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Corporate Crime & Compliance UK
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February 10, 2025
BoE Sets Out Pro-Growth Priorities For Finance Infrastructure
The Bank of England this year will focus on regulating financial market infrastructures to help underpin growth, as it benefits from technology such as artificial intelligence, a senior BoE official said Monday.
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February 07, 2025
Ousted CMA Chair Says 'Misinformation' Remains A Challenge
The recently ousted chair of the U.K.'s Competition and Markets Authority reflected on what he said were great strides undoing the antitrust agency's "technocratic" character, but added it made the least progress in combating "lobbying and misinformation" intended to undermine the agency's decisions, including around the cleared Microsoft-Activision merger.
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February 07, 2025
Pharmacy Chain Says Seller Inflated Value In £10M M&A Deal
A Yorkshire-based pharmacy chain has brought a £9.9 million ($12.3 million) claim in a London court against the previous owners of a group of pharmacy companies it acquired, alleging they made dishonest statements about the group's finances.
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February 07, 2025
UAE Prisoner Subpoenas Ex-Dechert GC Over Torture Claims
A Jordanian lawyer imprisoned in the United Arab Emirates has subpoenaed Dechert's former general counsel in the U.S. over what the law firm's top brass knew of alleged human rights abuses said to have been committed by a former partner.
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February 07, 2025
Sheikh Must Pay Costs Or Lose Defense To Inheritance Fight
An Emirati royal accused of embezzling more than $1 billion from his dead father must pay a £90,000 ($112,000) costs order in British proceedings or be blocked from defending his brothers' fight to enforce a £75 million UAE judgment in England.
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February 07, 2025
Woman In Spy Trial Denies Coordinating Far-Right Sticker Plot
A woman accused of spying for Russia denied at her trial on Friday that she had directed her best friend to deface Jewish and Russian monuments in Austria with far-right symbols to make it look like the work of supporters of Ukraine.
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February 07, 2025
Quantum Computers 'Imminent Threat' To Data, Europol Says
The financial sector faces an "imminent threat" that coded security measures to protect data could be broken by advanced computers and companies must start transitioning to more secure defenses now, a European Union law enforcement agency warned Friday.
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February 07, 2025
FCA Doubles Withdrawals, Changes To Misleading Ads In 2024
The Financial Conduct Authority said Friday its interventions led to authorized businesses withdrawing or amending 19,766 misleading advertisements in 2024 — up from 10,008 the previous year.
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February 07, 2025
Chinese State-Owned Firm Must Sell UK Semiconductor Stake
A London court has rejected a Chinese state-owned investment company's bid for interim relief against an order to sell its stake in a British semiconductor business over national security concerns.
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February 07, 2025
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen Investec Bank PLC sue two diamond tycoons, London florist Nikki Tibbles file a claim against an "imitator company," a direct descendant of the Cartier family launch a claim, and a Coronation Street actor hit footballer Joe Bunney with a defamation claim. Here, Law360 looks at these and other new claims in the U.K.
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February 07, 2025
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.
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February 06, 2025
Woman In Spy Trial Denies Knowledge Of 'Honey Trap' Plot
A woman accused of spying for Russia told a criminal court Thursday that she did not know that her paymasters intended to use her as a "honey trap" to seduce an investigative journalist and Kremlin critic.
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February 06, 2025
Allianz UK Detects £157M 'Record' Level Of Fraud In 2024
Allianz UK on Thursday said it uncovered a total of £157.24 million ($195.94 million) worth of insurance fraud in 2024 — a 10% year-on-year increase in part driven by the rising cost of living increasing the number of consumers turning to scams.
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February 06, 2025
Visas Driving Migrant Labor Abuse, UK Watchdog Warns
Sponsored visa schemes are the most likely cause of a rise in labor exploitation, the U.K.'s equality watchdog has said in a report to the United Nations.
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February 06, 2025
Stellantis Companies Can't Bring Cartel Claim In England
Maserati and other car manufacturers had their cartel claim against auto parts makers in England struck out by a London court that ruled that issuing the proceedings in the country was a "deliberate litigation strategy" to prove their case.
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February 06, 2025
Wine Biz CFO Fights US Extradition Over Alleged $99M Fraud
A wine company's former chief financial officer accused of cheating investors out of $99 million by persuading them to make interest-bearing loans using valuable wine collections as collateral urged a London judge Thursday to overturn a decision to allow his extradition to the United States.
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February 06, 2025
Mastercard Deal Battle Goes Through The Looking Glass
The landmark class action brought by Walter Merricks against Mastercard has entered "Alice in Wonderland" territory, as the credit card giant is now backing the class representative who sued it in his dispute with his litigation funder over the terms of the controversial settlement, analysts say.
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February 06, 2025
FCA Rejects Complaints On Handling Of Blackmore Collapse
The Financial Conduct Authority said Thursday that it has written to thousands of investors to reject complaints about how it handled the case of Blackmore Bond PLC, a minibonds provider that collapsed in 2021, but has agreed to pay them compensation for its slow response.
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February 05, 2025
FCA Told To Shelve Controversial Investigation Plans
The Financial Conduct Authority should not go ahead with controversial plans to name firms under investigation at an earlier stage unless it can ensure the proposals sufficiently balance increased transparency and managing the potential risks to firms, a House of Lords committee said Thursday.
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February 05, 2025
EU Guidance Clarifies AI Rules, But Key Concepts Lack Detail
Lawyers broadly welcomed the European Commission's belated guidance on newly enforced laws banning so-called artificial intelligence systems that pose an unacceptable risk Wednesday, but are wary of provisions regarding how AI providers should crack down on the prohibited use of their systems.
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February 05, 2025
Naomi Campbell Wins Shot To Fight Charity Trustee Ban
Supermodel Naomi Campbell has been granted permission to challenge a decision by the U.K.'s charity watchdog banning her as a charity trustee after she claimed that her fellow trustee had impersonated her in correspondence with lawyers.
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February 05, 2025
UK Gov't Data Shows Rise In Legal Sector Data Breaches
Data breaches in the U.K. legal sector have increased by more than a third, impacting 7.9 million individuals in the 12 months that ended July 1, 2024, according to an analysis released Wednesday of U.K. Information Commissioner's Office data by document and email management company NetDocuments.
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February 05, 2025
Directors Banned For Misleading Student Housing Investors
The U.K.'s Insolvency Service has banned three men as company directors for misleading investors who had put over £4 million ($5 million) into a student housing development but were left uncompensated when the development companies became insolvent.
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February 05, 2025
EU Sets Out Actions For E-Commerce Import Rules
The European Commission said Wednesday it is raising customs controls on low-value imports flowing into the European Union via online retailers and marketplaces hosting non-European traders.
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February 05, 2025
Insurers Say Stranded Jets Not Covered By War Risks Policies
War-risk insurers argued Wednesday that they should not have to cover losses of aircraft stranded in Russia after the invasion of Ukraine, arguing airlines retaining the aircraft were not covered by the leasing airlines' insurance policy.
Expert Analysis
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Pharma Remains A Key Focus Of EU Antitrust Enforcement
The recently published European Commission report on pharmaceutical sector competition law illustrates that effective enforcement of EU rules remains a matter of high priority for EU and national authorities, say lawyers at Dechert.
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Dissecting Recent Developments Against The Misuse Of NDAs
The U.K. government's recent plans to nullify nondisclosure agreements that prevent victims from reporting crimes should remind lawyers to proactively consider the necessity of such agreements, especially in light of the Solicitors Regulation Authority's warning notice on drafting improper NDAs, say Clare Davis and Macaela Joyes at RPC.
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What UK Energy Charter Treaty Exit Would Mean For Investors
While the U.K.'s recent announcement that it intends to withdraw from the Energy Charter Treaty is a bold political signal, investor protections will remain in place for a significant period of time, ensuring that an element of certainty and business continuity will remain, say Karel Daele and Jessica Thomas at Taylor Wessing.
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Assessing The FCA Data Study's Response To User Concerns
The Financial Conduct Authority’s recently published report on the supply of wholesale financial data differs from others in its exceptional breadth and analysis of an enormous volume of information, but in its reluctance to address market power or pricing directly, the regulator’s approach is still cautious, say Emma Radcliffe and Greg Dowell at Macfarlanes.
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Uber Payout Offers Employer Lessons On Mitigating Bias
Uber Eats' recent payout to a driver over allegations that the company's facial recognition software was discriminatory sheds light on bias in AI, and offers guidance for employers on how to avoid harming employees through the use of such technology, says Rachel Rigg at Fieldfisher.
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Apple Ruling Offers Morsel Of Certainty On Litigation Funding
An English court's recent decision in Gutmann v. Apple, finding that a litigation funder could be paid via a damages award, offers a piece of guidance on the permissibility of such agreement terms amid the ongoing uncertainty around funded group litigation in the U.K., says Mohsin Patel at Factor Risk Management.
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Cum-Ex Prosecutions Storm Shows No Sign Of Abating
The ongoing trial of Sanjay Shah in Denmark is a clear indicator that efforts remain focused on holding to account the alleged architects and beneficiaries of cum-ex trading, and with these prosecutions making their way across Europe, it is a more turbulent time now than ever, says Niall Hearty at Rahman Ravelli.
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Traversing The Web Of Nonjudicial Grievance Mechanisms
Attorneys at Covington provide an overview of how companies can best align their environmental and human rights compliance with "hard-law" requirements like the EU's recently approved Corporate Sustainability Due Diligence Directive while also navigating the complex global network of existing nonjudicial grievance mechanisms.
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Opinion
FCA Greenwashing Rules Need To Be Stronger To Be Effective
The Financial Conduct Authority's forthcoming anti-greenwashing measures, aimed at ensuring the veracity of regulated entities’ statements about sustainability credentials, need external scrutiny and an effective definition of "corporate social responsibility" to give them bite, says Jingchen Zhao at Nottingham Trent University.
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Companies House False Filings Raise Issues Of Integrity
A recent spate of unauthorized company filings with Companies House raises specific concerns for secured lenders, but also highlights the potential for false filings to be used to facilitate fraudulent schemes, says Daniel Sullivan at Charles Russell.
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Gov't Probe Highlights Computer-Based Evidence Issues
A recently launched U.K. Home Office probe, following the alleged use of faulty data in criminal cases, illuminates the need for scrutiny on the presumed reliability of evidence from computer-based systems, says Jessica Sobey at Stokoe Partnership.
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UK Courts Continue To Struggle With Crypto-Asset Cases
Although the common law has proved capable of applying established principles to crypto-assets, recent cases highlight persistent challenges in identifying defendants, locating assets and determining jurisdiction, suggesting that any meaningful development will likely come from legislative or regulatory change, say Emily Saunderson and Sam Mitchell at Quadrant Chambers.
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Why Computer Evidence Is Not Always Reliable In Court
Recent challenges to the admissibility of encrypted communication from the messaging tool EncroChat highlight the flawed presumption in the U.K. common law framework that computer evidence is always accurate, and why a nuanced assessment of such evidence is needed, say Sam De Silva and Josie Welland at CMS Legal.
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Comparing The UK And EU Approaches To AI Regulation
While there are significant points of convergence between the recently published U.K. approach to artificial intelligence regulation and the EU AI Act, there is also notable divergence between them, and it appears that the U.K. will remain a less regulatory environment for AI in the foreseeable future, say lawyers at Steptoe.
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Lessons On Using 3rd-Party Disclosure Orders In Fraud Cases
The expansion of the gateway for service out of jurisdiction regarding third-party information orders has proven to be an effective tool against fraud since it was introduced in 2022, and recent case law offers practical tips on what applicants should be aware of when submitting such orders, says Rosie Wild at Cooke Young.