Edinburgh Napier University

  This article discusses the recent decision of the Court of Appeal of England and Wales in Allianz Global Investors GmbH v Barclays Bank Plc. Overturning a decision of the High Court, the Court of Appeal held that losses incurred by investment funds as a result of the fixing of foreign exchange rates by a group of banks were not, from a legal perspective, deemed to be "passed-on" to investors in those funds upon investors redeeming their holdings. While it is argued that the decision of the Court of Appeal is fundamentally correct, it is submitted that the Court was wrong to downplay the significance of the rule against "reflective loss" in coming to its decision. It is then noted that the decision is significant in terms of drawing a firm distinction between the situation of a price being passed on down a supply chain to purchasers - and the scenario of an illegal overcharge causing loss to the value of a company or other legal entity, potentially diminishing the value of the holdings of investors in that entity.