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.
November 14, 2024
UK Unveils Plan To Roll Back Post-Financial Crisis Safeguards

The U.K. government said on Thursday that it is launching reforms to drive economic growth and competitiveness in financial services by rebalancing a regulatory regime that is focused more on minimizing risk.
November 14, 2024
Ex-BDO Auditor Gets 20-Year Ban For 'Serious' Misconduct

A former BDO auditor has been banned from the accountancy profession for two decades after the sector's watchdog said Thursday she acted with "sustained dishonesty" by forging signatures and other official documents over a five-year period.
November 14, 2024
Developer Loses Bid To Duck £780K Investor Loan Repayment

A property developer has lost his bid to avoid repaying a £780,000 ($990,000) loan to real-estate investors, as a London appeals court rejected on Thursday his case that he was bullied into signing a personal guarantee.
November 14, 2024
Standard Setter Warns Watchdogs To Address AI Risk Better

A global standard setter warned Thursday that artificial intelligence might amplify vulnerability in the financial sector and damage market stability, telling regulators to improve data-led monitoring.
November 14, 2024
Proposed Pension Megafunds Create New Risks For Savers

The U.K. government's plans to drum up more long-term investment in the U.K. economy by creating pension megafunds designed could create new risks for the retirement savings of millions of workers, experts warned.
November 14, 2024
LC&F Systematically Misled Investors In £237M Ponzi Scheme

London Capital & Finance misrepresented its business in a "widespread, fundamental and systematic way" and was run as a £237 million ($300 million) Ponzi scheme, a judge concluded at a London court on Thursday.
November 13, 2024
PrivatBank Says Ukraine Ruling Doesn't Bar Looting Suit

An attorney for Ukraine's PrivatBank urged a Delaware vice chancellor Wednesday to reject arguments that the bank's multibillion-dollar fraud and unjust enrichment loan claims against two oligarchs and others were undone by an allegedly narrow Ukrainian high court ruling in favor of the borrowers.
November 13, 2024
Gov't Sets Out Major £80B Pension Investment Reforms

The U.K. government on Wednesday set out landmark reform to create new pension megafunds that together will invest an additional £80 billion ($102 billion) into the economy.
November 13, 2024
Pension Dashboards A '£2B Time Bomb,' Master Trust Warns

The arrival of the pensions dashboards project could cause savers to lose over £2 billion ($2.5 billion) before 2030 because of poorly informed transfer decisions, a pension provider warned on Wednesday, calling for comparable value-for-money metrics on the portals.
November 13, 2024
UK Fights To Keep Sanctions On Banking Oligarch's Wife

The U.K. government urged a London appellate court to uphold a ruling that maintained sanctions on a Ukrainian-Russian tycoon's wife, arguing that she was "plainly associated" with her husband, who has ties to Vladimir Putin.
November 13, 2024
UK Tax Hikes Will Drive Inflation, Industry Group Head Says

The U.K. is set for more price rises in shops as a result of the tax increases in the autumn budget hitting many businesses, the chairman of a retail industry group warned Wednesday.
November 13, 2024
Dispute Over Time Limits Includes Cargo Misdelivery Claims

The top U.K. court ruled Wednesday that international shipping rules which impose a one-year time limit on claims brought against cargo carriers have a "wide wording" and do apply to disputes stemming from the misdelivery of goods after they have left the vessel.
November 13, 2024
£100K Gender Pensions Gap Will Take 20 Years To Close

The gender pensions gap of approximately £100,000 ($127,500) in favor of men is projected to take at least 20 years to close without more aggressive measures, according to a report published Wednesday by Scottish Widows.
November 13, 2024
FCA Warns Ratings Agencies To Address Conflicts Of Interest

The Financial Conduct Authority has warned chief executives of credit rating agencies in a letter to improve their governance to mitigate conflicts of interest, amid limited evidence that some companies are reviewing their ratings outcomes.
November 13, 2024
Watchdog Mulls Extension For Motor Financing Complaints

Britain's financial watchdog said Wednesday it plans to consult on extending the time motor finance firms have to respond to consumer complaints about commission arrangements, following a recent Court of Appeal ruling on non-discretionary commissions.
November 13, 2024
FCA Admits Mishandling Of 'Name And Shame' Roll-Out

The Financial Conduct Authority conceded on Wednesday that it might have handled its announcement of controversial plans to publish names of the firms it probes and other details of investigations at an earlier stage differently after heated protests from the sector.
November 12, 2024
Indian Bank Seeks $83M Loan Repayment From Shipping Co.

IBDI Bank Ltd. claimed it is owed $83 million by the guarantor of a loan at the center of a criminal investigation in India, arguing at a London court trial Tuesday that a letter of comfort issued by the company controlling the borrower should be treated as a legally binding contract.
November 12, 2024
VistaJet Owner Loses Appeal To Block Tech Venture Claim

The Court of Appeal has rejected further efforts by the owner of one of the world's biggest private jet firms to block legal claims that he defrauded a Guernsey tech venture capital fund two decades ago.
November 12, 2024
Squire Patton Boggs Hires Tax Expert In Irish Expansion

Squire Patton Boggs hired a senior associate from Eversheds Sutherland as part of building a tax strategy practice in Ireland, the firm said.
November 12, 2024
Digital Money Issuer Hits Dutch Co. For €4.7M Liability

A London-based electronic money issuer has sued a Dutch payment service provider for almost €4.7 million ($5 million), alleging that it had failed to meet its obligations under their card issuance and settlement agreement.
November 12, 2024
BoE, Regulators Set Out Regime For Critical Third Parties

The Bank of England and other City regulators set out new rules on Tuesday for critical third parties such as cloud service providers used by finance firms to reduce the risk of failure and disruption to the market.
November 12, 2024
FCA Strengthens Disclosure Process In Enforcement Cases

The Financial Conduct Authority has said it has improved its process for disclosing evidence to individuals and companies under investigation in regulatory enforcement cases, a move designed to cut the risk of omitting necessary documents.
November 12, 2024
Metro Bank Fined £16M For Failed Money Laundering Controls

Metro Bank PLC has been fined more than £16.6 million ($21.2 million) for not having proper systems to detect potential money laundering activity for more than four years, the financial watchdog said Tuesday.
November 11, 2024
Barings Lawyers Cleared Of Misleading Clients In SRA Case

A tribunal has dismissed a case against two senior lawyers at the consumer finance firm Barings Ltd. who were accused of misleading clients over payday loans claims and sending out letters on behalf of fictional clients, including Mickey Mouse.
November 11, 2024
Investment Bank Claims Dubai Biz Owes $6.7M In Unpaid Fees

An international investment bank has sued a fuel services company in Dubai for almost $6.7 million, claiming that it failed to pay agreed fees for the financial advice the lender gave it on debt restructuring.

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

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.
FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
Takeaways From Upcoming Payment Fraud Delay Legislation

Lawyers at Hogan Lovells discuss what to know about new legislation that will allow payment service providers to delay payments when third-party fraud is suspected, and share pointers for providers to consider ahead of the Oct. 30 effective date.
Modernizing UK Trade Settlement Standard: The Road Ahead

Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
Analyzing The Implications Of 1st FCA Crypto ATM Crackdown

The Financial Conduct Authority’s recent criminal prosecution of Olumide Osunkoya, its first enforcement action against a crypto-asset trading firm's owner, is an unambiguous sign of the regulator’s commitment to actively pursue transgressors, but may be a hindrance to the U.K. crypto industry, says Asim Arshad at Lawrence Stephens.
Draft Merger Control Guidance Allows CMA To Cast Wide Net

The Competition and Markets Authority's recent draft merger control guidance, reflecting the regulator's strengthened powers under the Digital Markets, Competition and Consumer Act, introduces extensive change and potential procedural improvements, specifically concerning reviews of private equity firms, say lawyers at Travers Smith.
Key Points From Cayman's Beneficial Ownership Regime

While recent expansion of the Cayman Islands Beneficial Ownership Act's scope means it now encompasses many entities with previously minimal obligations, the changes ensure a welcome level playing field with workable alternative routes to compliance, says Lucy Frew at Walkers Global.
HMRC Transfer Pricing Guide A Vital Resource For Businesses

HM Revenue & Customs' recent guidelines on common transfer pricing compliance risks should be required reading for affected businesses in indicating HMRC's expected benchmark for documents and policies, say Tomoko Ikawa and Kapisha Vyas at Simmons & Simmons.