In a recent speech, FCA Director of Enforcement and Market Oversight Mark Steward again made clear that the FCA is prepared to use its power to bring criminal proceedings for breaches of anti-money laundering (AML) obligations set out under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs … Continue Reading
Summary This landmark judgment from the UK Supreme Court means that the claim brought by 1,826 Zambian villagers against UK-based Vedanta and its Zambian subsidiary KCM can proceed to a trial of the substantive issues in the English courts. One of the issues that now falls to be examined is the controversial question of whether … Continue Reading
In this on-demand webinar, members of our Regulatory, Compliance and Investigations team in London, France, the US and Hong Kong give their thoughts on likely regulatory enforcement and sanctions trends for the rest of this year based on recent enforcement cases and forward looking statements from the regulators. Topics discussed include individual accountability, anti-money laundering … Continue Reading
In a speech earlier this week Lisa Osofsky announced that the SFO will shortly publish guidance on its expectations in relation to self-reporting and cooperation. The speech suggested that waiver of privilege over internal investigations material will be seen by the SFO as a strong indicator of, if not a precondition to, cooperation for the purposes … Continue Reading
On 1 April 2019, the FCA announced that there will be an independent investigation into the failure of London Capital & Finance (LC&F). The FCA stated that the investigation should cover: whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm; and the FCA’s supervision of LC&F. LC&F was … Continue Reading
Earlier this month, the House of Lords Select Committee (the Committee) on the Bribery Act 2010 published its Post-Legislative Scrutiny Report. The Report provides a useful summary of prosecutions under the Bribery Act and the debate surrounding “adequate” and “reasonable” procedures, and offers insight into the limited extent to which Suspicious Activity Reports (SARs) lead … Continue Reading
On 19 March 2019, the European Parliament Working Group on Responsible Business Conduct (RBC Group) announced the contents of its Shadow EU Action Plan on Responsible Business Conduct (the Plan). The Plan sets out the RBC Group’s priorities to ensure the promotion and protection of human rights in the EU business sector over the next … Continue Reading
On 14 March, the UK Export Finance (UKEF) announced the adoption of the revised OECD Council recommendation on Bribery and Officially Supported Export Credits (the Recommendation), to prevent bribery in international business transactions. The Recommendation, while not legally binding, strengthens anti-bribery and corruption policies and procedures across adherent Export Credit Agencies (ECAs). Current adherents to … Continue Reading
The Financial Conduct Authority (FCA) has fined a multinational investment bank and financial services company (the Firm) £27,599,400 for failing to ensure it provided complete and accurate information to approximately 86 million reportable transactions and erroneously reporting 49 million transactions to the FCA. The Final Notice states that over a period of more than nine years, … Continue Reading
On 11 March 2019, the Business Secretary, Greg Clark, announced that the Financial Reporting Council (“FRC”), a UK regulator responsible for auditors, accountants and actuaries, will be abolished. The FRC will be replaced by a new regulator, the Audit, Reporting and Governance Authority. The decision follows an independent review of the FRC completed in December … Continue Reading
The Financial Conduct Authority (FCA) has fined Carphone Warehouse (CPW) £29,107,600m for failings that led to its customers buying Geek Squad (a mobile phone insurance and technical support product offered by CPW) when it was not suitable.… Continue Reading
On 8 March 2019, the FCA confirmed that from 1 April 2019 the Financial Ombudsman Service’s (FOS) current £150,000 award limit will change to: £350,000 for complaints about actions or omissions by firms on or after 1 April 2019; and £160,000 for complaints about acts of omissions by firms before 1 April 2019, and which … Continue Reading
On 21 February 2019, the FCA fined two asset management firms for breach of competition law. No fine was imposed on the other asset management firm, Newton Investment Management Limited (Newton), as it had been given immunity under the competition leniency programme. This decision followed the FCA’s announcement on 4 February 2019 that it had … Continue Reading
Earlier this year BlackRock’s Chairman and CEO Larry Fink published his annual letter to the asset management firm’s investee companies. For the second year in a row Fink has focused on social impact. At the beginning of the letter he addresses the importance of practices that “will drive sustainable, long-term growth and profitability”. Fink acknowledges … Continue Reading
On 18 February 2019, the UK’s Information Commissioner’s Office and FCA published an updated memorandum of understanding setting out the terms of the relationship between them, including the exchange of information in relation to potential failures of systems and controls in relation to data security and related investigations. The MOU comes in the context of … Continue Reading
On 21 January 2019, the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, issued a £5,000 fine against R. Raphael Bank & Sons plc, trading as Raphaels Bank, for dealing with £200 belonging to an unidentified designated person in violation of EU sanctions against Egypt (implemented in the UK under the Egypt (Asset-Freezing) … Continue Reading
Deferred prosecution agreements (DPAs) have been a mainstay of the recent initiatives to deter corporate offending and change companies’ behaviour. They offer corporate offenders the chance to defer criminal charges provided they comply with financial penalties and other conditions agreed with a prosecuting authority. They are intended to broaden the range of tools available to … Continue Reading
In December 2018, the UK Government announced that it will introduce a new statutory code of practice to tackle workplace sexual harassment following a July 2018 report from the House of Commons’ Women and Equalities Select Committee (the Committee). The Committee’s report called on the Government to: Prioritise sexual harassment: The report calls on the … Continue Reading
On 28 January 2019, the UK Government (the Government) explained the timetable to the new 2023 deadline for the creation of public beneficial ownership registers in the British Overseas Territories (BOTs). The Government has explained that draft legislation will be prepared by the end of 2020, as required by the Sanctions and Anti-Money Laundering Act … Continue Reading
In a joint statement on 31 January 2019, France, Germany and the UK (together, E3) announced the creation of a payment channel SPV (Instrument in Support of Trade Exchanges, INSTEX) to offer European companies a settlement option in relation to their Iranian business activities. INSTEX aims to facilitate legitimate trade between European companies and Iran, focusing … Continue Reading
890 of America’s largest publicly-traded companies have recently been ranked based on priorities gathered from polling 81,000 Americans. The poll, coordinated by Just Capital, asked participants what they most wanted to see from the nation’s biggest businesses. The most popular responses were that participants wanted companies to: pay workers fairly; treat customers well and protect … Continue Reading
On 22 January 2019, the UK Government (the Government) published its second interim report as part of the Independent Review (the Review) of the Modern Slavery Act 2015 (the Act), which began in July 2018 (see our previous blogpost). This is the second report for phase 1 of the Review, and it focuses on transparency … Continue Reading
In July 2018, the United Nations’ intergovernmental working group on business and human rights released the first official draft of a proposed binding international treaty on business and human rights (the Treaty). Key features of the Treaty The key provisions of the Treaty are as follows: Scope: The Treaty applies to human rights violations in … Continue Reading
The UK Government (the Government) has recently published the first update on its Anti-Corruption Strategy 2017-22 (the Strategy). The Strategy seeks to provide a framework to guide the Government’s anti-corruption policies and actions with a particular focus on economic crime. It provides a set of objectives covering a number of different areas, including bribery and … Continue Reading
