Financial Services UK

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FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.
December 20, 2024
Many Firms Lack AI In Risk Operations, Study Finds

A new study highlighted by UK Finance on Friday has found that almost four in 10 financial services organizations have not implemented artificial intelligence in their risk operations, leaving them with a widening technology gap compared with those who are so prepared.
December 20, 2024
Reading FC Owner Sued For £12M Over Confidentiality Breach

A Louisiana lawyer's company has filed a £12 million ($15 million) claim against a company held by the owner of Reading Football Club for allegedly breaching legally binding provisions in a takeover deal.
December 20, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the University of Southampton sue a drone-maker over the rights to an uncrewed aircraft patent, Importers Service Corp. and its subsidiary ISC Europe take action against a former director who allegedly owes the company over £1.1 million ($1.4 million), and DAC Beachcroft face a fraud claim by a "prolific litigant."
December 20, 2024
Law Firm Awarded £4.2M For Co.'s Mishandled PPI Claims

A London court awarded a specialist litigation law firm almost £4.2 million ($5.3 million) on Friday for the costs of a professional services company's botched handling of payment protection insurance claims.
December 20, 2024
The Biggest Developments In Insurance In 2024

The financial watchdog has come under pressure this year from the Labour government to tackle the cost of insurance, which has soared because of rising claims caused by the ongoing repercussions from Brexit and the war in Ukraine.
December 20, 2024
Crédit Agricole To Take Full Control Of Caceis From Santander

Santander Bank has said that French international banking group Crédit Agricole SA will acquire full ownership of their jointly owned global asset servicing provider Caceis by buying out Santander's stake for an undisclosed sum.
December 20, 2024
The Top FCA Enforcement Cases Of 2024

The blockbuster fines imposed by the Financial Conduct Authority on challenger banks Starling and Metro for anti-money laundering failures, its notable penalties against Barclays and its conviction of a former Goldman Sachs banker for insider dealing are just a few of the key cases from 2024.
December 20, 2024
The Biggest UK Commercial Litigation Cases Of 2024

The High Court and Court of Appeal resolved some landmark legal disputes in 2024 — the justices liberated the open-source cryptocurrency community from spats over intellectual property protection and determined liability for the high-profile collapse of London Capital & Finance.
December 20, 2024
Osborne Clarke Pro Fined £50K Over Zahawi Libel Letter

A tribunal fined an Osborne Clarke LLP partner who represented Nadhim Zahawi £50,000 ($62,700) on Friday for trying to stop a blogger revealing that the former chancellor was contemplating libel action over allegations of dishonesty in his tax affairs.
December 20, 2024
£3.5B 'Dartford Disneyland' Park Co. Must Close, Court Rules

A company that had wanted to build a £3.5 billion ($4.4 billion) "Disneyland-style" theme park must be wound up for "serious and irremediable" breaches of its agreement to pay creditors, which include Paramount, a London court has ruled.
December 20, 2024
Financial Adviser Colbourne In Default After FCA Restrictions

The Financial Conduct Authority has said that Colbourne & Co., an independent financial adviser that it has prevented from doing regulated business, is in default and that clients can claim compensation.
December 19, 2024
Craig Wright Gets Suspended Sentence Over Bitcoin Claim

Australian computer scientist Craig Wright was given a suspended one-year prison sentence on Thursday after a London judge said he was in contempt of court for asserting he had invented bitcoin in an approximately £900 billion ($1.1 trillion) claim.
December 19, 2024
Denmark Says $500M Recovered In Dividend Tax Fraud Suits

Denmark's tax administration has recovered a total of 3.6 billion Danish kroner ($500 million) in money lost to suspected dividend tax refund fraud after entering settlements of civil cases in several countries in 2024, Denmark's tax minister announced.
December 19, 2024
FCA Apologizes To Victims Of £15M Peer-To-Peer Fraud

The financial regulator of the U.K. on Thursday issued an apology to the victims of peer-to-peer lender Collateral (UK) Ltd., which defrauded investors of £15 million ($18.8 million) by falsely claiming the business was authorized.
December 19, 2024
Motor Finance Firms Get 1 Year To Address Fee Complaints

Britain's financial watchdog said Thursday that it has extended the time motor finance firms have to respond to consumer complaints about commission arrangements by a year, after mulling over the extension for a month.
December 19, 2024
PRA Pushes Back 'Solvent Exit' Rules For Insurers

The Bank of England has pushed back a new regime designed to minimize the economic fallout of the collapse of a major insurer.
December 19, 2024
FCA Proposes To Simplify Investment Product Information

The financial regulator of the U.K. said Thursday that it has proposed changes to rules to simplify the information provided to investors to "boost confidence and drive investment" in the country.
December 19, 2024
Retailers Lose Bid For Higher Damages Bill In Swipe Fees Trial

Retailers taking legal action against Mastercard Inc. and Visa lost their bid on Thursday to increase their damages bill from alleged unlawful overcharging by the card companies.
December 19, 2024
A Look Back At The Top UK Corporate Crime Cases Of 2024

Julian Assange's blockbuster plea deal, which allowed the Wikileaks founder to walk free from prison, the first fine imposed by Britain's sanctions' enforcer over Russia and a landmark ruling on criminal liability in supply chains are just a few of the key cases from 2024.
December 19, 2024
Osborne Clarke Pro's Email To Zahawi Critic Was 'Negotiation'

A partner with Osborne Clarke LLP who represented Nadhim Zahawi "believed he was acting properly" when he sent an allegedly threatening email to a blogger scrutinizing the former Conservative chancellor's tax affairs, his counsel told a tribunal on Thursday.
December 19, 2024
UK Private Stock Market May Fail To Attract Investors, Firms

A world-first regulated market that the U.K. government has proposed for private companies to trade shares might fail to offer enough of an incentive to attract firms and investors.
December 18, 2024
FCA Charges WealthTek Partner With £64M Fraud

The Financial Conduct Authority on Wednesday said it has charged a former partner of wealth management firm WealthTek LLP with fraud, saying he transferred over £64 million ($81.3 million) from client accounts to ones he controlled.
December 18, 2024
EU Court Rejects Latest Challenge To Portugal's Tax Clawback

A European court rejected a Brazilian-based company's challenge Wednesday to a European Commission ruling that Portugal must claw back tax breaks provided to companies with no local economic activity because that ran counter to commission-approved policies.
December 18, 2024
Colliers Sued For £3.9M For Shopping Mall Over-Valuation

An investment manager and two commercial lenders have sued Colliers International for £3.95 million ($5 million) for allegedly overvaluing a shopping mall in northwest England used in a loan agreement, which they claim caused losses when its true worth became apparent.
December 18, 2024
Attwells' Defense Sticks In £1.2M Loan Dispute

Attwells Solicitors LLP's defense to an almost £1.2 million ($1.5 million) claim that it failed to adhere to a loan agreement will go to trial after a London court found it was too early to decide that there is "no real prospect" of fighting the allegation.

Editor's Picks

UK Draft Pay Fraud Rules Open Tricky Legal Liabilities

The government's new draft legislation, which will give banks longer to investigate suspicions of fraud before they send payments instructed by customers, will create a wave of new legal liabilities and lead to regulatory hurdles, according to lawyers.
FCA Fires Warning Shot Over City's Consumer Duty Failings

The Financial Conduct Authority has sent out a fresh warning to financial services companies highlighting how some of them are failing to comply with its Consumer Duty regime. But experts have told Law360 that the expectations are unclear.
5 Questions for Osborne Clarke Partner Nick Price

The Payment Systems Regulator is due to start forcing payment firms to reimburse victims of scams who have been tricked by a fraudster into transferring them money. Here, Law360 talks to Osborne Clarke partner Nick Price about how this new regime could mean uncertainty about compliance.

Expert Analysis

Businesses Should Expect A Role In Tackling Fraud Next Year

If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, as enforcement agencies clamped down on consumer-focused crime — and businesses will need to be prepared to play a part in 2025 with the coming of the "failure to prevent fraud" offense, says Jessica Parker at Corker Binning.
What FCA's 2024 Changes Suggest For Enforcement In 2025

Though the Financial Conduct Authority is likely to enter 2025 hungry for enforcement wins after fielding intense criticism in 2024 over proposed policy amendments, firms can glean ideas for mitigating their risk from heightened scrutiny by studying the regulator's changing behavior from the year just past, says Imogen Makin at WilmerHale.
How The Wirecard Judge Addressed Unreliability Of Memory

In a case brought by the administrator of Wirecard against Greybull Capital, High Court Judge Sara Cockerill took a multipronged and thoughtful approach to a common problem with fraudulent misrepresentation claims — how to assess the evidence of what was said at a meeting where recollections differ and where contemporaneous documentation is limited, says Andrew Head at Forsters.
Decoding Arbitral Disputes: Cross-Border Contract Lessons

A U.K. court's decision this month in Banco De Sabadell v. Cerberus provides critical lessons for practitioners involved in drafting and litigating cross-border investment agreements, and offers crucial insight into how English courts apply foreign law in complex cross-border disputes, says Josep Galvez at 4-5 Gray's Inn.
Practical Considerations For Private Fund Side Letters

Side letters are a common way of formalizing negotiated arrangements between a private fund and a particular investor — and as the number and length of side letters per fundraise steadily climb, managers must consider the material legal risks carefully, say lawyers at Dechert.
Preparing For The Next 5 Years Of EU Digital Policy

The new European Commission appears poised to build on the artificial intelligence, data management and digital regulation groundwork laid by President Ursula von der Leyen's first mandate, with a strong focus on enforcement and further enhancement of previous initiatives during the next five years, say lawyers at Steptoe.
Key Takeaways From EU's Coming Digital Act

The European Union's impending Digital Operational Resilience Act will necessitate closer collaboration on resilience, risk management and compliance, and crucial challenges include ensuring IT third-party service providers meet the requirements on or before January 2025, says Susie MacKenzie at Coralytics.
Cross Market Drill Highlights Operational Resilience Priorities

The U.K.’s recent cross-market major infrastructure failure simulation exercise, demonstrates that operational resilience of the financial sector is high on the regulatory agenda, and the findings should ensure that the sector develops collective capabilities to deliver improvements, say lawyers at Taylor Wessing.
What Partners Should Know About Net Asset Value Loans

The increasing popularity and evolution of net asset value facilities means they continue as an important financing tool to generate liquidity for funds’ portfolios, so general partners looking to capitalize on this expanding market should be mindful of their limited partners' concerns to maximize their value, says Anthony Lombardi at Dechert.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
What UK Security Act Report Indicates For Future Gov't Policy

Following the recent publication of the National Security and Investment Act report on the scrutiny of proposed investments, it will be interesting to see how the act’s powers fit into a government policy that plans to cut regulatory obstacles, while maintaining a hard line on national security, say lawyers at Katten Muchin.
Examining UK And EU Approaches To Sanctions Enforcement

In light of the Financial Conduct Authority’s recent £28.9 million fine of Starling Bank for its lax sanctions screening processes, businesses should understand both the U.K.’s and the European Union’s enforcement approaches, the larger sanctions landscape and the importance of cooperation, says Angelika Hellweger at Rahman Ravelli.
Factors Driving EU Competition Policy For The Next 5 Years

Teresa Ribera Rodríguez’s recent nomination as the new European Union commissioner for competition prompts questions about policy and enforcement, with goals to enhance competition in business, implement stronger and faster enforcement, and promote and fund decarbonization likely in her sights during a five-year term, say lawyers at Linklaters.