Financial Services UK

Compliance in the workplace concept: photo of keyboard and cardboard files.

UK Growth Push Puts FCA Enforcement On Unfamiliar Footing

The government's demand that regulators should prioritize growth is "largely incompatible" with their duty to deter misconduct, say lawyers who are warning clients not to interpret the political messaging as a green light to engage in risky behavior.

American and Russian flags fly together in a breeze.

From Russia With Love? UK Lawyers Mull Sanctions U-Turn

Finance companies are enlisting white-collar lawyers to draw up plans for tapping back into Russia if the U.S. breaks with its Western allies and eases sanctions, although experts warn that unpredictable political winds mean there are as many risks as opportunities.

Mortgage application form stock photo, close-up

UK Mortgage 'Coercion' Ruling Raises Bank Liability Risk

A decision by the U.K. Supreme Court on Wednesday could substantially increase the liability on mortgage lenders to undertake checks on their customers, raising implications for repossessions in a move that is likely to require new rules from the Financial Conduct Authority, according to lawyers.

Bigger Isn't Better In £25B Pensions Megafund Reform

The U.K. government unveiled on Thursday a sweeping reform program to drive the creation of new pension megafunds with the firepower to invest more in the U.K. economy — but experts warn this could stifle competition and "put a gun" to providers' heads.

June 16, 2025
Pension Bill Could Unlock £600B Market For Superfunds

Reforms floated by the government to the U.K.'s nascent superfund regime could widen access to the new type of consolidation vehicle to around half of all defined benefit schemes, representing around £600 billion ($816 billion) of assets, a consultancy said Monday.
June 16, 2025
Just Group Secures £7M Pension Deal For Insolvent Builder

Just Group PLC said Monday that it has taken on £7 million ($9.5 million) of pension scheme liabilities of insolvent construction company The McGregor Construction (Highlands) Ltd. Pension Plan in a deal guided by CMS.
June 16, 2025
VTB Sues JPMorgan Over €17M Asset Sale Amid Sanctions

VTB has alleged that JPMorgan owes it more than €17.8 million ($21 million) over the American bank's botched handling of a trading account and failing to pay out for assets it sold after the Russian bank was hit with sanctions, widening the legal dispute between the two companies.
June 16, 2025
Trader Says US Extradition For $12M Fraud May Be 'Terminal'

A British trader wanted in the U.S. for allegedly defrauding investors as part of a $12 million "pump and dump" scheme told a London judge on Monday that his poor health should prevent his extradition on human rights grounds.
June 16, 2025
Credit Suisse Life Fights $607M Liability To Ex-Georgian PM

The Bermudan life insurance arm of Credit Suisse challenged court findings Monday that it owes $607 million in damages to the former prime minister of Georgia, saying his losses were due to fraudulent activity by an employee of its banking arm.
June 16, 2025
Latham Guides Hunter Point's £1.3B Deal For Equitix Stake

U.S. investment firm Hunter Point Capital will buy a 16.1% stake in London-based investor Equitix in a deal that values it at £1.3 billion ($1.8 billion), majority owner Tetragon Financial Group Ltd. said Monday.
June 16, 2025
Hymans Robertson Launches Service For Small Pension Deals

Hymans Robertson has launched a service it said would support smaller pension schemes with around £150 million ($204 million) or less in assets as they look to offload their liabilities to insurers.
June 16, 2025
Billionaire Accuses India Of Orchestrating His Kidnap, Torture

Billionaire Mehul Choksi accused the Indian government in a London court Monday of orchestrating his "appalling and traumatic" kidnapping and torture in the Caribbean to force him to return to India to face allegations of involvement in an $1.8 billion bank fraud.
June 16, 2025
Asset Manager Tikehau, Insurers Lauch Private Equity Fund

Asset manager Tikehau Capital said Monday it has launched a private equity fund, covering cybersecurity and defense, with three leading insurers, including Société Générale Assurances.
June 13, 2025
UK Businessman Defends Asset Transfer As Tax Strategy

A British businessman denied that he transferred a company to his son to defraud a creditor, arguing it was part of a long-term tax strategy rather than a tactic to avoid repaying £4.7 million ($6.4 million) in debt.
June 13, 2025
EU Guides Watchdogs On Digital Outsourcing Upsurge

The European Union's financial markets regulator has released guidance for national watchdogs on how to regulate firms' expanding outsourcing of activities, driven by digitalization.
June 13, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Tottenham Hotspur FC kick off against Manchester United co-owner Ineos Automotive following a soured sponsorship deal, Acer and Nokia clash over patents for video coding technology, and two investors reignite litigation against the founders of an AI exercise bike business that unlawfully pocketed $1.2 million in investments to fund their own lifestyles. Here, Law360 looks at these and other new claims in the U.K.
June 13, 2025
Tecnimont Must Disclose Emails In €212M Bond Dispute

A Russian subsidiary of fertilizer producer EuroChem convinced a court Friday to compel industrial group Tecnimont to produce its communications with the Italian sanctions authority, days after the trial over the €212 million ($245 million) bond dispute kicked off.
June 13, 2025
Nexo Capital Settles $126M Crypto Contract Dispute

Cryptocurrency lending platform Nexo Capital has settled three fintech executives' claims over access to tens of millions of dollars of their digital assets, according to a court order.
June 13, 2025
European Banks Seek Changes To 'Unclear' Draft AML Rules

A trade body for European banks has warned that a European Union banking watchdog's proposed anti-money laundering rules make excessive demands on credit institutions.
June 13, 2025
FCA Sees 'More To Do' In Reshaping Regulation For Growth

The Financial Conduct Authority responded Friday to parliamentary calls for more growth-oriented regulation, saying that it is exploring new ways to boost Britain's international competitiveness on top of the steps it has already taken.
June 13, 2025
France's BPCE To Buy Novo Banco In €6.4B Deal

France's second-largest banking group BPCE said Friday that it will buy U.S. private equity shop Lone Star Fund's 75% stake in Novo Banco SA in a deal that values the Portuguese bank at €6.4 billion ($7.4 billion).
June 13, 2025
Tap Global To List On AIM, Eyes Wider Investor Base

Tap Global Group PLC said Friday it will list on London's junior alternative investment market this month, a move the digital finance platform believes will help it attract a wider pool of investors.
June 12, 2025
Lords Urges Regulators To Shed Risk-Aversion, Boost Growth

A cross-party House of Lords committee called Friday on the U.K.'s financial services watchdogs to change their culture of risk-aversion which is preventing them from promoting growth in the economy.
June 12, 2025
Everbright Exec Testifies He Trusted Media Biz's Financial Info

An executive of the Chinese financial services firm Everbright testified Thursday that a sports media rights business was portrayed as "well performing" before a joint venture acquired a majority stake, only to later discover its financial health was allegedly inflated.
June 12, 2025
Customs Missteps Don't Void VAT Exemption, ECJ Says

A horse owner can still claim a value-added tax exemption if she was merely negligent, rather than deceitful, in failing to declare her horses with Swedish customs officials, the European Court of Justice held Thursday.
June 12, 2025
KPMG Fined £690K In Audit Independence Probe

The accounting watchdog said Thursday it that has fined KPMG £690,625 ($940,000) and its audit engagement partner Nick Plumb £38,000 for breaching independence requirements as auditor of Carr's Group PLC.
June 12, 2025
SFO Aligns With Gov't Growth Plans In Pitch To UK PLC

Britain's top white-collar prosecutor unveiled on Thursday new details about plans to share data and offer training to companies to prevent economic crime, in a shift to "assist growth" in line with government plans to kindle the sluggish economy.
June 12, 2025
Broadstone Buys ExactVAL To Boost Pension Transactions

Retirement consultancy Broadstone said Thursday it has bought actuarial service provider ExactVAL to support insurers in carrying out pension transactions.
June 12, 2025
Reed Smith Appoints New Head Of Its Frankfurt Office

Reed Smith LLP said Thursday that it has appointed debt finance specialist Oliver Hahnelt as the managing partner of its office in Frankfurt following the departure of its previous incumbent.

Editor's Picks

5 Questions For Spencer West Partner Karl Foster

The Financial Conduct Authority's approach to enforcement and consumer protection has come up against government economic growth priorities and resistance from the sector to its proposals to "name and shame" companies early on during regulatory probes.
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.

Expert Analysis

Fraud Office Guidance Highlights Value Of Self-Reporting

New guidance from the U.K.'s Serious Fraud Office on corporate self-reporting, cooperation and deferred prosecution agreements provides a useful framework for companies navigating criminal investigations and their potential resolutions — and underscores that corporations that self-report are in a better position to obtain DPAs than those that do not, say lawyers at Skadden.
Open Questions As FCA Prepares Buy Now, Pay Later Rules

HM Treasury’s recent response to its consultation on buy now, pay later lending regulation is clear on policy, but with rules still to be set by the Financial Conduct Authority it is difficult for firms to plan for change, and they should take advantage now of the opportunity to liaise with the regulator, say lawyers at Hogan Lovells.
What End of Payment Systems Regulator Means For Biz

The U.K. government’s plan to abolish the Payment Systems Regulator and absorb its functions into the Financial Conduct Authority should eventually lighten the compliance burden for businesses under the PSR’s remit, which may in turn encourage growth, but the proposed changes will roll out slowly, say lawyers at Farrer & Co.
Compliance Lessons From Art Dealer's Terror Financing Plea

Regulated businesses can learn from the missteps of a recently convicted London art dealer, who failed to disclose sales to a suspected Hezbollah financier, by implementing compliance measures like anti-terrorism financing screenings as robust as their anti-money laundering policies and training staff to spot red flags, say lawyers at White & Case.
UK Securities Tax Reform Will Be Welcomed By Investors

The proposed reforms resulting from HM Revenue & Customs' recent consultation on modernizing stamp taxes on shares, suggesting a single digital tax on securities to replace stamp duty and stamp duty reserve tax, are expected to reduce complexity for investors transacting in U.K. securities, say lawyers at Ropes & Gray.
UK Capital Reforms May Help Startup Founders, VC Investors

Hidden in the U.K. Financial Conduct Authority's recent proposals on the definition of capital for investment firms are changes to the eligibility requirements for instruments to be included in a firm's regulatory capital — changes that may reduce the risk of investing, especially in early-stage fintech firms, says Andrew Henderson at Goodwin.
EU Watchdog's ESG Dashboard Raises Transparency Bar

The European Banking Authority’s recently introduced ESG dashboard is a key tool in aligning financial institutions with the European Union's sustainability policies, and fundamentally alters the risk environment by transitioning climate-related data from a compliance afterthought to a core component of strategic decision-making, says Kristýna Tupá at Schönherr.
What To Note As HM Treasury, FCA Plan New Crypto Regs

Taken together, HM Treasury’s recently proposed crypto-asset regulations and the Financial Conduct Authority’s new discussion paper on regulating crypto-asset activities provide key insights into the government's planned regime, which represents significant changes that will affect all firms providing related services, says Mark Chalmers at Davis Polk.
Tools For Effective Asset Tracking In Offshore Jurisdictions

In light of a technology company's recent allegations that its former CEO maintained an undisclosed interest in offshore companies, practitioners may want to refresh their knowledge of the tool kit available for tracing and recovering allegedly misappropriated assets from both onshore and offshore jurisdictions, say lawyers at Walkers Global.
FCA Review Highlights Valuation Standards For Private Funds

The Financial Conduct Authority’s recent review of private funds valuation practices underscores the increasing importance of conducting robust and independent procedures, offering an opportunity for fund managers to strengthen their current valuation frameworks and improve investor confidence, say lawyers at Greenberg Traurig.
What Santander Fraud Ruling Means For UK Banking Sector

A London court's recent judgment in Santander v. CCP Graduate School held that a bank does not owe any duty to third-party victims of authorized push payment fraud, reaffirming the steps banks are already taking to protect their own customers from sophisticated fraud mechanisms, say lawyers at Charles Russell.
FCA Update Eases Private Stock Market Disclosure Rules

The Financial Conduct Authority’s recently updated proposals for the Private Intermittent Securities and Capital Exchange System would result in less onerous disclosure obligations for businesses, reflecting ongoing efforts to balance an attractive trading venue for private companies while maintaining sufficient investor protections, say lawyers at Debevoise.
Key Questions As Court Mulls Traders' Libor Convictions

The U.K. Supreme Court is considering whether to overturn two traders’ Libor and Euribor manipulation convictions, with the appeal reinvigorating debate over the breadth of English common law’s conspiracy to defraud offense and raising questions about the limits of a judge’s role in criminal jury trials, says Ellen Gallagher at Vardags.
Expect Complex Ruling From UK Justices In Car Dealer Case

While recent arguments before the U.K. Supreme Court in a consumer test case on motor finance commissions reveal the court’s take on several points argued, application of the upcoming decision will be both nuanced and fact-sensitive, so market participants wishing to prepare do not have a simple task, says Tom Grodecki at Cadwalader.
How UK Proposals Would Simplify Fund Manager Regime

The ongoing HM Treasury consultation and Financial Conduct Authority call for input on the future regulation of alternative investment fund managers indicate that deliberate steps are being taken to make the AIF regime more suitable for the U.K. market, with the aim of encouraging growth and competitiveness, says Leonard Ng at Sidley.