Financial Services & Banking Litigation
Trends and insights 2026
The financial services sector continues to generate a high volume of contentious work. With increased regulatory scrutiny, market uncertainty and growing pressure on senior management, disputes are expected to intensify in 2026.
In 2024-25, financial services litigation rose 11%, and nearly one in two firms reported an internal governance or conduct dispute (FSR Report 2025).
"In financial services disputes, timing is everything - delay often turns manageable risk into irrecoverable loss."
Commercial Court Practitioner commentary
Partnership disputes on the rise
Partnership disputes surged in 2025, particularly in financial services structures. With 44% of professional services firms reporting partnership tensions or restructuring discussions (PWC Partnership Governance Survey 2024), we expect this to continue into 2026.
Pressure on profits and partner performance often exposes outdated partnership agreements. Many disputes stem from documents that have not been revisited for years and no longer reflect commercial reality.
Increased claims against directors
Scrutiny of directors’ duties remains intense. With financial distress affecting 40% of UK businesses (Begbies Traynor 2025), decision making around valuation, risk, investments and underperforming contracts is being challenged more aggressively.
The sector has seen a 16% rise in claims and investigations involving directors (FSQ Quarterly 2025). Demand for D&O cover continues to grow, with premiums rising 10-15% across financial services.
Market volatility as the next big driver
While not yet evident in 2025, market volatility remains a major risk for 2026. Tech-sector concentration with over 30% of S&P 500 gains driven by AI-adjacent stocks (Goldman Sachs) – is raising concerns of an overinflated bubble.
If a correction occurs, volatility will spill across global markets. Historically, periods of instability have led to double-digit increases in financial disputes, particularly mis-selling, valuation, misrepresentation, and investment loss claims (FCA Litigation Data Review).
