuals who are experienced in giving expert evidence in Court or before a Tribunal. The team also includes dedicated International Arbitration specialists who act as experts and arbitrators with and within the major arbitral institutions (including the ICC, the LCIA and ICSID as well as ad hoc arbitrations and other international dispute resolution forums). We are also able to call upon particular Subject Matter Experts from within Deloitte’s wider financial services community.
We provide dispute advisory services to our clients and assist them in protecting the value and reputation of their business by addressing serious issues before they turn into crises.
Working alongside our client’s legal counsel as expert advisors, our disputes professionals can provide technical advice, valuable insight into data and evidence sufficiency for quantum claims, alternative scenarios and assessment of realistic quantum, as well as participate in mediation and negotiated settlements avoiding costly legal proceedings.
Our dispute professionals have extensive experience of dispute situations resulting from, for example, completion accounts or earn-out, and clauses in sale and purchase agreements. We act as either an advisor to a party to the transaction, assisting them as required at all stages of the process, or we act as the Independent Determining Accountant.
Given the predominance of electronically stored information in organisations, and the move to off-shoring and out-sourcing seen in many financial services institutions, the ability to collect effectively, manage and search that information is typically a critical element of most financial services dispute related matters. Our experience shows that the companies operating in this sector in particular tend to have extremely complex systems architecture and companies can experience challenges when trying to identify which systems are relevant to the issues in dispute and also in accessing information from such systems, especially if the systems are legacy. Our global team of forensic technology professionals provide a full range of consultancy and technology services to assist law firms and clients in the securing, collection, filtering, review, production and presentation of electronically stored information.
Given the pace of change in financial services and the nature of disputes that arise, we regularly blog on current topics in the sector. Included below are a couple of our most recent blogs.
Banking provisions – another year, another story?
Since 2010 Europe’s banks have had to put aside increasing amounts to settle financial services disputes and fines imposed by financial regulators… Read more
EU benchmark regulation: Are you ready for implementation?
Due to be introduced on 1 January 2018, the European Commission’s Regulation on indices used as financial benchmarks in financial instruments and financial contracts forms part of the EU’s response to a series of high profile investigations, in recent years, into the alleged manipulation of key financial benchmarks, including LIBOR… Read more
One of the distinctive features of Deloitte’s FS disputes team is that it combines industry and subject matter experts from our banking and capital markets group, with specialists in forensic technology and professionals with a detailed understanding of dispute resolution from our Forensic group. It is the seamless provision of industry expertise, managing data and disputes know-how that allows us to support clients through some of their most challenging times.