Financial Services UK

Bigger Isn't Better In £25B Pensions Megafund Reform

The U.K. government unveiled on Thursday a sweeping reform program to drive the creation of new pension megafunds with the firepower to invest more in the U.K. economy — but experts warn this could stifle competition and "put a gun" to providers' heads.

Entrance to the UK Supreme Court in London

UK Supreme Court Boosts Creditor Protection In Fraud Cases

Britain's highest court has handed administrators more power to pursue businesses that turn a blind eye to fraud, with a ruling on Wednesday that will bolster protection for creditors and could raise the stakes for companies flying too close to the wind, lawyers say.

Financial Analyst Working on Computer with Multi-Monitor Workstation

Draft UK Crypto-Regulations Facing Teething Troubles

The government's new crypto-assets regime will be unenforceable across borders and could deter fledgling companies from working in the country, meaning that the financial watchdog will face early challenges to its attempts to protect British consumers in a volatile global marketplace.

FCA Set To Get Enforcement Boost From New Fraud Offense

The new "failure to prevent" fraud offense that comes into force in September will indirectly boost the Financial Conduct Authority's opportunities for enforcement against corporate senior managers, countering its recent retreat from plans to "name and shame" companies it is investigating, lawyers say.

May 30, 2025
UK Audit Regulator Finalizes Project To Unlock Financial Data

Britain's accounting regulator said on Friday that it has now completed an 18-month project designed to make structured financial data more accessible in the U.K.
May 30, 2025
Isle Of Man Agrees To Work With UK Against Tax Avoidance

Isle of Man authorities reached an agreement with the U.K. government to work together in a crackdown on promoters of tax avoidance schemes, according to a joint statement.
May 30, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Entain face yet more investor claims in the fallout from its bribery probe, UEFA face class action from Liverpool fans over chaos at the 2022 World Cup, and a venture capitalist sue journalists for misuse of his private information over a forged police report. Here, Law360 looks at these and other new claims in the U.K.
May 30, 2025
FCA Names Ex-Pensions Minister Head Of Consumer Panel

The Financial Conduct Authority said Friday that it has appointed Chris Pond, a former work and pensions minister, as chair of an independent panel that advises the regulator on consumer issues.
May 30, 2025
FCA Wins OK For £1M Fine On Pensions Transfer Pros

The finance watchdog said Friday that a tribunal has approved its decision to ban two financial advisers from working in financial services and impose approximately £1 million ($1.3 million) in fines over their pension transfers that put clients' retirement money at risk.
May 30, 2025
Pension Credit Applications Rise 28% Since Winter Fuel Cut

The number of applications for pension credit in the U.K. increased 28% in the past year since the government said that it will ax winter fuel payments for millions of retirees, Department for Work and Pensions data shows.
May 30, 2025
Pension Adviser Declared In Default Over Unpaid Claims

The Financial Services Compensation Scheme confirmed on Friday that a pensions advisory company has been declared in default after it was unable to pay out on claims brought by clients.
May 29, 2025
Bahamas Businessmen Can't Nix $2.7M Yacht Sale Ruling

Two Bahamas businessmen can't dodge a $2.7 million debt to a subsidiary of Caterpillar Inc., after the Judicial Committee of the Privy Council declined on Thursday to find that a yacht intended to repay a loan had been sold at an undervalue.
May 29, 2025
UK Eyes Alignment With Int'l Sustainability Standard

Britain's accounting regulator proposed on Thursday introducing a U.K. version of the international standard used for sustainability assurance in a bid to ensure consistency in the sector.
May 29, 2025
Accountants Deny Negligence In Kebab Biz Share Deal Fraud

An accounting firm has denied negligently accepting a fraudulently signed share transfer form that a business director claims cost him his stake in a meat supplier of almost £2.5 million ($3.4 million), arguing that there was "nothing obviously suspicious" about the document.
May 29, 2025
HSBC Denies Blame For £12M Transfers Tied To Alleged Fraud

HSBC has accused a corporate client of attempting to hold the bank liable for an alleged fraud committed by the company, denying that it failed to question and block more than £12 million ($16.1 million) in allegedly fraudulent account transfers.
May 29, 2025
US Tariffs Spark Profit Warnings For UK Pension Sponsors

British businesses might seek to tap into pension surpluses because of ongoing financial losses caused by U.S. tariffs, a professional services firm has warned.
May 29, 2025
Argentex Left With Single Bidder As 2 Investors Exit

Argentex said Thursday that two potential investors have withdrawn their interest in buying the U.K.-based foreign exchange provider, leaving its rival IFX Payments as the only entity in line to acquire the company.
May 29, 2025
Toymaker Says Ex-CFO Must Sell Property To Pay £300K Debt

A toymaker has asked a London court to compel its former finance director to sell his apartment to cover a rising debt of more than £300,000 ($404,000) that it says he owes.
May 29, 2025
FCA To Update Regulatory Directions For UK Finance Firms

The Financial Conduct Authority said Thursday that it will amend and update approximately 11,000 legal requirements, obligations and restrictions for more than 9,000 financial firms in the U.K.
May 29, 2025
Mastercard Settlement Shows Court's Active Role In Payouts

The final decision by the Competition Appeal Tribunal on who gets what from a £200 million ($270 million) Mastercard settlement shows the willingness of the courts to rewrite distribution plans to ensure that the overall objectives of the collective action regime are met, lawyers say.
May 28, 2025
Online Scams Surge With £1B Stolen Through Fraud In 2024

Criminals stole £1.17 billion ($1.6 billion) through fraud in 2024, largely through a 22 percent rise in customers being duped into disclosing online login passcodes, banking body UK Finance revealed Wednesday.
May 28, 2025
UK Firms Plan To Tap Pension Surpluses Amid Rule Changes

Most U.K. businesses with defined benefit pension plans larger than £500 million ($673 million) have said they would access their retirement plan surplus once the government allows them to tap into the money, new research shows.
May 28, 2025
Ex-Russian Politician Appeals UK's First Sanctions Conviction

A former Russian politician who became the first person to be found guilty of breaching the U.K.'s sanctions regime is challenging his conviction and sentence, his lawyer confirmed Wednesday.
May 28, 2025
Social Media Giants Urged To Curb Unauthorized Finance Ads

The European Union's financial markets watchdog urged the world's major social media and online companies on Wednesday to stop promoting unauthorized financial services on their platforms.
May 28, 2025
UniCredit To Double Stake In Greek Bank Alpha To 20%

UniCredit said on Wednesday that it has arranged to more than double its holding in the owner of major Greek lender Alpha to approximately 20%.
May 28, 2025
New FCA Crypto Rules Focus On Stablecoin Value, Security

The Financial Conduct Authority on Wednesday proposed rules aimed at ensuring stablecoins hold their value and firms keep cryptocurrencies safe, as the U.K. progresses on its plans to oversee regulation of the risky assets.
May 28, 2025
DLA Piper Steers Aviva's £270M Morrisons Pension Deal

Aviva said on Wednesday that it has taken on £270 million ($364 million) worth of pension plan liabilities from a retirement fund sponsored by supermarket giant Morrisons.
May 28, 2025
UK Eyes Cutting Pension Tax Breaks To Boost Revenue

The government could be considering the removal of tax breaks on workplace pensions salary-sacrifice plans, experts have warned, as part of an effort to increase revenue in the next budget.
May 27, 2025
IMF Issues Warning On UK Gov't Pension Consolidation Plans

U.K. government plans to consolidate smaller pension funds into larger megafunds may reduce competition in the sector and would benefit from enhanced oversight by the retirement savings watchdog, the International Monetary Fund said Tuesday.

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

UK Capital Reforms May Help Startup Founders, VC Investors

Hidden in the U.K. Financial Conduct Authority's recent proposals on the definition of capital for investment firms are changes to the eligibility requirements for instruments to be included in a firm's regulatory capital — changes that may reduce the risk of investing, especially in early-stage fintech firms, says Andrew Henderson at Goodwin.
EU Watchdog's ESG Dashboard Raises Transparency Bar

The European Banking Authority’s recently introduced ESG dashboard is a key tool in aligning financial institutions with the European Union's sustainability policies, and fundamentally alters the risk environment by transitioning climate-related data from a compliance afterthought to a core component of strategic decision-making, says Kristýna Tupá at Schönherr.
What To Note As HM Treasury, FCA Plan New Crypto Regs

Taken together, HM Treasury’s recently proposed crypto-asset regulations and the Financial Conduct Authority’s new discussion paper on regulating crypto-asset activities provide key insights into the government's planned regime, which represents significant changes that will affect all firms providing related services, says Mark Chalmers at Davis Polk.
Tools For Effective Asset Tracking In Offshore Jurisdictions

In light of a technology company's recent allegations that its former CEO maintained an undisclosed interest in offshore companies, practitioners may want to refresh their knowledge of the tool kit available for tracing and recovering allegedly misappropriated assets from both onshore and offshore jurisdictions, say lawyers at Walkers Global.
FCA Review Highlights Valuation Standards For Private Funds

The Financial Conduct Authority’s recent review of private funds valuation practices underscores the increasing importance of conducting robust and independent procedures, offering an opportunity for fund managers to strengthen their current valuation frameworks and improve investor confidence, say lawyers at Greenberg Traurig.
What Santander Fraud Ruling Means For UK Banking Sector

A London court's recent judgment in Santander v. CCP Graduate School held that a bank does not owe any duty to third-party victims of authorized push payment fraud, reaffirming the steps banks are already taking to protect their own customers from sophisticated fraud mechanisms, say lawyers at Charles Russell.
FCA Update Eases Private Stock Market Disclosure Rules

The Financial Conduct Authority’s recently updated proposals for the Private Intermittent Securities and Capital Exchange System would result in less onerous disclosure obligations for businesses, reflecting ongoing efforts to balance an attractive trading venue for private companies while maintaining sufficient investor protections, say lawyers at Debevoise.
Key Questions As Court Mulls Traders' Libor Convictions

The U.K. Supreme Court is considering whether to overturn two traders’ Libor and Euribor manipulation convictions, with the appeal reinvigorating debate over the breadth of English common law’s conspiracy to defraud offense and raising questions about the limits of a judge’s role in criminal jury trials, says Ellen Gallagher at Vardags.
Expect Complex Ruling From UK Justices In Car Dealer Case

While recent arguments before the U.K. Supreme Court in a consumer test case on motor finance commissions reveal the court’s take on several points argued, application of the upcoming decision will be both nuanced and fact-sensitive, so market participants wishing to prepare do not have a simple task, says Tom Grodecki at Cadwalader.
How UK Proposals Would Simplify Fund Manager Regime

The ongoing HM Treasury consultation and Financial Conduct Authority call for input on the future regulation of alternative investment fund managers indicate that deliberate steps are being taken to make the AIF regime more suitable for the U.K. market, with the aim of encouraging growth and competitiveness, says Leonard Ng at Sidley.
FCA's Regulatory Plans Signal Cause For Cautious Optimism

The Financial Conduct Authority’s latest strategy document plans for less intrusive supervision, a more open and collaborative approach, and a focus on assertive action where needed, outlining a vision of deepened trust and rebalanced risk that will be welcomed by all those it regulates, says Imogen Makin at WilmerHale.
What Latest VC Model Document Revisions Offer UK Investors

Recent updates to the British Private Equity and Venture Capital Association model documents, reflecting prevailing U.K. market practice on early-stage equity financing terms and increasing focus on compliance issues, provide needed protection for investors in relation to the growth in global foreign direct investment regimes, say lawyers at Davis Polk.
FCA's Odey Decision Is Wake-Up Call For Financial Firms

The Financial Conduct Authority recently banned hedge fund boss Crispin Odey from working in financial services, underscoring the critical importance the regulator places on whether individuals are fit and proper to perform regulated activities, and the connection between nonfinancial misconduct and the integrity of the financial markets, say lawyers at Pallas Partners.
What To Know About FCA's UK Listing Rules Proposal

A recent consultation paper from the Financial Conduct Authority aims to streamline the securities-listing process for U.K.-regulated markets, including by allowing issuers to submit a single application for all securities of the same class, and aligning the disclosure standards for low-denomination and wholesale bonds, say lawyers at Debevoise.
New UK Short Selling Rules Diverge From EU Regs

Although forthcoming changes to the U.K.’s short selling regulatory regime represent a welcome relaxation of restrictions and simplification of reporting processes, participants active in both the U.K. and EU markets will need to ensure compliance with two quite different sets of rules, says Ezra Zahabi at Akin.