Banking Law - Penelopes Financial Situation Free Essay Example, 2750 words

As much as banks are compelled by various legislations to maintain the secrecy to its clients, sometimes mistakes occur. For instance, in the famous 1924 case pitting Tournier v National Provincial and Union Bank of England, four reasons for which a bank can legally reveal information concerning its customers was set out. For instance, where a bank is obliged by law to release the information; if the bank has a public responsibility to unveil the information; if the banks interest needs the disclosure, and where the client has agreed that information about him be released. Therefore, if a bank reveals information about a customer in any conditions apart from those stated above; then it is deemed to have acted erroneously and should be held accountable for the practically anticipated consequences of its action. In another case, pitting Primary Group v Royal Bank of Scotland, the High Court made consideration to the banks confidentiality duty in a case that also needed to explain the measure of compensation for breach of such when a client hasn t suffered a direct loss. The high court after making consideration to the arguments presented to it, ruled in favor of the Primary Group maintaining that Royal Bank of Scotland had breached its contractual commitment of confidence. We will write a custom essay sample on Banking Law - Penelopes Financial Situation or any topic specifically for you Only $17.96 $11.86/pageorder now Referring to these rulings, it is imperative that terms of the agreement between a banker and the bank have to be kept confidential at all times. The principles that dictate the exception to this were confirmed in the Court of Appeal cases involving Turner v Royal Bank of Scotland plc of 1999 case and the Christofi v Barclays Bank plc of 2000. In both cases, the court found grounds for which a breach of confidentiality would occur, and information was let out. Despite the fact that the Tournier principles draw wide recognition and use, their limits are not very clear with reference to decided cases. Notably, most businesses in the UK including banks are subject to legislation intended to protect persons and transfer of their personal data. The UK implemented this through the enactment of the Data Protection Act 1998.