Financial Services UK

Blowback From Name And Shame Plan Hurts FCA Credibility

An embarrassing rebuke for the City watchdog's controversial proposal to "name and shame" companies under investigation for financial misconduct at an early stage has undermined its regulatory credibility as well as efforts to boost London's competitiveness as a financial center.

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.

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.

FCA's Investigation Regime May Tarnish Unnamed Individuals

Financial Conduct Authority proposals to name companies early in investigations will damage the careers of many individuals involved, according to lawyers, with some unnamed employees coming under suspicion that puts them at risk of losing their jobs.

February 14, 2025
Brown Rudnick Bolsters Firm With Tax Pro From Fieldfisher

Brown Rudnick LLP announced it added a former Fieldfisher partner to work in the firm's London-based litigation and dispute resolution practice as a tax partner.
February 14, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Spice Girls star Mel B's ex-husband bring a defamation claim against the publisher of The Sun, a hotel sue a former director convicted of embezzling its funds for breach of fiduciary duty, and comedian Russell Brand face a sexual abuse claim. Here, Law360 looks at these and other new claims in the U.K.
February 14, 2025
Gowling, Squire Patton Pilot £50M Pension Deal For Textile Biz

A German textiles company has offloaded £50 million ($63 million) of its U.K. pension liabilities to insurer Just Group PLC, advisers said Friday, in a deal steered by Gowling WLG and Squire Patton Boggs LLP.
February 14, 2025
Magomedov Must Pay £7M Costs Amid 'Secrecy' Over Funding

Imprisoned oligarch Ziyavudin Magomedov must pay £7.3 million ($9.2 million) in interim court costs after losing his claim over an alleged Russian state-led conspiracy to strip his assets, as a judge criticized on Friday the "secrecy" surrounding who funded the litigation.
February 14, 2025
Gov't Botched Procurement Over Late Email, Service Co. Says

A communications services provider has alleged in court filings that the Department for Work and Pensions botched a procurement process by thinking it had to disqualify the company for failing to respond to an email.
February 14, 2025
Stephenson Harwood-Led Green Investment Trust To Wind Up

Jupiter Green Investment Trust PLC presented two options to its shareholders on Friday over its proposed liquidation and reconstruction after the environmental business investor was buffeted by long-term macroeconomic headwinds.
February 14, 2025
EU Watchdog Probes Bloc-Wide Fund Manager Compliance

The European Union's financial markets regulator on Friday launched a bloc-wide probe with national regulators on compliance and internal audit functions of fund managers.
February 14, 2025
Single Pensioners Face Retirement Shortfall, Insurer Says

Single pensioners in Britain on a full state pension have to make up an annual shortfall of almost £2,900 ($3,500) if they want to achieve a minimum retirement living standard, analysis published Friday by a retirement specialist company suggests.
February 13, 2025
Barclays Confirms £1B Share Buyback, Reports Profits Spike

Barclays PLC confirmed on Thursday that it plans to reward investors with a share buyback worth up to £1 billion ($1.25 billion) as it reported a 24% increase in pre-tax profit to £8.1 billion in the 2024 financial year.
February 13, 2025
Barclays Reveals FCA Probe Over Money Laundering Controls

Barclays revealed in its annual report on Thursday that it is being probed by the Financial Conduct Authority over its compliance with anti-money laundering and financial crime regulations.
February 13, 2025
Qatari Royal Loses Fight Over 70-Carat 'Idol's Eye' Diamond

A Qatari sheikh can't force a fellow royal to sell him a £10 million ($12.5 million) 70-carat diamond, after a London court ruled Thursday that there was no desire to sell and therefore no promise to sell that was broken.
February 13, 2025
IT Biz Must Revisit $25M Earnout From Fixnetix Acquisition

A global information technology service company has been ordered to reevaluate a deferred payment of up to $25.7 million arising from its purchase of a trader, as a judge found Thursday that the sellers could challenge how some revenue streams were calculated.
February 13, 2025
MPs Call On Minister To Respond On Pensions Inflation Rules

The U.K. government has been urged by senior MPs to respond to calls for reform that will allow retirement benefits for older pensioners to rise with inflation.
February 13, 2025
Pension Insurers Invest £178B In UK Assets, Trade Body Says

Providers of bulk and individual annuities invested £178 billion ($222 billion), or 65% of their assets, in the U.K. in 2023, the Association of British Insurers said on Thursday.
February 13, 2025
Exec Proves Harassment By Inflexion-Backed Finance Firm

A finance firm back by private equity provider Inflexion harassed one of its executives before penalizing him for blowing the whistle on bullying by giving him a less generous equity package when he left, a tribunal has ruled.
February 13, 2025
Insider Dealing Suspect Denies Illegally Profiting From Trades

A man appeared at a criminal court in London on Thursday to deny using inside information to profit from oil and gas stocks over a four-year period.
February 13, 2025
FCA's Pension Support Reform Needs Work, Industry Says

Britain's pension industry on Thursday signaled its support for proposals floated by the Financial Conduct Authority to allow retirement savings providers to offer better support to workers ahead of retirement, but said more detail was needed before plans go live.
February 13, 2025
Essity Faces Investors' Claim Over Chinese Tissue Biz Sale

A group of investment companies has sued Essity at a London court, alleging that the manufacturer of hygiene and health products defaulted on bond notes when it sold its controlling stake in a Chinese tissue company.
February 13, 2025
FCA Files Criminal Charges Against Financial Adviser

The Financial Conduct Authority said Thursday it has charged an independent financial adviser with multiple criminal offenses that resulted in more than £2.3 million ($2.9 million) in losses for clients.
February 13, 2025
Gov't Urged To Act On Growing Number Of Small Pension Pots

The number of small pension pots in the U.K. rose by two million between 2020 and 2023, a think tank has said, as it urged the government to urgently intervene for consolidation.
February 13, 2025
FRC Probes Former Finance Staff At Bankrupt Local Authority

Two former accountants are under investigation for their work at a bankrupt local authority in England that has amassed debts of £2.4 billion ($3 billion), a corporate governance watchdog said Thursday.
February 12, 2025
UK Annuity Sales Hit Record After Pension-Freedom Reforms

Pension annuity sales in Britain reached £7 billion ($8.7 billion) in 2024, figures published Wednesday by the Association of British Insurers show, marking a 34% increase on the previous year.
February 12, 2025
Russia Loses State Immunity Bid In $63B Yukos Case

A London appeals court on Wednesday dismissed the Russian government's attempt to use state immunity to block investors from enforcing an over $63 billion arbitration award, saying the state should honor the award without engaging in "trench warfare."
February 12, 2025
Justices Rewrite Extradition Rules In Shock To DOJ's Reach

The decision by Britain's highest court to block the extradition of a British trader has rewritten decades of precedent, although lawyers are divided on whether the findings will weaken the long reach of U.S. law or simply refocus it.
February 12, 2025
Financial Ombudsman's Sudden Exit Draws MP Scrutiny

A cross-party group of MPs is scrutinizing the sudden and unexplained resignation of the chief executive of Britain's Financial Ombudsman Service after failing to get answers from the body's board.

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

Decoding Arbitral Disputes: Equal Rights Limit State Immunity

The Court of Appeal of England and Wales' recent determination that Spain’s London embassy could not dodge a former U.K.-based employee’s discrimination claims by invoking sovereign immunity reaffirms its position that employment and human rights should come before the privileges of foreign powers, says Josep Galvez at 4-5 Gray’s Inn.
How Proposed Private Share Trading System May Benefit Cos.

The government's proposal for a private securities and capital exchange system intends to enhance market practices and risk tolerances, offering a significant way for firms to free up liquidity by allowing investors to trade existing private company shares, say lawyers at Mishcon de Reya.
Nonfinancial Misconduct Lessons From Rail Worker's Win

While financial services firms wait for the Financial Conduct Authority’s final policy statement on nonfinancial misconduct, an Employment Tribunal’s recent award to a railroad worker targeted by a hostile human resources team provides guidance on developing even-handed and inclusive company policies, say attorneys at Shoosmiths.
Important Changes To Note In Accountant Ethics Code Update

The Institute of Chartered Accountants of England and Wales' forthcoming code of ethics will bring a number of significant updates to raise standards within the profession, but also risks of professional indemnity claims that could lead to challenges for firms, say lawyers at RPC.
A Look At Collateralized Loan Obligations Post-Reform

The Financial Stability Board's recent report on global securitization reforms, analyzing resilience trends in the collateralized loan obligation market post-2008, suggests that, while risk retention rules have a limited impact on observable characteristics, other structural features play a significant role in ensuring risk alignment, says Kos Vavelidis at DLA Piper.
What EU Sustainable Category Proposals Will Mean For Funds

The European Union Platform on Sustainable Finance’s recent proposals to apply stricter product categorization standards for funds subject to the Sustainable Finance Disclosure Regulation will assist retail investors in selecting sustainable products, and allow advisers to easily match their clients’ preferences, say lawyers at Debevoise.
What To Expect As CAT Considers Mastercard Settlement

It is expected that the Competition Appeal Tribunal will closely scrutinize the proposed collective settlement in Merricks v. Mastercard, including the role of the case’s litigation funder, as the CAT's past approach to such cases shows it does not treat the process as a rubber stamp exercise, say lawyers at BCLP.
Managing Transatlantic Antitrust Investigations And Litigation

As transatlantic competition regulators cooperate more closely and European antitrust investigations increasingly spark follow-up civil suits in the U.S., companies must understand how to simultaneously juggle high-stakes multigovernment investigations and manage the risks of expensive new claims across jurisdictions, say lawyers at Paul Weiss.
What 2025 Holds For UK, EU Restructuring And Insolvency

European Union and U.K. restructuring developments in 2024, with a new era of director accountability, the use of cramdown tools and the emergence of aggressive liability management exercises, mean greater consideration of creditors' interests and earlier engagement in restructuring discussions can be expected this year, says Inga West at Ashurst.
What To Know As EU Urges Outbound Investment Reviews

A recent European Commission recommendation urges European Union member states to review outbound investments in certain critical technologies sectors, but does not clarify the next steps for states once information on relevant transactions in third countries is received, say lawyers at Cleary.
Despite Divisive Political Rhetoric, DEI Is Alive And Well

The World Economic Forum's recent finding that DEI initiatives have continued to rise amid political headwinds raises the question of whether reports of the death of DEI are exaggerated, especially as employers must focus on new pay gap reporting obligations in the U.K. and Europe, say lawyers at Herbert Smith Freehills.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Tax Directive Marks Milestone In Harmonizing EU System

The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.