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.
November 29, 2024
US Firm Gathers Support For £351M Bid For Loungers

U.S. investment firm Fortress Investment Group LLC said Friday that its takeover bid of approximately £350.50 million ($447 million) for British hospitality chain Loungers has won support from another shareholder.
November 29, 2024
Greensill Rejects Gov't's 'Immaterial' Defense To Leaked Probe

Lex Greensill has said a claim by the Department for Business and Trade that leaking private details of an investigation into him had not damaged his reputation is "immaterial" to his data and privacy claim against the government.
November 29, 2024
Lombard Odier Indicted In Switzerland For Money Laundering

Swiss prosecutors said on Friday that they have indicted Lombard Odier and one of its former employees for "aggravated money laundering" — a rare move against one of the country's largest wealth managers.
November 29, 2024
UK Pension Funds Back Gov't Mansion House Reforms

The largest pension providers in Britain threw their weight Friday behind the government's measures to develop Canadian-style megafunds in the U.K. to achieve better results for savers through economies of scale.
November 29, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the National Crime Agency file a civil recovery order against a Chinese couple suspected of £29 billion ($37 billion) banking fraud, Norwich City FC of the second tier of English football hit two drinks companies with IP claims, and Owen Jones of the Guardian newspaper sue Telegraph columnist Allison Pearson for libel.
November 29, 2024
Audit Watchdog Urges EU To Curb Harmful Tax Practices

The European Union is still not doing enough to stop harmful corporate tax practices that are costing governments more than €100 billion ($105 billion) a year in revenue, the bloc's independent audit watchdog has warned.
November 29, 2024
Apollo Accused Of Confidential Info Misuse In Wagamama Bid

Apollo Global Management is facing allegations in a London court that it misused an investment company's confidential information to mount an acquisition in 2023 of The Restaurant Group, the owner of Wagamama Asian food restaurants.
November 29, 2024
Fund Vehicle Sells $173M Shares In UK Investment Platform

A vehicle controlled by investment firms Centerbridge and Gallatin has said it has sold its final stake in Phoenix Financial Ltd., a financial services and investment firm for consumers in the U.K., raising approximately $173 million.
November 28, 2024
Barclays Fights 'Shareholder Rule' In Privilege Dispute

Investors sought to prevent Barclays PLC asserting legal privilege over documents requested for disclosure in securities fraud litigation at a court hearing Thursday, after a judge ruled in a separate case that a "shareholder rule" exception to legal privilege did not exist.
November 28, 2024
Vacation Co. Denies Avoiding Wyndham Hotels' TM Royalties

A vacation group has denied that it is avoiding paying hotel chain operator Wyndham at least approximately $6.5 million a year in royalties and administration fees, claiming Wyndham knew that the group had no interest in using its trademarks.
November 28, 2024
TPR To Become 'Prudential' Regulator After Gov't Reforms

The retirement savings watchdog has said that its role as a regulator will change as pension schemes become consolidated into much larger megafunds and effectively become too big to fail.
November 28, 2024
Police Detain 32 People In Raids On €297M VAT Fraud Network

Police have detained more than 30 people in raids on a €297 million ($313 million) value-added tax fraud network that spanned 16 EU countries, the European Public Prosecutor's Office said Thursday.
November 28, 2024
Former Finance Execs Must Pay £45M For Takeover Violations

The financial troubles of three former executives of MWB Group, an investment firm that has collapsed, does not preclude them from owing £44.8 million ($56.8 million) in compensation for violating the U.K. takeover rules by deceiving shareholders, a court ruled on Thursday.
November 28, 2024
Ex-HMRC Compliance Officer Helped Husband Launder £3M

A former compliance officer with HM Revenue and Customs has been handed a suspended sentence for her role in a £3 million ($3.8 million) money laundering operation carried out by her husband, the Crown Prosecution Service has said.
November 28, 2024
AXA Loses Time Limits Appeal In HMRC Foreign Tax Claim

Insurer AXA has lost its fight over time limits for bringing claims for restitution against the British tax authority over taxes collected in violation of European Union law, as a London appeals court ruled that the limits could not be extended.
November 28, 2024
Asset Manager Liontrust Launches £5M Share Buyback

Liontrust Asset Management PLC launched a share buyback program Thursday worth up to £5 million ($6.3 million) aimed at lowering its outstanding share capital.
November 28, 2024
Coventry's £780M Co-op Bank Deal Wins Regulatory Approval

Coventry Building Society said on Thursday that its £780 million ($990 million) buy-out of the Co-operative Bank will be finalized at the start of January after U.K. finance regulators approved the all-cash transaction.
November 28, 2024
FCA Reworks Plans To Name Firms Under Investigation

The Financial Conduct Authority issued "significant" revisions to controversial proposals for publicizing investigations of wrongdoing on Thursday, including a move to give businesses more time to make justifications to the watchdog before being named.
November 27, 2024
BlueCrest Disputes 'Disguised Salary' Claim In HMRC Case

British-American hedge fund BlueCrest Capital Management LLP pushed back Wednesday against arguments from the U.K. tax authority that its portfolio managers are employees receiving a disguised salary.
November 27, 2024
Worker Told She Had Baby At 'Wrong Time' Wins £29K

An employment tribunal has awarded £28,890 ($36,458) to a chartered accountant who was demoted while on maternity leave and was told by bosses, she said, that she had "had a baby at the wrong time."
November 27, 2024
FCA Strengthens Whistleblowing Policy After Staff Complaints

The Financial Conduct Authority said Wednesday that it has updated its internal whistleblowing policy in the wake of complaints from employees that it has failed to properly act on intelligence provided by informers.
November 27, 2024
FCA Fines Former Wizz Air Exec Over Share Trades

The City watchdog said Wednesday it has fined a former executive at budget airline operator Wizz Air Holdings PLC over unallowed trading in the airline's shares worth more than £4 million ($5 million).
November 27, 2024
Aviva, NatWest Pen 5-Year Deal For Protection Insurance

Aviva PLC said Wednesday that it has entered into a five-year agreement with NatWest Group PLC for the distribution of the British insurer's protection products through the high-street banking brands from autumn 2025.
November 27, 2024
UK Investors Denied Appeal In Barclays Dark Pool Claim

A High Court Judge refused Wednesday to allow U.K. investors to challenge his decision striking out claims worth £330 million ($418 million) from securities fraud litigation alleging that Barclays dishonestly delayed publishing information about its dark pool trading system.
November 27, 2024
BNP Paribas Banker Can't Boost £2M Discrimination Payout

BNP Paribas has defeated a London banker's attempt to inflate her £2 million ($2.5 million) payout for the mistreatment she suffered after raising concerns about equal pay, as an employment tribunal ruled that it would not redo its calculation of her losses.

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 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.
What UK Procurement Act Delay Will Mean For Stakeholders

The Procurement Act 2023’s delay until February 2025 has sparked debate among contracting authorities and suppliers, and the Labour Party’s preference for a broader reform package demonstrates the challenges involved in implementing legislative changes where there is a change in government, say lawyers at Shoosmiths.
How Energy Scheme Is Affecting Large Co. Fund Investment

The latest phase of the Department of Energy and Climate Change's Energy Savings Opportunity Scheme implicates funds with investments in large companies by establishing significant and complex changes to the reporting cycle for mandatory assessments, say lawyers at Macfarlanes.
How Companies House Enforcement Powers Are Growing

Companies House's recently increased ability to assess what material is submitted to the U.K. register of companies, and to proportionately enforce where violations have occurred, may require some degree of cultural shift within many companies, say lawyers at Greenberg Traurig.
How New Sanctions Office Will Affect UK Trade Landscape

The recent launch of the Office of Trade Sanctions Implementation will help to create a more comprehensive civil enforcement terrain, but the potential for multiple investigations means businesses should reassess their systems to ensure they do not inadvertently incur civil liability, says Julia Pearce at Robertson Pugh.
FCA Savings Update Focuses On Good Customer Outcomes

The Financial Conduct Authority’s recent cash savings update emphasizes its expectations of firms to deliver fair value to consumers by documenting the rationale for actions at each stage, considering customer communications and demonstrating that potential harms are acted upon, say Matt Handfield, Charlotte Rendle and Caroline Hunter-Yeats at Simmons & Simmons.
5 Takeaways From UK Justices' Arbitration Jurisdiction Ruling

The U.K. Supreme Court's recent judgment in UniCredit Bank v. RusChemAlliance, upholding an injunction against a lawsuit that attempted to shift arbitration away from a contractually designated venue, provides helpful guidance on when such injunctions may be available, say attorneys at Fladgate.
FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
Takeaways From Upcoming Payment Fraud Delay Legislation

Lawyers at Hogan Lovells discuss what to know about new legislation that will allow payment service providers to delay payments when third-party fraud is suspected, and share pointers for providers to consider ahead of the Oct. 30 effective date.