Best Banking & Finance Lawyers in Aberdeen

About Banking & Finance Law in Aberdeen, United Kingdom

Aberdeen is a major UK hub for energy, offshore services, renewables, and marine industries. Banking and finance activity in the city reflects that mix, with transactions ranging from property and development finance to asset-backed lending for equipment and vessels, project finance for energy infrastructure, working capital facilities for small and medium sized enterprises, and sophisticated treasury products used by larger corporates.

Banking and finance law in Aberdeen sits within the UK regulatory framework, with certain rules and commercial practices shaped by Scots law. UK regulators oversee authorisation and conduct of banks, lenders, insurers, investment firms, and payment companies. Scots law governs creation and enforcement of many types of security, land-related mortgages, diligence and enforcement procedures, and court processes in the Sheriff Court and Court of Session.

Whether you are a consumer, a business owner, a charity, or a lender or fintech, you will encounter a blend of UK-wide regulation and Scotland-specific property and enforcement rules. Getting early legal advice helps you understand the correct pathway, avoid regulatory pitfalls, and protect your position in negotiations or disputes.

Why You May Need a Lawyer

Individuals often seek help with mortgage arrears and repossession processes in Scotland, bank account closures or de-risking, mis-sold financial products, unauthorised or authorised push payment fraud, data and privacy issues, guarantor liabilities, and complaints to the Financial Ombudsman Service.

Businesses commonly need advice when negotiating loan and security documents, asset finance, invoice finance and factoring, development or project finance for energy and property, hedging and derivatives, Islamic finance, trade finance, or when dealing with covenant breaches, waivers, events of default, and restructuring options.

Startups and fintechs may require guidance on FCA authorisation, payment services and e-money rules, safeguarding and capital requirements, cryptoasset promotions compliance, data protection, outsourcing and cloud terms, and financial promotions.

In disputes and distress scenarios, a lawyer can assist with Scottish enforcement and diligence, director duties, personal guarantees, sequestration or protected trust deeds, administration or liquidation, and strategies to negotiate time to pay or standstill agreements with lenders.

Local Laws Overview

Regulatory framework. Most conduct and prudential rules are UK-wide. Core statutes and regimes include the Financial Services and Markets Act 2000 and 2023 reforms, PRA and FCA rulebooks, Consumer Credit Act 1974, mortgage conduct rules for residential lending, the Payment Services Regulations 2017 and Electronic Money Regulations 2011, and the UK financial promotions regime. Open Banking stems from the 2017 retail banking order. The FCA Consumer Duty applies across retail products and services.

Consumer protection. UK consumer credit, mortgage, and conduct rules set pre-contract disclosures, affordability checks, arrears handling, and complaint rights. Scottish homeowners benefit from specific pre-action requirements before repossession. Unfair contract terms are governed by the Consumer Rights Act 2015 and related guidance.

Security and collateral under Scots law. Security over heritable property is taken by standard security under the Conveyancing and Feudal Reform Scotland Act 1970 and registered in the Land Register of Scotland. Floating charges by companies and LLPs are registered at Companies House. Assignation of claims and security over moveable property have been modernised by the Moveable Transactions Scotland Act 2023, which introduces new registers for assignations and statutory pledges operated by Registers of Scotland. Transaction structuring must account for Scots law formalities, filing deadlines, and perfection steps.

Payments and fintech. Payment institutions and e-money issuers require authorisation or registration unless an exemption applies. Firms must meet safeguarding, capital, conduct, and complaints handling obligations, and comply with strong customer authentication. The Payment Systems Regulator oversees payment systems and has introduced new reimbursement requirements for authorised push payment fraud on Faster Payments during 2024 to 2025.

Financial crime and sanctions. Anti-money laundering rules are set by the Money Laundering Regulations 2017 and the Proceeds of Crime Act 2002. Customer due diligence, reporting suspicious activity, and record-keeping are mandatory. Sanctions compliance is required under the Sanctions and Anti-Money Laundering Act 2018 and related regulations.

Data and privacy. UK GDPR and the Data Protection Act 2018 regulate how financial firms process and share personal data. Confidentiality duties also arise under contract and common law.

Insolvency and restructuring. Corporate processes such as administration, liquidation, company voluntary arrangements, and the restructuring plan regime are UK-wide, with Scottish court procedure applying locally. Personal insolvency in Scotland is called sequestration and is administered with oversight from the Accountant in Bankruptcy. Alternative Scottish solutions include the Debt Arrangement Scheme and protected trust deeds.

Enforcement and courts. Scottish diligence includes arrestment of funds, attachment of moveable property, inhibition affecting heritable property, and money attachment. Disputes are brought in the Aberdeen Sheriff Court or, for complex or high-value cases, the Court of Session. Many banking contracts include Scots or English law and jurisdiction clauses, so choice of law and forum must be checked. Time limits differ from England and Wales: many monetary obligations prescribe after five years under the Prescription and Limitation Scotland Act, subject to exceptions and long-stop periods.

Local market. Aberdeen’s energy and infrastructure focus means project finance, reserve-based lending, vessel and equipment finance, and green or sustainability-linked products are common. Public and mission finance may involve the Scottish National Investment Bank, the British Business Bank, and the UK Infrastructure Bank, alongside commercial lenders.

Frequently Asked Questions

Do I need FCA authorisation to lend money or provide finance in Aberdeen

It depends on the activity and the counterparty. Commercial lending to limited companies is often unregulated, but consumer credit, regulated mortgages, deposit-taking, and many forms of broking and debt counselling are regulated activities that require authorisation or exemption. Payment services and e-money also require authorisation or registration. Many exemptions are narrow, so obtain advice on the regulatory perimeter before you begin.

What is different about taking security in Scotland

Scots law uses a standard security for land and buildings, registered in the Land Register of Scotland. Floating charges by companies are registered at Companies House. Assignment of receivables and security over moveable assets follow Scots law rules, which have been modernised by the Moveable Transactions Scotland Act 2023 and new registers for assignations and statutory pledges operated by Registers of Scotland. Perfection, ranking, and filing deadlines are different from England and Wales, so transaction documents and checklists must be tailored for Scotland.

How do I complain about a bank or lender

Use the firm’s internal complaints process first. If unresolved after eight weeks or if you receive a final response you disagree with, you may be able to go to the Financial Ombudsman Service. Eligibility includes consumers, micro-enterprises, and many small businesses and charities, subject to size criteria. Larger corporates usually proceed through negotiation, mediation, or court. Keep detailed records and timelines to support your case.

My bank account was closed without notice - what can I do

Banks can close accounts under contract or for regulatory reasons, including anti-money laundering risk. Ask for reasons where possible, submit a formal complaint, and consider escalating to the Financial Ombudsman Service if eligible. Consumers may be entitled to a basic bank account under the Payment Accounts Regulations, subject to conditions. If closures disrupt your business, a solicitor can help with urgent communications, interim solutions, and managing downstream liabilities.

What should I look for in a business loan agreement

Focus on representations, covenants, financial ratios, information undertakings, events of default, fees and break costs, interest rate fallback and benchmark provisions, security and guarantees, negative pledge and restrictions on disposals, change of control, tax gross-up, transfers, and governing law and jurisdiction. For Scottish assets and guarantors, ensure the security package and signing formalities comply with Scots law to avoid enforceability issues.

What happens if I fall into arrears on my Scottish mortgage

Lenders must follow pre-action requirements, consider forbearance, and only seek possession through the Scottish courts. Engage early, propose realistic repayment plans, and keep records of all contact. Independent debt advice can assist. If a court action is raised, attend hearings or arrange representation promptly. Complaint or ombudsman routes may be available for conduct failings.

How can I reduce the risk of authorised push payment fraud

Use confirmation of payee, dual controls, and out-of-band verification for payment requests. Contact your bank immediately if you are scammed. The Payment Systems Regulator has introduced mandatory reimbursement for many Faster Payments APP fraud cases during 2024 to 2025, with conditions and exclusions. Keep evidence and file police reports. For businesses, implement training and clear payment change procedures.

What are my options if my business breaches a covenant

Act early. Review the agreement, quantify the breach, and prepare mitigations. Options include waivers, amendments, additional reporting, or short-term liquidity support. Lenders will assess going concern, collateral, and director conduct. Early legal advice helps you avoid admissions, preserve negotiations, and align any restructuring with directors’ duties and insolvency laws.

I am launching a fintech in Aberdeen - what rules should I plan for

Confirm whether your model involves regulated activities such as payment services, e-money issuance, investment services, or consumer credit broking. Plan for authorisation or registration, safeguarding and capital, outsourcing and operational resilience, complaints and FOS access, data protection and information security, financial promotions, and cryptoasset promotion rules if relevant. Consider engagement with innovation and supervision teams and ensure your customer contracts and disclosures match UK requirements.

Are there taxes on lending and security in Scotland

There is no separate tax on granting a loan. Land and Buildings Transaction Tax applies to property acquisitions, not to the loan itself. Registration dues apply for recording standard securities with Registers of Scotland and for registering company charges at Companies House. Interest is generally exempt from VAT, but documentation fees may need VAT analysis. Always obtain transaction-specific tax advice.

Additional Resources

Financial Conduct Authority - UK conduct regulator for financial services firms and markets. Publishes rules, guidance, and the Handbook including Consumer Duty, CONC, and MCOB.

Prudential Regulation Authority and Bank of England - Prudential supervision of banks, building societies, insurers, and some investment firms, plus resolution planning.

Payment Systems Regulator - Economic regulator for UK payment systems, including Faster Payments and APP fraud reimbursement policy.

Financial Ombudsman Service - Independent body handling complaints from consumers and many small businesses about financial firms.

Financial Services Compensation Scheme - Statutory compensation scheme for certain deposits and investments when firms fail.

Registers of Scotland - Operates the Land Register, Register of Inhibitions, and the new Register of Assignations and Register of Statutory Pledges.

Companies House - UK company registry for incorporation and registration of company charges.

Scottish Courts and Tribunals Service - Information on the Aberdeen Sheriff Court and the Court of Session, rules, and procedures.

Accountant in Bankruptcy Scotland - Oversees personal insolvency, protected trust deeds, and the Debt Arrangement Scheme.

Citizens Advice Scotland and MoneyHelper - Free guidance on debt, banking issues, and budgeting for individuals and small businesses.

StepChange Debt Charity - Free debt advice and solutions, including Scottish options.

Law Society of Scotland - Directory of Scottish solicitors and practice guidance.

Business Gateway Aberdeen City and Shire - Local support for startups and SMEs on finance readiness and planning.

Scottish National Investment Bank and British Business Bank - Public investment and guarantee programs that can complement commercial finance.

Police Scotland and the National Crime Agency - Reporting routes for fraud and financial crime, including suspicious activity reporting by firms.

Next Steps

Clarify your goal and the immediate risk. Are you seeking funding, renegotiating covenants, disputing fees or interest, addressing arrears, or responding to a regulator or court action. Urgent timelines apply to repossession calls, statutory demands, and court hearings.

Gather documents. Facility letters, security documents, account statements, correspondence, policies, and any call notes. Keep a dated log of all events and contacts.

Engage early with your bank or lender. Propose realistic solutions and ask for a written response. Use the formal complaints process if needed and keep to all deadlines.

Seek specialist legal advice. Choose a solicitor experienced in banking and finance and familiar with Scots law security, diligence, and court procedures. Ask about strategy, risk, cost, and timing.

Consider complementary support. For consumers and micro-businesses, consult accredited debt advisers. For fintech and regulated firms, consider compliance consultants for systems and controls alongside legal review.

Assess funding and costs. Check for legal expenses insurance, after-the-event insurance, fixed fees, or staged scopes. Legal aid is limited for banking matters but may apply in some debt and housing cases.

Protect your position. Avoid admissions, manage confidentiality and without prejudice communications, and preserve evidence. If fraud is suspected, notify your bank immediately and file police reports.

Choose the right forum. Some issues resolve through negotiation or mediation, others through the Financial Ombudsman Service, and others via court. Your solicitor will map the best route based on value, complexity, and urgency.

This guide is general information only. Always obtain advice on your specific circumstances in Aberdeen and under Scots law.