Financial Services UK

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.

FCA's 2024 Consumer Focus Still Has Firms Guessing

The Financial Conduct Authority shifted further toward results-based financial regulation in 2024 by requiring regulated companies to comply better with its Consumer Duty, forcing managers to make individual interpretations of the regime's often ambiguous requirements where more specific rules are missing.

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.

FCA's Investigation Regime May Tarnish Unnamed Individuals

Financial Conduct Authority proposals to name companies early in investigations will damage the careers of many individuals involved, according to lawyers, with some unnamed employees coming under suspicion that puts them at risk of losing their jobs.

February 19, 2025
Tether Co. Claims Crypto Trader Is Withholding Wallets

A Tether company has accused a former business partner in Tasmanian Bitcoin mining investments of withholding cryptowallets and roughly $5 million in tokens and cash after relationships turned sour.
February 19, 2025
Mastercard Deal Does Not Need To Be Perfect, Tribunal Told

Mastercard's £200 million ($250 million) agreement with Walter Merricks "does not have to be perfect" to get approval from the Competition Appeal Tribunal, lawyers for both sides argued on Wednesday in the court's first hearing in a contested class action settlement.
February 19, 2025
FCA Calls For Probe Into Digital Wallet Competition Issues

The Financial Conduct Authority and the Payment Systems Regulator on Wednesday urged the U.K. competition watchdog to investigate competition concerns for digital wallets because of market dominance by big tech groups like Apple and Google.
February 19, 2025
Barrister Denies Owing Duty To Flag Law Firm's Negligence

A barrister has denied breaching his duties to a technology company by failing to highlight a potential negligence claim against a law firm, as he told a London court that no such obligation existed.
February 19, 2025
HSBC Launches $2B Share Buyback As Profits Rise

HSBC Holdings PLC said Tuesday it will return up to $2 billion in cash to shareholders after the banking giant reported a rise in pre-tax profits for the final three months of 2024, despite an uncertain global economic outlook.
February 19, 2025
UK Eyes One-Day Securities Settlements to Boost Growth

HM Treasury said Wednesday that the chancellor has met senior representatives from the investment banking and asset management sectors to hone the government's growth strategy as the ministry supports the move ahead to one-day securities settlement.
February 19, 2025
Fintech Biz Plus500 Launches $110M Share Buyback Program

Trading platforms operator Plus500 has launched a fresh share repurchase program valued at up to $110 million, a move the company said reflects its "robust financial position" as it reported higher revenue.
February 19, 2025
Supreme Court Says Businessman Can't Dodge £19M Debt

The U.K. Supreme Court ruled Wednesday that a businessman's family cannot avoid a £19 million ($24 million) debt to a UAE bank, finding that insolvency law can prevent a transaction by a company owned by the family because it was intended to put assets beyond the reach of creditors.
February 18, 2025
Tycoon Fights Bankruptcy Order Over £1B Debt To Banks

An Indian tycoon asked a London court Tuesday to overturn a bankruptcy order against him that he argued was wrongly issued over a £1 billion ($1.26 billion) debt because several banks had already recovered the money in parallel criminal proceedings.
February 18, 2025
Pensions Pro Loses Whistleblowing Claim Amid Merger Spat

An employment tribunal has ruled that the head of a financial planning firm did not fire her business partner for blowing the whistle on legal breaches but rather because she stopped doing her job.
February 18, 2025
All Eyes On CAT Ahead Of Mastercard Settlement Hearing

A £200 million deal to end a long-running consumer class action will come under the spotlight on Wednesday when Walter Merricks and Mastercard seek to persuade the Competition Appeal Tribunal to sign off a settlement despite opposition from the finder of the claim.
February 18, 2025
EU Watchdog To Set Knowledge Standard For Crypto Advisers

The European Union's financial markets regulator has proposed guidelines setting minimum knowledge standards for advisers and information providers at crypto-asset service providers.
February 18, 2025
Trading Firm Fined £1.7M For Financial Crime Control Failings

The Financial Conduct Authority said Tuesday it has fined trader Mako Financial Markets Partnership LLP £1.66 million ($2 million) for its failure to have effective controls against financial crime in cum-ex trading.
February 18, 2025
Morton Guides £1.5M Pension Deal For Accounting Firm

An accountancy firm has passed £1.5 million ($1.9 million) of its pension liabilities to Just Group, the insurer said Tuesday, in a deal advised by Morton Fraser MacRoberts LLP.
February 18, 2025
Thames Water Wins Court OK For £3B Rescue Plan

Thames Water got approval on Tuesday for a £3 billion ($3.8 billion) rescue package needed to keep the struggling utility company afloat, although opponents of the plan won the right to appeal against the ruling.
February 17, 2025
Gov't Can't Intervene In Motor Finance Case At Top Court

The U.K. government has been refused permission to intervene in a landmark appeal over motor finance commission payments that has left finance firms fearing they will be hit with a huge compensation bill, Britain's highest court confirmed Monday.
February 17, 2025
Financial Adviser Fired For Calling Boss 'Idiot' Wins Claim

An adviser at a financial planner has won his claim alleging that the company botched his firing over explicit language he used to describe his boss — but could not convince the tribunal that he was a whistleblower.
February 17, 2025
Pensions Watchdog To Go Further On Prudential Oversight

Britian's retirement savings watchdog said Monday it will go further this year on managing risks affecting the wider pensions market and financial ecosystem, after announcing last year it would take on a more "prudential" approach to supervising the sector.
February 17, 2025
E-Money Biz Enters Insolvency After FCA Ban Amid AML Fears

Payment services company Nvayo has entered into special administration, six months after it was banned from electronic money services because of serious concerns about its compliance with anti-money laundering regulations, the Financial Conduct Authority has said.
February 17, 2025
Growth In UK Insurance Premiums Expected To Slow, EY Says

Insurance premium growth in Britain is expected to stabilize this year amid falling costs, a consultancy said on Monday, as it warned of potential storm clouds on the horizon caused by "geopolitical" developments.
February 17, 2025
Shoosmiths Steers £16M Pension Deal For Manufacturing Co.

Insurer Just Group said on Monday that it has taken on £16 million ($20.2 million) of liabilities in a retirement scheme from a pension plan sponsored by industrial machinery manufacturer Deutz AG, in a deal guided by Shoosmiths.
February 14, 2025
Brown Rudnick Bolsters Firm With Tax Pro From Fieldfisher

Brown Rudnick LLP announced it added a former Fieldfisher partner to work in the firm's London-based litigation and dispute resolution practice as a tax partner.
February 14, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Spice Girls star Mel B's ex-husband bring a defamation claim against the publisher of The Sun, a hotel sue a former director convicted of embezzling its funds for breach of fiduciary duty, and comedian Russell Brand face a sexual abuse claim. Here, Law360 looks at these and other new claims in the U.K.
February 14, 2025
Gowling, Squire Patton Pilot £50M Pension Deal For Textile Biz

A German textiles company has offloaded £50 million ($63 million) of its U.K. pension liabilities to insurer Just Group PLC, advisers said Friday, in a deal steered by Gowling WLG and Squire Patton Boggs LLP.
February 14, 2025
Magomedov Must Pay £7M Costs Amid 'Secrecy' Over Funding

Imprisoned oligarch Ziyavudin Magomedov must pay £7.3 million ($9.2 million) in interim court costs after losing his claim over an alleged Russian state-led conspiracy to strip his assets, as a judge criticized on Friday the "secrecy" surrounding who funded the litigation.

Editor's Picks

5 Questions For Spencer West Partner Karl Foster

The Financial Conduct Authority's approach to enforcement and consumer protection has come up against government economic growth priorities and resistance from the sector to its proposals to "name and shame" companies early on during regulatory probes.
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.

Expert Analysis

Decoding Arbitral Disputes: Equal Rights Limit State Immunity

The Court of Appeal of England and Wales' recent determination that Spain’s London embassy could not dodge a former U.K.-based employee’s discrimination claims by invoking sovereign immunity reaffirms its position that employment and human rights should come before the privileges of foreign powers, says Josep Galvez at 4-5 Gray’s Inn.
How Proposed Private Share Trading System May Benefit Cos.

The government's proposal for a private securities and capital exchange system intends to enhance market practices and risk tolerances, offering a significant way for firms to free up liquidity by allowing investors to trade existing private company shares, say lawyers at Mishcon de Reya.
Nonfinancial Misconduct Lessons From Rail Worker's Win

While financial services firms wait for the Financial Conduct Authority’s final policy statement on nonfinancial misconduct, an Employment Tribunal’s recent award to a railroad worker targeted by a hostile human resources team provides guidance on developing even-handed and inclusive company policies, say attorneys at Shoosmiths.
Important Changes To Note In Accountant Ethics Code Update

The Institute of Chartered Accountants of England and Wales' forthcoming code of ethics will bring a number of significant updates to raise standards within the profession, but also risks of professional indemnity claims that could lead to challenges for firms, say lawyers at RPC.
A Look At Collateralized Loan Obligations Post-Reform

The Financial Stability Board's recent report on global securitization reforms, analyzing resilience trends in the collateralized loan obligation market post-2008, suggests that, while risk retention rules have a limited impact on observable characteristics, other structural features play a significant role in ensuring risk alignment, says Kos Vavelidis at DLA Piper.
What EU Sustainable Category Proposals Will Mean For Funds

The European Union Platform on Sustainable Finance’s recent proposals to apply stricter product categorization standards for funds subject to the Sustainable Finance Disclosure Regulation will assist retail investors in selecting sustainable products, and allow advisers to easily match their clients’ preferences, say lawyers at Debevoise.
What To Expect As CAT Considers Mastercard Settlement

It is expected that the Competition Appeal Tribunal will closely scrutinize the proposed collective settlement in Merricks v. Mastercard, including the role of the case’s litigation funder, as the CAT's past approach to such cases shows it does not treat the process as a rubber stamp exercise, say lawyers at BCLP.
Managing Transatlantic Antitrust Investigations And Litigation

As transatlantic competition regulators cooperate more closely and European antitrust investigations increasingly spark follow-up civil suits in the U.S., companies must understand how to simultaneously juggle high-stakes multigovernment investigations and manage the risks of expensive new claims across jurisdictions, say lawyers at Paul Weiss.
What 2025 Holds For UK, EU Restructuring And Insolvency

European Union and U.K. restructuring developments in 2024, with a new era of director accountability, the use of cramdown tools and the emergence of aggressive liability management exercises, mean greater consideration of creditors' interests and earlier engagement in restructuring discussions can be expected this year, says Inga West at Ashurst.
What To Know As EU Urges Outbound Investment Reviews

A recent European Commission recommendation urges European Union member states to review outbound investments in certain critical technologies sectors, but does not clarify the next steps for states once information on relevant transactions in third countries is received, say lawyers at Cleary.
Despite Divisive Political Rhetoric, DEI Is Alive And Well

The World Economic Forum's recent finding that DEI initiatives have continued to rise amid political headwinds raises the question of whether reports of the death of DEI are exaggerated, especially as employers must focus on new pay gap reporting obligations in the U.K. and Europe, say lawyers at Herbert Smith Freehills.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Tax Directive Marks Milestone In Harmonizing EU System

The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.