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.
August 14, 2024
PwC Owes $11M For Tax Errors, Real Estate Group Says

PwC should pay £8.9 million ($11.4 million) in damages to a real estate group for miscalculating its tax liabilities and mispricing its properties, which prompted several additional assessments and penalties, according to a claim in a London court.
August 14, 2024
Adviser Denies Owing Bank £9.2M After Bad Property Loan

A property adviser has denied overvaluing a building development and causing a U.K. bank to lend millions of pounds more than it should have, claiming it made a competent assessment within the same range as other independent valuers.
August 14, 2024
World Bank Member Sues Lebanese Lender For Unpaid $234M

A member of the World Bank Group is suing Lebanon's largest private lender for more than $234 million in loans and interest payments due over the past four years, as the Middle Eastern state has struggled with a major financial crisis that devalued its currency.
August 14, 2024
Aegon Launches Digital Pension Comparison Service

Financial firm Aegon UK PLC launched a digital pension transfer comparison service on Wednesday with The Pension Lab to enable savers to compare the costs of different plans.
August 14, 2024
Pension Funding Surplus Rises To £475B Despite Rate Cut

The funding surplus of British retirement savings plans rose to £475.5 billion ($611 billion) at the end of July, according to official figures released on Wednesday, even as experts warned of the need to hedge against fresh interest rate cuts.
August 14, 2024
EU Watchdog Sets Priorities For Bank Resolution Rules

The European Union banking watchdog has found banks need to prepare better for the process of orderly failure known as resolution, including by obtaining more accurate data for assessing their financial positions.
August 14, 2024
FCA Fines, Bans Consultant For Leaving Clients Uninsured

The financial regulator said Wednesday that it has banned an insurance consultant from working in financial services and hit him with a fine of just over £5,000 ($6,430) fine for using funds from clients to pay his business and personal debts.
August 14, 2024
Cypriot Forex Firm Fined For Exploiting Customers

Britain's financial watchdog said Wednesday that it has hit Cypriot trading firm Forex TB Ltd. with a £276,100 ($355,000) fine for failing to treat customers fairly and providing unauthorized investment advice.
August 13, 2024
Travelers Defends DWFM Beckman Over Investment Advice

The insurer of now-defunct DWFM Beckman LLP has hit back against claims that the firm negligently advised a real estate investor on an almost £20 million ($25.5 million) deal, denying that the firm advised her on the investment at all.
August 13, 2024
Probe Unveils €500M Money-Laundering Group, Agency Says

European and Brazilian authorities have searched multiple homes and frozen millions in assets during an operation investigating what is alleged to be an Italian mafia-run money-laundering network worth more than €500 million ($547.8 million), the European Union law enforcement agency Eurojust announced Tuesday.
August 13, 2024
UK Charity Sector Pension Funding Reaches £50B

The charity sector's pension schemes have seen funding reach £50 billion ($63.9 billion) in 2022, potentially leading to more pension buy-outs, according to a report published Tuesday by pensions consultancy Hymans Robertson LLP.
August 13, 2024
PA Forced To Visit Boss' Home During Lockdown Wins £115K

Two hedge fund bosses must pay a former personal assistant over £115,000 ($147,468) after an employment tribunal found the businessman had asked her to unnecessarily go against COVID-19 restrictions by working from their homes.
August 13, 2024
Firm Ex-Director Gets 15-Year Sanction For Investment Scam

A former director of an investment firm has had a ban on working as a company executive extended to 2033 after he was convicted of a Ponzi scheme fraud at an English court, the U.K.'s Insolvency Service has said.
August 13, 2024
JPMorgan Trust Seeks Shareholder Nod For Equity Raise

JPMorgan Global Growth & Income PLC said Tuesday that it is seeking approval from its shareholders to grant the investment trust the authority to issue up to 200 million of its shares in light of strong investor demand.
August 13, 2024
UK Regulators Mull Digital Reporting Future Outside EU

Britain's accounting watchdog on Tuesday proposed a number of potential reforms for the future of digital reporting in the U.K., amid recent legislative changes after the country's departure from the European Union.
August 13, 2024
Linklaters-Led Fund Buys Blackstone JV Homes For £405M

Britain's biggest private pension fund said on Tuesday that it has acquired 3,000 shared-ownership homes from a joint venture that is majority-owned by Blackstone Inc. for £405 million ($518 million).
August 12, 2024
Judge Won't DQ Asst. US Atty In Standard Chartered FCA Case

A New York federal judge on Monday declined to disqualify an assistant United States attorney from a long-dismissed False Claims Act suit against Standard Chartered Bank, calling the whistleblower's arguments for disqualification meritless "to the point where they verge on vexatious and frivolous."
August 12, 2024
UK To Look Deeper Into Amex GBT's $570M Buy Of CWT

Britain's antitrust regulator said Monday that it has referred American Express Global Business Travel's proposed acquisition of rival CWT for an in-depth second phase of investigation over concerns the approximately $570 million deal could hurt competition in the country.
August 12, 2024
FRC Sees Too Many Cos. Using 'Boilerplate' Wates Filings

The Financial Reporting Council said Monday that 30% of large private firms favor the Wates corporate governance principles for filing company reports, but many companies still need to improve their disclosures.
August 12, 2024
Westfield Sues Clearpay Over Brand Deal Breach

Shopping giant Westfield has sued Clearpay Finance Ltd. for more than £665,000 ($848,722), claiming the payment processing provider wrongly terminated two "buy now, pay later" partnerships with its London shopping centers.
August 12, 2024
EU Watchdog Warned Of Crypto Risk For Retail Funds

Fund managers warned the European Union markets regulator Monday that there is no consensus on how to value crypto-assets, in a consultation on whether such products should be accessible to retail funds.
August 12, 2024
UK Pensions Body Calls For Reform For Investment Plan

The government should consider introducing planning reform and tax incentives to encourage pensions providers to invest more in U.K. assets, a trade body said on Monday, as the new administration considers how to tap into the sector to fuel a national economic recovery.
August 12, 2024
LCP Launches Tool To Check Gov't Pension Payment Errors

Consultancy Lane Clark & Peacock LLP has launched an online tool designed to help retirement savers check what state pension they can get amid "worrying evidence" that some widows and widowers are not receiving their full entitlement.
August 09, 2024
Ex-Mozambique Finance Minister Convicted For $2B Scheme

Mozambique's former finance minister was convicted of wire fraud and money laundering conspiracy charges in connection with his role in the $2 billion "tuna bonds" scandal, prosecutors announced.
August 09, 2024
Kuwaiti Investment Arm Immune From Ex-CEO's Claim

The Kuwait Investment Authority has succeeded in getting a whistleblowing claim from its former chief executive thrown out of a London tribunal after a judge ruled that he was employed as a diplomat, and therefore the authority has sovereign immunity against his claim.

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

What To Expect From Labour's Pension Schemes Bill

The Labour government’s recently announced Pension Schemes Bill, outlining key policy areas affecting the retirement savings sector, represents a positive step forward for both defined contribution scheme members and defined benefit superfunds, but there are some missing features, says Sonya Fraser at Arc Pensions.
Int'l Treaties May Aid Investors Amid UK Rail Renationalization

The recently introduced Passenger Railway Services Bill seeks to return British railways to public ownership without compensating affected investors, a move that could trigger international investment treaty protections for obligation breaches, says Philipp Kurek at Signature Litigation.
What EU Opinion May Mean For ESG Product Classification

The recently issued European Supervisory Authority opinion on the Sustainable Finance Disclosures Regulation offers key recommendations, including revising the definition of sustainable investments and making principal adverse impacts consideration mandatory, that could sway the European Commission’s final approach to product classification, say lawyers at Debevoise.
What New UK Listing Rules Mean For Distressed Companies

The Financial Conduct Authority’s recently published overhaul of U.K. listing rules makes it easier for advisers to restructure distressed listed companies, and in moving to a more disclosure-based approach, simplifies timelines and increases opportunities for investors, say Kate Stephenson and Sarah Ullathorne at Kirkland & Ellis.
AI Reforms Prompt Fintech Compliance Considerations

With the EU Artificial Intelligence Act's Aug. 1 enforcement, and the U.K.'s new plans to introduce AI reforms, fintech companies should consider how to best focus limited resources as they balance innovation and compliance, says Nicola Kerr-Shaw at Skadden.
Irish Businesses Should Act Now To Prepare For EU AI Act

Artificial intelligence is increasingly transforming the Irish job market, and proactive engagement with the forthcoming European Union AI Act, a significant shift in the regulatory landscape for Irish businesses, will be essential for Irish businesses to responsibly harness AI’s advantages and to maintain legal compliance, say lawyers at Pinsent Masons.
EU Investment Fund Standards Offer Welcome Clarity

The European Commission’s recently published regulatory technical standards for long-term investments, which granted managers greater flexibility with respect to open-ended European long-term investment funds, should help managers active in the space navigate the mandatory liquidity requirements for long-term investment funds, say Zac Mellor-Clark and Nishkaam Paul at Fried Frank.
Unpacking The New Concept Of 'Trading Misfeasance'

In addition to granting one of the largest trading awards since the Insolvency Act was passed in 1986, the High Court recently introduced a novel claim for misfeasant trading in Wright v. Chappell, opening the door to liability for directors, even where insolvent liquidation or administration was not inevitable, say lawyers at Greenberg Traurig.
Key Takeaways From Proposed EU Anticorruption Directive

The European Commission's anticorruption proposal, on which the EU Council recently adopted a position, will substantially alter the landscape of corporate compliance and liability across the EU, so companies will need to undertake rigorous revisions of their compliance frameworks to align with the directive's demands, say lawyers at Linklaters.
How Regulation Of Tech Providers Is Breaking New Ground

The forthcoming EU regulation on digital operational resilience and the U.K. critical third-party regime, by expanding the direct application of financial services regulation to designated technology providers, represent a significant development that is not to be underestimated, say David Berman and Emily Lemaire at Covington.
What EU Net-Zero Act Will Mean For Tech Manufacturers

Martin Weitenberg at Eversheds Sutherland discusses the European Council’s recently adopted Net-Zero Industry Act and provides an overview of its main elements relevant for net-zero technology manufacturers, including benchmarks, enhanced permitting procedures and the creation of new institutions.
Complying With EU Commission's Joint Purchasing Rules

One year after the European Commission released its revised guidelines on horizontal cooperation agreements, attorneys at Crowell & Moring reflect on the various forms such agreements can take, and how parties can avoid structuring arrangements that run afoul of competition law.
Tips For Implementing EU Sustainability Reporting Guidance

Lawyers at Sullivan & Cromwell discuss the European Financial Reporting Advisory Group’s recently published guidance on double materiality assessments and offer takeaways on achieving a sustainability directive-compliant process that could enhance clarity and consistency among multinational stakeholders.
Why Ukraine Aircraft Insurance Case Failed To Take Off In UK

In Aercap v. PJSC Insurance, the High Court decided the claimants could not avoid an exclusive jurisdiction clause and advance their case in England rather than Ukraine, and the reasoning is likely to be of relevance in future jurisdiction disputes, say Abigail Healey and Genevieve Douglas at Quillon Law.
Labour's 'Fresh Approach' To Tackling Financial Crime

Given newly elected Prime Minister Sir Keir Starmer’s background as a criminal defense lawyer and director of public prosecutions, an administration with strong views on financial crime can be expected, and revenue raising and proceeds of crime recovery are likely to be at the forefront, says Matthew Cowie at Rahman Ravelli.