Corporate Crime & Compliance UK

Featured

ENRC Settlement Shows SFO Ready To Draw Line Under Past

The Serious Fraud Office's recent settlement ending litigation with Eurasian Natural Resources Corp. over alleged misconduct by its officials sidesteps weeks of awkward testimony to free the agency to pursue its growing caseload while drawing another line under its blighted investigation into the miner.
November 26, 2024
UK Gov't Urged To Hold Off On Changes To Inheritance Tax

The British Labour government should hold off on inheritance tax changes for farmers, scheduled to take effect in April, that would make gifts to their heirs taxable if they occur within seven years of the giver's death, a U.K. economics think tank said.
November 26, 2024
Prince Harry, Celebs Can Keep Daily Mail Burglary Allegations

Prince Harry and Elton John saw their case against the Daily Mail's publishers get a boost on Tuesday, as a London court refused to toss claims that its journalists had hired investigators to carry out burglaries.
November 26, 2024
'Incompetent' FCA Needs Gov't-Led Radical Reform, MPs Say

The Financial Conduct Authority is not fit for purpose and requires government intervention for an extensive overhaul to address its "significant shortcomings" if it is to be an effective regulator, a group of cross-party MPs said in a report published Tuesday.
November 26, 2024
Migrant Workers Want Dyson Forced Labor Claim Heard In UK

A group of migrant workers urged the Court of Appeal on Tuesday to allow a compensation claim to be brought against British appliance maker Dyson in the U.K. over alleged labor abuses that took place at a Malaysian factory run by a former contractor.
November 26, 2024
Brokerage Service Denies Helping $129M Forex Fraud

A provider of brokerage services has denied giving credit for a company that carried out an alleged $129 million Ponzi scheme, saying in court filings that it had no knowledge of the fraud.
November 26, 2024
UK Regulators Propose Relaxing Rules On Bankers' Pay

The Prudential Regulation Authority and Financial Conduct Authority jointly announced plans on Tuesday to ease restrictions on bonuses for senior bankers, with the aim to make the U.K. more competitive while ensuring accountability in risk management.
November 26, 2024
OFSI Boss Promises Tougher Fines For Sanctions Breaches

The head of the U.K. sanctions watchdog told MPs on Tuesday to expect more fines with tougher penalties for breaches of financial restrictions to be imposed on oligarchs in the coming months as he admitted that the crackdown has been slower than hoped.
November 26, 2024
Director Accused Of Bribery Was Unfairly Fired, But Wins £0

A project director at the Hinkley Point C nuclear power station development was dismissed in a "complete absence of fair procedure," but has been awarded no compensation because he was complicit in alleged bribery, an employment tribunal has ruled.
November 26, 2024
Macquarie Bank Fined £13M For 'Serious' Control Failings

The Financial Conduct Authority said Tuesday that it has fined the London branch of Macquarie Bank Ltd. £13 million ($16.4 million) for significant weaknesses in its systems and controls that allowed a trader to conceal more than 400 fictitious trades over 20 months.
November 26, 2024
FCA Plans Regulation As UK Crypto-Asset Ownership Grows

The financial regulator published a plan Tuesday for regulating crypto-assets in the U.K. as it reported a rise in the number of British adults who now own digital currency and assets, up from 10% to 12% — or 7 million people.
November 25, 2024
Employment Rights Bill 'Not Fit For Purpose'

Plans to give employees the right to work flexibly and claim unfair dismissal from their first day in a job are "not fit for purpose," according to an official assessment published on Monday.
November 25, 2024
Tax Hikes Will Make It Harder To Hire, UK Industry Chief Says

Businesses will hire fewer workers as a result of raising employers' National Insurance contributions, a payroll levy, that was introduced in the autumn budget, the chief of one of Britain's most influential industry groups said Monday.
November 25, 2024
Immovable Rule Shields Bedzhamov From Russian Bankruptcy

A recent decision by Britain's highest court that the £35 million ($44 million) London home of a fugitive banker is beyond the reach of Russian bankruptcy laws has made it clear that a foreign court cannot enforce orders over English land.
November 25, 2024
'Knight' Can't Lift Freeze On Woodland Mansion, Supercar

A self-styled knight convicted of fraud failed to get a freezing order lifted against £1.1 million ($1.4 million) of his assets as a London court ruled on Monday that the civil recovery proceedings do not unfairly relitigate criminal confiscation efforts.
November 25, 2024
Odey Can't View Medical Records Of Sexual Assault Accusers

Crispin Odey failed on Monday to gain access to the medical records of five women who accuse him of sexual abuse, after a judge weighed in favor of the alleged victims' right to privacy.
November 25, 2024
MPs Raise 'Deep-Rooted' Problems At FCA In Critical Report

A report by a cross-party group of MPs will highlight the failures in the way the Financial Conduct Authority handles major scandals, despite its efforts to reform its culture and operations, according to advance details released Monday.
November 25, 2024
FCA Rewrites Disclosure Rules, Handing Suspects The Reins

Changes to disclosure rules at the Financial Conduct Authority will give defendants more insight into its investigations than ever before — though the development might swamp those that cannot afford top legal advisers, lawyers say.
November 25, 2024
Barclays Fined £40M For Failing To Disclose Qatari Deals

Barclays has been fined £40 million ($50.2 million) for the "reckless" arrangements the bank made with Qatari investors when it was raising fresh capital during the 2008 financial crisis, the Financial Conduct Authority said Monday.
November 22, 2024
UK Enforcers Concerned Over Apple Mobile Browser Policies

British competition enforcers said Friday that Apple's policies are holding back innovation in the mobile browser space and called for an investigation of the roles played by Apple and Google in the mobile ecosystem under new rules coming into force next year.
November 22, 2024
Malaysia Looks To Shore Up Counterattack Over $14.9B Award

Units of Malaysia's national energy company have kicked off new litigation in Delaware and New York, seeking additional information as they look to fight back against a massive $14.9 billion arbitral award issued in a territorial dispute stemming from a 19th-century land deal.
November 22, 2024
Ex-Petrofac Staffer Forced To Resign Over Freelance Snub

A former condition monitoring expert at Petrofac has won his unfair dismissal claim, after an employment tribunal ruled that bosses at the oil and gas firm unreasonably denied his requests to take on freelance work and forced him to quit.
November 22, 2024
Teacher Stern Cleared Of Rules Breach Over Client Payments

Teacher Stern LLP and two partners were cleared by a London disciplinary tribunal on Friday of breaching legal accounting rules and ethical regulations by allowing clients to transfer money that was not related to an underlying legal transaction or service.
November 22, 2024
Fraud Victim Can't Revive Duty Claim Against NatWest

A fraud victim failed Friday to revive its claim against National Westminster Bank PLC for not stopping more than £420,000 ($526,000) in payments to the scammers' bank account, after a London judge ruled the company did not have a reasonable chance of overturning the dismissal.
November 22, 2024
CAT Approves £7B Google Claim Over Apple Search Monopoly

The Competition Appeal Tribunal gave the green light on Friday to a consumer advocate's attempt to bring a £7 billion ($8.7 billion) class action against Google over claims the tech giant has blocked competitors from entering the search engine market on Apple products.
November 22, 2024
Paragon Auditor Denied Interim Pay In Whistleblowing Claim

An internal auditor at Paragon Bank has lost his bid for interim pay in his whistleblowing claims against the property finance lender as an appeals tribunal found he would struggle to prove that this was the reason he was sacked.

Editor's Picks

FCA's £29M Fine Of Starling Sends Wider Compliance Warning

The Financial Conduct Authority hit Starling Bank Ltd. with a £28.9 million ($38.4 million) fine on Wednesday for inadequate anti-money laundering and sanctions controls. This has sent a wider warning to companies that compliance levels must match growth.
NCA Ducks Litigation Risk In 1st Seizure Of Sanctioned Assets

The decision by the National Crime Agency to secure the forfeiture of the assets of a sanctioned Russian oligarch is a pragmatic victory that avoids the risk of setting a damaging legal precedent, lawyers say.
How 3 Firms Cleared 2 Ex-Autonomy Execs In HP Fraud Case

A California federal jury's rejection last week of fraud charges against the founder and former finance vice president of British software company Autonomy validated an approach by the defendants' three law firms — Steptoe, Clifford Chance and Bird Marella — to form a "seamless" collaboration throughout the trial, from jury selection to closing arguments.

Expert Analysis

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.
Online Safety Act Heightens Duties Of Social Media Platforms

The Office of Communications’ latest update on how it is implementing the Online Safety Act is part of a wider evolving debate, but while social media platforms wait for the law to take full effect, they can focus on establishing clear online safety policies, training programs for staff and proactive engagement with regulators, says Dan Adams at Arbor Law.
Gov't Fraud Prevention Guide Proves To Be A Damp Squib

The Home Office’s recent guide to the Economic Crime Act’s failure to prevent fraud offense goes little further than offering broad suggestions, signaling the Serious Fraud Office’s encouragement of companies to self-police rather than an intention to pursue fraud allegations to trial, say lawyers at BCL Solicitors.
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.
EU Enviro Directive Compliance Must Be A Priority For CEOs

The new European Union Environmental Crime Directive makes clear that criminal liability of a company for causing environmental damage does not preclude proceedings being brought against individuals who aid and abet, including CEOs, board members and other corporate leaders, say lawyers at Crowell & Moring.
New Offense Expands Liability For Corporate Enviro Fraud

The Economic Crime Act's new corporate fraud offense — for which the Home Office recently released guidance — underscores the U.K.'s commitment to hold companies accountable on environmental grounds, and in lowering the bar for establishing liability, offers claimants a wider set of tools to wield against multinational entities, say lawyers at Bracewell.
CMA Heat Maps Call Attention To Warning Letters

The Competition and Markets Authority's first heat maps illustrating the location of warning letters sent to businesses are intended to increase awareness of the letters, and provide new information that reflects distribution and density across the U.K., says Matthew Hall at McGuireWoods.
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.
What UK Takeover Code's Narrowed Focus Will Mean For Cos.

In narrowing its scope of application, the U.K. Takeover Panel's forthcoming amended code will have practical implications for U.K.-registered companies and ultimately provide greater market clarity and certainty, say lawyers at Davis Polk.
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.
M&A Takeaways From 1st EU Foreign Subsidies Merger Ruling

The European Commission’s recent decision on the merger between e& and PFF Telecom is the first to approve a transaction subject to commitments under the Foreign Subsidies Regulation, serving as a helpful guide by confirming that behavioral measures ring-fencing EU activities from the potential effect of third-country subsidies are acceptable, say lawyers at Cleary.
What New Int'l Treaty Means For Global AI Regulation

Lawyers at Bird & Bird consider how global artificial intelligence regulation will be affected by the first international AI treaty recently signed by the U.S., EU and U.K., as well as its implications for business and several issues that stakeholders should be aware of.
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.
2 Highlights From Labour's Notable Employment Rights Bill

The Labour government’s recently unveiled Employment Rights Bill marks the start of a generational shift in U.K. employment law, and its updates to unfair dismissal rights and restrictions on fire-and-rehire tactics are of particular note, say lawyers at Covington.
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.