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 29, 2024
Zurich Invests $60M In Cyber Insurance Provider For SMEs

Swiss insurance giant Zurich has invested $60 million in Cowbell, a provider of cyberinsurance for small businesses, the digital risk company said, amid growing industry concerns over cyberthreats.
July 29, 2024
FCA Weighs Taking Protection From Some Insurance Clients

The Financial Conduct Authority proposed on Monday a change to the criteria of classifying a small business as a commercial insurance client by removing consumer protection rules from some firms when buying insurance products.
July 29, 2024
NCA Seizes Assets As Russian Oligarch Ends Sanctions Fight

The National Crime Agency seized more than £768,000 ($986,000) belonging to Russian oligarch Petr Aven on Monday after reaching a settlement in its first attempt to recover frozen assets linked to suspected sanctions evasion since sweeping restrictions came into force.
July 29, 2024
Mozambique 'Substantially' Claims Victory In Tuna Bond Trial

Mozambique largely won its mammoth corruption claim against a shipbuilding company on Monday over a bribery scheme used to pay kickbacks to public officials to tie it into a financing package for a tuna fishing fleet that wrecked the southern African country's economy.
July 26, 2024
UK Gov't Denies Leaked Greensill Probe Caused Him Harm

The Insolvency Service leaked private details of an investigation into Lex Greensill, the founder of collapsed finance company Greensill Capital, to the national press, the government has admitted in court filings — but denied it caused him any harm.
July 26, 2024
NCA Data Project Set To Catch Financial Criminals

The National Crime Agency and seven U.K. banks have forged a major public-private partnership to use account data to help catch financial criminals and prevent fraud and money laundering, the agency said Friday.
July 26, 2024
Valderrama Golf Course Owner Heir Blocked From Sale Profits

The heir to the former owner of the Valderrama golf course in Spain lost his fight Friday for a slice of a €39.1 million ($42.5 million) sale as an appellate court rejected his interpretation of a profit-sharing agreement.
July 26, 2024
FCA To Overhaul Prospectus Rules To Boost Capital Markets

The Financial Conduct Authority set out plans to shake up the U.K.'s prospectus regime Friday, including new rules for public offers and risk disclosures, to help boost the country's ailing capital markets.
July 26, 2024
EU Banks Must Improve Cyberattack Protection, ECB Says

Lenders in the eurozone still suffer from "shortcomings" in fighting against and recovering from a severe — but plausible — cyberattack, the European Central Bank said Friday after it conducted a resilience stress test.
July 26, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen U.K. band The 1975 face action by Future Sound Asia after its performance in Malaysia resulted in a festival's cancelation, Spectrum Insurance hit by The Motoring Organization following their dispute over information misuse, and a former police constable pursue defamation against a colleague for allegedly instigating a campaign of harassment against her. Here, Law360 looks at these and other new claims in the U.K.
July 26, 2024
Consultant Claims $2M From Port Co. For Unpaid Fees

A Swiss business consultancy has claimed that an English port operator owes it more than $2 million in unpaid fixed and variable fees it alleged were tied to shareholder dividends of which it was not informed.
July 26, 2024
Fraudster Sentenced For Instagram Motor Insurance Scam

A man who made almost £18,000 by operating as a "ghost broker" and selling invalid car insurance policies on Instagram has been handed a suspended prison sentence of 24 months at a London court, City Police has said.
July 26, 2024
NatWest To Buy £2.5B Mortgage Portfolio From Metro Bank

NatWest will acquire a £2.5 billion ($3.2 billion) portfolio of U.K. residential mortgages from Metro Bank as it seeks to expand its retail book without taking on unnecessary risk, the lenders said on Friday.
July 25, 2024
Natwest Seeks €155M Swap Funds From Dutch Mortgage Co.

NatWest's investment banking arm, which alleges a Dutch financial services company owes it €155 million ($168.3 million) under deeds in swaps transactions, argued at the opening of a London trial Thursday that the company wrongly relied on contractual terms to delay payment.
July 25, 2024
Audit Watchdog Sanctioned Firms £48M Last Year

The Financial Reporting Council revealed Thursday that it fined firms a total of £48.2 million ($62 million) in the financial year ended March 31, including a £21 million fine against auditor KPMG related to its accounting for construction giant Carillion prior to its collapse in 2018.
July 25, 2024
Hayes Can Appeal Rate Rigging Conviction At Top UK Court

Two traders convicted of manipulating benchmark interest rates have been granted permission to appeal their cases to the U.K.'s highest court, their representatives said on Thursday.
July 25, 2024
Plan To Return WealthTek Clients' Money Gets Green Light

The Financial Conduct Authority said Thursday that the High Court has approved a plan by the joint special administrators of collapsed regulated wealth manager WealthTek LLP to return money and investments it held for clients.
July 25, 2024
Labour Gov't Faces 'Tricky Balancing Act' On Policy Priorities

The Labour government faces a "tricky balancing act" in implementing policies that meet the financial needs of different generations, pensions provider Aegon said Thursday,
July 25, 2024
4 Banks Ordered To Comply With UK Retail Competition Rules

HSBC, Lloyds, TSB and Allied Irish Banks have broken rules designed to help customers find the best deals, Britain's antitrust authority said Thursday, adding that it has ordered the lenders to comply with competition regulation.
July 25, 2024
Belgium Taken To EU Court Over Deposit Exemption Rules

The European Union's executive branch said Thursday that it is taking Belgium to court alleging that the country's system of exempting remuneration of savings deposits from tax violates EU law.
July 25, 2024
FCA Consumer Duty Deadline May Spark Clash With UK Gov't

The new Labour government and the Financial Conduct Authority could be heading for a clash over what constitutes a vulnerable consumer and how the laws protecting them from abuse should be enforced.
July 25, 2024
Coinbase Unit Fined £3.5M For Crypto-Related Breaches

The Financial Conduct Authority said Thursday it has fined a payments company £3.5 million ($4.5 million) for "repeatedly breaching" restrictions against enabling crypto-asset trading, the first time the watchdog has taken enforcement action under regulations governing electronic money.
July 25, 2024
Revolut Gets UK Banking License To Permit Expansion

An online banking subsidiary of Revolut Group Holdings Ltd. has been granted a U.K. banking license, allowing it to expand its financial services and potentially offer customers in Britain traditional banking products such as loans and savings accounts, the lender said Thursday.
July 24, 2024
Ex-Barclays CEO Told To Testify In Appeal Of Qatar Fees Fine

Former Barclays CEO John Varley was ordered by a London tribunal Wednesday to give evidence in the bank's appeal against a £50 million ($64.6 million) fine over its emergency fundraising with Qatar during the 2008 financial crash.
July 24, 2024
EU Trade Body Warns Against FCA Enforcement Plans

A trade body for European financial firms has warned that the Financial Conduct Authority's proposed naming of companies in enforcement investigations would make the U.K. an international outlier, damaging competitiveness.

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

Unpacking The New Concept Of 'Trading Misfeasance'

In addition to granting one of the largest trading awards since the Insolvency Act was passed in 1986, the High Court recently introduced a novel claim for misfeasant trading in Wright v. Chappell, opening the door to liability for directors, even where insolvent liquidation or administration was not inevitable, say lawyers at Greenberg Traurig.
Key Takeaways From Proposed EU Anticorruption Directive

The European Commission's anticorruption proposal, on which the EU Council recently adopted a position, will substantially alter the landscape of corporate compliance and liability across the EU, so companies will need to undertake rigorous revisions of their compliance frameworks to align with the directive's demands, say lawyers at Linklaters.
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.