In a judgment handed down yesterday, the Supreme Court held that there is no general rule that an authority such as the FSA, seeking an injunction in the course of its public functions, should be required to give a cross-undertaking in damages in favour of third parties affected by the injunction, and that there were no particular circumstances why it should be required to do so in the present case: Financial Services Authority v Sinaloa Gold plc and others (Respondents) and Barclays Bank plc (Appellant) [2013] UKSC 11.
The decision will be of particular interest to banks and other financial institutions which hold client assets, since it limits the protection afforded to them as innocent third parties who may potentially suffer loss or expense following the grant of an injunction in favour of the FSA. Click here to read about the decision on our Financial Services Regulation and Corporate Crime Notes blog.
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