Cooper Stern Thought Leaders
Recovered over £16 Million
Acted for over 400 Clients
Claims made against 12 UK Banks
Servicing over 15 Sectors
For example, a UK exporter enters into a contract today to sell stone to a US importer. The terms of the contract require the US importer to pay US dollars in a year’s time. The UK exporter now has a known US dollar receivable. Over the next year, the pound sterling value of the US dollar receivable will rise or fall depending on fluctuations in the exchange rate. To mitigate the UK Company’s uncertainty about the direction of the exchange rate, the UK exporter may choose to secure a rate at which she will sell the US dollars and buy pound sterling in 12 months. To accomplish this, she hedges the US dollar receivable by purchasing a forward contract.
UK exporter contracts with Lloyds
Investor C was recently made redundant, received their redundancy payout. RBS approached them about an investment opportunity. Put in £20,000. Investor goal was to obtain a better than cash return. Was sold as having a return rate of at least 5% with no risk of losing capital. The Bank did not adequately disclose that profits were capped each month but that prospective losses were unlimited – creating a scenario where profits could potentially never outweigh the losses. They were told at worst poor performing elements would be swapped out for a cash return.