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.
October 18, 2024
Consultant Ducks Prison For Helping OneCoin Launder $35M

A New York federal judge declined on Friday to sentence a co-founder of business consultancy and investment firm InterAmerican Group to any time in prison for his role in a scheme to launder about $35 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scam.
October 18, 2024
Gov't Warned Over Axing National Insurance Pension Relief

Slashing the tax relief on pension contributions paid by employers could cost businesses nearly £500 ($653) per worker and reduce future retirement savings pots at a time of growing concern that Britons aren't saving enough for later life, Hymans Robertson said Friday.
October 18, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Professor Cat Jarman, Earl Spencer's new girlfriend, sue his ex-wife, Bitcoin fraudster Craig Wright file a £911 billion ($1.18 trillion) claim against BTC Core, journalist Oliver Kamm hit novelist Ros Barber with a defamation claim, and a barrister at Cloisters face a claim from a former client. Here, Law360 looks at these and other new claims in the U.K.
October 18, 2024
Lender KMBL Buys StanChart India's $490M Loan Biz

Indian lender Kotak Mahindra Bank said Friday it has inked an agreement to buy the personal loan book of Standard Chartered, India worth an estimated 4,100 crore Indian rupees ($490 million), in a move to bolster its retail credit business.
October 18, 2024
BoE To Tighten Capital Rules For Banks

The Bank of England proposed Friday to tighten the capital requirements rules protecting banks and investment firms from large losses caused by failures of firms with which they conduct business.
October 18, 2024
Fraud Losses Reach £571M In 2024, But APP Scams Down

Fraudsters stole £571.7 million ($745 million) from individuals and businesses in the U.K. during the first six months of 2024, 1.5% down on the same period a year ago as banks crackdown on authorized fraud, a banking industry trade body said Friday.
October 18, 2024
Trade Body Calls For FCA To Clarify UK Rules On PEPs

A trade body for financial institutions called Friday for the Financial Conduct Authority to clarify in proposed amendments to guidance when firms should treat U.K. politically exposed persons and linked entities as lower risk.
October 18, 2024
Naming And Shaming To Hit 'Relatively Few' Firms, FCA Says

The City watchdog on Friday sought to reassure the financial sector that its controversial plan to name and shame the companies it investigates would affect "relatively few" because many firms in the sector voluntarily disclose when they are under investigation.
October 18, 2024
FCA's 'Pension Value' Rules Criticized for Over-Simplification

The Financial Conduct Authority's proposed regime for assessing the value of pension plans through standardized measures risks overlooking the "unique characteristics" of retirement savings plans in Britian, a financial consultancy warned on Friday.
October 17, 2024
Equip FCA And BoE For Green Transition Finance, Study Says

The U.K.'s financial watchdogs need to be equipped to help with green transition financing, a government-sponsored study said Thursday.
October 17, 2024
Government Sets Out Plan To Regulate Buy Now, Pay Later

HM Treasury set out plans Thursday to protect millions of people using buy now, pay later products through legislation that will lead to a new regulatory regime run by the Financial Conduct Authority.
October 17, 2024
Macfarlanes-Led Dignity To Acquire Farewill For £12.9M

Investment company Castelnau Group said Thursday that its funeral business Dignity has agreed to acquire its competitor Farewill Ltd. at an enterprise value of £12.9 million ($16.8 million).
October 17, 2024
Insurer Launches UK's 1st Cybercrime Recovery Service

Digital risk insurer Coalition has launched what it says is the U.K.'s first dedicated service for recovering cash stolen from cyberattacks — and has already recouped £1.4 million ($1.8 million) for a law firm.
October 17, 2024
Vestager Urges EU Politicians To Push Ahead With Pillar 1

European Union competition chief Margrethe Vestager urged EU politicians Thursday to push ahead with work to finalize the Pillar One plan to redistribute taxing rights among countries.
October 17, 2024
BOE To Simplify Banking Rules To Boost Growth

The Prudential Regulation Authority said Thursday that it intends to simplify key policy reforms introduced after the 2008 financial crisis that were designed to make bankers more accountable for wrongdoing or failings under their watch.
October 17, 2024
VC Firm Denies Failing Putin's Ex-Son-In-Law's Divorcee

A venture capital firm has denied owing the ex-wife of Vladimir Putin's former son-in-law a £1.1 million ($1.4 million) refund for allegedly valueless help with securing her $60 million prenuptial agreement, claiming it spent hundreds of hours working for her.
October 17, 2024
Nordea To Kick Start €250M Buyback After ECB Greenlight

Nordea Bank Abp said Thursday it plans to begin a share repurchase scheme of up to €250 million ($271 million) after getting the go-ahead from the European Central Bank.
October 17, 2024
StanChart Libor Decision Splits Bank And Investor Interests

The High Court's landmark decision allowing Standard Chartered to use an alternative to Libor has provided certainty to contracts that fail to provide for the abolition of the benchmark rate, but gives investors less flexibility than they might consider the wording provides.
October 17, 2024
Pensions Watchdog To Extend Professional Trustee Oversight

Britain's retirement savings watchdog has confirmed that it will extend its regulatory approach with professional trustee firms amid significant growth in the sector.
October 17, 2024
Daily Mail Withdraws Articles In Privacy Battle With Tax Pro

The publisher of the Daily Mail will withdraw articles about an Alvarez & Marsal managing director's relationship with a billionaire, a lawyer for the senior tax professional told a London court on Thursday.
October 17, 2024
FCA Launches AI Lab To Boost Fintech Innovation

Britain's financial watchdog unveiled Thursday its new artificial intelligence lab, which aims to help firms develop and deploy AI solutions in the financial sector and better understand the technology's impact.
October 17, 2024
Barclays, NCA Lead Data Project To Target Sexual Exploitation

Barclays Bank and the National Crime Agency are leading a project to tackle sexual exploitation in the U.K. that involves organizations across both the public and private sectors sharing information with the agency to disrupt organized crime.
October 16, 2024
Banks Ditch Exchange's Boycott Conspiracy Suit At 2nd Circ.

The Second Circuit on Wednesday rejected a small trading exchange's effort to revive its claims that several major banks conspired to shut it out of the credit default swap market, saying the exchange failed to plausibly allege that the banks' conduct was the result of an unlawful agreement or conspiracy.
October 16, 2024
Companies House Outlines Phased Rollout Of New Powers

Companies House announced Wednesday a two-year timetable for rolling out heightened powers granted under new economic crime legislation that it said will bring the biggest change to its register in over 175 years.
October 16, 2024
Vanguard Group Nixes Investment Group's TM

Vanguard Group convinced European officials to nix a trademark for "VanguardRe," after its Lebanese rival failed to provide any evidence that it had genuinely used the sign to market its insurance services in years.

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

Takeaways From Upcoming Payment Fraud Delay Legislation

Lawyers at Hogan Lovell 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.
Insights From FRC's Report On Good Corporate Governance

Although the Financial Reporting Council’s recent report on private companies opting to follow the Wates principles has identified improvements, it is important for organizations to provide transparent disclosures and avoid boilerplate, tickbox filings, says Tessa Hastie at BCLP.
What To Know About The UK Overseas Funds Regime

The U.K.’s overseas funds regime is now open for applications, providing a simplified way of offering a foreign fund to U.K. retail investors, and the Financial Conduct Authority's clear policy statement on implementation should ease the transition process from the existing scheme, say lawyers at Dechert.
Takeaways From SRA Consumer Protection Review

While the Solicitors Regulation Authority prepares to announce its findings later this year following its consumer protection consultation, the topic of handling client funds is very much alive in the legal industry, with polarizing views on what should happen as a result of the review, says Claire Van Der Zant at Shieldpay.
Reflecting On 12 Months Of The EU Foreign Subsidy Regime

New European Commission guidance, addressing procedural questions and finally providing clarity on “distortion” in merger control and public procurement, offers an opportunity to reflect on the year since foreign subsidy notification obligations were introduced, say lawyers at Fried Frank.
What Updated Guide Means For Jersey's Private Funds

The Jersey Financial Services Commission's recent updates to the Jersey Private Fund Guide clarify existing provisions and introduce new requirements for fund managers, service providers and investors, demonstrating a clear commitment to maintaining Jersey's reputation as an attractive jurisdiction for investment, say lawyers at Walkers Global.
The Road Ahead For Tokenized Investment Funds In The UK

With an HM Treasury working group expected to release the final phase of a road map for tokenized investment funds by the end of the year, Andrew Tsang and Tom Bacon at BCLP discuss the advantages for investors and fund administrators, the proposed model for implementation, and what the regulatory landscape may look like.
Review Of EU Cross-Border Merger Regs' Impact On Irish Cos.

Looking back on the year since the European Union Mobility Directive was transposed into Irish law, enabling Irish and European Economic Area limited liability companies to participate in cross-border deals, it is clear that restructuring options available to Irish companies with EU operations have significantly expanded, say lawyers at Matheson.
A Look At UK, EU And US Cartel Enforcement Trends

The European Union, U.K. and U.S. competition agencies' recently issued joint statement on competition risks in generative artificial intelligence demonstrates increased cross-border collaboration on cartel investigations, meaning companies facing investigations in one jurisdiction should anticipate related investigations in other jurisdictions, say lawyers at Latham & Watkins.
Testing The Limits Of English Courts' Pro-Arbitration Stance

Although the Court of Appeal recently upheld a $64 million arbitration award in Eternity Sky v. Zhang, the judgment offers rare insight into when the English courts’ general inclination to enforce arbitral awards may be outweighed by competing policy interests such as consumer rights, say Declan Gallivan and Peter Morton at K&L Gates.