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 02, 2024
S. Korea Loses Bid To Set Aside $48.5M Hedge Fund Award

A London court has upheld a $48.5 million arbitral award favoring hedge fund Elliott Associates LP against South Korea in a dispute over a government bribery scandal that allegedly underpinned the $8 billion merger of two Samsung affiliates in 2015.
August 02, 2024
Self-Styled 'Business Guru' Faces Investor's £5.6M Fraud Case

An investor has hit a self-styled business guru with a £5.6 million ($7.2 million) fraud claim, accusing the entrepreneur of running a Ponzi scheme and of duping him into funding a loan for a luxury hotel development that was never lent.
August 02, 2024
Property Investor Denies Hiding Info From Franchise Buyers

A real estate investment scheme's former owner has hit back at a £6.4 million ($8.1 million) counterclaim by the management consultancy that acquired it, saying in London court documents that he did not conceal any important information and that he had not breached any agreement.
August 02, 2024
Taxation With Representation: Sullivan, Dechert, Kirkland

In this week's Taxation With Representation, BNP Parabis SA acquires an investment management subsidiary for €5.1 billion, Cleveland accounting firm CBIZ merges with competitor Marcum for $2.3 billion, and Arcosa Inc. inks a deal with a family-owned construction materials business for $1.2 billion.
August 02, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen insurance broker Marsh sue the collapsed Greensill Bank, the former chair of the Islamic Students Association of Britain pursue a defamation case against the Jewish Chronicle, Berkshire Hathaway and Lloyd's face action from a shipping company, and alleged fraudster Ronald Bauer hit a loan company with a claim. Here, Law360 looks at these and other new claims in the U.K.
August 02, 2024
SFO Claws Back Funds From Convicted Property Developer

Britain's white-collar crime prosecutor said Friday it has seized £86,000 ($110,000) from a former commercial property developer who was convicted of fraud more than a decade ago after it discovered that he had acquired a luxury car.
August 02, 2024
Top UK Court To Hear HMRC Car Park Tax Dispute With NHS

HM Revenue and Customs has been granted permission by Britain's highest court to challenge a ruling that a National Health Service trust qualified for value-added tax exemption for hospital car parking, a decision that could affect appeals brought by NHS entities.
August 02, 2024
FCA Charges Unauthorized Mortgage Broker With Fraud

An unauthorized mortgage broker has been charged with fraud for allegedly arranging mortgage applications based on false information, the Financial Conduct Authority said Friday.
August 02, 2024
FCA To Allow Flexible Use Of Unclaimed Investment Assets

The Financial Conduct Authority said Friday it has changed its rules to enable companies such as banks and insurers to release dormant investment assets and client money into a scheme to find their owners or support U.K. growth through good causes.
August 02, 2024
Ex-F1 Boss Sues HSBC For £5.5M For Wrongly Selling Bonds

Former Formula One team boss Eddie Jordan has sued HSBC for £5.5 million ($7 million) for losses suffered as the result of the bank's allegedly false and negligent advice over a bond in which he invested tens of millions of pounds.
August 02, 2024
BNP Paribas To Buy Axa's Investment Manager For €5.1B

BNP Paribas SA has said it will buy an investment management subsidiary from French insurer Axa SA for €5.1 billion ($5.5 billion) to create a combined platform with €1.5 trillion of assets under management.
August 01, 2024
World's First AI Act Takes Effect In EU

The world's first comprehensive regulation of the tools known as artificial intelligence came into force Thursday, introducing restrictions on the development and use of the technology across all member states.
August 01, 2024
Barclays Wins £13.7M Freezing Order Action Against Directors

Barclays Bank PLC has proven that two businessmen breached freezing orders on £13.7 million ($17.5 million) of assets, after a London court on Thursday ruled it was beyond reasonable doubt the men allowed the assets to move offshore.
August 01, 2024
Investor Wins $180M Claim Over Plane Leases Against VietJet

A global private investment company's unit has won its $180 million claim against a Vietnamese budget airline it alleged was a "delinquent debtor," after a London judge said that the air carrier had waged a campaign to stop the planes being returned to their owner.
August 01, 2024
City Firms To Invest Up To £20B Of Pension Funds In UK Biz

Phoenix Group and Schroders have announced plans to invest as much as £20 billion ($25.7 billion) of pension money into private markets over the next decade in line with wider industry commitments to direct retirement savings capital toward the British economy.
August 01, 2024
EU Watchdog Warns Of Risk From Global Crypto-Asset Firms

Europe's financial markets watchdog has warned national regulators to address the risk that global crypto groups may seek authorization in the European Union to obtain clients unlawfully and expose them to non-EU-regulated services.
August 01, 2024
Tragedy And A Hustle: 5 Takeaways From The 'Tuna Bonds' Ruling

A London judge took the opportunity as he delivered a ruling that Mozambique was defrauded in a controversial maritime project to raise questions about the role played by international banks and the lack of financial standards in the multibillion-dollar "tuna bonds" scandal.
August 01, 2024
UK Capital Gains Tax Liabilities Decline, HMRC Says

Capital gains tax liability in the U.K. declined in the 2022-2023 tax year, HM Revenue & Customs said in a news release Thursday.
August 01, 2024
Watchdog Names Banks Reimbursing Few APP frauds

The Payment Systems Regulator found Thursday that banking groups varied widely in how far they reimbursed victims of authorized push payment fraud, with AIB Group, Danske Bank and Monzo making the lowest payouts in its 2023 performance report.
August 01, 2024
Italy's Banca Generali Beats Credit Note Issuer's Appeal

A London appeals court has ruled an Italian bank can remove and replace a special purpose vehicle's financial agents working on a series of securities transactions that went south, without needing the SPV's consent.
August 01, 2024
Early Pension Dips Raise Long-Term Concerns, Insurer Says

Pensions insurer Just Group has said official government statistics showing that seven in 10 people taking flexible payments from their pensions are younger than 65, raising questions about the sustainability of retirement savings in later life.
August 01, 2024
Tchenguiz Can't Dodge £8M IG Index Spread Betting Debt

Real estate investor Robert Tchenguiz has to repay an investment platform a spread-betting debt of £8 million ($10.2 million) after a court ruled Thursday that the company had correctly characterized him as a professional investor.
August 01, 2024
Accounting Standards Setter Eyes Better Climate Reporting

A global accounting standards setter has proposed "new illustrative examples" to improve how companies report climate change-related uncertainty and other factors in their financial statements.
August 01, 2024
Barclays Plans £750M Buyback As Profits Beat Estimates

Barclays PLC said Thursday that it will reward shareholders with a shares buyback of up to £750 million ($957 million) as it announced results for the first six months of 2024 that beat the expectations of analysts.
July 31, 2024
HSBC Says HUD Has Closed Fair Lending Probe

HSBC's U.S. banking arm said it is no longer facing a multicity fair lending investigation from federal housing authorities after an outside complaint that prompted the probe was withdrawn.

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

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.
Unpacking Pressures, Trends Affecting Global Supply Chains

A recent HSBC report reveals a number of trends and challenges for global supply chains in the current uncertain geopolitical landscape, and with constant emerging opportunities, companies that can stay informed, be proactive and adapt to change will be well positioned to succeed, says Michelle Craven-Faulkner at Shoosmiths.
What UK Digital Markets Act Will Mean For Competition Law

The new Digital Markets Act’s reforms will strengthen the Competition and Markets Authority's investigatory and enforcement powers across its full remit of merger control and antitrust investigations, representing a seismic shift in the U.K. competition and consumer law landscape, say lawyers at Travers Smith.
What New UK Labour Gov't Is Planning For Financial Services

Following the Labour Party’s U.K. election win on July 4, the new government has already announced its key missions for economic growth, green investment and tax reform, so affected Financial Conduct Authority-regulated entities should be prepared for change and on the lookout for details, says Rachael Healey at RPC.
Companies Trading In The EU Should Heed Mondelēz Ruling

The European Commission’s recent €337.5 million fine of Mondelēz is the latest decision targeting restrictions on EU cross-border trade, and serves as a warning to companies active in the region to check their contracts and practices for illegal restraints, and to perform audits to ensure compliance, says Matthew Hall at McGuireWoods.