Financial Services UK

Regulatory Rollback Gathers Pace As Programs Axed

The City watchdog has dropped three of its top regulatory initiatives, responding on Wednesday to industry criticism and government pressure to boost competitiveness and economic growth.

Nikhil Rathi, chief executive officer of the Financial Conduct Authority

FCA Awaits Gov't Answer To City Consumer Duty Pushback

The Financial Conduct Authority is waiting for the government to clarify how much consumers can be exposed to risk in favor of more growth-focused regulation as the watchdog faces push back from the sector against its flagship consumer protection program.

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.

March 14, 2025
Investor Sues Fortunis Capital For £2M Bond Mismanagement

A U.K. resident has sued an investment company for £2 million ($2.6 million) in a London court for allegedly failing to return his investment, but the company has denied allegations of wrongdoing, saying the investment may have been lost in a fraud.
March 14, 2025
Entrepreneur Loses Appeal Over £14M Barclays Asset Freeze

A businessman has lost his bid to overturn a ruling that he breached a £13.7 million ($17.5 million) freezing order in a fraud case, with an appeals court ruling Friday that a judge's findings were not wrong.
March 14, 2025
FCA Floats Raising Contactless Payment Limit For UK Growth

The Financial Conduct Authority proposed Friday removing or raising the limits on contactless payments to help U.K. growth, relying on the Consumer Duty to guide firms on the best approach.
March 14, 2025
UK Litigation Roundup: Here's What You Missed In London

The past week in London has seen J.P. Morgan face action by the founder of Viva Wallet in an ongoing feud over the company's takeover, retailer Next Group contest a claim by the home ware brand owned by private members' club Soho House, and the venue of the Wimbledon Championships sue a local group opposed to its plans to build new tennis courts on protected land in Wimbledon Park.
March 14, 2025
Alleged Putin Ally Faces Landmark Sanctions Evasion Trial

A former Russian politician and his wife were due to stand trial on Monday in the first prosecution brought in the U.K. for criminal sanctions evasion over allegations that they circumvented the restrictions by opening a bank account and obtaining car insurance.
March 14, 2025
Greek Firms Steer Bank's €600M Insurer Stake Buy From CVC

Piraeus Financial Holdings SA has signed a deal for its subsidiary to acquire 90% of Ethniki, a Greek insurer, from a fund controlled by CVC Capital Partners for €600 million ($654 million) in a move by the bank to diversify its business.
March 14, 2025
ECB Greenlights UniCredit To Take 29.9% In Commerzbank

Italian bank UniCredit said Friday that the European Central Bank has given it regulatory permission to buy just under 30% of Commerzbank, a German rival.
March 13, 2025
Phoenix Group Sued By Ex-CEO Over Short Pay

Phoenix Group Holdings PLC has been sued by the former chief executive officer of its subsidiary SunLife Ltd., who alleges that the insurer "arbitrarily reduced" his upper management compensation by almost £9 million ($11.6 million).
March 13, 2025
Staley Denies Using Daughter As Intermediary With Epstein

Jes Staley denied using his daughter as an intermediary to communicate with Jeffrey Epstein after he said he cut off the disgraced financier, as he gave evidence to a tribunal Thursday.
March 13, 2025
Prosecutors Charge NCA Officer Over Stolen Bitcoin

The U.K. prosecution agency said on Thursday it had charged a National Crime Agency officer with 15 separate criminal offenses related to the theft of 50 bitcoin, worth nearly £60,000 ($77,623) in 2017.
March 13, 2025
MPs To Debate Women State Pension Redress Petition

Lawmakers will debate a petition calling for compensation for women affected by the historical failure to inform them that their pension age had changed, amid growing criticism of the government's decision not to launch a redress program.
March 13, 2025
Watchdog Launches Probe Into EY Audit Of High-Profile Biz

The U.K. accounting watchdog said Thursday that it has kicked off an enforcement investigation into audits conducted by Ernst & Young LLP for a high-profile business.
March 13, 2025
Barclays Accuses Former Exec Of Breaching Retirement Deal

Barclays told a London court that a former head of credit trading is not entitled to cash bonuses and share payouts after he violated the terms of his retirement agreement by working for a rival hedge fund in New York.
March 13, 2025
Gov't Urged To Reform Rules To Unlock Pension Surpluses

The government should legislate to allow more flexible use of surpluses in defined benefit pension plans, a financial services consultancy has said, arguing that regulatory reform could generate £400 billion ($518 billion) in additional capital.
March 13, 2025
FCA Charges 5th Person In £3.9M Water Investment Fraud

The Financial Conduct Authority said Thursday that it has charged a fifth individual over a suspected £3.9 million ($5 million) water investment scam.
March 12, 2025
Gov't Confirms Date For Local Gov't Pension 'Megafunds'

The U.K. government has confirmed it plans to stick to the deadline of March next year for all assets in the highly fragmented Local Government Pension Scheme to be pooled into larger, regulated funds.
March 12, 2025
Gold Mining Co. Must Pay Adviser $2M For Merger Work

A London court on Wednesday awarded an investment bank $2 million for work it did for a gold mining giant as part of a merger that created what was then the largest mining company in the world.
March 12, 2025
HMRC To Reward Whistleblowers Who Expose Tax Fraud

Insiders who tip off investigators to serious tax avoidance by large companies and rich elites will be paid a cut of any money the U.K. tax enforcer claws back under a new policy proposed by the government.
March 12, 2025
FCA Drops Plan To 'Name And Shame' Firms It Investigates

The Financial Conduct Authority said Wednesday that it has scrapped its proposals to publicly identify companies at an early stage in enforcement investigations as the watchdog responds to widespread resistance from the sector.
March 12, 2025
Gov't To Scrap UK Payments Watchdog To Boost Growth

The U.K. government has said that it will abolish the payments watchdog as the latest step to reduce the size and complexity of regulatory burdens on business.
March 12, 2025
UK Watchdogs Drop Diversity And Inclusion Regulation Plans

The financial services watchdogs have walked back plans to introduce new regulations for diversity and inclusion policies, saying on Wednesday that they hope to avoid duplicating existing regulation and legislative guidelines.
March 12, 2025
L&G Launches £500M Buyback, Reports 6% Rise In Profits

Legal & General Group PLC said Wednesday that it plans to line shareholders' pockets with £500 million ($647 million) over 2025 as it reported a 6% rise in core operating profits for 2024.
March 11, 2025
AXA Says Santander Was In 'Driving Seat' In £670M PPI Trial

Insurance giant AXA said at the start of a £670 million ($867 million) London trial Tuesday that Santander should compensate it for what it has paid out dealing with claims for missold payment protection insurance because the Spanish bank's subsidiary was "in the driving seat."
March 11, 2025
Over-50s Regret Not Taking Pension Seriously, Study Shows

A quarter of those over the age of 50 said they regret not taking their pension more seriously at a younger age, according to research from insurance giant Aviva that comes amid increased warnings about Britons not saving enough for retirement.
March 11, 2025
Staley Denies Knowledge Of Epstein's 'Monstrous Activities'

Jes Staley told a tribunal on Tuesday that he would not have maintained a relationship with Jeffrey Epstein if he had known about the disgraced financier's "monstrous" activities.

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

Insights On ESMA's Alternative Investment Fund Consultation

Aaron Mulcahy at Maples Group discusses key points from the European Securities and Markets Authority’s recent consultation on open-ended loan-originating alternative investment funds, highlighting the growth in semi-liquid evergreen funds and explaining ESMA’s proposed standards.
How UK Supreme Court May Assess Russia Sanctions Cases

In two recent U.K. Supreme Court cases challenging the U.K. Russia sanctions regime, the forthcoming judgments are likely to focus on proportionality and European Convention on Human Rights compatibility, and will undoubtedly influence how future challenges are shaped, says Leigh Crestohl at Zaiwalla.
New UK Order Offers Welcome Clarity To Crypto Staking Rules

The recently effective Financial Services and Markets Act 2000 Amendment Order clarifies that arrangements for qualifying crypto-asset staking do not amount to a collective investment scheme, and by addressing an issue that curtailed staking activities in the U.K., facilitates the use of that practice, says Andrew Henderson at Goodwin.
How EU's Anticoercion Tool May Counter New US Tariffs

The never-before-used anticoercion instrument could allow the European Union to respond to the imposition of U.S. tariffs, potentially effective March 12, and gives EU companies a voice in the process as it provides for consultation with economic operators at different steps throughout the procedure, say lawyers at Crowell & Moring.
Takeaways From BoE Progress Updates On UK Digital Pound

The Bank of England’s recent update on a decision concerning a digital pound indicates that there is scope for innovation in the payments landscape that can help to boost economic growth, while keeping the U.K. firmly in the global conversation on digital currency development, say lawyers at Hogan Lovells.
Key Themes From New PRA Supervisory Letters

Two recent supervisory letters from the Prudential Regulation Authority outline priorities for international banks and U.K. deposit takers for the year ahead, including the need to strengthen risk culture, manage credit risk and govern data integrity, all of which indicate that banks will face greater regulatory interest in their internal controls, say lawyers at Skadden.
Banker Remuneration Proposals Could Affect More Than Pay

The Financial Conduct Authority and Prudential Regulation Authority’s pending proposals to reduce banker remuneration restrictions bring obvious personal financial advantages for bankers, but may have repercussions that result in increased scrutiny of bonus payments and wider changes to workplace culture and overall accountability, say lawyers at Fox Williams.
Rethinking 'No Comment' For Clients Facing Public Crises

“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
EU Report May Influence Regulation Of Decentralized Finance

The European supervisory authorities’ recent report on decentralized finance highlights the major regulatory challenges and increased cybersecurity risks of this ecosystem, and will likely provide useful guidance on how the market could be regulated to limit potential risks for investors, say Hubert de Vauplane and Hugo Bordet at Morgan Lewis.
Market Infrastructure Regs Aim To Reinvigorate EU Trading

The recently amended European Market Infrastructure Regulation, imposing a requirement on certain financial and nonfinancial institutions to maintain an active EU counterparty account, hopes to incentivize the central clearing of trades, although there are concerns that higher compliance costs will lead to a decrease in competitiveness, say lawyers at McDermott.
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.