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 26, 2024
Brokerage Service Denies Helping $129M Forex Fraud

A provider of brokerage services has denied giving credit for a company that carried out an alleged $129 million Ponzi scheme, saying in court filings that it had no knowledge of the fraud.
November 26, 2024
UK Regulators Propose Relaxing Rules On Bankers' Pay

The Prudential Regulation Authority and Financial Conduct Authority jointly announced plans on Tuesday to ease restrictions on bonuses for senior bankers, with the aim to make the U.K. more competitive while ensuring accountability in risk management.
November 26, 2024
Accredited Insurance Denies £61.4M Liability In Loan Dispute

An insurer has hit back at a £61.4 million ($77.4 million) claim by a legal loans company, arguing a number of regulatory breaches by the lender mean it's not liable to pay out under a litigation funding arrangement.
November 26, 2024
OFSI Boss Promises Tougher Fines For Sanctions Breaches

The head of the U.K. sanctions watchdog told MPs on Tuesday to expect more fines with tougher penalties for breaches of financial restrictions to be imposed on oligarchs in the coming months as he admitted that the crackdown has been slower than hoped.
November 26, 2024
UK Audit Watchdog Wants Better Risk Management Reporting

Britain's audit watchdog called on Tuesday for companies to adopt a more strategic approach to corporate reporting that focuses on outcomes, urging businesses to improve their disclosures on risk management before its new governance code takes effect.
November 26, 2024
Macquarie Bank Fined £13M For 'Serious' Control Failings

The Financial Conduct Authority said Tuesday that it has fined the London branch of Macquarie Bank Ltd. £13 million ($16.4 million) for significant weaknesses in its systems and controls that allowed a trader to conceal more than 400 fictitious trades over 20 months.
November 26, 2024
FCA Plans Regulation As UK Crypto-Asset Ownership Grows

The financial regulator published a plan Tuesday for regulating crypto-assets in the U.K. as it reported a rise in the number of British adults who now own digital currency and assets, up from 10% to 12% — or 7 million people.
November 25, 2024
Bugsby Denied Arbitration In Olympia Case Funding Battle

A real estate sponsor failed in its bid to arbitrate a dispute stemming from its attempt to buy London's Olympia Exhibition Center, when a London judge ruled Monday that its argument "falls far short."
November 25, 2024
Eversheds Steers M&G In UK's 1st 'Value Share' Pension Deal

The insurance company M&G PLC said Monday it has agreed a £500 million ($629 million) value share bulk purchase annuity, or BPA, deal with an unnamed pension scheme, the first transaction of its kind in the U.K.
November 25, 2024
Immovable Rule Shields Bedzhamov From Russian Bankruptcy

A recent decision by Britain's highest court that the £35 million ($44 million) London home of a fugitive banker is beyond the reach of Russian bankruptcy laws has made it clear that a foreign court cannot enforce orders over English land.
November 25, 2024
'Knight' Can't Lift Freeze On Woodland Mansion, Supercar

A self-styled knight convicted of fraud failed to get a freezing order lifted against £1.1 million ($1.4 million) of his assets as a London court ruled on Monday that the civil recovery proceedings do not unfairly relitigate criminal confiscation efforts.
November 25, 2024
Odey Can't View Medical Records Of Sexual Assault Accusers

Crispin Odey failed on Monday to gain access to the medical records of five women who accuse him of sexual abuse, after a judge weighed in favor of the alleged victims' right to privacy.
November 25, 2024
MPs Raise 'Deep-Rooted' Problems At FCA In Critical Report

A report by a cross-party group of MPs will highlight the failures in the way the Financial Conduct Authority handles major scandals, despite its efforts to reform its culture and operations, according to advance details released Monday.
November 25, 2024
Italy's UniCredit Makes €10B Offer For Rival Banco BPM

UniCredit SpA said Monday that it has offered to buy rival Italian lender Banco BPM SpA for €10 billion ($10.5 billion) in an all-share deal, with the aim of creating a pan-European banking giant.
November 25, 2024
DLA, Mayer Brown Steer £1.7B Pension Deal For National Grid

The U.K.'s largest utilities provider has offloaded £1.7 billion ($2.1 billion) of its pension liabilities to Aviva PLC, the insurer said Monday, in a deal guided by DLA Piper UK LLP and Mayer Brown International LLP.
November 25, 2024
FCA Rewrites Disclosure Rules, Handing Suspects The Reins

Changes to disclosure rules at the Financial Conduct Authority will give defendants more insight into its investigations than ever before — though the development might swamp those that cannot afford top legal advisers, lawyers say.
November 25, 2024
Barclays Fined £40M For Failing To Disclose Qatari Deals

Barclays has been fined £40 million ($50.2 million) for the "reckless" arrangements the bank made with Qatari investors when it was raising fresh capital during the 2008 financial crisis, the Financial Conduct Authority said Monday.
November 22, 2024
Simpson Thacher Hires Finance Pro From Linklaters

Simpson Thacher & Bartlett LLP has recruited a newly promoted banking partner at Linklaters LLP to continue building its finance offering in London.
November 22, 2024
Teacher Stern Cleared Of Rules Breach Over Client Payments

Teacher Stern LLP and two partners were cleared by a London disciplinary tribunal on Friday of breaching legal accounting rules and ethical regulations by allowing clients to transfer money that was not related to an underlying legal transaction or service.
November 22, 2024
Fraud Victim Can't Revive Duty Claim Against NatWest

A fraud victim failed Friday to revive its claim against National Westminster Bank PLC for not stopping more than £420,000 ($526,000) in payments to the scammers' bank account, after a London judge ruled the company did not have a reasonable chance of overturning the dismissal.
November 22, 2024
Paragon Auditor Denied Interim Pay In Whistleblowing Claim

An internal auditor at Paragon Bank has lost his bid for interim pay in his whistleblowing claims against the property finance lender as an appeals tribunal found he would struggle to prove that this was the reason he was sacked.
November 22, 2024
Imprisoned Oligarch Asks UK Court To Hear Conspiracy Claim

Lawyers for an oligarch imprisoned in Russia told a London court Friday that he was entitled to pursue litigation against pipeline giant Transneft in England, rather than Russia as the company wants, because a "not insignificant" proportion of the damage in the case was incurred in England.
November 22, 2024
Spain Raises Bank Windfall Levy, Enacts Minimum Tax

The Spanish government is set to increase its windfall tax on banks with more than €5 billion ($5.2 billion) in income as well as implement a minimum corporate tax on multinational companies following a vote by lawmakers.
November 22, 2024
MPs To Probe UK Pensioner Poverty Amid Rising Costs

A cross-party parliamentary committee on Friday launched an inquiry into pensioner poverty in the U.K., seeking views on which measures have been most effective in addressing the cost of living for retirees.
November 22, 2024
Putin Ally's In-law Charged With Paying Nephew's School Fees

The brother-in-law of a former Russian politician faces new criminal charges for allegedly breaching sanctions after U.K. authorities accused him of paying for the children of an alleged ally of Vladimir Putin to attend a private school, a court heard Friday.

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

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.
Modernizing UK Trade Settlement Standard: The Road Ahead

Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
Analyzing The Implications Of 1st FCA Crypto ATM Crackdown

The Financial Conduct Authority’s recent criminal prosecution of Olumide Osunkoya, its first enforcement action against a crypto-asset trading firm's owner, is an unambiguous sign of the regulator’s commitment to actively pursue transgressors, but may be a hindrance to the U.K. crypto industry, says Asim Arshad at Lawrence Stephens.