Barclays 2014 Annual Report Download - page 316

314 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
29 Legal, competition and regulatory matters continued
Credit Default Swap (CDS) Antitrust Investigations
The Commission and the DOJ-AD commenced investigations in the CDS market, in 2011 and 2009, respectively. In July 2013 the Commission
addressed a Statement of Objections to BBPLC, 12 other banks, Markit Ltd. and ISDA. The case relates to concerns that certain banks took
collective action to delay and prevent the emergence of exchange traded credit derivative products.
If the Commission does reach a decision in this matter it has indicated that it intends to impose sanctions. The Commission’s sanctions can
include fines. The DOJ-AD’s investigation is a civil investigation and relates to similar issues. Barclays is also contesting a proposed, consolidated
class action alleging similar issues that has been filed in the US. Disclosure in the case is ongoing.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect, if any, that they
might have upon the Group’s operating results, cash flows or financial position in any particular period.
Interchange Investigations
Investigations of Visa and MasterCard credit and debit interchange rates by competition authorities in Europe remain open.
BBPLC receives interchange fees, as a card issuer, from providers of card acquiring services to merchants. The key risks arising from the
investigations comprise the potential for fines imposed by competition authorities, litigation and the implementation of new regulations that
impact interchange fees.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect, if any, that these matters
might have upon operating results, cash flows or the Group’s financial position in any particular period.
Interest Rate Hedging Products Redress
See Note 27 for a description of the FSA’s review and redress exercise in respect of interest rate hedging products and the provisions recognised by
the Group in connection with it.
General
The Group is engaged in various other legal, competition and regulatory matters both in the UK and a number of overseas jurisdictions. It is
subject to legal proceedings by and against the Group which arise in the ordinary course of business from time to time, including (but not limited
to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data protection, money
laundering, employment, environmental and other statutory and common law issues.
The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by
regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with
legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged.
At the present time, the Group does not expect the ultimate resolution of any of these other matters to have a material adverse effect on its
financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be
no assurance that the outcome of a particular matter or matters will not be material to the Group’s results of operations or cash flow for a
particular period, depending on, amongst other things, the amount of the loss resulting from the matter(s) and the amount of income otherwise
reported for the reporting period.
Accruals, provisions, contingent liabilities and legal proceedings