Forex Hedging is a widely used and respectable method employed by companies who purchase currency to purchase items overseas and wish to protect themselves against currency fluctuations by hedging their risk using various types of derivative contracts offered by their bank.
Unfortunately, brokers and the Banks are persuading their clients to take out these incredibly complex hedges which are unsuitable for the client and can cause significant financial loss during the time it is in place, and also contain massive and unforeseen termination costs when the client attempts to extricate themselves from the arrangement.
But how would you know if your business has been affected by Forex mis-selling?
Take a look at the questions below, kindly supplied by our partners at Vedanta. If you answer yes to some of the questions speak to our legal experts now for a free initial consultation by calling our number, filling out the form opposite or emailing firstname.lastname@example.org.
- Have you entered into FX Hedging structure which you find it hard to explain to a third party?
- Have you entered into any FX transaction that had an expiry of greater than 12 months?
- Did any of the FX products have:
- leverage or ratio elements? (where you are obligated to buy say twice the amount of currency)
- Any options that have extendibility or ‘knock-outs’ / ‘knock-ins’?
- Triggers, Barriers or Bonus levels?
- Any ‘outperformance’ or speculative elements?
- Any pressure / encouragement to enter into any FX products or options?
- Have you bought or sold more currency than your business requirements?
- Did a bank or broker fail to show you potential early termination costs?
- Did a bank or broker fail to explain the credit limit requirements of the FX products?
- Have you faced any margin calls from your bank or broker?
At berg we have considerable experience and expertise in assisting clients such as individuals and companies successfully settle or litigate claims against Banks and financial institutions. To find out more about the issues raised in this post, or to discuss any queries regarding Forex mis-selling get in touch with our Banking & Finance team on email@example.com or call +44 (0) 161 829 2599.
The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by berg or any of its partners or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.