Global regulators said Tuesday they hope new industry initiatives will help revitalize the correspondent banking sector after perceived compliance risks prompted many firms to pull away from riskier territories.
Lloyds Banking Group-owned The Bank of Scotland has denied claims it breached its duty when it convinced a hotel group to enter into hedging arrangements referenced to Libor in 2010 and 2014, saying in new court documents that the negotiations were fair and the group was not forced to accept the deal.
The U.K.'s pensions regulator named a partner at accounting giant KPMG as its new executive director for regulatory policy on Tuesday as it attempts to keep up with the "rapid pace of change" in the sector.
The European Union’s banking watchdog said on Tuesday that the financial strength of the bloc's banks, measured by their capital, leverage and liquidity ratios, is improving under tougher rules forcing them to increase their cash holdings and to boost confidence in the banking system.
European Union legislation prevents member states from reaching an arbitration agreement to stop governments and investors seeking judicial review before a European court, the bloc’s highest court ruled on Tuesday.
The Financial Conduct Authority said Tuesday it had banned former Co-operative Bank Chairman Paul Flowers from the financial services industry after finding he behaved inappropriately during his tenure, as the government opened another investigation into the bank's oversight leading up to its near collapse in 2013.
A group of U.K. lawmakers will launch a motion in Parliament on Tuesday seeking redress for firms that lost money or went bankrupt while being placed in the Royal Bank of Scotland PLC’s controversial restructuring group, while also sharpening scrutiny on the Financial Conduct Authority’s ongoing investigation into the bank’s misconduct.
The U.K. wants assurances from the European Union that it will not attempt to “fast track” new financial legislation that will impact British firms during the transition period following its withdrawal from the bloc in March 2019, the country's Treasury chief said Monday.
Lloyds Banking Group PLC said at a High Court trial Monday that there was no need for it to disclose to investors that rival HBOS PLC was getting financial support from the U.S. Federal Reserve Bank ahead of its acquisition of the stricken British lender in 2008.
The U.K.’s accounting and financial reporting watchdog reminded trading firms on Monday that they are expected to comply with existing industry standards for exemptions to submit prospectuses for investors, despite new EU laws that widen the criteria for falling outside the requirements.
U.K. retail banks are not checking whether customers understand the financial products that they buy, the Financial Conduct Authority said Monday after a review of how well financial firms consider consumers' needs when selling products.
A car auction company suing Lloyds Bank PLC and PricewaterhouseCoopers LLP for £54 million ($75 million) demanded on Monday that the bank disclose information the dealer says shows its cash flow was sustainable when the two institutions allegedly forced it into administration for profit.
Regulators must pay greater attention to the risks posed by the growing global shadow banking sector, which is continuing to expand alongside regular banking as a rival provider of loans, Bank of England Governor Mark Carney said Monday.
Asset managers must return £38 million ($52 million) to investors after a probe by the U.K.'s Financial Conduct Authority found clients were being misled into paying expensive fund management fees, the agency's head of supervision for investment and wholesale revealed Monday.
The Financial Conduct Authority said Monday it has banned another interest rate derivatives trader from working in the regulated financial sector and fined him £180,000 ($249,000) for conspiring to rig the London Interbank Offered Rate.
The last week has seen bankrupt insurer Allanfield sue its former auditors, another insolvent insurer in runoff lodge professional negligence claims against Mazars LLP and a new suit from the remains of Iceland's collapsed Landsbanki.
The European Central Bank on Friday floated new proposals for how banks should manage capital and liquidity as part of a wider effort to raise the internal assessment standards of the industry.
A London High Court official on Thursday ruled that Bank of Cyprus Public Company Ltd. must be paid £100,000 ($137,000) in security toward costs for defending against claims that it agreed to write off a property development loan, saying the £850,000 the bank had sought could derail the trial.
The regulatory body for solicitors in England and Wales urged law firms on Friday to “remain vigilant” in the fight against money laundering and step up their compliance with new rules.
The British government will set out next week how U.K.-based financial services can continue to access the European Union's single market after Britain leaves the bloc's regulatory framework in March 2019, Prime Minister Theresa May said Friday.
While many U.S. companies have already begun work on complying with the General Data Protection Regulation, it has such a long reach that it may encompass many organizations that would not ordinarily expect to be subject to European data privacy laws, say attorneys at Gibson Dunn & Crutcher LLP.
Google’s status as a go-to research tool has transformed legal research habits, leading critics to view law libraries as cost centers. Law firms should embrace Google-style research tools and manage costs efficiently in order to position their libraries as valuable assets for years to come, says Donna Terjesen of HBR Consulting.
The United Kingdom has a voluntary merger control regime, and many companies choose not to notify transactions to the Competition and Markets Authority. However, it may be preferable to notify the CMA of an anticipated merger in order to avoid seriously disruptive initial enforcement orders, say Douglas Lahnborg and Saira Henry of Orrick Herrington & Sutcliffe LLP.
The recent conviction of former HSBC foreign exchange executive Mark Johnson has shocked market participants and could lead to a reduction in liquidity for block trades in the foreign exchange and other over-the-counter markets, say members of The Brattle Group and AGN Advisory.
Last month, the U.K. Financial Conduct Authority publicly censured Capita Financial Managers with respect to the collapsed unregulated collective investment scheme known as the Connaught Income Fund. This serves as a salutary reminder that those in the fund administration and outsourcing fields take on a high level of responsibility and liability, says Greg Lascelles of Covington & Burling LLP.
Both the Dodd-Frank Act in the U.S. and rules under the Financial Conduct Authority in the U.K. provide whistleblower protections for financial industry employees who report fraud and regulatory breaches. Whereas the specific protections in the U.S. and U.K. differ somewhat, many of the protection mechanisms are remarkably similar, say Lynne Bernabei and Kristen Sinisi of Bernabei & Kabat PLLC.
Clients of "Paradise Papers" law firm Appleby Global should now expect that tax authorities in the U.S., the U.K. and elsewhere will closely scrutinize the leaked documents for evidence of tax evasion. And individuals with inside information that sheds further light on these cases stand to reap sizable rewards by filing qui tam actions, says Adam Pollock of Ford O'Brien LLP.
Until recently, there has not been any regulation harmonizing control toward foreign direct investments at the European Union level. However, a proposal introduced in September may be an appropriate first step toward developing an adapted, cohesive regime regarding foreign investments, say Isabelle MacElhone and Samantha Chavane de Dalmassy of Reed Smith LLP.
The deadline for foreign financial institutions to sign up with the U.S. Internal Revenue Service's Foreign Account Tax Compliance Act registration system came and went last month. While deregulatory and tax reform efforts in Washington could eventually change FATCA enforcement, for the time being, failure to be in compliance can have serious implications, say attorneys with Burr & Forman LLP.
In recent years, initial coin offerings have exploded into the spotlight, but following their recent ban in China and South Korea, and mobilization from a number of top financial regulators in the U.S., U.K. and Australia, it is almost certain that we will see rapid developments in ICO regulation, say Paul Anderson and Harriet Rogers of Squire Patton Boggs LLP.