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 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.
November 27, 2024
Banco BPM Rejects UniCredit's €10B Takeover Offer

Italian lender Banco BPM SpA has rebuffed a €10 billion ($10.5 billion) offer from its domestic rival UniCredit SpA, a move that would create the country's biggest bank, stating that the bid fails to reflect its profitability and prospects.
November 27, 2024
HSBC Loses Challenge To €32M Euribor Rigging Fine

HSBC Holdings PLC has lost its challenge to a €31.7 million ($33.4 million) European Union fine for rigging Euribor, as a European court rejected on Wednesday the bank's argument that the penalty was imposed out of time.
November 27, 2024
Simpson Thacher Hires Funds Trio To New Luxembourg Office

Simpson Thacher & Bartlett LLP said Wednesday that it has hired three funds partners for a new office in Luxembourg, which it plans to open in early 2025.
November 26, 2024
'Incompetent' FCA Needs Gov't-Led Radical Reform, MPs Say

The Financial Conduct Authority is not fit for purpose and requires government intervention for an extensive overhaul to address its "significant shortcomings" if it is to be an effective regulator, a group of cross-party MPs said in a report published Tuesday.
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.

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.