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.
October 08, 2024
SocGen Bids To Force €140M Clifford Chance Case To France

Societe Generale SA relaunched its fight on Tuesday to force its €140 million ($154 million) negligence case against Clifford Chance LLP out of England, arguing before the Court of Appeal that it should be heard in France.
October 08, 2024
Ex-F1 Boss Accepted £57M Bond Risk, HSBC Says

HSBC has denied giving ex-Formula One team boss Eddie Jordan negligent investment advice that lost him £5.5 million ($7.2 million), claiming he was an experienced investor who knew the risks.
October 08, 2024
Finance World Must Prepare For Constant Volatility, FCA Says

The financial sector should be prepared to face market volatility constantly, the chief executive of Britain's financial watchdog said Tuesday, likening today's financial landscape to a challenging tennis match where "the grounds keep changing and the opponents are tougher."
October 08, 2024
EU Removes Antigua And Barbuda From Tax Blacklist

The Council of the European Union removed Antigua and Barbuda from its blacklist of noncooperation jurisdictions on global tax standards, the EU's Economic and Financial Affairs Council announced Tuesday.
October 08, 2024
Wirecard Loses £12M Fraud Claim Against Greybull Capital

Greybull Capital has defeated an £11.8 million ($15.5 million) fraud claim brought by Wirecard's insolvency administrator, which alleges that the private equity company lied about the source of money injected into Monarch Airlines a year before the carrier collapsed.
October 08, 2024
Travers Smith Leads Wealth Manager On £45M Purchase

Brooks Macdonald Group PLC said Tuesday that it has agreed to buy financial planners Lift in a deal worth up to £45 million ($59 million) to expand its client reach and accelerate growth in the planning sector, advised by Travers Smith LLP.
October 08, 2024
Bear 'Polluter Pays' Liability For Redress, FCA Tells Firms

The finance watchdog has warned investment firms that they must take responsibility for holding sufficient resources to pay redress to clients, saying it has seen significant liabilities being pushed onto the country's financial compensation program.
October 08, 2024
FCA Warns Banks To Improve Anti-Fraud Systems To Cut APP

The financial watchdog has ordered banks and other payments firms to improve their anti-fraud systems and controls, as it expects businesses to target authorized push payment scams in this way.
October 07, 2024
Socialite Claims Ignorance In £200M Money Laundering Trial

A socialite accused of being at the heart of an £200 million ($262 million) money laundering scheme was "taken advantage of" while engaging in what he believed to be legitimate gold trading business, his lawyer argued at trial on Monday.
October 07, 2024
Walker Crips Must Classify Investment Manager As Worker

An investment manager on Monday won his bid for worker status after an employment tribunal ruled that a lax agreement with Walker Crips giving him free rein over his hours and investment style didn't mean he owned a separate business.
October 07, 2024
Rosenblatt Rejects Negligence Claims Over Jaeger Collapse

Rosenblatt Solicitors has denied being negligent in its handling of a claim for a fashion retail entrepreneur against Lloyds Bank over the bank's alleged role in the demise of fashion brand Jaeger, arguing it had to take a narrow focus to bolster the weak case.
October 07, 2024
Covington UK White Collar Chief Heads To Litigation Boutique

Covington & Burling LLP's former co-head of white collar defense for Europe joined litigation boutique Quillon Law LLP on Monday to boost its capabilities in major fraud cases and investigations.
October 07, 2024
Investors Urge UK Pension Reforms To Boost Returns

Investors have urged the U.K. to adopt new pension reforms designed to improve how pension schemes invest and operate following a call for evidence as the government carries out a review of pensions investment.
October 07, 2024
LME Beats US Hedge Fund's Appeal Over $12B Nickel Trade

A London court has dismissed a U.S. hedge fund's appeal against a decision by the London Metal Exchange to cancel more than $12 billion in nickel trades, ruling on Tuesday that its actions were lawful, justified and proportionate.
October 07, 2024
Watchdog Now Orders Banks To Pay Back APP Fraud Victims

The Payment Systems Regulator said Monday that new rules will provide world-leading protections to consumers who have been tricked into sending money to fraudsters through the banking system.
October 04, 2024
SFO Seizes £295K From Convicted Tycoon In $700M Fraud

Britian's financial crime enforcer has seized £295,000 ($386,000) from a convicted fraudster imprisoned three times in connection with an international metal trading scam that defrauded lenders worldwide out of nearly $700 million more than two decades ago.
October 04, 2024
G7 Antitrust Chiefs Vow To Scope Collusion In AI Tech Sector

U.S. and international antitrust regulators said Friday they intend to scrutinize any anticompetitive practice in the market for artificial intelligence technologies or any use of the emerging tech to circumvent competition.
October 04, 2024
WealthTek Distribution Plan Was Approved For Expediency

England's High Court had the power to approve a plan to distribute client assets held by collapsed wealth manager WealthTek LLP even though the plan does not conform with investors' "strict rights" to their investment, a judge said Friday in giving his full reasons for sanctioning the plan earlier this year.
October 04, 2024
ECJ Says Interest Deduction Limits Align With EU Law

Governments across the European Union can legislate to block businesses from getting corporate tax deductions on interest paid as part of noncommercial loans, the European Court of Justice ruled Friday.
October 04, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen GMB Union sued by the makers of Tetley Tea after a staff walkout in September, boxer Mike Tyson hit with legal action from a marketing company and the Met Police face a misuse of private data claim from a woman who had a relationship with an undercover police officer. Here, Law360 looks at these and other new claims in the U.K.
October 04, 2024
Experian To Acquire Brazil's ClearSale For $350M

Credit ratings agency Experian PLC said Friday that it has agreed to acquire Brazil-based digital fraud prevention company ClearSale SA for 1.90 billion Brazilian real ($350 million) to complement its existing identity and fraud business in the South American country.
October 04, 2024
McDermott Taps Big 4 Partner As Senior Tax Pro In London

McDermott Will & Emery LLP announced it has recruited a former U.K. partner from KPMG to join its firm as a tax partner, bringing an expert in private equity to its London office.
October 04, 2024
FCA's £29M Fine Of Starling Sends Wider Compliance Warning

The Financial Conduct Authority hit Starling Bank Ltd. with a £28.9 million ($38.4 million) fine on Wednesday for inadequate anti-money laundering and sanctions controls. This has sent a wider warning to companies that compliance levels must match growth.
October 04, 2024
Bahamian Bank Claims No Fault In $3M Loan Row

A Bahamian bank has argued it did not breach a $3 million loan agreement with a director of an American biotech company, arguing the deal was justifiably terminated and that it does not owe him $15 million for any alleged losses.
October 03, 2024
Former Senior Accountant Jailed For £1M Council Fraud

A former council accountant has been jailed for defrauding a local authority out of nearly £1 million ($1.3 million) over two decades, according to the Crown Prosecution Service.

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

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.
What To Know About The UK Overseas Funds Regime

The U.K.’s overseas funds regime is now open for applications, providing a simplified way of offering a foreign fund to U.K. retail investors, and the Financial Conduct Authority's clear policy statement on implementation should ease the transition process from the existing scheme, say lawyers at Dechert.
Takeaways From SRA Consumer Protection Review

While the Solicitors Regulation Authority prepares to announce its findings later this year following its consumer protection consultation, the topic of handling client funds is very much alive in the legal industry, with polarizing views on what should happen as a result of the review, says Claire Van Der Zant at Shieldpay.
Reflecting On 12 Months Of The EU Foreign Subsidy Regime

New European Commission guidance, addressing procedural questions and finally providing clarity on “distortion” in merger control and public procurement, offers an opportunity to reflect on the year since foreign subsidy notification obligations were introduced, say lawyers at Fried Frank.
What Updated Guide Means For Jersey's Private Funds

The Jersey Financial Services Commission's recent updates to the Jersey Private Fund Guide clarify existing provisions and introduce new requirements for fund managers, service providers and investors, demonstrating a clear commitment to maintaining Jersey's reputation as an attractive jurisdiction for investment, say lawyers at Walkers Global.
The Road Ahead For Tokenized Investment Funds In The UK

With an HM Treasury working group expected to release the final phase of a road map for tokenized investment funds by the end of the year, Andrew Tsang and Tom Bacon at BCLP discuss the advantages for investors and fund administrators, the proposed model for implementation, and what the regulatory landscape may look like.
Review Of EU Cross-Border Merger Regs' Impact On Irish Cos.

Looking back on the year since the European Union Mobility Directive was transposed into Irish law, enabling Irish and European Economic Area limited liability companies to participate in cross-border deals, it is clear that restructuring options available to Irish companies with EU operations have significantly expanded, say lawyers at Matheson.
A Look At UK, EU And US Cartel Enforcement Trends

The European Union, U.K. and U.S. competition agencies' recently issued joint statement on competition risks in generative artificial intelligence demonstrates increased cross-border collaboration on cartel investigations, meaning companies facing investigations in one jurisdiction should anticipate related investigations in other jurisdictions, say lawyers at Latham & Watkins.
Testing The Limits Of English Courts' Pro-Arbitration Stance

Although the Court of Appeal recently upheld a $64 million arbitration award in Eternity Sky v. Zhang, the judgment offers rare insight into when the English courts’ general inclination to enforce arbitral awards may be outweighed by competing policy interests such as consumer rights, say Declan Gallivan and Peter Morton at K&L Gates.
What Green Claims Directive Proposal Means For Businesses

With the European Union’s recent adoption of a general approach to the proposed Green Claims Directive, which will regulate certain environmental claims and likely be finalized next year, companies keen to publicize their green credentials have even more reason to tread carefully, say Marcus Navin-Jones and Juge Gregg at Crowell & Moring.
£43M Legal Bill Case Shows Courts' View On Exchange Rates

A recent Court of Appeal decision declined to change the currency used for payment of the Nigerian government's legal bill, aligning with British courts' consensus that they should not be concerned with how fluctuating exchange rates might benefit one party over another, says Francis Kendall at Kain Knight.
Examining The EU's New Payments Services Package

Following recent European Parliament elections, the spotlight is turning to the highly anticipated payments services package expected in September, marking a pivotal moment in the legislative process that will reshape the payment services ecosystem in the European Union, says Kristýna Tupá and Karolína Hlavinková at Schoenherr.
Examining The State Of Paccar Fixes After General Election

Following the U.K. Supreme Court's Paccar decision last year, which made many litigation funding agreements for opt-out collective actions in the Competition Appeal Tribunal unenforceable, the judiciary will likely take charge in implementing any fixes — but the general election has created uncertainty, says Ben Knowles at Clyde & Co.