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.
December 11, 2024
Oligarch Denies Stripping Norilsk Assets In Fight With Rusal

Russian oligarch Vladimir Potanin has hit back at allegations that he breached contracts with aluminum giant Rusal, telling a London court that the metals business has advanced its case "on a knowingly false basis" to gain a business advantage.
December 11, 2024
CMS Guides Just Group's £17M Pension Scheme Deal

Just Group on Wednesday said it has taken on £17 million ($21.6 million) worth of retirement savings liabilities from an unnamed pension scheme in a deal guided by law firm CMS Cameron McKenna Nabarro Olswang LLP, marking the latest transaction signed by the company this year.
December 11, 2024
Hogan Lovells Steers £370M Pension Deal For Hays

Recruitment company Hays Group PLC has offloaded £370 million ($472 million) of its U.K. pension liabilities to Pension Insurance Corp. PLC, in a deal steered by Hogan Lovells International LLP, Slaughter and May and Addleshaw Goddard LLP.
December 11, 2024
UK Supreme Court To Hear Motor Finance Misselling Appeal

The U.K.'s top court said Wednesday that it would hear an appeal by car finance lenders following a landmark ruling that consumers must be told about commissions paid to dealers on car loans that set British banks on edge.
December 11, 2024
Klarna Fined $46M By Sweden For AML Violations

Sweden's financial watchdog hit Klarna Bank AB with a 500 million krona ($45.7 million) fine on Wednesday for breaching anti-money laundering rules, after finding that the payments service provider failed to assess its potential role in economic crime.
December 11, 2024
Gov't Urged To Carefully Prioritize Regulatory Reforms

The British government must prioritize a "logical sequence" of regulatory reforms that most benefit consumers and improve economic growth instead of introducing changes all at once, the insurer Aegon said Wednesday.
December 11, 2024
Norton Rose Advises TowerBrook's £283M Deal For Equals

Private equity shop TowerBrook Capital Partners LP said Wednesday that it has made a £283 million ($361 million) recommended cash offer for British financial technology business Equals Group PLC.
December 10, 2024
EU To Introduce Digital Certificate For Withholding Tax Relief

The Council of the European Union said Tuesday that it has agreed on new withholding rules that grant easy access to tax relief for cross-border investors through a common digital tax residence certificate.
December 10, 2024
FCA Acted 'Irrationally' Over Misselling Redress, MPs Say

A London court on Tuesday began a judicial review of the Financial Conduct Authority's decision not to rethink its treatment of consumers blocked from a bank misselling redress scheme after a challenge brought by a cross-party group of lawmakers.
December 10, 2024
UK Audit Watchdog Bills Crowe £1M Over Akazoo Failings

The United Kingdom's auditing watchdog said Tuesday it has hit Crowe U.K. LLP and its chief executive with over £1 million ($1.3 million) in fines and costs following the firm's botched audits of streaming site operator Akazoo Ltd.
December 10, 2024
Soft Landing For Pilot As Billionaire's Insider Case Wraps

A pilot who admitted to dodging taxes on $500,000 in income after he was accused of taking stock tips from Joe Lewis, his billionaire boss, avoided prison on Tuesday at a sentencing that closed a high-profile insider trading prosecution.
December 10, 2024
Privinvest Denied Appeal In 'Tuna Bond' Bribery Case

An Emirati shipbuilder on Tuesday was refused permission to appeal a London court judgment that found the company was involved in the "tuna bond" bribery scandal that wrecked Mozambique's economy.
December 10, 2024
Regulations Halt Pension Transfers 'Needlessly,' Adviser Says

Four out of five pension transfers have been halted either for an unknown reason or because they involved potentially low-risk overseas investments, a financial adviser said.
December 10, 2024
FCA Will Support Growth But Not 'Light Touch' Regulation

The Financial Conduct Authority said on Tuesday that it will not return to the "light touch" regulation from before the 2008 financial crisis but is committed to responsible risk-taking to support the Labour government's goal of boosting economic growth.
December 10, 2024
Forex Trader Sued For Unilaterally Closing Trades

A drug distributor has alleged that a foreign exchange trader owes it almost $8.2 million for prematurely closing trades with no justification and failing to settle them for a "fair" value at the going market rate at the time.
December 10, 2024
Jockey Frankie Dettori Named In HMRC Tax Avoidance Battle

Italian jockey Frankie Dettori has been named as the individual who attempted to maintain his anonymity to keep private his legal battle with HM Revenue and Customs over a tax avoidance scheme, according to a London court judgment.
December 10, 2024
Couple To Forfeit £12M Over China-Linked Financial Fraud

The National Crime Agency said Tuesday that it has secured a £12 million ($15 million) settlement with a Chinese couple who were suspected of financial fraud and money laundering after building a multimillion-pound property business in the U.K.
December 10, 2024
Denmark's Nykredit Makes $3.5B Offer For Spar Nord Bank

Danish lender Nykredit Realkredit AS said Tuesday that it has made a recommended cash offer of $3.5 billion for domestic rival Spar Nord Bank AS, seeking a consolidation that will create the third-largest bank in Denmark.
December 09, 2024
Lawyer Fined For Nondisclosures About Mafia-Linked Project

A partner at an Italian firm was fined £50,000 ($64,000) and reprimanded by a London legal disciplinary tribunal Monday after he admitted failing to declare previous findings made against him in Italy and the U.K. related to failed investments in a 'Ndrangheta mafia-linked real estate project.
December 09, 2024
Reckitt Investors To Test Class-Action Rules In Opioid Case

The Court of Appeal will consider on Tuesday whether shareholders in Reckitt Benckiser and drug company Indivior can pursue litigation linked to America's opioid crisis as a "representative claim" that is similar to a U.S.-style class action.
December 09, 2024
Labour Appoints Hodge As New Anti-Corruption Czar

The U.K. government announced Monday that Margaret Hodge, a leading campaigner against illicit finance, has been appointed anti-corruption champion in a bid to foster a "hostile environment" for organized crime.
December 09, 2024
Audit Watchdog Floats Revised Rules For Pension Standards

Britain's accounting watchdog on Monday proposed a series of revisions to the actuarial rules used in the retirement savings sector to reflect recent changes in pension regulations and skyrocketing funding levels of schemes in the U.K.
December 09, 2024
Ex-BVI Fund Boss Challenges $400M Ponzi Scheme Debt

The former director of a defunct investment fund urged the top appeals court for U.K. overseas territories on Monday to allow him to challenge a decision by its liquidators to accept a $400 million demand by the bankrupt company behind a multibillion-dollar Ponzi scheme.
December 09, 2024
Insurer Launches Estate Planning Cover After Tax Changes

Royal London said on Monday that it has launched an insurance product designed to help consumers with their end-of-life planning, as a growing number of estates are set to become subject to inheritance tax after recent government changes.
December 06, 2024
Allianz Exec Avoids Prison For $7B Investor Fraud

A New York federal judge on Friday declined to sentence a former portfolio manager for Allianz SE's U.S. unit to any time in prison for lying to investors about the riskiness of a group of private investment funds that lost over $7 billion when the COVID-19 pandemic hit.

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 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.
What Partners Should Know About Net Asset Value Loans

The increasing popularity and evolution of net asset value facilities means they continue as an important financing tool to generate liquidity for funds’ portfolios, so general partners looking to capitalize on this expanding market should be mindful of their limited partners' concerns to maximize their value, says Anthony Lombardi at Dechert.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
What UK Security Act Report Indicates For Future Gov't Policy

Following the recent publication of the National Security and Investment Act report on the scrutiny of proposed investments, it will be interesting to see how the act’s powers fit into a government policy that plans to cut regulatory obstacles, while maintaining a hard line on national security, say lawyers at Katten Muchin.
Examining UK And EU Approaches To Sanctions Enforcement

In light of the Financial Conduct Authority’s recent £28.9 million fine of Starling Bank for its lax sanctions screening processes, businesses should understand both the U.K.’s and the European Union’s enforcement approaches, the larger sanctions landscape and the importance of cooperation, says Angelika Hellweger at Rahman Ravelli.
Factors Driving EU Competition Policy For The Next 5 Years

Teresa Ribera Rodríguez’s recent nomination as the new European Union commissioner for competition prompts questions about policy and enforcement, with goals to enhance competition in business, implement stronger and faster enforcement, and promote and fund decarbonization likely in her sights during a five-year term, say lawyers at Linklaters.
What UK Procurement Act Delay Will Mean For Stakeholders

The Procurement Act 2023’s delay until February 2025 has sparked debate among contracting authorities and suppliers, and the Labour Party’s preference for a broader reform package demonstrates the challenges involved in implementing legislative changes where there is a change in government, say lawyers at Shoosmiths.
How Energy Scheme Is Affecting Large Co. Fund Investment

The latest phase of the Department of Energy and Climate Change's Energy Savings Opportunity Scheme implicates funds with investments in large companies by establishing significant and complex changes to the reporting cycle for mandatory assessments, say lawyers at Macfarlanes.
How Companies House Enforcement Powers Are Growing

Companies House's recently increased ability to assess what material is submitted to the U.K. register of companies, and to proportionately enforce where violations have occurred, may require some degree of cultural shift within many companies, say lawyers at Greenberg Traurig.
How New Sanctions Office Will Affect UK Trade Landscape

The recent launch of the Office of Trade Sanctions Implementation will help to create a more comprehensive civil enforcement terrain, but the potential for multiple investigations means businesses should reassess their systems to ensure they do not inadvertently incur civil liability, says Julia Pearce at Robertson Pugh.
FCA Savings Update Focuses On Good Customer Outcomes

The Financial Conduct Authority’s recent cash savings update emphasizes its expectations of firms to deliver fair value to consumers by documenting the rationale for actions at each stage, considering customer communications and demonstrating that potential harms are acted upon, say Matt Handfield, Charlotte Rendle and Caroline Hunter-Yeats at Simmons & Simmons.
5 Takeaways From UK Justices' Arbitration Jurisdiction Ruling

The U.K. Supreme Court's recent judgment in UniCredit Bank v. RusChemAlliance, upholding an injunction against a lawsuit that attempted to shift arbitration away from a contractually designated venue, provides helpful guidance on when such injunctions may be available, say attorneys at Fladgate.