Financial Services UK

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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.
July 22, 2024
Lending Biz CEO Says Director Forced Him To Transfer Shares

A solicitor has asked a court to unwind a share transfer that he allegedly made under duress to an ex-director and a lawyer with whom he was business, claiming that he had to make the transfer to quash a false fraud allegation.
July 22, 2024
Barclays Bids To Cut £330M From 'Dark Pool' Securities Claim

Barclays urged a London court on Monday to cut claims worth £330 million ($426 million) from securities fraud litigation, arguing that some institutional investors were unaware of a regulatory announcement issued by the bank about its "dark pool" trading platform.
July 22, 2024
EU Renews Russian Financial Sanctions For 6 Months

The Council of the European Union said Monday that it has extended financial sanctions against Russia for an additional six months in response to the Kremlin's "unprovoked, unjustified and illegal" war against Ukraine.
July 22, 2024
UK Eases Reporting Rules For Investment Stewardship

Britain's accounting watchdog unveiled changes to the U.K.'s stewardship code for investment on Monday that it said would help reduce the reporting burden for investors.
July 22, 2024
Gov't Plans 'Big Bang' Pensions Reform To Fuel UK Growth

The government has launched the first stage of its review into pensions as it focuses on generating more investment from the £800 billion ($10.3 billion) defined contribution sector into the economy.
July 19, 2024
Ex-Lib Dem Leader Swinson Grilled Over Horizon Scandal

Former Liberal Democrat leader Jo Swinson told an inquiry on Friday into the Post Office accounting scandal that she was reassured when she was the minister responsible for the organization that its systems were robust.
July 19, 2024
Staveley Drops Fight Over £3.4M Payment In Loan Dispute

A London judge ended Newcastle United co-owner Amanda Staveley's legal battle over a debt to a Greek shipping magnate after her lawyers said Friday that she had made the over £3.4 million ($4.4 million) payment she had been expected to challenge.
July 19, 2024
Cifas Justifies Marking Bank Activity For Suspected Fraud

The operator of the U.K.'s national fraud database has hit back at a £144,000 ($186,000) data protection claim in a London court, saying it was justified in marking a London resident's bank activity for suspected fraud.
July 19, 2024
Lawyers Test New Routes For Redress For APP Fraud Victims

A year after the decision by Britain's Supreme Court that curbed the liability owed by lenders to customers tricked into transferring money to fraudsters, victims are now looking to use the courts to test novel routes for redress.
July 19, 2024
Gov't Floats Draft Proposal For OBR 'Fiscal Lock' Powers

HM Treasury proposals for a new "fiscal lock" in a draft Budget Responsibility Bill will allow the Office for Budget Responsibility to scrutinize any tax-and-spend decisions with a cost factor of 1% of gross domestic product or more.
July 19, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen a libel clash between comedian Paul Currie and the Soho Theatre Company over allegations of anti-semitism, technology giant Huawei face a patents claim by Mediatek, Westfield Europe pursue action against Clearpay Finance for contract breaches and tour operating company Carnival hit chartered airline Maleth Aero for significant flight delays. Here, Law360 looks at these and other new claims in the U.K.
July 19, 2024
UK Clears Nationwide's £2.9B Purchase Of Virgin Money

The competition regulator of the U.K. said Friday that it has cleared Nationwide Building Society's acquisition of Virgin Money UK PLC for £2.9 billion ($3.7 billion), which the companies say would create a combined group with assets of approximately £366 billion.
July 19, 2024
Businessman Found Guilty Of Fraud For COVID Loan Abuse

A British businessman accused of dishonestly obtaining a COVID-19 small business loan was convicted of fraud on Friday after prosecutors accused him of scamming the system to repay an associate embroiled in a fight with the Serious Fraud Office.
July 19, 2024
Casino Group Faces French Price-Fixing Probe

Casino Group, the French retail giant that has recently undergone a restructuring, said it is being investigated by France's financial crime agency for possible price manipulation and corruption.
July 18, 2024
Ukraine Businessman Looks To Arbitrate $1B Gramercy Suit

A Ukrainian businessman is urging a Wyoming federal court to force Gramercy Funds Management to arbitrate in London its racketeering lawsuit accusing him of fraudulently transferring more than a billion dollars from his agricultural business, a debtor of the Connecticut-based hedge fund.
July 18, 2024
Law Firm Did Not Think SRA Alerts Applied To Former Client

Matthew & Matthew Solicitors has told liquidators for a now-defunct group of companies that it did not believe that warnings about investment schemes by the English solicitors' regulator applied to its client, arguing that the businessman's care home scheme appeared legitimate.
July 18, 2024
GE Can't Claim Credit For £189M In Double Tax, Court Says

A U.K.-registered subsidiary of General Electric does not qualify for at least £189 million ($245 million) in double tax relief under a U.S.-U.K. treaty because it lacks a U.S. presence akin to a domicile, a London appellate court ruled.
July 18, 2024
PE Firm's £432M Deal Awaiting NSIA Clearance Pushed Back

Wealth management firm Mattioli Woods said Thursday that its approximately £432 million ($546 million) acquisition by London private equity firm Pollen Street Capital that is awaiting national security clearance is now likely to close a month later than expected.
July 18, 2024
Pension Experts Urge 'Gateway Tests' For Public Consolidator

More than half of pension professionals believe that any public sector consolidator must have tough "gateway tests" similar to those employed by commercial superfunds, if the project gets off the ground.
July 18, 2024
Treat Politically Exposed People Better, FCA Tells Firms

The Financial Conduct Authority told all financial services companies on Thursday to do more to ensure that high-profile individuals and their families are not treated unfairly after it found widespread deficiencies in a review of the sector.
July 18, 2024
Faegre Drinker Hires Ex-Northern Trust Legal Chief

Faegre Drinker Biddle & Reath LLP has recruited a senior lawyer at Northern Trust Asset Management to join its office in London as it continues to build its investment management practice in the English capital.
July 17, 2024
Retired Couple Seek To Override Ex-Solicitor's Deceit Win

A financial advisor and his wife battled to reverse a ruling finding them liable to a former solicitor for his investment in a now-defunct forex trading scheme, arguing they had wrongly been found to be partners.
July 17, 2024
Qatari Fund Sues Sheikh Over Stalled 70-Carat Diamond Deal

A Qatari investment fund has accused a Sheikh of breaching a promise to sell it a 70-carat diamond, telling a London court that he cited the COVID-19 pandemic as a force majeure event allowing his family to avoid handing over the jewel.
July 17, 2024
Labour Revives Arbitration Bill To Reform £2.5B Industry

The U.K. will introduce a new Arbitration Bill reviving legislation shelved in the runup to the election as part of plans to support the country's position as an international center for dispute resolution, the government said in the King's Speech on Wednesday.
July 17, 2024
UK Gov't Moves Ahead With Accounting Reform Bill

The new Labour Government said on Wednesday that it will push ahead with draft legislation to toughen up regulation of auditors to help to reduce the risk of corporate failures.

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

How Regulation Of Tech Providers Is Breaking New Ground

The forthcoming EU regulation on digital operational resilience and the U.K. critical third-party regime, by expanding the direct application of financial services regulation to designated technology providers, represent a significant development that is not to be underestimated, say David Berman and Emily Lemaire at Covington.
What EU Net-Zero Act Will Mean For Tech Manufacturers

Martin Weitenberg at Eversheds Sutherland discusses the European Council’s recently adopted Net-Zero Industry Act and provides an overview of its main elements relevant for net-zero technology manufacturers, including benchmarks, enhanced permitting procedures and the creation of new institutions.
Complying With EU Commission's Joint Purchasing Rules

One year after the European Commission released its revised guidelines on horizontal cooperation agreements, attorneys at Crowell & Moring reflect on the various forms such agreements can take, and how parties can avoid structuring arrangements that run afoul of competition law.
Tips For Implementing EU Sustainability Reporting Guidance

Lawyers at Sullivan & Cromwell discuss the European Financial Reporting Advisory Group’s recently published guidance on double materiality assessments and offer takeaways on achieving a sustainability directive-compliant process that could enhance clarity and consistency among multinational stakeholders.
Why Ukraine Aircraft Insurance Case Failed To Take Off In UK

In Aercap v. PJSC Insurance, the High Court decided the claimants could not avoid an exclusive jurisdiction clause and advance their case in England rather than Ukraine, and the reasoning is likely to be of relevance in future jurisdiction disputes, say Abigail Healey and Genevieve Douglas at Quillon Law.
Labour's 'Fresh Approach' To Tackling Financial Crime

Given newly elected Prime Minister Sir Keir Starmer’s background as a criminal defense lawyer and director of public prosecutions, an administration with strong views on financial crime can be expected, and revenue raising and proceeds of crime recovery are likely to be at the forefront, says Matthew Cowie at Rahman Ravelli.
Unpacking Pressures, Trends Affecting Global Supply Chains

A recent HSBC report reveals a number of trends and challenges for global supply chains in the current uncertain geopolitical landscape, and with constant emerging opportunities, companies that can stay informed, be proactive and adapt to change will be well positioned to succeed, says Michelle Craven-Faulkner at Shoosmiths.
What UK Digital Markets Act Will Mean For Competition Law

The new Digital Markets Act’s reforms will strengthen the Competition and Markets Authority's investigatory and enforcement powers across its full remit of merger control and antitrust investigations, representing a seismic shift in the U.K. competition and consumer law landscape, say lawyers at Travers Smith.
What New UK Labour Gov't Is Planning For Financial Services

Following the Labour Party’s U.K. election win on July 4, the new government has already announced its key missions for economic growth, green investment and tax reform, so affected Financial Conduct Authority-regulated entities should be prepared for change and on the lookout for details, says Rachael Healey at RPC.
Companies Trading In The EU Should Heed Mondelēz Ruling

The European Commission’s recent €337.5 million fine of Mondelēz is the latest decision targeting restrictions on EU cross-border trade, and serves as a warning to companies active in the region to check their contracts and practices for illegal restraints, and to perform audits to ensure compliance, says Matthew Hall at McGuireWoods.
Why Reperforming Loan Securitization In UK And EU May Rise

The recently published new U.K. securitization rules will largely bring the U.K.’s nonperforming loan regime in line with the European Union, and together with the success of EU and U.K. banks in reducing loan ratios, reperforming securitizations may feature more prominently in relevant markets going forward, say lawyers at Morgan Lewis.
What French Watchdog Ruling Means For M&A Landscape

Although ultimately dismissed due to lack of evidence, the French competition authority’s recent post-closing review of several nonreportable mergers is a landmark case that highlights the increased complexity of such transactions, and is further testament to the European competition authorities’ willingness to expand their toolkit to address below-threshold M&As, say lawyers at Cleary.
New Directors' Code Of Conduct May Serve As Useful Guide

Although the Institute of Directors’ current proposal for a voluntary code of conduct is strongly supported by its members, it must be balanced against the statutory requirement for directors to promote their company’s success, and the risk of claims by shareholders if their decisions are influenced by wider social considerations, says Matthew Watson at RPC.
Exploring The EU's Draft Standards On Crypto Authorization

The European Securities and Markets Authority’s recently published draft standards aim to promote fair competition and a safer environment for crypto providers and investors, detailing precisely the information to be provided to national authorities in charge of screening the acquisitions of a qualifying holding, says Mathieu de Korvin at Norton Rose.
How FCA Guidance Aligns With Global Cyberattack Measures

The U.K. Financial Conduct Authority’s recent guidance on preparing for cyberattacks aligns with the global move by financial regulators to focus on operational resilience, highlighting the importance of proactive strategies and robust resilience frameworks to mitigate disruptions, while observing a disappointing level of engagement by the industry, say Alix Prentice and Grace Ncube at Cadwalader.