Corporate Crime & Compliance UK

  • May 15, 2024

    Uyghur Group Fights To Revive Bid For Chinese Cotton Probe

    Campaigners for the Uyghurs told an appellate court Wednesday that Britain was wrong to refuse to launch a broad investigation into imported cotton produced in China with forced labor rather than specific shipments, arguing that the decision could create a market for criminal property.

  • May 15, 2024

    Food Supplier's £1.1M Suit Alleges Ex-Director Inflated Price

    A food product company has alleged its former director owes it over £1.1 million ($1.4 million) for devising a scheme to artificially inflate suppliers' costs and pocketing the difference between the real price.

  • May 15, 2024

    Crypto 'Academy' Closed After Probe Into False Assurances

    A cryptocurrency firm that "recklessly" persuaded customers to put money into investment plans has been wound up after the government's insolvency agency found that the company had given false assurances and traded without regulatory approval.

  • May 15, 2024

    Watchdog Warns Bank CEOs Of Inadequate Recovery Plans

    The Prudential Regulation Authority told the chief executives of smaller U.K. banks and building societies in a letter on Wednesday that their companies should improve recovery plans, saying that they use insufficiently severe scenarios in testing.

  • May 15, 2024

    Ex-Candey Partner Did Not Think Client Funds Were Criminal

    A former Candey partner who is accused of not adequately checking the source of almost £24 million ($30 million) in client funds earmarked for a property purchase told a tribunal on Wednesday that he did not believe the money was the proceeds of crime.

  • May 15, 2024

    Fired Judge Loses Appeal Over Deleting Data During Probe

    A former judge who was removed from office for deleting data relevant to a police investigation had his bid to appeal his dismissal rejected by the High Court on Wednesday as a judge ruled that his removal from the bench was "clearly justified."

  • May 15, 2024

    FCA Charges 3 For Alleged £8M Pension Fraud

    The Financial Conduct Authority said Wednesday it has charged three consultants over an alleged fraudulent investment scheme in which victims lost £8 million ($10.1 million) of their pension savings.

  • May 15, 2024

    Lloyd's Further Tightens 'Cyberwar' Insurance Cover

    Lloyd's of London has tightened rules on members of the specialist insurance market over cover for state-backed cyberattacks.

  • May 15, 2024

    Sanctions Give Shipper Force Majeure Escape From Contract

    Britain's highest court ruled Wednesday that a shipowner should not be forced to vary the payment terms of a freight contract to overcome a potential force majeure event amid concerns about U.S. sanctions.

  • May 15, 2024

    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.

  • May 14, 2024

    Autonomy Overstated Revenue Before HP Sale, Jury Hears

    Autonomy's reported revenue was overstated by a combined $300 million in the two-and-a-half years before HP acquired it, an accounting expert testified Tuesday in a California criminal trial over claims that Autonomy founder Michael Lynch duped HP into buying his software company for an inflated $11.7 billion price.

  • May 14, 2024

    Billionaire's Pilot Cops To Tax Count, Avoids Insider Trial

    A pilot from Virginia accused of profiting from stock tips fed to him by British billionaire Joe Lewis on Tuesday copped to dodging taxes on $500,000 of income from Lewis' company, in a plea deal that avoids an insider trading trial.

  • May 14, 2024

    Communications Panel Seeks Stiffer Fines On SLAPP Suits

    The chair of a House of Lords committee on Tuesday urged the government to increase the Solicitors Regulation Authority's fining powers to crack down on litigation designed to silence reporting about wealthy and powerful individuals.

  • May 14, 2024

    SFO Boss Suggests Paying Whistleblowers From Plea Deals

    The U.K. should pay whistleblowers for providing smoking gun evidence of wrongdoing from any corporate settlement they help bring about, to compensate them for the risk of coming forward, the director of the Serious Fraud Office told lawmakers on Tuesday.

  • May 14, 2024

    Fuel Trader Did Not Hide £5M Commissions From Employer

    A former biodiesel trader accused of pocketing the equivalent of £5.2 million ($6.5 million) in secret commissions never hid the payments and worked hard to negotiate the best price for his employer, his lawyer told a jury Tuesday.

  • May 14, 2024

    UniCredit Bids To Toss $69M Plane Payment Sanctions Ruling

    UniCredit urged an appeals court on Tuesday to overturn a ruling that it was not reasonable for its London branch to believe it was prohibited from making $69.3 million in payments to three Irish lessors tied to aircraft held in Russia because of Western sanctions.

  • May 14, 2024

    EU Watchdog Sets Anti-Greenwashing Guidelines For Funds

    The European Union's markets regulator on Tuesday published its final guidelines for firms using ESG terms in fund names, requiring 80% of the fund's investments to match the claimed criteria to combat greenwashing risk.

  • May 14, 2024

    Gov't To Add Legal Powers, Staff To Stop Benefits Fraud

    The Department for Work and Pensions said Tuesday it will support new legislation to expand its powers to make arrests and conduct searches in its crackdown on benefits fraud.

  • May 14, 2024

    Taxpayers Could Face Bill For 'Shadow Fleet' Oil Spill

    British taxpayers could be on the hook for the cleanup if oil leaks from a ship operating without full insurance as a result of sanctions imposed on Russia, a senior figure at Lloyd's of London warned a panel of MPs on Tuesday.

  • May 13, 2024

    Irked Autonomy Judge Vents On HP Fraud Trial's Slow Pace

    U.S. District Judge Charles Breyer on Monday blasted lawyers for the government and two former Autonomy Corp. PLC executives in a criminal fraud case over the trial's slow progress, saying he's "annoyed," but also "complicit" because he "did not take more of a controlling posture."

  • May 13, 2024

    EU Designates Booking.com As Gatekeeper, X Ads Escape

    The Dutch company that owns popular travel site Booking.com is the latest company to be hit with the gatekeeper designation by the European Commission, and the social media platform X may be next.

  • May 13, 2024

    Candey, Ex-Partner Face Tribunal Over Alleged AML Breach

    Candey Ltd. and a former partner breached money laundering regulations by not adequately checking the source of nearly £24 million ($30 million) of client funds earmarked for a property purchase, the Solicitors Regulation Authority told a tribunal Monday.

  • May 13, 2024

    Barclays Can Keep $148M Russian Swaps Dispute In London

    Barclays has secured a permanent London court order preventing sanctioned Russian state investment company VEB from taking its $147.7 million swaps dispute with the bank away from the U.K. to an arbitration court in Moscow.

  • May 13, 2024

    Law Firm Beats Paralegal's COVID Whistleblower Claim

    An employment tribunal has dismissed a former paralegal's claim alleging she was unfairly dismissed for raising complaints about her mentor's behavior and COVID-19 practices, finding the disclosures didn't play a part in the firm's decision to fire her.

  • May 13, 2024

    CMA Can Appeal Nixed £100M Fine In NHS Drug Pricing Case

    The Competition and Markets Authority was granted permission on Monday to challenge a tribunal's ruling that overturned more than £100 million ($126 million) in fines against drug companies for fixing agreements that allegedly increased the price of hydrocortisone tablets.

Expert Analysis

  • Clarity Is Central Theme In FCA's Greenwashing Guidance

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    Recent Financial Conduct Authority guidance for complying with the U.K. regulator's anti-greenwashing rule sends an overarching message that sustainability claims must be clear, accurate and capable of being substantiated, say lawyers at Cadwalader.

  • What The EU Sustainability Directive Will Mean For Companies

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    The European Parliament’s recent approval of the landmark Corporate Sustainability Due Diligence Directive provides welcome clarity for small and midsize enterprises regarding human rights and environmental due diligence expectations, forming part of a growing pressure on companies around the world to operate ethically and sustainably, say lawyers at Jenner & Block.

  • What Can Be Learned From CMA's Green Claims Investigation

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    The Competition and Markets Authority's recent investigation into retailers' allegedly misleading environmental claims demonstrates that all consumer-facing businesses must exercise caution and ensure their green credentials are genuine, say Charlotte Kong and Stephen Sidkin at Fox Williams.

  • The Art Of Corporate Apologies: Crafting An Effective Strategy

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    Public relations challenges often stop companies from apologizing amid alleged wrongdoing, but a recent U.K. government consultation seeks to make this easier, highlighting the importance of corporate apologies and measures to help companies balance the benefits against the potential legal ramifications, says Dina Hudson at Byfield Consultancy.

  • AI Tools Could Enhance UK Gov't Public Services Strategy

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    The government’s recently announced intention to pilot artificial intelligence tools in routine policy work is part of a wider strategy to revolutionize the delivery of public services, and could improve productivity and create efficiencies, provided it is mindful of the potential risks involved, say attorneys at Akin.

  • Taking Stock Of The Latest Criminal Court Case Statistics

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    The latest quarterly statistics on the type and volume of cases processed through the criminal court illustrate the severity of the case backlog, highlighting the need for urgent and effective investment in the system, say Ernest Aduwa and Jessica Sarwat at Stokoe Partnership.

  • ICO Data Protection Guidance Offers Clarity On Fining Powers

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    New guidance from the Information Commissioners' Office is designed to offer transparency about its fining powers, and, combined with the office's wide-ranging enforcement authority, clearly intends to ensure breaching companies concentrate on the external harm they cause and not only internal changes, say Robert Allen and Amelia Handoll-Clark at Simmons & Simmons.

  • Hugh Grant Case Raises Questions About Part 36 Offers

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    Actor Hugh Grant's recent decision to settle his privacy suit by accepting a so-called Part 36 offer from News Group — to avoid paying a larger sum in legal costs by proceeding to trial — illustrates how this legal mechanism can be used by parties to force settlements, raising questions about its tactical use and fairness, says Colin Campbell at Kain Knight.

  • Investment Security Act Fine-Tune May Help Businesses

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    Although the government’s recent response to feedback on the National Security and Investment Act regime makes it clear that its approach is one of fine-tuning and substantial reforms will have to wait, there is still room to ease the burden on businesses by issuing guidance and refining the terms of mandatory area definitions, say lawyers at Linklaters.

  • How New FCA Rules Strengthen Borrower Protections

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    The Financial Conduct Authority’s recently published final rules, aimed at strengthening protections for borrowers in financial difficulty by regularizing good practices across the industry, put its previous guidance on a permanent footing and send a clear message to firms that this issue remains a regulatory priority, say James Black, Julie Patient and Mark Aengenheister at Hogan Lovells.

  • How Cos. Can Prepare For EU's Forced Labor Regulation

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    Before a new European Union regulation takes effect banning products made with forced labor from the internal market, economic operators will need to get their supply chain compliance functions ready, familiarizing themselves with international standards and case law, say Vassilis Akritidis and Jean-Baptiste Blancardi at Crowell & Moring.

  • Opinion

    New Property Category Not Needed To Regulate Digital Assets

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    The U.K. Law Commission's exploration of whether to create a third category of property for digital assets is derived from a misreading of historical case law, and would not be helpful in resolving any questions surrounding digital assets, says Duncan Sheehan at the University of Leeds.

  • FTSE Draft Rules Show Impact Of FCA Listing Reforms

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    FTSE Russell’s recently published provisional rule changes represent a much-awaited indication of its response to the U.K. Financial Conduct Authority’s proposed listing reforms, providing a level of certainty that will assist issuers and advisers in preparing for the implementation of the regime, say lawyers at Davis Polk.

  • FCA Strikes A Balance With 'Finfluencer' Guidance

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    With financial firms leveraging social media to engage with a broader audience, the Financial Conduct Authority’s recent "finfluencer" guidance signals a recognition of the imperative to adapt regulatory frameworks while maintaining a firm commitment to consumer protection, say David Allinson and Damien O'Malley at RPC.

  • Pharma Remains A Key Focus Of EU Antitrust Enforcement

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    The recently published European Commission report on pharmaceutical sector competition law illustrates that effective enforcement of EU rules remains a matter of high priority for EU and national authorities, say lawyers at Dechert.

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