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AML Compliance Takes Center Stage In NatWest Case

NatWest will face court on Thursday in the first criminal prosecution in Britain against a financial services institution under anti-money laundering rules, in a case poised to set the bar for how authorities pursue companies — and the penalties that will result.
October 26, 2021
Top EU Court Rules Out Intrabloc Investor Arbitration Again

Arbitration agreements based on bilateral investment treaties between European Union countries that provide for the settlement of investor-state disputes run afoul of the bloc's law, the European Court of Justice ruled Tuesday.
October 26, 2021
'No Excuses' For Dragging Feet On Libor, OCC's Hsu Warns

The acting head of the Office of the Comptroller of the Currency warned Tuesday that banks had "no excuses" for complacency surrounding the discontinuation of the Libor, or London Interbank Offered Rate, adding to the cacophony of government voices who are warning financial institutions about the benchmark's imminent demise.
October 26, 2021
Greensill's Ch. 11 Plan Approved With Trimmed Releases

The Chapter 11 plan of Greensill Capital received court approval Tuesday in New York, but only after the bankruptcy judge declined to approve aspects of its releases that would have covered non-debtors without the consent of creditors.
October 26, 2021
BCLP Snags 4-Lawyer White & Case Litigation Team In Paris

Bryan Cave Leighton Paisner LLP has continued its expansion by grabbing two partners and two associates in France from White & Case LLP to join its litigation and investigations practice.
October 26, 2021
Dechert Aims For November Hybrid Office Return

International firm Dechert LLP is planning to reopen its offices worldwide in November, two months later than the firm previously planned, and will continue to allow attorneys to remotely work until the end of 2021, Law360 confirmed.
October 26, 2021
Shareholders Appeal For Damages Over Italian Bank's Crash

Shareholders in an Italian bank have appealed to Europe's top court, asking it to rule that the European Commission could not be sued for damages for approving a formal insolvency plan for the small lender under state aid rules in 2015.
October 26, 2021
Italian Financier Says Vatican Spread Negative Media Stories

An Italian financier accused the Vatican on Tuesday of being the source of negative press articles about a London property investment, insisting to a London court that there are serious issues to be tried in the English lawsuit.
October 26, 2021
Insurers Pressure EU To Simplify Withholding Tax System

European tax authorities should step up efforts to digitalize the system of withholding tax on dividend or interest payments and impose deadlines on governments for paying rebates and refunds, with interest and penalties for missing them, an insurance industry lobbyist said Tuesday.
October 26, 2021
Insurance Groups Call On Gov't For Innovation Fund

A coalition of British insurance trade bodies has called on the government to invest in technology start-ups within the sector to help boost the wider economy.
October 26, 2021
HMRC Urges UK Top Court To Ax Overseas Dividend Ruling

Tax on overseas dividends does not violate European Union law by discouraging investors in Britain from making foreign transactions, HMRC told the U.K.'s top court on Tuesday in a case that could affect £905 million ($1.25 billion) in taxes.
October 25, 2021
Monaco Bank Urges 9th Circ. To Toss $92M RICO Suit

A private bank in Monaco has told the Ninth Circuit that a federal judge was right to permanently dismiss a $92 million civil racketeering complaint by a Russian real estate investor who "dragged" the institution into a decades-long dispute with a former Russian lawmaker convicted of embezzlement.
October 25, 2021
Italian Financier Accused Of Trying To Derail Vatican Trial

The Vatican accused an Italian financier on Monday of using litigation in England to derail and frustrate a criminal investigation in Vatican City over the Holy See's investment in luxury London property that used charitable money.
October 25, 2021
Sicily Settles 2nd Swaps Battle With Bank of America

The government of Sicily has admitted that swaps it entered into with Bank of America were valid as it reached a settlement with the investment bank over its €239,000 ($280,000) lawsuit, ending another dispute for the Italian region over deals to restructure its debts.
October 25, 2021
Brit Fights US Extradition Over $30M Ponzi Scheme Charges

A British man charged over a $30 million Ponzi scheme battled the U.S. government's attempt to extradite him on Monday, as prison experts told a judge that he would be held in a cramped, high-security cell.
October 25, 2021
FCA Plans Illiquid Assets Fund With 90-Day Notice Period

The City watchdog said on Monday that it will launch an investment fund for experienced consumers to invest in illiquid assets, in a bid to encourage longer-term opportunities while putting in place a 90-day notice period to safeguard against a rise in redemptions.
October 25, 2021
Bain Capital Unit Settles €34M Claim Against Greek Lender

The Irish subsidiary of investment firm Bain Capital LP has settled its €34 million ($39 million) lawsuit against Piraeus Bank SA, alleging that the Greek lender breached warranties on a portfolio of loans it sold to the unit.
October 25, 2021
Glencore To Seek $2M Over Bond Contract Suit In 2022 Trial

Glencore's lawsuit seeking a repayment of $2 million under a bond contract has been transferred to a London commercial court for a spring 2022 trial.
October 25, 2021
Expect Legal Action As Crypto-Fraud Doubles, Pinsent Says

Reports of cryptocurrency scams have more than doubled over the past year, Pinsent Masons found in a survey published on Monday, as the law firm warned that victims could resort to class action lawsuits against financial institutions while police struggle to cope.
October 25, 2021
PE Firms Partner On Increased €3.7B Bid For Pet Products Co.

German online pet products retailer zooplus AG said Monday that it is in favor of an increased takeover bid made in tandem by private equity firms Hellman & Friedman and EQT that's valued at about €3.7 billion ($4.3 billion).
October 25, 2021
EU Watchdogs Finalize Climate Disclosure Requirements

Europe's financial regulators have proposed final rules that will govern how companies disclose whether their products are sustainable to allow consumers to compare the environmental benefits of investing in financial assets.
October 25, 2021
Pensions Experts Sound Alarm Over 'Blunt' Reporting Rules

The government should issue further guidance over the scope of new pensions reporting requirements, retirement experts warned on Monday, saying that existing rules are a "blunt tool" that could fail to work as intended.
October 25, 2021
US PE Firm Gets Court OK For £7B Morrisons Takeover

A London court approved an approximately £7 billion ($9.6 billion) takeover bid for Morrisons by a U.S. private equity firm on Monday, ending an auction saga that has given the British supermarket chain's share price a dramatic boost in recent months.
October 22, 2021
Feds Ask For 10 Years For Brit Involved In Bar Works Fraud

Federal prosecutors asked a New York federal judge to sentence a convicted British fraudster to at least 10 years in prison and pay $57 million in restitution for his role in a $50 million scheme to bolster the Bar Works startup.
October 22, 2021
EU Clears S&P Global's $44B IHS Markit Deal With Conditions

The European Commission announced Friday that it has conditionally approved S&P Global's $44 billion proposed acquisition of financial information provider IHS Markit Ltd, which comes days after the United Kingdom's antitrust regulator said it would approve the merger as well.
October 22, 2021
FCA Finalizes Prudential Rulebook For Investment Firms

The City watchdog published final rules on Friday aimed at streamlining requirements for the amount of capital that regulated investment firms must hold from January 2022, in a move to boost competition and ensure companies can fail without causing disruption.

Editor's Picks

Litigation Funding Demand Rises As Pandemic Suits Percolate

More corporate clients than ever have pursued third-party litigation funding in England this year, as the COVID-19 pandemic has forced businesses to think more conservatively and try to prioritize the cash on their balance sheets.
Financial List's Test Case Program Wins High Marks In 1st Use

The recent decision in the Financial Conduct Authority's business interruption insurance case was a big deal for policyholders forced to shut because of COVID-19, but it also marked the first test of the Financial List's most unusual features five years since its launch.
Reforms Abroad For Litigation Funders Raise Questions In UK

Australia's recent decision to introduce a licensing regime for its litigation funders has stirred up attention across the industry, but experts say it appears unlikely that the U.K. will move beyond its current combination of light-touch regulation and court oversight.

Expert Analysis

FCA Activity Highlights Value Of AML Internal Investigations

The Financial Conduct Authority’s recent efforts to ensure financial firms are meeting their anti-money laundering obligations show the importance of conducting internal investigations to determine what problems exist and whether they should be self-reported to the appropriate regulator, says Aziz Rahman at Rahman Ravelli.
What AML Initiatives In EU Mean For UK Financial Industry

Even though the European Commission’s recent anti-money laundering legislation won’t apply in the U.K., financial services firms operating there will need to be alert to imminent divergence between regulatory regimes, say Kerstin Wilhelm and Clare McMullen at Linklaters.
UK Focus On Int'l Data Transfers Shows Appetite For Reform

Recent U.K. public consultations on international transfers of personal data and structural amendments to the country's General Data Protection Regulation illustrate the post-Brexit appetite for reform and signal changes to the international data transfers regime, say Kate Brimsted and Tom Evans at BCLP.
The UK Reforms That Add Investor Allure To SPACs

The U.K. Financial Conduct Authority has removed significant disincentives to the listing of special purpose acquisition companies in London, making SPACs a more attractive investment, but key differences between London's regulations and those of other major stock exchanges make further reform a possibility, say Marcus Young and William Morris at King & Spalding.
What The Future Holds For UK Auditing Reform

The U.K.'s Financial Reporting Council has shown itself to be an increasingly effective and proactive regulator in its final months, and the greater powers of its incoming replacement — the Audit, Reporting and Governance Authority — will likely continue an era of heightened scrutiny for auditors, say Paul Brehony and Kate Gee at Signature Litigation.
Comparing 'Ultimate Beneficial Owner' Rules In EU And US

The European Union's efforts to improve transparency in company ownership have created an uneven patchwork of so-called ultimate beneficial owner rules, and recently introduced U.S. regulations will add another layer of complexity for global companies, says Rodrigo Calleja at TMF Group.
Challenges Await Proposed EU Anti-Money Laundering Body

Practical hurdles facing the European Union's proposed anti-money laundering authority include the creation of workable measures for countries with varying criminal codes, the role of national supervisory authorities and U.K.-EU cooperation, say Ian Hargreaves and Mia Neafcy at Covington.
Grant Thornton Ruling May Broaden Advisers' Duty Of Care

The U.K. Supreme Court's ruling in Manchester Building Society v. Grant Thornton will affect other professional negligence cases as it downgraded the scope of duty test and will provide more flexibility for judges in deciding similar cases now that they have been released from the 1997 SAAMCO precedent, says Robin Henry at Collyer Bristow.
2nd Circ. Ruling May Help Foreign Nationals Fight Extradition

The Second Circuit recently ruled in United States v. Sindzingre & Bescond that foreign defendants facing U.S. criminal charges should be permitted to challenge a U.S. court's jurisdiction over them without having to submit to that court's jurisdiction or be considered fugitives, which should cause more defendants to fight extradition rather than waive their rights, say attorneys at Dechert.
Arbitral Enforcement Takeaways From Kazakh Asset Ruling

While a Belgian court's recent decision in Stati v. Kazakhstan to uphold a freeze on Kazakhstan's assets sets a precedent in favor of arbitral award enforcement, it still highlights the difficulties of investor-state arbitration, and shows that investors' need to launch new proceedings may ultimately depend on the approach of the relevant jurisdictions, says Tomas Vail at Vail Dispute Resolution.
CPS Money Laundering Liability Theory On Shaky Ground

The Crown Prosecution Service's recently amended guidance on money laundering liability could lead to conviction for failure to report suspicions even when money laundering did not in fact occur — a remarkable and questionable conclusion, says Andrew Smith at Corker Binning.
Prospects Look Strong For UK Class Actions

Class actions have become more commonplace in the U.K. and elsewhere in Europe amid high returns, and the trend is expected to continue in areas as diverse as competition, environmental, data privacy and securities, with some busy years ahead, say Edward Coulson and Rachel Ziegler at BCLP.
What The Financial Markets Might Look Like After Libor

As the long-awaited transition out of Libor via alternative reference rates such as the Sterling Overnight Index Average edges closer, several long-term uncertainties and inherent litigation risks remain, with legacy contracts and misseling claims among the key areas of concern, say Alexander Edwards and Hannah Sharp at Rosling King.
Lloyds EU Operations Highlight Challenges For UK Insurers

Potential problems facing Lloyd's Europe could be shared by other U.K. insurers operating in the European Union's more stringent post-Brexit regulatory landscape, but individual countries' discrete provisions allowing for certain cross-border activities could enable a more nuanced approach, says Jeremy Irving at Browne Jacobson.
A Look At UK's Divergence Priorities After Brexit

The U.K.'s post-Brexit policy has been to focus on divergence from the European Union in sectors where it has a competitive advantage — particularly, financial services and dispute resolution — as evidenced by a series of recent regulatory and judicial developments, say attorneys at Covington.