Financial Services UK

UK Court Of Appeal Ruling Clarifies US Sanctions Compliance

The U.K. Court of Appeal's recent decision in Lamesa Investments v. Cynergy Bank considered whether U.S. secondary sanctions were a mandatory provision of law under a standard agreement clause and is a valuable reminder of the importance of bespoke drafting of sanctions-related contractual clauses, say Jason Hungerford and Paul Whitfield-Jones at Mayer Brown.

HSBC Suit Shows Challenge Of Designing Tax Relief Laws

Investors' recent lawsuit against HSBC over film-related tax avoidance schemes spotlights the difficult balancing act of crafting practical tax relief legislation while safeguarding against abuse, says Andrew Parkes at Andersen Tax.

Opinion

A Modest Proposal For Judge-Only Trials In Fraud Cases

Any legally represented defendant prosecuted by the Serious Fraud Office or the Crown Prosecution Service's Specialist Fraud Division should have the right to demand a judicial method of determining their guilt or innocence — and COVID-19 could be a catalyst for necessary change, says David Corker at Corker Binning.

Swipe Fee Ruling Brings Clarity To UK Competition Litigation

While the U.K. Supreme Court decision last month in the MasterCard and Visa multilateral interchange fees cases rectifies a number of inconsistent decisions in the litigation saga, the court's findings on the "pass-on defense" in competition damages claims are of wider application, says Kim Dietzel at Herbert Smith.

How Courts Are Encouraging Mediation In England And Wales

As the judiciary braces for widespread pandemic-driven contractual disputes, courts in England and Wales are showing enthusiastic support for mediation, both when determining the implications of a party's refusal to mediate and when assessing whether normal restrictions on the use of mediation-derived information apply, says Leah Alpren-Waterman at Watson Farley.

An Attractive Regime For Governing Jurisdiction Post-Brexit

As indicated by the U.K.'s recent application to join the Lugano Convention, this is an "oven-ready" option for the U.K. for governing questions of jurisdiction and the enforcement of judgments with European Union countries after Brexit — but not without important differences from the current regime, say attorneys at Latham.

Takeaways From FCA's Latest Financial Crime Controls Fine

The Financial Conduct Authority's £37.8 million ($47.85 million) fine of Commerzbank London last month for alleged failures in anti-money laundering controls provides useful risk-management reminders for financial institutions operating in the U.K., say attorneys at Crowell & Moring.

SFO's Tendency To Abandon Investigations Holds Strong

The Serious Fraud Office's decision to end its investigation into De La Rue relatively quickly marks its latest failure to bring charges or secure a conviction, raising questions about the agency's capacity and willingness to hold large corporations accountable, says Neil Williams at Rahman Ravelli.

VAT Cuts Won't Save Economies, Will Burden Businesses

Although value-added tax cuts may seem attractive for governments looking to stimulate economies in the wake of the pandemic, their implementation costs and inefficiencies can cause significant trouble for businesses, says Richard Asquith of Avalara.

A UK Court Take On Contracting With An Undisclosed Agent

The recent ruling by the English Commercial Court in National Bank of Kazakhstan v. BNY Mellon is a reminder of the potential difficulties that agency relationships — or the possibility of them — can create for contractual enforcement and interpretation, even years after a contract is signed, says Jonathan Swil at Shearman & Sterling.

Opinion

Reflections On The UK Bribery Act 10 Years On

While the U.K. Bribery Act has been positive overall, regulators should seek urgent reform to better enable the investigation and prosecution of companies and individuals for economic crimes, especially in cases directly harming people and the environment, says Chris Phillips at Alvarez & Marsal.

UK Lawyers Can Adapt Due Diligence To Screen New Clients

As COVID-19-related fraud gains pace, U.K.-based practitioners should help combat money laundering by using alternative methods to verify that new clients are who they say they are, says Christopher Convey, a barrister at 33 Chancery Lane and chair of the Bar Council's Money Laundering Working Group.

A Post-COVID-19 Road Map For UK Financial Services

From setting realistic recovery expectations to anticipating regulatory zeal to strategizing internal operations, attorneys at King & Spalding offer a road map for U.K. financial services stakeholders attempting to return to "normal" when the pandemic subsides.

FCA Has Strong-Arm Lending Tactics Under The Microscope

Even by the usual standards of a "Dear CEO" letter, the Financial Conduct Authority's April 28 letter is strongly worded — signaling no tolerance for banks using their corporate clients' cash-flow problems as leverage to obtain roles on equity mandates they otherwise would not have obtained, says Claire Cross at Corker Binning.

A Look Forward To UK Banking Litigation In The 2020s

With an eye on the impact of COVID-19 and the evolving threat of financial crime, Christa Band and Jane Larner at Linklaters provide an overview of the near-future challenges financial institutions should expect.