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Financial Services UK
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November 28, 2024
Former Finance Execs Must Pay £45M For Takeover Violations
The financial troubles of three former executives of MWB Group, an investment firm that has collapsed, does not preclude them from owing £44.8 million ($56.8 million) in compensation for violating the U.K. takeover rules by deceiving shareholders, a court ruled on Thursday.
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November 28, 2024
Ex-HMRC Compliance Officer Helped Husband Launder £3M
A former compliance officer with HM Revenue and Customs has been handed a suspended sentence for her role in a £3 million ($3.8 million) money laundering operation carried out by her husband, the Crown Prosecution Service has said.
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November 28, 2024
AXA Loses Time Limits Appeal In HMRC Foreign Tax Claim
Insurer AXA has lost its fight over time limits for bringing claims for restitution against the British tax authority over taxes collected in violation of European Union law, as a London appeals court ruled that the limits could not be extended.
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November 28, 2024
Asset Manager Liontrust Launches £5M Share Buyback
Liontrust Asset Management PLC launched a share buyback program Thursday worth up to £5 million ($6.3 million) aimed at lowering its outstanding share capital.
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November 28, 2024
Coventry's £780M Co-op Bank Deal Wins Regulatory Approval
Coventry Building Society said on Thursday that its £780 million ($990 million) buy-out of the Co-operative Bank will be finalized at the start of January after U.K. finance regulators approved the all-cash transaction.
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November 28, 2024
FCA Reworks Plans To Name Firms Under Investigation
The Financial Conduct Authority issued "significant" revisions to controversial proposals for publicizing investigations of wrongdoing on Thursday, including a move to give businesses more time to make justifications to the watchdog before being named.
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November 27, 2024
BlueCrest Disputes 'Disguised Salary' Claim In HMRC Case
British-American hedge fund BlueCrest Capital Management LLP pushed back Wednesday against arguments from the U.K. tax authority that its portfolio managers are employees receiving a disguised salary.
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November 27, 2024
Worker Told She Had Baby At 'Wrong Time' Wins £29K
An employment tribunal has awarded £28,890 ($36,458) to a chartered accountant who was demoted while on maternity leave and was told by bosses, she said, that she had "had a baby at the wrong time."
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November 27, 2024
FCA Strengthens Whistleblowing Policy After Staff Complaints
The Financial Conduct Authority said Wednesday that it has updated its internal whistleblowing policy in the wake of complaints from employees that it has failed to properly act on intelligence provided by informers.
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November 27, 2024
FCA Fines Former Wizz Air Exec Over Share Trades
The City watchdog said Wednesday it has fined a former executive at budget airline operator Wizz Air Holdings PLC over unallowed trading in the airline's shares worth more than £4 million ($5 million).
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November 27, 2024
Aviva, NatWest Pen 5-Year Deal For Protection Insurance
Aviva PLC said Wednesday that it has entered into a five-year agreement with NatWest Group PLC for the distribution of the British insurer's protection products through the high-street banking brands from autumn 2025.
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November 27, 2024
UK Investors Denied Appeal In Barclays Dark Pool Claim
A High Court Judge refused Wednesday to allow U.K. investors to challenge his decision striking out claims worth £330 million ($418 million) from securities fraud litigation alleging that Barclays dishonestly delayed publishing information about its dark pool trading system.
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November 27, 2024
BNP Paribas Banker Can't Boost £2M Discrimination Payout
BNP Paribas has defeated a London banker's attempt to inflate her £2 million ($2.5 million) payout for the mistreatment she suffered after raising concerns about equal pay, as an employment tribunal ruled that it would not redo its calculation of her losses.
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November 27, 2024
Banco BPM Rejects UniCredit's €10B Takeover Offer
Italian lender Banco BPM SpA has rebuffed a €10 billion ($10.5 billion) offer from its domestic rival UniCredit SpA, a move that would create the country's biggest bank, stating that the bid fails to reflect its profitability and prospects.
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November 27, 2024
HSBC Loses Challenge To €32M Euribor Rigging Fine
HSBC Holdings PLC has lost its challenge to a €31.7 million ($33.4 million) European Union fine for rigging Euribor, as a European court rejected on Wednesday the bank's argument that the penalty was imposed out of time.
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November 27, 2024
Simpson Thacher Hires Funds Trio To New Luxembourg Office
Simpson Thacher & Bartlett LLP said Wednesday that it has hired three funds partners for a new office in Luxembourg, which it plans to open in early 2025.
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November 26, 2024
'Incompetent' FCA Needs Gov't-Led Radical Reform, MPs Say
The Financial Conduct Authority is not fit for purpose and requires government intervention for an extensive overhaul to address its "significant shortcomings" if it is to be an effective regulator, a group of cross-party MPs said in a report published Tuesday.
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November 26, 2024
Brokerage Service Denies Helping $129M Forex Fraud
A provider of brokerage services has denied giving credit for a company that carried out an alleged $129 million Ponzi scheme, saying in court filings that it had no knowledge of the fraud.
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November 26, 2024
UK Regulators Propose Relaxing Rules On Bankers' Pay
The Prudential Regulation Authority and Financial Conduct Authority jointly announced plans on Tuesday to ease restrictions on bonuses for senior bankers, with the aim to make the U.K. more competitive while ensuring accountability in risk management.
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November 26, 2024
Accredited Insurance Denies £61.4M Liability In Loan Dispute
An insurer has hit back at a £61.4 million ($77.4 million) claim by a legal loans company, arguing a number of regulatory breaches by the lender mean it's not liable to pay out under a litigation funding arrangement.
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November 26, 2024
OFSI Boss Promises Tougher Fines For Sanctions Breaches
The head of the U.K. sanctions watchdog told MPs on Tuesday to expect more fines with tougher penalties for breaches of financial restrictions to be imposed on oligarchs in the coming months as he admitted that the crackdown has been slower than hoped.
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November 26, 2024
UK Audit Watchdog Wants Better Risk Management Reporting
Britain's audit watchdog called on Tuesday for companies to adopt a more strategic approach to corporate reporting that focuses on outcomes, urging businesses to improve their disclosures on risk management before its new governance code takes effect.
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November 26, 2024
Macquarie Bank Fined £13M For 'Serious' Control Failings
The Financial Conduct Authority said Tuesday that it has fined the London branch of Macquarie Bank Ltd. £13 million ($16.4 million) for significant weaknesses in its systems and controls that allowed a trader to conceal more than 400 fictitious trades over 20 months.
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November 26, 2024
FCA Plans Regulation As UK Crypto-Asset Ownership Grows
The financial regulator published a plan Tuesday for regulating crypto-assets in the U.K. as it reported a rise in the number of British adults who now own digital currency and assets, up from 10% to 12% — or 7 million people.
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November 25, 2024
Bugsby Denied Arbitration In Olympia Case Funding Battle
A real estate sponsor failed in its bid to arbitrate a dispute stemming from its attempt to buy London's Olympia Exhibition Center, when a London judge ruled Monday that its argument "falls far short."
Expert Analysis
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.