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 04, 2024
Barings Solicitors Sent Claims For Mickey Mouse, SRA Says

The Solicitors Regulation Authority has accused two senior lawyers at the consumer finance firm Barings Ltd. of misleading clients over their payday loans and sending out claim letters on behalf of fictional clients, including Mickey Mouse, in a London legal disciplinary tribunal Monday.
November 04, 2024
Hedge Fund Lawyer Denies Role In £1.4B Cum-Ex Fraud

The former top lawyer at a hedge fund accused of defrauding Denmark's tax authority of £1.4 billion ($1.8 billion) told a London trial Monday he had no knowledge of cum-ex trading fraud at the business.
November 04, 2024
FCA Warns SIPP CEOs On Handling Pensions Money

The financial watchdog has written to the chief executives of self-invested personal pension operators, warning them in a letter published Monday that it has growing concerns about how they handle pensions money, risking fraudulent payments from the savings plans.
November 04, 2024
Tende Energy and Finance Biz Settle $5M Loan Dispute

A financial services company in the Cayman Islands has settled its $5 million claim against energy developer Tende Energy over an allegedly unpaid debt that arose from its deal to transfer to Tende its rights to a loan with another oil and gas exploration company.
November 01, 2024
Investors Solely Liable For £5.4M Investment, Say Law Firms

Two law firms have hit back against a £5.4 million ($7 million) negligence claim by property investors, arguing there was no indication that the building project the investors put their money into was a Ponzi scheme.
November 01, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen two industry magnates take on the Gambling Commission, Ordinance Survey hit with a claim from a Swiss GPS maker, and China's largest oil company PetroChina face a claim from a Polish documentary maker. Here, Law360 looks at these and other new claims in the U.K.
November 01, 2024
Portfolio Manager Loses Sex Discrimination Claims

A former senior manager at a London investment company has failed to convince a tribunal that she was excluded from meetings and faced sexist comments because she was a woman in a male-dominated workplace.
November 01, 2024
Barclays Ruling A Blow For Passive Investors Suing In UK

The willingness of the High Court to cut passive investors from a shareholders' claim that accuses Barclays of making misleading statements about its "dark pool" trading venue presents a substantial challenge to the prospects of stock price-drop litigation against listed companies.
November 01, 2024
Gov't Criticized For No Women's Pensions Redress In Budget

The Labour government said Friday it does not know when it will begin compensating women affected by historic failings in their state pensions, after attracting criticism over the absence of a redress scheme in its inaugural budget earlier this week.
November 01, 2024
Craig Wright Faces Contempt Case Over £911M Bitcoin Claim

Computer scientist Craig Wright was accused at a London court on Friday of violating a court order by claiming he was the inventor of Bitcoin, in a claim worth an estimated £911 million ($1.2 billion), after a judge had concluded he had repeatedly lied about creating the digital currency.
November 01, 2024
FCA Warns Odey He 'Lacks Integrity' Over Misconduct Probe

The Financial Conduct Authority said Friday that it has warned hedge fund boss Crispin Odey that it will take regulatory action against him after finding that he frustrated an internal probe into sexual misconduct allegations and showed a "lack of integrity."
November 01, 2024
Barclays Completes £600M Purchase Of Tesco Bank

Barclays PLC said Friday that it has completed its £600 million ($777 million) acquisition of the banking arm of Tesco PLC, bringing down the curtain on the retailer's 25 years of ownership of the lender.
November 01, 2024
Law Firms Improving At Managing AML Risk, SRA Says

The Solicitors Regulation Authority reported on Friday that it has recorded improvements in the way law firms manage anti-money laundering risks after it took action to clamp down.
October 31, 2024
Ex-Citadel Reps Can't Escape Trade Secrets Suit

A New York federal judge has greenlighted most claims in Citadel Securities' lawsuit accusing a Swiss cryptocurrency trading firm founded by two of its former employees of stealing its trade secrets, while tossing those asserted against the firm's French angel investor for lack of jurisdiction.
October 31, 2024
Scam Promoter Who Cost UK £2.6M In Taxes Is Banned

A man who promoted a tax avoidance scam costing the British government tax agency at least £2.6 million ($3.4 million) has been banned by the government from serving as a director of any company for 10 years, the U.K.'s Insolvency Service announced Thursday.
October 31, 2024
Gov't Urged To Reform Tax Charges On Pension Scam Victims

The government should prioritize reform to ensure that victims of pension scams are no longer hit with massive tax bills, an industry body said Thursday.
October 31, 2024
Vanguard Group Scores 2nd Win In Battle Against Rival TM

Vanguard Group convinced European officials to nix a trademark for "Vanguard Reinsurance" after its Lebanese rival failed to provide any evidence that it had genuinely used the sign to market insurance services.
October 31, 2024
FCA Fine Puts Execs' Personal Conduct Under The Spotlight

The £350,000 ($455,000) fine handed by the Financial Conduct Authority to the boss of a leading financial technology company is a reminder that executives risk the watchdog's wrath if they're not transparent about reporting potential misconduct, white-collar lawyers say.
October 31, 2024
Fugitive Fund, Bank Managers Appeal Fraud Conviction

Two fugitive financiers sentenced to a combined 11 years in prison for defrauding a Libyan fund out of $8.45 million appealed against their convictions at a London court on Thursday, arguing that a judge's "devastating" missteps torpedoed their chances at trial.
October 31, 2024
FCA Bans 2 Financial Advisers For Pension Transfer Failings

Two financial advisers connected to the British Steel retirement savings plan scandal have been hit with a lifetime ban from offering pension transfer advice in the future, the City watchdog said Thursday.
October 31, 2024
Reeves To Face MPs As Budget Enters Approval Process

Chancellor Rachel Reeves is due to be grilled by senior MPs on Nov. 6 after she presented the Labour government's first Budget for 14 years, which features a £40 billion ($52 billion) tax package that has raised concerns of new pressure on businesses and retirement savers.
October 31, 2024
Sainsbury's Sells Argos Cards For £720M, Focuses On Retail

J Sainsbury PLC said on Thursday it has offloaded its Argos Financial Services card portfolio to credit provider NewDay Group for approximately £720 million ($933.6 million) to shrink its involvement in financial services and focus on retail.
October 31, 2024
Gov't Transfers £1.5B To Former Miners' Pension Scheme

The government unveiled on Thursday a transfer of £1.5 billion ($1.9 billion) to pensions belonging to 112,000 former mine workers, resulting in a 32% increase in their annual pension payouts and undoing an "historic injustice."
October 31, 2024
Car Finance Lenders Brace For Wave Of Redress Payments

The Court of Appeal has set car finance lenders up for a costly compensation bill by imposing a higher duty on brokers to explicitly tell customers about their commissions.
October 30, 2024
Cripps Steers BP Marsh's Buy Of Stake In Lloyd's Broker

Private equity firm B.P. Marsh and Partners PLC announced Wednesday that it has acquired a 30% interest in Lloyd's broker SRT & Partners for £2.5 million ($3.2 million) in equity and loans, in a deal guided by Cripps LLP and Nockolds Solicitors Ltd.

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

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.
Draft Merger Control Guidance Allows CMA To Cast Wide Net

The Competition and Markets Authority's recent draft merger control guidance, reflecting the regulator's strengthened powers under the Digital Markets, Competition and Consumer Act, introduces extensive change and potential procedural improvements, specifically concerning reviews of private equity firms, say lawyers at Travers Smith.
Key Points From Cayman's Beneficial Ownership Regime

While recent expansion of the Cayman Islands Beneficial Ownership Act's scope means it now encompasses many entities with previously minimal obligations, the changes ensure a welcome level playing field with workable alternative routes to compliance, says Lucy Frew at Walkers Global.
HMRC Transfer Pricing Guide A Vital Resource For Businesses

HM Revenue & Customs' recent guidelines on common transfer pricing compliance risks should be required reading for affected businesses in indicating HMRC's expected benchmark for documents and policies, say Tomoko Ikawa and Kapisha Vyas at Simmons & Simmons.
Insights From FRC's Report On Good Corporate Governance

Although the Financial Reporting Council’s recent report on private companies opting to follow the Wates principles has identified improvements, it is important for organizations to provide transparent disclosures and avoid boilerplate, tickbox filings, says Tessa Hastie at BCLP.