Financial Services UK

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.

Experts See Risks In FCA's Soft-Touch Response To AI

The Financial Conduct Authority has so far failed to detail its rules on artificial intelligence and is moving toward a reliance on companies to self-report, putting it at risk of deferring excessively to the sector it regulates, legal experts say.

FCA's Investigation Regime May Tarnish Unnamed Individuals

Financial Conduct Authority proposals to name companies early in investigations will damage the careers of many individuals involved, according to lawyers, with some unnamed employees coming under suspicion that puts them at risk of losing their jobs.

FCA Tells Firms To Bear Brunt Of Policing Financial Crime

The City watchdog has said that companies must tackle financial crime by giving it better data that could lead to assertive supervision and enforcement action. But lawyers have told Law360 that this would put an even greater cost burden on companies.

February 04, 2025
Barclays Poised To Slash Former Staffer's Racism Claims

Barclays has won a key decision as it looks to beat a former employee's race discrimination case, convincing a tribunal that he brought the vast majority of his claims too late.
February 04, 2025
UniCredit Bids To Undo Ruling Blocking Gazprom Unit's Claim

UniCredit Bank AG urged an appeals court Tuesday to overturn an order blocking a Gazprom joint venture from bringing a €450 million ($467 million) claim against it in Russia under bond guarantees linked to an aborted gas plant project.
February 04, 2025
Sustainable Growth Must Take Pensions Priority, LCP Says

Government plans to drive growth in the U.K. through redirected investment from retirement savings schemes must prioritize environmental concerns and sustainability, a consultancy said Tuesday.
February 04, 2025
MPs Launch Inquiry Into AI Use In Financial Services

A cross-party group of members of Parliament has started an inquiry into the use of artificial intelligence in financial services, after recent revelations about Chinese AI startup DeepSeek showed the market's volatility.
February 04, 2025
3 Firms Advise On £25M Pension Deal For Redress Program

The U.K.'s financial compensation scheme has passed £25 million ($31 million) of its staff pension liabilities to Pension Insurance Corp. PLC, the insurer said, in a deal guided by Herbert Smith Freehills LLP, Eversheds Sutherland and Arc Pensions Law LLP.
February 04, 2025
FCA Warns Smaller Payment Firms Of Consumer Duty Failings

The City watchdog has warned smaller payments firms that they sometimes fail to act in the best interests of customers and have weaknesses in their financial crime controls.
February 03, 2025
White & Case Gets Tax Pro From Latham

White & Case LLP has added a former Latham & Watkins LLP senior associate to serve as a partner in its London office, the firm announced.
February 03, 2025
'Far-Reaching' EU Ban On High-Risk AI Models Now In Effect

The European Union on Sunday ushered in key laws to rein in the use of artificial intelligence systems that pose an "unacceptable risk," but a lack of guidance from the bloc has companies in the dark.
February 03, 2025
Pillsbury Hires Ex-McDermott London Office Chief

The former managing partner of McDermott Will & Emery LLP's office in London is joining Pillsbury Winthrop Shaw Pittman LLP to help boost the firm's corporate offering to clients in areas including life sciences and healthcare.
February 03, 2025
Trading Biz Files New Infringement Claim Over 'Joule' Tech

A software business has accused two German companies in a London court of infringing its intellectual property rights over an electronic trading platform, adding to a similar claim it recently filed against SAP.
February 03, 2025
Thames Water Seeks Court Approval For £3B Rescue Plan

Thames Water needs the High Court's approval for a £3 billion ($3.7 billion) rescue package if it is to avoid falling into special administration, a top lawyer for the struggling utility company said as he gave evidence on Monday.
February 03, 2025
Uyghur Rights Group To Sue FCA If Shein Gets LSE Listing

A Uyghur human rights group has threatened to take the Financial Conduct Authority to court if it permits Shein to list on the London Stock Exchange, stepping up its fight against the ultra-fast-fashion giant over slavery concerns.
February 03, 2025
FCA Response To Critical Report 'Disappointing,' MPs Say

The Financial Conduct Authority's response to a highly critical parliamentary report has been lackluster and continues to demonstrate that the regulator is "in dire need of transformation," the MPs who penned the report said Monday.
February 03, 2025
Freshfields-Led Barclays Sells German Consumer Biz

Barclays PLC said Monday that it has completed the sale of its German consumer finance business to Austrian lender BAWAG Group AG in a move to simplify its operations.
February 03, 2025
IG Group Begins £50M Share Buyback Extension

IG Group Holdings PLC kicked off a share buyback program of up to £50 million ($62 million) on Monday, extending the online trading platform's £150 million stock repurchase scheme aimed at downsizing its share capital.
February 03, 2025
EU Watchdog Warns That All Crypto Firms Are High Risk

The European Union's finance watchdog has briefed national regulators authorizing crypto-assets firms to consider every candidate high risk, particularly from money laundering.
February 03, 2025
Ex-Goldman Analyst Told To Pay £586K For Insider Trading

The Financial Conduct Authority said Monday that it has secured £586,000 ($722,000) from a former Goldman Sachs employee imprisoned for insider dealing after using price-sensitive information to trade in shares.
February 03, 2025
Watchdog Launches 1st Stage Of Probe Into SME Auditing

The accounting watchdog launched a study on Monday to gauge how effectively the audit market supports small and midsized businesses amid a wider campaign to improve the access of smaller companies to services in the sector that help to raise capital.
January 31, 2025
Brexit Five Years On: The Legal Landscape After Europe

Five years after the U.K. formally left the European Union, Law360 looks at how Brexit has changed the legal, regulatory and financial terrain.
January 31, 2025
Ex-IP Co. Director Says Lawyer, Founders Hid $40M Takeover

A former director of a celebrity intellectual property licensing company has claimed in court filings that two fellow directors, aided by an ex-Russells Solicitors partner, concealed plans for a $40 million takeover to try to convince him to sell his shares on the cheap.
January 31, 2025
Valorem Sues Former CEO For Violating Russia Sanctions

A luxury perfume group has sued its former chief executive officer, who is accused of bragging to a private investigator about selling his product to Russia in breach of sanctions, for fiduciary and contractual breaches and failure to protect its intellectual property rights.
January 31, 2025
Ex-BigLaw Atty Can't Escape OneCoin Conviction At 2nd Circ.

The Second Circuit on Friday upheld a former Locke Lord LLP partner's conviction and 10-year sentence for helping launder roughly $400 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scheme, rejecting the attorney's contention that a sole cooperating government witness' perjury and other purported errors warranted reversing his punishment.
January 31, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen another claim by Woodford investors against Hargreaves Lansdown in the widening £200 million ($248 million) dispute over the fund's collapse, a solicitor barred for his role in a suspected advance fee fraud face action by a Swiss wholesaler, and The Resort Group, which markets investments in luxury hotel resorts, hit with a claim by a group of investors. Here, Law360 looks at these and other new claims in the U.K.
January 31, 2025
JPMorgan Sues WeRealize In Widening Dispute Over JV

A JPMorgan Chase & Co. unit has filed a new claim in the investment bank's protracted battle with fintech business WeRealize, saying the company is planning to breach the terms of a joint venture shareholder agreement by acquiring another fintech firm.
January 31, 2025
EU Extends UK CCP Equivalence Regime By Three Years

The European Union's executive body said Friday it has adopted a decision to extend equivalence for U.K. central counterparties for three years until June 30, 2028, following agreement between the European Parliament and the Council of the EU.

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

What To Know As EU Urges Outbound Investment Reviews

A recent European Commission recommendation urges European Union member states to review outbound investments in certain critical technologies sectors, but does not clarify the next steps for states once information on relevant transactions in third countries is received, say lawyers at Cleary.
Despite Divisive Political Rhetoric, DEI Is Alive And Well

The World Economic Forum's recent finding that DEI initiatives have continued to rise amid political headwinds raises the question of whether reports of the death of DEI are exaggerated, especially as employers must focus on new pay gap reporting obligations in the U.K. and Europe, say lawyers at Herbert Smith Freehills.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Tax Directive Marks Milestone In Harmonizing EU System

The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.
Why Nonfinancial Misconduct Should Be On Firms' Radar

Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
What New UK Code Of Conduct Will Mean For Directors

The Institute of Directors’ new voluntary code of conduct is intended to help directors make better decisions and enable U.K. businesses to win back eroded public trust, although, with no formal means of enforcement, its effectiveness could be limited, says Sarah Turner at Eversheds Sutherland.
Russian Bankruptcy Ruling Shows Importance Of Jurisdiction

The U.K. Supreme Court's recent decision not to assist a Russian receiver in Kireeva v. Bedzhamov will be of particular interest in cross-border insolvency proceedings, where attention must be paid to assets outside the jurisdiction, and to creditors, who must consider carefully where to apply for a bankruptcy order, say lawyers at McDermott.
Decoding Arbitral Disputes: UK Awards Versus EU Judgments

The Court of Appeal of England and Wales' recent refusal to enforce a €855 million Spanish judgment inconsistent with earlier binding arbitral awards in England provides crucial guidance for practitioners navigating the complexities of cross-border disputes involving arbitration agreements and sovereign states, says Josep Galvez at 4-5 Gray's Inn.
How Listing Act Measures Will Modernize EU Capital Markets

The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.
A Look At PCAOB's Record-Breaking Enforcement In 2024

The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
2 Cases May Enlighten UK Funds' Securities Litigation Path

Following recent nine-figure settlements in securities class actions against Apple and Under Armour, U.K. pension funds may increasingly lead U.S. shareholder derivative suits, advocating for transparency, better risk management and stronger governance practices, say lawyers at Labaton Keller.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.