Tag: Investigations and Enforcement

Patisserie Valerie charges preview impact of new failure to prevent fraud offence

The recent Patisserie Valerie charges against four individuals provide a preview of the type of scenario in which companies could be investigated under the new failure to prevent fraud offence as well as the expanded test for corporate criminal liability. In this blog, we outline the charges brought by the SFO, provide an update on … Continue Reading

Regulation Tomorrow Plus: Culture – recent developments and practical steps

In our latest Regulation Tomorrow Plus podcast, Senior Knowledge Lawyer Catherine Pluck is joined by London Financial Services partners Jonathan Herbst and Katie Stephen, who discuss some recent regulatory developments in relation to culture, as well as some practical steps that firms can be taking in this area. The podcast can be found here.… Continue Reading

UK CPS, HMRC and NCA show their teeth on the Bribery Act

Three recent cases act as a reminder that the CPS, HMRC and NCA, as well as the SFO, are actively enforcing the UK Bribery Act and conducting cross-border investigations. Two of the cases summarised below also show a focus on the demand side of bribery (i.e. suspected offences of individuals receiving or requesting a bribe … Continue Reading

How can UK legislation and the powers of UK regulatory authorities extend to international companies?

Summary There has been a recent trend of greater regulatory enforcement for international companies that “carry on a business (or part of a business) in the UK”.  We have set out in this article the relevant UK legislation and authorities that can enforce against international companies, with a particular focus on how these may apply … Continue Reading

New briefing note: Handling regulatory interventions – considerations for responders

Two years ago the Financial Conduct Authority (FCA) committed to being a more “innovative, assertive and adaptive regulator” and its focus on quicker and assertive supervisory action, alongside tougher enforcement, has been a consistent message from the regulator ever since. In a climate where firms are expected to manage hugely significant regime changes, combined with … Continue Reading

Failure to prevent money laundering: a proposed new offence?

The UK Parliament is in the process of debating the Economic Crime and Corporate Transparency Bill (the Bill), which is expected to be finalised by the end of the year and come into force during 2024. There has been much discussion of the new failure to prevent fraud offence (for more detail see our article … Continue Reading

FCA decides to fine firm and senior managers for lack of integrity

The FCA has recently published a Decision Notice in respect of Banque Havilland SA (Banque Havilland) in which the FCA found that Banque Havilland acted without integrity in breach of Principle 1 of the FCA’s Principles of Business in producing and disseminating to an employee of an Abu Dhabi sovereign wealth fund a presentation which … Continue Reading

BoE publishes speech on its approach to enforcement

On 21 June 2023, the Bank of England (BoE) published a speech by Oliver Dearie, its Head of Enforcement and Litigation, on the BoE’s approach to enforcement. In his speech, delivered at the Financial Services Lawyers Association, Mr Dearie explains the rationale behind the changes proposed in the BoE’s recent consultation paper on enforcement  (CP9/23). … Continue Reading

FCA censures Lighthouse Advisory Services Limited for unsuitable advice in relation to pension transfers including from the British Steel Pension Scheme

On 12 May 2023, the FCA publicly censured the financial advisory firm, Lighthouse, for providing unsuitable advice to customers to transfer out of occupational defined benefit pension schemes, including the British Steel Pension Scheme (the BSP Scheme). The FCA found that Lighthouse breached Principle 9 (a firm must take reasonable care to ensure the suitability … Continue Reading

Biggest reform of the identification doctrine in more than 50 years

The Government has proposed radical reforms to corporate criminal liability for the first time in more than 50 years by making it easier to prosecute companies for economic crime offences committed by their senior employees. The amendment to the Economic Crime and Corporate Transparency Bill (the Bill) would replace the common law “directing mind and … Continue Reading

UK investigations and financial crime: Horizon Scanning

As anticipated in our previous blog post on predictions for 2023, this year has brought about significant developments in investigations and a real focus on fraud. Looking ahead to the second half of 2023, we predict that developments affecting UK business or those doing business in the UK will include: 1. Fraud Economic Crime and … Continue Reading

New Solicitors Regulation Authority fining regime now in force

Following consultations, the Solicitors Regulation Authority (SRA) has updated its approach to the way it issues financial penalties for proven misconduct. Changes introduced by the SRA include: The new regime came into force on 1 June 2023 and the SRA states that the changes it has made will help it to resolve cases “as quickly … Continue Reading

FCA speech – Do the right thing

On 1 June 2023, the FCA published a speech given by Therese Chambers entitled “Do the right thing”, her first as Co-Executive Director of Enforcement. Ms Chambers took up the Co-Executive Director role in April of this year, although she has been at the FCA and its predecessor, the FSA, for the best part of … Continue Reading

New briefing note: Financial Reporting Council’s 3-Year Plan – What it means for supervisory intervention and enforcement

Following publication of the Financial Reporting Council’s (FRC) latest 3-Year Plan for 2023-26, in our latest briefing we consider the potential impact of FRC stated enforcement strategy and likely increased ‘constructive engagement’ and enforcement activity that companies can expect to see over the coming period, with additional experienced resource within the FRC focusing on issues … Continue Reading

New briefing note: In-house solicitors thematic review – do the findings resonate with you and, if so, what action can you take?

In March 2023, the Solicitors Regulation Authority (SRA) published the results of its latest in-house solicitors thematic review, having seen a significant increase in those practising in-house. In our latest briefing note, we set out a summary of the SRA’s key findings and the next steps recommended by the SRA to address identified areas of … Continue Reading

New briefing note: Internal frameworks and reporting

Inadequate governance is regularly cited by regulators as a factor which has contributed to the failings of firms. From small firms to international global organisations, governance is worth investing in with a view to avoiding common pitfalls and wider issues. In this briefing note we set out some practical tips that firms may want to … Continue Reading

New Regulation Tomorrow Plus podcast – AML: Key themes for firms from recent enforcement

Our latest episode of Regulation Tomorrow Plus is now available and can be found here. In this podcast, Senior Knowledge Lawyer Catherine Pluck is joined by Counsel Joe Smallshaw and Associate Lizzie Cox, both of whom specialise in regulatory investigations and enforcement, to discuss some of the key themes arising from the UK Financial Conduct … Continue Reading

Whistleblowing – latest FCA quarterly data and key practical steps to manage reports

Whistleblowing remains a key tool for the Financial Conduct Authority (FCA) to identify actual or potential harm to consumers, markets, the UK economy and wider society. On 4 May 2023, it published its latest whistleblowing data for the final quarter of 2022 (for the months October to December 2022) (Q4 2022). During this quarter, the … Continue Reading

BoE consults on proposed changes to its approach to enforcement

On 4 May 2023, the Bank of England (BoE) published Consultation Paper 9/23 ‘The Bank of England’s approach to enforcement: proposed changes and clarifications’ (CP9/23). CP9/23 proposes changes to the BoE’s and the Prudential Regulation Authority’s (PRA) enforcement policies and procedures, to the PRA’s policies and procedures for making supervisory and non-enforcement statutory notice decisions, … Continue Reading

FCA publishes findings from the whistleblowing qualitative assessment survey 2022

On 4 May 2023, the FCA published the findings from the whistleblowing qualitative assessment survey it carried out in 2022. Following information received via the survey, the FCA has set out actions to improve the confidence of whistleblowers, which includes the following: The FCA was disappointed to see the dissatisfaction expressed by many survey respondents. … Continue Reading

New briefing note: IT migration and outsourcing – lessons from the latest SMCR enforcement case

On 13 April 2023, the Prudential Regulation Authority (PRA) fined the former Chief Information Officer (CIO) of TSB Bank plc (TSB), Carlos Abarca, £81,620 for failing to take reasonable steps to ensure that TSB adequately managed and supervised appropriately its outsourcing arrangements in relation to its 2018 IT migration programme in breach of PRA Senior Manager Conduct … Continue Reading

New briefing note: Ten key steps to reduce the risk of a greenwashing regulatory enquiry

Identifying and preventing greenwashing is a growing priority for regulators around the world. In the UK, there are a number of regulators active in this space, including not only the financial services regulators such as the Financial Conduct Authority, but also the Advertising Standards Authority, the Competition and Markets Authority and the Financial Reporting Council. … Continue Reading

Governance back in the spotlight: BoE and FCA announce actions against LME Clear and LME in connection with March 2022 nickel market suspension

On 3 March 2023, the Bank of England (BoE) and the Financial Conduct Authority (FCA) announced further actions being taken by them in connection with the London Metal Exchange’s (LME) temporary suspension of nickel trading in March 2022. These latest updates, as further detailed below, act as a reminder of the current regulatory focus on … Continue Reading

New briefing note: Dawn Raids – Key practical steps for firms

Firms should have in place, and keep up to date and easily accessible, a documented policy and procedure which employees must follow in the event of an unannounced visit from a regulator. To assist firms in this area we have published a new briefing note setting out a reminder of some of the key steps … Continue Reading