Financial Services UK

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FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.
January 15, 2025
Slaughter And May-Led Fortress Ups Loungers Bid To £366.6M

U.S. investment firm Fortress Investment Group LLC said Wednesday that it has increased its cash bid for Loungers PLC to £366.6 million ($451 million) in a bid to persuade the shareholders of the British hospitality chain to accept the offer.
January 15, 2025
HSBC Claims Trader Fired for Misconduct, Not Whistleblowing

HSBC has denied unfairly firing a former derivatives trader, arguing at a tribunal Wednesday that he was dismissed because he failed to cooperate with an investigation and for misuse of his work phone rather than as punishment for speaking up about problematic trades.
January 15, 2025
Food Co. Says Ex-Director Moved Assets Amid Fraud Claim

A food product supplier has claimed a former director moved shares in a construction company to his wife and associates in the face of allegations of fraud and misrepresentation against him in the U.S. and London.
January 15, 2025
FCA Warns More Firms Are Avoiding Redress Obligations

The Financial Services Authority has warned that financial firms are increasingly trying to avoid compensating consumers for poor advice or products while they benefit from the assets of the business.
January 15, 2025
Torston Bell Appointed Britain's New Pensions Minister

The government has appointed Torston Bell, the former boss of a think tank, as the new minister for pensions, replacing Emma Reynolds, who now becomes economic secretary to the Treasury following the resignation of Tulip Siddiq.
January 15, 2025
Travers Smith-Led Wealth Manager To Move To Main Market

Wealth manager Brooks Macdonald said Wednesday that it plans to move its listing from the junior to the main market in London in a bid to stem the flow of money leaving the business and broaden its source of new investors.
January 14, 2025
Orrick Adds Paris Tax Partner From Latham

Orrick Herrington & Sutcliffe LLP added a former counsel at Latham & Watkins LLP as a partner in its Paris office, where she'll advise clients on the tax aspects of French and international transactions, the firm said.
January 14, 2025
Maloney To Testify As Trial Over ICG Stake Opens

Irish investor Barry Maloney is set to testify over his shareholder dispute with a private equity giant after the start of the London trial Tuesday of his claim that it blocked him from forcing it out of its stake in a major software company to make him buy it out.
January 14, 2025
'I Was Like Howard Hughes,' Socialite Says In Laundering Trial

A socialite accused of being at the heart of a £200 million ($244 million) money laundering scheme said while giving evidence at his trial Tuesday that he was "like Howard Hughes" in the aftermath of police launching the investigation.
January 14, 2025
Spain Plans 100% Tax On Foreign-Owned Homes

The Spanish government plans to introduce a 100% tax on foreign-owned homes and stricter rules for holiday rentals to tourists, Prime Minister Pedro Sánchez said.
January 14, 2025
UK Russia Sanctions Face Landmark Test At Supreme Court

The U.K.'s sanctions regime faces a major test on Wednesday as billionaire Eugene Shvidler seeks to have his financial restrictions cast off — the first case to challenge Russian sanctions that has reached the country's highest court.
January 14, 2025
Apollo, Standard Chartered Form $3B Strategic Partnership

Private equity giant Apollo and international banking group Standard Chartered PLC on Tuesday announced that they have formed a long-term strategic partnership under which the two will contribute up to a combined $3 billion to go towards clean energy and transition financing.
January 14, 2025
Charities Advised To Prep For New Pension Funding Regime

U.K. charities with a defined benefit pension scheme should proactively work on a strategy for their plan in line with the recently introduced funding regime for the sector to avoid potential calls for higher retirement savings contributions, Lane Clark & Peacock LLP has said.
January 14, 2025
Pensions Watchdog Could Play Role In Gov't Growth Agenda

The Pensions Regulator could play a leading role in enabling the retirement savings sector to have a greater role in the recovery of the U.K. economy, a consultancy has said.
January 14, 2025
KPMG Beats Property Developer's Meritless Negligence Claim

KPMG LLP succeeded in striking out a property developer's £25 million ($30 million) negligence claim Tuesday, after a London court dismissed the meritless allegations as an abuse of process "doomed to fail."
January 14, 2025
Siddiq Resigns as City Minister Amid Bangladeshi Questions

Tulip Siddiq resigned on Tuesday as the Treasury minister in charge of economic policy over questions about her family ties to the deposed prime minister of Bangladesh, amid a widening corruption probe by Bangladeshi authorities.
January 14, 2025
Financial Standard Setter Calls For Harmonized Climate Plans

A global standards setter called on Tuesday for greater standardization of climate transition plans among financial firms to help regulators assess the risk to stability in markets.
January 14, 2025
UK Pension Consolidation Plans Spark Pushback From Sector

Government proposals to push for the consolidation of defined contribution pension schemes into master trusts risk stifling innovation and is the wrong area of choice to support its ambition to drive economic growth, experts have warned.
January 13, 2025
NYDFS Launches Staff Exchange With Bank Of England

The New York Department of Financial Services on Monday launched an international secondment program to allow the department to exchange staff with other regulators, starting with a digital assets-focused exchange with the Bank of England next month.
January 13, 2025
Law Firms Avoid Early Payout In Dispute Over Property Deal

A property business failed to get two law firms to contribute to its £2.5 million ($3 million) liability to a lender over a botched property purchase, after a judge ruled Monday that the dispute needed to be decided at trial.
January 13, 2025
BNP Paribas Sues Oil Co. Boss For £104M Over Fraud Claims

BNP Paribas has accused an oil company of defrauding it with forged invoices, making the allegation in a London court claim against the oil business's boss to claw back £104 million ($126 million).
January 13, 2025
Gov't To Make Pension Fund Clearing Exemption Permanent

The U.K. government said it will push through regulation to ensure that an exemption on pension funds having to clear certain kinds of derivatives will not expire this year.
January 13, 2025
BoE 2025 Pension Deal Focus Dubbed A 'Reassurance'

The Prudential Regulation Authority's continued focus on the bulk purchase annuity sector is a positive step in light of the rapid increase in pension deals over recent years, Lane Clark & Peacock LLP said.
January 13, 2025
UK Unveils Blueprint To Become AI World Leader

The government unveiled Monday an ambitious blueprint to make Britain a world leader in artificial intelligence to benefit financial services and other sectors, supported by pro-growth regulation.
January 13, 2025
Tax Hikes Hit Business Confidence, UK Industry Chair Says

The Labour government's decision to raise payroll taxes on employers in last year's budget has hurt business confidence, the chair of an influential British industry group said Monday.

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

How Listing Act Measures Will Modernize EU Capital Markets

The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.
A Look At PCAOB's Record-Breaking Enforcement In 2024

The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
2 Cases May Enlighten UK Funds' Securities Litigation Path

Following recent nine-figure settlements in securities class actions against Apple and Under Armour, U.K. pension funds may increasingly lead U.S. shareholder derivative suits, advocating for transparency, better risk management and stronger governance practices, say lawyers at Labaton Keller.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.
Applying New FCA Guidance On Control Of Financial Firms

Buyers seeking to acquire or increase their stakes in U.K. financial services firms can streamline prudential review of their transactions by understanding the Financial Conduct Authority’s recently published guidance on updated change-in-control regulations, says Mark Chalmers at Davis Polk.
Anticipating The UK's Top M&A Trends In 2025

Conversations with market participants are focusing on five key questions about 2025's transactional markets, ranging from issues of artificial intelligence, to the boom in takeovers and increased regulatory scrutiny, says Layla D’Monte at King & Spalding.
Businesses Should Expect A Role In Tackling Fraud Next Year

If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, as enforcement agencies clamped down on consumer-focused crime — and businesses will need to be prepared to play a part in 2025 with the coming of the "failure to prevent fraud" offense, says Jessica Parker at Corker Binning.
What FCA's 2024 Changes Suggest For Enforcement In 2025

Though the Financial Conduct Authority is likely to enter 2025 hungry for enforcement wins after fielding intense criticism in 2024 over proposed policy amendments, firms can glean ideas for mitigating their risk from heightened scrutiny by studying the regulator's changing behavior from the year just past, says Imogen Makin at WilmerHale.
How The Wirecard Judge Addressed Unreliability Of Memory

In a case brought by the administrator of Wirecard against Greybull Capital, High Court Judge Sara Cockerill took a multipronged and thoughtful approach to a common problem with fraudulent misrepresentation claims — how to assess the evidence of what was said at a meeting where recollections differ and where contemporaneous documentation is limited, says Andrew Head at Forsters.
Decoding Arbitral Disputes: Cross-Border Contract Lessons

A U.K. court's decision this month in Banco De Sabadell v. Cerberus provides critical lessons for practitioners involved in drafting and litigating cross-border investment agreements, and offers crucial insight into how English courts apply foreign law in complex cross-border disputes, says Josep Galvez at 4-5 Gray's Inn.
Practical Considerations For Private Fund Side Letters

Side letters are a common way of formalizing negotiated arrangements between a private fund and a particular investor — and as the number and length of side letters per fundraise steadily climb, managers must consider the material legal risks carefully, say lawyers at Dechert.
Preparing For The Next 5 Years Of EU Digital Policy

The new European Commission appears poised to build on the artificial intelligence, data management and digital regulation groundwork laid by President Ursula von der Leyen's first mandate, with a strong focus on enforcement and further enhancement of previous initiatives during the next five years, say lawyers at Steptoe.
Key Takeaways From EU's Coming Digital Act

The European Union's impending Digital Operational Resilience Act will necessitate closer collaboration on resilience, risk management and compliance, and crucial challenges include ensuring IT third-party service providers meet the requirements on or before January 2025, says Susie MacKenzie at Coralytics.
Cross Market Drill Highlights Operational Resilience Priorities

The U.K.’s recent cross-market major infrastructure failure simulation exercise, demonstrates that operational resilience of the financial sector is high on the regulatory agenda, and the findings should ensure that the sector develops collective capabilities to deliver improvements, say lawyers at Taylor Wessing.