Financial Services UK

Featured

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.
December 05, 2024
Ex-Goldman Manager Wins Paternity Leave Sex Bias Claim

An employment tribunal has ruled that Goldman Sachs discriminated against a former compliance manager, finding that the investment bank decided to make him redundant while he was on paternity leave.
December 05, 2024
PIC Insurance Co. Must Hand Control To Founder's Estate

The top appeals court for U.K. overseas territories upheld Thursday a finding that an Antiguan insurance company's board of directors was wrong to refuse to hand majority control of the business to its founder's estate.
December 05, 2024
HMRC Wins Freezing Order Over Alleged £171M Tax Fraud

A court imposed a freezing order against three British businesses on Thursday after the U.K. tax authority accused them of orchestrating a £171 million ($218 million) National Insurance fraud.
December 05, 2024
Gold Trader Denies Knowing Of £200M Laundering Scheme

The former director of a gold trading business has denied any knowledge of a £200 million ($255 million) money laundering scheme as he testified at a criminal trial on Thursday that the business needed informal arrangements to get access to ready cash.
December 05, 2024
EU Fund Managers Seek More Flexible Securitization Rules

European fund managers called Thursday for the securitization regime under review to switch to less specific rules, arguing that investors in such products are sophisticated and already regulated.
December 05, 2024
Pension Funding Is 'Largely Stable,' Lifeboat Fund Says

The net funding position of defined benefit pension schemes in Britain has remained "largely stable" over the last year, the Pension Protection Fund said in a report Thursday.
December 05, 2024
FSB Names Insurers To Apply Resolution Standards

A global standard setter published on Thursday a first list of insurers required to apply its standards in preparing for failure, aiming to reassure markets.
December 05, 2024
Senior MPs Join Call For Women's State Pension Redress

Senior figures from seven opposition parties in the House of Commons warned on Thursday that "time is running out" for women affected by historical failings in their state pension plans and urged the government to act on calls for immediate redress.
December 05, 2024
Solaris Says Binance Can't Use AML Gaps To Exit €144M Deal

Online banking group Solaris has rejected Binance's defense to its €144 million ($152 million) claim over a collapsed cryptocurrency debit card scheme, arguing that any alleged breaches of anti-money laundering rules did not entitle the global exchange operator to end the deal.
December 05, 2024
Lloyds Bank, Aviva Join Gov't Group To Aid Financial Access

The U.K. government said Thursday that a new financial inclusion committee has been set up to tackle the barriers that millions of vulnerable people face in getting access to banking, affordable credit and opportunities to save.
December 04, 2024
Cerberus Liable For €358M Payment To Sabadell, Judge Rules

One of Spain's largest banks won €358.5 million ($376.5 million) from Cerberus when a London judge ruled Wednesday that the private equity giant wrongly interpreted investment agreements linked to the bank's Spanish real estate portfolios.
December 04, 2024
Mastercard Settlement Spat Will Test Class Action Regime

The U.K.'s collective action regime will face a new test after the financial backer of a claim against Mastercard over credit card fees criticized a proposed £200 million ($254 million) settlement that would end nine years of hard-fought litigation.
December 04, 2024
PrivatBank Ex-Owner Can't Ease Freeze To Sell Stranded Jets

A London court on Wednesday refused to allow an ex-owner of PrivatBank to sell aircraft stranded in Ukraine after Russia's invasion, concluding the sale may risk breaching a freezing order in a $4.2 billion fraud case.
December 04, 2024
UK Busts Multibillion-Dollar Russian Money Laundering Ring

The National Crime Agency said Wednesday that it has dismantled two Russian money laundering networks tied to drugs, ransomware and espionage in an international operation with the United States, France and Ireland.
December 04, 2024
More Diverse Audit Market Will 'Take Time,' Watchdog Says

Britain's top four accounting firms "continue to dominate" and earn almost all the fees in the audit market, even though smaller companies have grown their share in 2023, the accounting watchdog said Wednesday.
December 04, 2024
Pensions Watchdog Publishes Key Guide For Funding Code

The Pensions Regulator published on Wednesday long-awaited guidance for how trustees can assess the strength of the financial committed of an employer to a retirement savings plan.
December 04, 2024
JPMorgan Accused Of Unfair Firing Over Spoofing Allegations

A former precious metals trader at JPMorgan has accused his former employer of unfair dismissal, as his lawyer argued on Wednesday that the bank dismissed him to appear tough on fraud after a criminal scandal in 2022.
December 04, 2024
3 Firms Steer £50M Pension Deal For Aerospace Co.

Pension insurer Rothesay said Wednesday that it has completed a £50 million ($63.3 million) full scheme buy-in with a plan sponsored by defense technology company Thales in a deal guided by Gowling WLG, Squire Patton Boggs LLP and Eversheds Sutherland.
December 04, 2024
EU Gov'ts Endorse Plan For Sharing Customer Financial Data

The Council of the European Union backed a legislative proposal Wednesday to make it easier for financial institutions to share their customers' data in an attempt to boost competition, improve access to financial services and encourage innovation in the sector.
December 03, 2024
Austrian Banker Says Brazilian Tax Fraud Allegations 'Risible'

An Austrian banker sought Tuesday to overturn a London court decision allowing his extradition to the U.S. on money laundering charges over his alleged role in a massive corruption scandal involving Brazilian construction conglomerate Odebrecht SA, calling the U.S. government's arguments "risible."
December 03, 2024
Consumers Settle £10B Mastercard Swipe Fees Class Action

Representatives of more than 45 million U.K. consumers confirmed Tuesday that they had settled a multibillion-pound claim against Mastercard over its fees, which is likely to end one of the first cases to test the boundaries of Britain's collective proceedings regime.
December 03, 2024
Clifford Chance Hires Finance Pros From Goodwin In Paris

Clifford Chance LLP announced on Tuesday that it has boosted its finance offering in Paris with the hire of two specialists from Goodwin Procter LLP.
December 03, 2024
Retailers Argue For Higher Damages Bill In Swipe Fees Trial

Retailers suing Mastercard and Visa argued before the Court of Appeal on Tuesday that their damages bill from alleged unlawful overcharging by the card companies should incorporate continuing losses because the anticompetitive conduct has not yet stopped.
December 03, 2024
UK Watchdog Probes BlackRock Deal For Data Co. Preqin

The U.K.'s competition regulator said on Tuesday it is delving into whether private equity giant BlackRock Inc.'s proposed £2.55 billion ($3.2 billion) acquisition of private markets data provider Preqin would harm competition in U.K. markets.
December 03, 2024
City Firms Are Unprepared For GenAI Rollouts

U.K. financial firms are struggling to keep pace with the adoption of generative artificial intelligence due to gaps in workforce training and regulatory readiness, according to EY's second survey on the technology in financial services.

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

Cross Market Drill Highlights Operational Resilience Priorities

The U.K.’s recent cross-market major infrastructure failure simulation exercise, demonstrates that operational resilience of the financial sector is high on the regulatory agenda, and the findings should ensure that the sector develops collective capabilities to deliver improvements, say lawyers at Taylor Wessing.
What Partners Should Know About Net Asset Value Loans

The increasing popularity and evolution of net asset value facilities means they continue as an important financing tool to generate liquidity for funds’ portfolios, so general partners looking to capitalize on this expanding market should be mindful of their limited partners' concerns to maximize their value, says Anthony Lombardi at Dechert.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
What UK Security Act Report Indicates For Future Gov't Policy

Following the recent publication of the National Security and Investment Act report on the scrutiny of proposed investments, it will be interesting to see how the act’s powers fit into a government policy that plans to cut regulatory obstacles, while maintaining a hard line on national security, say lawyers at Katten Muchin.
Examining UK And EU Approaches To Sanctions Enforcement

In light of the Financial Conduct Authority’s recent £28.9 million fine of Starling Bank for its lax sanctions screening processes, businesses should understand both the U.K.’s and the European Union’s enforcement approaches, the larger sanctions landscape and the importance of cooperation, says Angelika Hellweger at Rahman Ravelli.
Factors Driving EU Competition Policy For The Next 5 Years

Teresa Ribera Rodríguez’s recent nomination as the new European Union commissioner for competition prompts questions about policy and enforcement, with goals to enhance competition in business, implement stronger and faster enforcement, and promote and fund decarbonization likely in her sights during a five-year term, say lawyers at Linklaters.
What UK Procurement Act Delay Will Mean For Stakeholders

The Procurement Act 2023’s delay until February 2025 has sparked debate among contracting authorities and suppliers, and the Labour Party’s preference for a broader reform package demonstrates the challenges involved in implementing legislative changes where there is a change in government, say lawyers at Shoosmiths.
How Energy Scheme Is Affecting Large Co. Fund Investment

The latest phase of the Department of Energy and Climate Change's Energy Savings Opportunity Scheme implicates funds with investments in large companies by establishing significant and complex changes to the reporting cycle for mandatory assessments, say lawyers at Macfarlanes.
How Companies House Enforcement Powers Are Growing

Companies House's recently increased ability to assess what material is submitted to the U.K. register of companies, and to proportionately enforce where violations have occurred, may require some degree of cultural shift within many companies, say lawyers at Greenberg Traurig.
How New Sanctions Office Will Affect UK Trade Landscape

The recent launch of the Office of Trade Sanctions Implementation will help to create a more comprehensive civil enforcement terrain, but the potential for multiple investigations means businesses should reassess their systems to ensure they do not inadvertently incur civil liability, says Julia Pearce at Robertson Pugh.
FCA Savings Update Focuses On Good Customer Outcomes

The Financial Conduct Authority’s recent cash savings update emphasizes its expectations of firms to deliver fair value to consumers by documenting the rationale for actions at each stage, considering customer communications and demonstrating that potential harms are acted upon, say Matt Handfield, Charlotte Rendle and Caroline Hunter-Yeats at Simmons & Simmons.
5 Takeaways From UK Justices' Arbitration Jurisdiction Ruling

The U.K. Supreme Court's recent judgment in UniCredit Bank v. RusChemAlliance, upholding an injunction against a lawsuit that attempted to shift arbitration away from a contractually designated venue, provides helpful guidance on when such injunctions may be available, say attorneys at Fladgate.
FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.