Clifford Chance
The latest global trends, risks and developments in regulatory, investigations and financial crime
View our latest insights globally or click on a specific geography for local insights.
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Responding to the FCA's Dear CEO letter on the retention of interest on customers’ cash balances
In its Dear CEO letter (12 December 2023) to investment platforms and self-invested personal pension scheme (SIPP) operators, the FCA has asked firms to confirm, by 31 January 2024 (with a backstop of 29 February 2024 for making any necessary changes), that they are (or how they will become) compliant with the Consumer Duty ("the Duty") in respect of their retention of interest on customers' cash balances.
Sophie Cunliffe Senior Associate 23 January 2024
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What's keeping the WEF up at night? Global Risks Report highlights key risk areas for 2024
On the 10 January 2024, the World Economic Forum ("WEF") released its 19th Edition of 'The Global Risks Report 2024' ("GRR") highlighting the most severe risks threatening the world in 2024 and beyond. Here are its key findings and implications.
Naomi Griffin Partner 24 January 2024
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PRA fines former CEO of Wyelands Bank Plc for multiple breaches of the PRA’s Conduct Rules
On 11 January 2024, the Prudential Regulation Authority ("PRA") published its final notice issued to Iain Mark Hunter ("Mr Hunter"), former Chief Executive Officer ("CEO") of Wyelands Bank plc ("Wyelands"), fining him £118,808 for breaching three PRA Conduct Rules between 7 March 2016 and 28 May 2020.
Dorian Drew Partner 25 January 2024
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SFC publishes 2024-2026 strategic priorities The SFC's publication of its strategic priorities for the next three years is welcomed. Whilst the SFC has from time to time indicated its priorities through annual and quarterly reports, bulletins, and forums and events, this is a notably different approach in terms of presenting standalone strategic priorities. The priorities reflect the global landscape and technological advances, and unsurprisingly include virtual assets, tokenisation and ESG. In addition, the SFC has highlighted the growing sophistication of investigation and enforcement tools available to it such as suptech and international collaboration. 29 January 2024 Read more
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Compliance and Enforcement Alert from the Price Cap Coalition on the Oil Price Cap
On 1 February 2024, new international guidance was published by the Price Cap Coalition on the Oil Price Cap ("OPC"), setting out recommendations for identifying key OPC evasion methods and information on how to report suspected breaches.
Ellen Kerslake Lawyer 5 February 2024
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The Bank of England's Approach to Enforcement, Policy Statement (PS 1/24)
Key takeaways from the Bank of England's Policy Statement (PS 1/24).
Sophie Cunliffe Senior Associate 12 February 2024
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Failure to prevent fraud: implications for large organisations
The Economic Crime and Corporate Transparency Act 2023 introduced a new failure to prevent fraud offence representing a significant turning point for the law on corporate criminal liability in the UK, making it easier to prosecute corporates for certain financial crimes.
Chris David Partner 15 February 2024
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UK Government publishes first Sanctions Strategy paper
On 22 February 2023, the UK Government published a sanctions strategy paper titled ‘Deter, Disrupt and Demonstrate – UK sanctions in a contested world’ setting out the UK's approach to sanctions.
Bethan Lovett Senior Associate 29 February 2024
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Guidance published on "No Re-Export to Russia" clauses
On 22 February 2024, the European Commission published guidance on the requirement for European exporters to impose "No Re-Export to Russia" clauses in contracts for the export of certain goods from the EU to third countries, that was adopted as part of the 12th package of EU sanctions against Russia in December 2023.
Jessica Arapu Lawyer 1 March 2024
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FCA Consults on Changing its Approach to Disclosing Enforcement Investigations
The Financial Conduct Authority (FCA) has opened a consultation on changing its approach to publicising enforcement investigations. At the same time, the FCA has announced a more "focused" and "streamlined" approach to enforcement, appearing to indicate a move away from using enforcement as a diagnostic tool wherever breaches may have occurred, towards more targeted use of enforcement for deterrence.
Oliver Pegden Partner 4 March 2024
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Tackling Corruption in the Italian Healthcare Sector
The public consultation on the draft executive order and guidelines governing the public electronic register called “Transparent Health System” introduced by Law 62/2022 (the 'Italian Sunshine Act') has now been concluded.
Stella Magistro Counsel 6 March 2024
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Spotlight on Greenwashing: Federal Court's Ruling in ASIC's Civil Penalty Litigation against Vanguard
ASIC took action against Vanguard and has been granted much of the declaratory relief it sought in its first greenwashing civil penalty litigation.
Naomi Griffin Partner 12 April 2024
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New sanctions Directive entered in the Official Journal of the EU
The new Directive, aimed at harmonising criminal enforcement of EU sanctions regimes, will enter into force on the twentieth day following publication in the Journal on 29 April 2024.
Michael Lyons Partner 30 April 2024
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Digital ID and Privacy: Tackling data collection and retention risks with emerging technologies
In May 2024, Australia introduced a new Digital ID Act implementing a system for enabling Government and private sector services to verify an individual's identity against existing government documents with no collection or retention of personal information by those service providers. In the same legislation, the Australian Government is also implementing long-awaited data privacy reforms.
Naomi Griffin Partner 31 May 2024
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Failure to Prevent Fraud: A Watershed Moment for ESG Corporate Crime Risks?
The Economic Crime and Corporate Transparency Act 2023 and rise in anti-greenwashing legislation in the UK represents a watershed moment for ESG-based corporate crime risks.
Craig Hogg Senior Associate 3 June 2024
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Tackling Environmental Crime: The New EU Environmental Crime Directive and its Impact on Businesses
In May 2024, EU legislation aimed at combating environmental crimes within and beyond the EU entered into force, but what are the key implications for companies?
Abigail Maton-Howarth Senior Associate 24 June 2024
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Poland implements the eu whistleblowing directive
On 14 June 2024, after long-lasting discussions and subsequent draft bills, Poland finally enacted the Whistleblower Protection Act to transpose the EU Whistleblowing Directive into national law.
Michał Magdziak Counsel 3 July 2024
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New case law re-sets the rules for financial institutions and businesses in relation to "criminal property" under POCA
On 27 June 2024, the English Court of Appeal overturned a 2023 High Court decision, which concerned the NCA's refusal to investigate potential money laundering in certain supply chains.
Michael Lyons Partner 17 July 2024
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FCA censures auditor for reporting failure
The FCA has taken the unusual step of exercising its powers under section 345 of the Financial Services Markets Act 2000 ("FSMA") to publicly censure an auditor for failing to report breaches of the Client Assets sourcebook ("CASS") rules to the FCA.
Sophie Cunliffe Senior Associate 16 August 2024
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Five key trends in the FCA's annual enforcement data
Evidence is starting to emerge of the change in approach to enforcement promised by Therese Chambers and Steve Smart. Data released by the FCA on 5 September 2024 (covering the 2023/24 financial year ending 31 March 2024) shows a continued increase in the use of early intervention powers, a reduction in enforcement cases and penalties, and priority being given to reducing and preventing financial crime.
Sophie Cunliffe Senior Associate 9 September 2024
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New Strict Liability Civil Penalties for UK Trade Sanctions: what you need to know
From 10 October 2024, a new body (OTSI) will have the power to impose civil monetary penalties for breaches of certain UK trade sanctions on a strict liability basis. There are also new mandatory reporting obligations for regulated financial services firms and law firms.
Bethan Lovett Senior Associate 16 September 2024
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UK Sustainability Disclosure Requirements and Investment Labels – Fraud Risks for In-Scope Firms
This article explores the UK Financial Conduct Authority's new Sustainability Disclosure Requirements and investment labels regime, highlighting associated fraud risks and compliance measures for in-scope firms.
Craig Hogg Senior Associate 18 September 2024
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FCA censures H2O AM LLP for "extremely serious" Principle 11 breach
The FCA has censured H2O AM LLP for making highly illiquid investments without appropriate due diligence and falsifying related documents during the investigation.
Sophie Cunliffe Senior Associate 24 September 2024
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You Oughta Know About These Key U.S. Whistleblower Developments
A busy two months for U.S. whistleblower developments including a new reward program for whistleblowers and new penalties for companies.
Michelle Williams Partner 25 September 2024
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Full Federal Court clarifies scope of continuous disclosure obligations: ANZ's breach in $2.5 billion share placement upheld
The Full Federal Court has provided valuable guidance on the operation of Australia's continuous disclosure laws, upholding the decision in Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited (No 2) [2023] FCA 1217 that ANZ breached its continuous disclosure obligations during a $2.5 billion institutional share placement.
Tom van der Velde Associate 10 October 2024
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An uptick in UK sanctions enforcement
On 29 August 2024, the Office of Financial Sanctions Implementation (OFSI) imposed a £15,000 penalty on Integral Concierge Services (ICSL) for contravening UK sanctions against Russia. A month later, on 27 September 2024, the Financial Conduct Authority (FCA) fined a UK retail bank approximately £29 million for failings in its financial crime systems and controls.
Claudia Martinez Madrid Senior Associate 11 October 2024
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Anti-Money Laundering Global Developments and Their Impact on Business
We have published an extract from our recent webinar on the latest AML trends in the EU, US, UK and Singapore, their implications on business and compliance processes and some practical suggestions for adapting to them.
Michael Lyons Partner 15 October 2024
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SFC publishes consultation conclusions on proposed Guidelines for Market Soundings
The Securities and Futures Commission ("SFC") gazetted the Guidelines for Market Soundings ("Guidelines") on 1 November 2024, with them set to come into effect six months later on 2 May 2025. Intermediaries should have completed the requisite enhancements to their systems, policies, and procedures, or to have implemented interim measures, to meet the objectives of the Guidelines upon their commencement.
Rocky Mui Partner 4 November 2024
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The UK will make large organisations criminally liable for failing to prevent fraud from 1 September 2025, but what is fraud?
On 6 November 2024, the UK government published guidance for organisations on the new offence of failure to prevent fraud, starting the countdown to the offence's introduction on 1 September 2025.
Matthew Lee Senior Associate 8 November 2024
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Unmasking Dark Patterns: Proposed Changes in Australian Consumer Protection
The Australian government proposes to ban "unfair trading practices," targeting business conduct that distorts consumer decisions ('dark patterns') and specific practices like unfair subscriptions, drip pricing, dynamic pricing, and customer support barriers.
Naomi Griffin Partner 19 November 2024
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Evidence given at Treasury Select Committee highlights current challenges and progress in UK Financial Sanctions Enforcement
On 26 November 2024, the Treasury Select Committee ("TSC") heard oral evidence from the Office of Financial Sanctions Implementation ("OFSI") including regarding its current enforcement strategy in relation to financial sanctions.
Bethan Lovett Senior Associate 6 December 2024
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FCA Updates Financial Crime Guide: Key Takeaways
This blog summarises key amendments made to the Financial Crime Guide through additional guidance on sanctions, proliferation financing, transaction monitoring, data security, cryptoassets and Consumer Duty.
Craig Hogg Senior Associate 9 December 2024
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Are you ready for the new Belgian whistleblower protection rules?
The long-awaited Belgian law transposing the EU Whistleblower Protection Directive enters into force on 15 February 2023 and expands the scope of whistleblower protection compared to the EU framework.
Gert Cuppens Senior Counsel 11 January 2023
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Proposed UK market abuse regime for cryptoassets
The UK Treasury has today released its consultation on the future financial services regime for cryptoassets, including a proposal for a cryptoasset market abuse regime.
Oliver Pegden Partner 1 February 2023
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Whistle-blowers: Beware the blowbacks
The SGHC grants $50,000 in defamation damages to victim of malicious whistle-blower.
Kabir Singh Partner, Clifford Chance Asia* 14 February 2023
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The Netherlands moves forward with implementation of the EU Directive for whistleblower protection
After a lengthy process, the bill transposing the EU Whistleblowing Directive in the Netherlands has now been adopted, with enactment per 18 February next!
Sara Schermerhorn Senior Advisor 17 February 2023
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Potential new tax risk for companies providing 'free' services across the EU
Italian prosecutors and tax authorities are allegedly investigating Meta, owner of Facebook, for failure to apply VAT on its free services to Italian users from 2015 to 2021.
Heiner Hugger Partner 27 February 2023
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Corruption Perceptions Index 2022 –Stagnation in Asia
Transparency International has recently released its Corruption Perceptions Index ("CPI") for the year 2022 ("CPI 2022"). The CPI offers a useful tool for businesses to take into consideration when conducting anti-bribery and corruption risk assessments and due diligence, in order to assess the perceived level of public sector corruption in a country or territory. In this update, we focus specifically on the APAC region (which includes, North Asia, the Indian sub-continent, Southeast Asia, Oceania, and the Pacific Islands).
Tess Forge Counsel, Clifford Chance Asia* 8 March 2023
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Update to OFSI Enforcement Guidance – Assessing Ownership and Control
The UK's sanctions authority, the Office of Financial Sanctions Implementation ("OFSI"), has today published updated guidance on its enforcement powers for breaches of financial sanctions legislation.
Michael Lyons Partner 16 March 2023
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Global Investigations Review (GIR)'s Corporate Investigations Guide for Singapore – high profile investigations, regulatory developments and key principles
GIR has published the seventh edition of its practical guide for external and in-house counsel, compliance officers and accounting practitioners. Members of the Clifford Chance global RIFC practice (and Cavenagh Law LLP ) are editors and authored several chapters including the Singapore chapter.
Kabir Singh Partner, Clifford Chance Asia* 17 March 2023
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SFC Enforcement Priorities and Key Focus Areas - Fireside Chat with Kit Wilson and Lisa Chen
We sat down with Christopher (Kit) Wilson and Lisa Chen on 17 March 2023 to discuss the enforcement priorities and key focus areas of the Securities and Futures Commission (SFC) since Kit took over the role of overseeing the Enforcement Division in November 2022. Lisa is a Senior Director in the Enforcement Division.
Connie Heng Regional Managing Partner, Asia Pacific 28 March 2023
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Challenges remain in policing Great Britain's wholesale electricity market
A recent Bloomberg investigation has once again shone the light on practices in Great Britain's wholesale electricity market, however Ofgem's response is indicative of the challenges that exist in taking enforcement action against market participants
Matthew Lee Senior Associate 31 March 2023
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SMCR stock take: PRA and FCA discussion paper provides opportunity to assess the effectiveness of the SMCR.
On 30 March 2023, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) published joint Discussion Paper PRA DP1/23 and FCA DP23/3 - Review of the Senior Managers & Certification Regime (the DP), inviting views on potential improvements to the Senior Managers & Certification Regime (SMCR).
Eleanor Matthews Senior Associate 6 April 2023
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FCA Business Plan 2023/24 bolsters approach to enforcement
On 5th April 2023, the Financial Conduct Authority (FCA) published its Business Plan 2023/24.
Oliver Pegden Partner 11 April 2023
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PRA censures Wyelands Bank Plc for significant regulatory failings
On 4th April 2023, the Prudential Regulation Authority ("PRA") censured Wyelands Bank Plc ("Wyelands") for wide-ranging significant regulatory failings relating to large exposure limits, capital reporting, governance and risk controls.
Dorian Drew Partner 21 April 2023
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Changes to the Bank of England and Prudential Regulation Authority's enforcement approach: CP9/23 ("Consultation")
The Bank of England (the "Bank") and Prudential Regulation Authority ("PRA") are consulting on significant changes to their enforcement policies. These changes, if implemented, may alter the experience of enforcement, as well as raising strategic considerations, for those the subject of investigation. The Consultation includes the following three key proposals:
i) A new route for early cooperation by the subjects of an investigation: the Early Account Scheme ("EAS").
ii) An enhanced settlement discount of up to 50% when the subject of an investigation has made early admissions and participated in the EAS.
iii) Changes to the approach used for calculating financial penalties.
Sophie Cunliffe Senior Associate 12 May 2023
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New restriction on cryptoasset promotions to UK consumers - what do the FCA's strict new rules mean for cryptoasset businesses?
The Financial Conduct Authority's (FCA) policy statement PS23/6 sets out new rules for marketing cryptoassets in the UK. With just four months to implement the changes, firms could face significant enforcement action if they don't act now.
Diego Ballon Ossio Partner 12 June 2023
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The Upper Tribunal criticises the FCA's approach to enforcement in Seiler, Whitestone & Raitzin v FCA [2023] UKUT 00133 (TCC)
The FCA recently lost an Upper Tribunal case against three former employees of Julius Baer. The case is important for two main reasons. First, the FCA lost its arguments on what constitutes recklessness. Second, the Upper Tribunal heavily criticised the FCA's conduct of the investigation and the litigation in a way that is likely to impact future enforcement investigations.
Rahul Dev Lawyer 28 June 2023
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HMT consultation on reform of AML/CTF supervisory regime and the need for a formal system of sanctions systems and controls supervision
HM Treasury has published a consultation paper on the anti-money laundering ("AML") and counter-terrorist financing ("CTF") supervisory regime in the regulated sector, and the need for a more formalised system of sanctions systems and controls supervision.
Bethan Lovett Senior Associate 5 July 2023
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Greenhushing: why are companies shying away from publicising their green initiatives
With an increase in regulator attention over greenwashing claims in Australia, how can businesses best equip themselves to ensure their ESG efforts are defendable and form part of their public messaging?
Naomi Griffin Partner 26 July 2023
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OFSI takes sanctions enforcement action and updates guidance
On 31 August 2023, OFSI published a Disclosure Notice containing details of a breach of the Russia (Sanctions) (EU Exit) Regulations 2019 (the "Russia Regulations").
Bethan Lovett Senior Associate 31 August 2023
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Expanding the conversation – what updating your modern slavery policies and processes can mean for ESG
In a world where corporate responsibility is becoming an essential component of doing business, one conversation might necessarily lead to another. In this blog, we consider how examining your modern slavery protections can lead to a deepening of your understanding for all things environmental, social and governance.
Naomi Griffin Partner 13 September 2023
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FCA and PRA publish proposed guidance on non-financial misconduct – what might this mean for financial services firms?
On 25 September 2023, the FCA and PRA (the "Regulators") published their much anticipated consultation papers (PRA CP 18/23 and FCA CP23/20, together the "Consultation Papers") on a package of measures to promote diversity and inclusion in the financial services sector, including proposed amendments to clarify where the Regulators' rules apply to non-financial misconduct.
Eleanor Matthews Senior Associate 6 October 2023
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Changes to the landscape for corporate criminal liability in the UK
On 26 October 2023 the Economic Crime and Corporate Transparency Act received royal Assent, heralding the impending introduction of a new corporate criminal offence of ‘failure to prevent fraud’, along with reforms that permit the prosecution of companies for economic crimes committed by senior managers.
Matthew Lee Senior Associate 31 October 2023
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FCA publishes Memorandum of Understanding with OFSI
On 1 December 2023, the Financial Conduct Authority ("FCA") published an updated Memorandum of Understanding ("MoU") setting out arrangements for co-operation and the exchange of relevant information between it and the Office of Financial Sanctions Implementation ("OFSI").
Bláithín Dockery Lawyer 5 December 2023
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UK creates a new enforcement unit for trade sanctions, OTSI
On 11 December 2023, the UK government announced the creation of a new enforcement unit, the Office of Trade Sanctions Implementation ("OTSI") that will have new civil enforcement powers for trade sanctions breaches – mirroring those which already exist for financial sanctions.
Bláithín Dockery Lawyer 12 December 2023
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Payments Systems Regulator issues first competition infringement decision in the payments sector
The PSR has imposed fines totalling over £33m against five companies. The PSR found that they had infringed competition law by agreeing not to compete or poach each other's customers in the UK prepaid cards market.
Samantha Ward Partner 20 January 2022
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Update on the implementation of the Whistleblower Protection Directive in the Netherlands
The preparations for the parliamentary debate on the implementation of the Whistleblower Protection Directive in the Netherlands, have resulted in amendments to the initial bill.
Sara Schermerhorn Senior Advisor 17 January 2022
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Tech sector continues to ripen for whistleblowing at a time when EU Directive may complicate investigations
The tech industry, much like other industries, has certain characteristics that make it particularly vulnerable to whistleblowing. Its rapid and ever-increasing growth, overarching presence in our daily lives and the surge of government contracts over recent years combine to create the perfect storm for whistleblowing.
Jamal El-Hindi Counsel 14 February 2022
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Luxembourg publishes draft bill transposing the EU Whistleblower Directive – better late than never?
The government chose to extend the scope of the protection of whistleblowers compared to the scope of the EU Whistleblower Directive (EU) 2019/1937 (the "Directive").
Albert Moro Partner 14 February 2022
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FCA's Consumer Duty - what should firms be doing today to prepare?
Now that the FCA's consultation on its new Consumer Duty has closed, and while we wait for the FCA to agree to a more reasonable, perhaps phased, implementation period, what should firms be doing today to prepare?
Dorian Drew Partner 28 February 2022
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Initiation Game Over: Lloyd's tackles non-financial misconduct
As published in a notice of censure on 16 March 2022 (the "Notice"), Lloyd's of London ("Lloyd's") has publicly censured and fined member organisation, Atrium Underwriters Limited ("Atrium"), in relation to non-financial misconduct by Atrium employees and the way in which Atrium responded to allegations of such misconduct.
Dorian Drew Partner 29 March 2022
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FinCEN is poised to increase use of Section 311 and apply it in new ways
Recent remarks from Acting Director Himamauli Das of FinCEN, pending Congressional action to strengthen Section 311 of the Patriot Act, and the new Executive Order on digital assets indicate a possible new wave of actions.
Jamal El-Hindi Counsel 1 April 2022
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Whistleblowing in China: Demystifying the Myths
It is a prevalent myth that China has no whistleblower protection. True, compared with the long history of whistleblower protections in the United States and emerging developments with the EU Whistleblower Directive, whistleblower protection in China remains underdeveloped – but it is there and getting stronger.
Tess Forge Counsel, Clifford Chance Asia* 8 April 2022
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CMA not immune from costs orders says Supreme Court
On 25 May 2022, the Supreme Court handed down an important judgment relating to appeals against decisions by public authorities (Pfizer and Flynn v CMA [2022] UKSC 14) (here). It found that there is no generally applicable principle that all public bodies should enjoy protected status as parties to litigation where they lose a case they have brought or defended in the exercise of their public functions in the public interest. Instead, it is important that a court or tribunal considers the risk that there will be a ‘chilling effect’ on the conduct of a public authority, if costs orders are made routinely against it in those kinds of proceedings. The Competition Appeal Tribunal (“CAT”) was right to distinguish Competition Act 1998 (“CA98”) appeals from appeals against public authorities where there might be a risk of a chilling effect. The starting point in CA98 appeals is that costs follow the event, but the question of success is generally considered on an issue-by-issue basis.
Ben Jasper Partner 1 June 2022
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FCA Announces New Reporting Tool for Sanctions Breaches and Poor Sanctions Controls
In a notice published on 17 May 2022 ("Notice"), the FCA announced the release of a new reporting tool, akin to a whistleblower hotline, this is designed to facilitate the voluntary reporting of sanctions evasion issues or weaknesses in sanctions controls by firms or persons listed on the FCA's registers, or companies with UK listed securities.
Michael Lyons Partner 7 June 2022
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Hong Kong to allow retail access to virtual asset ETFs and considering legalizing retail virtual asset exchanges
Hong Kong announced several fundamental virtual asset-friendly changes to the city's regulatory stance towards virtual assets, including the relaxation of rules surrounding retail access.
Rocky Mui Partner 2 November 2022
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The Whistle Keeps on Blowing
The SEC's annual Enforcement Results for FY22 reflect continuing trends for whistleblowers and awards.
Michelle Williams Partner 22 November 2022
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MUR Shipping v RTI – force majeure clauses
The Court of Appeal has held that a "reasonable endeavours" obligation in a force majeure clause required a party to accept payment in Euros, despite its contractual right to receive US Dollars.
Tom Dyer Senior Associate 8 December 2022
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Expansion of AML Whistleblowing to Include Sanctions Whistleblowing
Pending legislation opens door to more bounties for tips on sanctions violators anywhere in the world.
Jamal El-Hindi Counsel 15 December 2022
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Updates on new VASP licensing regime in Amended AMLO
The Amended AMLO was passed by LegCo and we have outlined the key concepts under the Amended AMLO and the postponed timeline for commencement of the licensing regime for VASPs.
Rocky Mui Partner 20 December 2022
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Anti-Money Laundering (AML) reforms part of sweeping changes in 2021
On January 1, 2021, Congress passed into law the National Defense Authorization Act for Fiscal Year 2021, which includes the Anti-Money Laundering Act of 2020 (the "Act"), the most sweeping anti-money laundering ("AML") legislation since the enactment of the USA PATRIOT Act of 2001.
David DiBari Senior Counsel 5 January 2021
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New Luxembourg law on implementation of restrictive measures in financial matters
Restrictive measures in financial matters have just been reviewed in Luxembourg in order to integrate U.N. and E.U. progress in this area into national legislation.
Albert Moro Partner 14 January 2021
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PRC Blocking Statute now in effect
On 9 January 2021, the PRC Ministry of Commerce (MofCom) issued its new "blocking statute", known as the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (Rules), which came into effect on the same date.
Lei Shi Managing Partner, Mainland China 15 January 2021
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New Federal District Court Decision Continues Trend of Ordering Disclosure of Cyber Investigation Reports
A law firm was ordered to disclose a forensic report on a data breach, despite it being prepared under the instruction of outside counsel.
Daniel Silver Partner 25 January 2021
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New FTC Enforcement Action Reveals Novel Facial Recognition Settlement
In a recent settlement with the FTC, a photo storage application agreed to delete any facial recognition technologies it enhanced using improperly obtained photos.
Megan Gordon Partner 27 January 2021
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Enhanced U.S. Subpoena Authority over Foreign Banks with U.S. Correspondent Accounts: Watershed or Overreach?
Congress passed the Anti-Money Laundering Act of 2020 (the "Act") on January 1, 2021 as part of the National Defense Authorization Act for Fiscal Year 2021.
The Act includes, among other significant updates to the Bank Secrecy Act and related U.S. anti-money laundering regimes, new and potentially groundbreaking authority for the U.S. Department of Justice ("DOJ") and the U.S. Department of the Treasury ("Treasury") to subpoena non-U.S. bank records stored outside the U.S., backed by hefty penalties for non-compliance.
Brendan Stuart Counsel 1 February 2021
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UK Supreme Court rebalances Serious Fraud Office's extra-territorial evidence gathering powers
The SFO has suffered a further setback in its ability to gather evidence held overseas following a ruling by the Supreme Court that its "Section 2" powers do not extend to allowing it to compel the production of documents held outside of the UK by a foreign company.
Luke Tolaini Partner 9 February 2021
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DFS announces first cyber settlement
The New York State Department of Financial Services ("DFS") has fined a mortgage lender $1.5 million to settle violations of its Cybersecurity Regulations
Daniel Silver Partner 8 March 2021
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Microsoft announces widespread hack of Exchange Server software
Reports indicate that at least 30,000 companies have fallen victim to a hack compromising their Outlook email systems and broader IT networks.
Daniel Silver Partner 11 March 2021
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OFSI updates monetary penalty guidance
OFSI has issued new guidance on the monetary penalties for breaches of financial sanctions in the UK, which comes into force on 1 April 2021. The amendments highlight some subtle but potentially important changes to enforcement risk which we discuss below in more detail.
Lydia Tuckey Senior Associate 16 March 2021
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The investigation into MAPFRE cyber attack: Spanish Data Protection Agency stresses importance of a diligent response and transparency
Key factors that led to the investigation closing without a fine were the diligent and efficient crisis management and the swift notice to relevant regulators and third parties.
Fernando Irurzun Partner 6 April 2021
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Operational resilience: UK policy statements set out new requirements for financial institutions
The FCA and PRA have unveiled final rules reflecting new operational resilience obligations, with initial milestones to be reached by March 2022.
Kate Scott Partner 12 April 2021
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DFS fines Insurance Company $3 Million for Unreported Data Breaches and False Compliance Certification
The New York Department of Financial Services (DFS) has fined the National Securities Corporation for failing to notify it of data breaches; the Department's second settlement demonstrates DFS's demand for strict compliance with its cybersecurity regulations.
Daniel Silver Partner 20 April 2021
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DFS issues guidance in response to SolarWinds attack
Focus is on supply chain risk as DFS urges companies to adopt "zero trust" approach and timely address vulnerabilities.
Daniel Silver Partner 30 April 2021
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ECJ opinion on the EU Blocking Regulation and US sanctions on Iran
The Advocate General ("AG") of the ECJ has issued a long-awaited opinion on the meaning of the EU Blocking Regulation concerning US sanctions on Iran. If adopted by the Court, the effects could be significant and wide-ranging.
Michael Lyons Partner 21 May 2021
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AML/CFT in the era of Regtech – guidance on integration of external data
The Hong Kong Monetary Authority (HKMA) has provided helpful AML / CFT guidance following its thematic review.
Jonathan Wong Partner 30 June 2021
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European Commission launches European Public Prosecutor’s Office
On 1st June 2021, the European Commission (EC) launched the European Public Prosecutor’s Office (EPPO) based in Luxembourg and marking an important milestone on the way to a deeper cooperation between EU member states concerning white-collar crime.
Charles-Henri Boeringer Partner 9 June 2021
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Is this the end of group-wide whistleblower systems and central investigations?
The EU Whistleblower Protection Directive must be transposed into Member States' local legislation by 17 December 2021. With a little less than six months to go before the deadline, companies are asking important questions to the European Commission.
Ines Keitel Head of the German Employment Group 22 June 2021
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Stuart Forsyth v Financial Conduct Authority and Prudential Regulation Authority: Integrity and regulatory processes
On 6 July 2021, the Upper Tribunal (UT) published its decision in Stuart Forsyth v (1) FCA and (2) PRA, [2021] UKUT 0162 (TCC), in which it affirmed the distinction between integrity and dishonesty, and severely criticised the conduct of both regulators.
Carlos Conceicao Consultant 30 July 2021
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The Law Commission consults on corporate criminal liability reform
As the Law Commission's consultation on reforming the law relating to corporate criminal liability continues, Clifford Chance examines the case for reform and asks whether the need for a change in the law has been overstated.
Luke Tolaini Partner 19 July 2021
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Four things you should know about the FCA's Business Plan 2021/22
Nikhil Rathi has set out his ambition for the FCA to be more innovative, assertive and adaptive in the FCA's Business Plan 2021/22. What will this mean for firms?
Carlos Conceicao Consultant 15 July 2021
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'Dear CEO': The FCA's warning to retail banking about the poor standard of financial crime controls
The Financial Conduct Authority (FCA) recently issued a 'Dear CEO' letter to retail banks as a call for action to be taken in response to common control failings identified in anti-money laundering frameworks.
Michael Lyons Partner 9 July 2021
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An expansion of global sanctions on Belarus
On 23 May 2021, the Government of Belarus diverted a Ryanair passenger jet to land in Minsk and detained two of its passengers – activist and journalist Roman Protasevich, and his partner Sofia Sapega.
Michael Lyons Partner 13 August 2021
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New AML and kleptocracy-related whistleblowing provisions may accelerate and complicate internal investigation requirements
Bounties in exchange for information included within US AML reforms can apply to informants from anywhere in the world. Among other issues, such incentives may complicate US and EU company compliance with whistleblowing investigation requirements.
Jamal El-Hindi Counsel 3 August 2021
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Another milestone in the fight against corruption in Europe
The European landscape has significantly changed in recent years and we have witnessed an extraordinary transformation of the local and European legal panorama.
Ludovica D'Alberti Senior Associate 1 September 2021
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Spotlight on the EU Whistleblower Directive and Pharma and Healthcare sectors
There are several factors at play for companies in the pharma and healthcare sectors, which, when combined with the availability of rewards for whistleblowers under several US laws, as well as the EU's forthcoming whistleblowing regime, create an environment that is ripe for whistleblowing.
Jamal El-Hindi Counsel 26 October 2021
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Petrofac – lessons for effective anti-bribery processes
Petrofac pleaded guilty on 1 October to seven counts of failing to prevent bribery, after its anti-bribery procedures failed to prevent systematic corruption. What went wrong, and what lessons does this case offer for ensuring that anti-bribery procedures actually work?
Michael Lyons Partner 14 October 2021
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Poland begins to implement the EU Whistleblower Directive
On 4 October the Polish government published official guidelines regarding the new law implementing the EU Whistleblower Directive. The guidelines reflect the provisions of the Directive, but in some instances the government goes a step further.
Michał Magdziak Counsel 7 October 2021
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FTC Tightens Data Security Requirements for Financial Institutions Under the GLBA Safeguards Rule
After a two-year notice and comment period, on October 27, 2021, the Federal Trade Commission (FTC) unveiled its finalized rules amending the Gramm-Leach-Bliley Act (GLBA) Safeguards Rule.
Daniel Silver Partner 5 November 2021
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The FCA implements changes to its statutory decision-making processes
The Financial Conduct Authority (FCA) has published policy statement PS21/16 announcing reforms to its decision-making process to ensure faster and more effective decisions for consumers, markets, and firms.
Dorian Drew Partner 8 December 2021
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ICO proposes to fine Clearview AI £17 million over its facial recognition technology
The United Kingdom Information Commissioner’s Office (ICO) and the Office of the Australian Information Commissioner (OAIC) opened a joint investigation into Clearview AI Inc's facial recognition technology in July 2020.
Monica Freely Senior Associate 7 December 2021
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European Commission hopes for post-Brexit harmony on sanctions – Good news for businesses
Last week, the European Commission's Task Force for Relations with the United Kingdom published its latest Brexit negotiation slides, relating to foreign policy, security and defence. These slides suggest a desire, that will be shared by businesses, that the EU and UK will remain aligned in their sanctions regimes post-Brexit.
Lydia Tuckey Senior Associate 24 January 2020
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European Signatories Trigger Dispute Resolution Mechanism Under The Iran Nuclear Deal
On 14 January 2020 the United Kingdom, France and Germany (the E3) activated the dispute resolution mechanism under the Iran Nuclear deal (or JCPOA), the outcome of which could result in a "snap back" of UN sanctions against Iran. This follows a series of high-profile political events that culminated in Iran's announcement on 5 January 2020 that it would discard "the last key component of its limitations in the JCPOA”.
Carla Lewis Director – Sanctions 16 January 2020
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Regulatory, investigations & financial crime in the UK – horizon scan: top 10 topics for 2020
We highlight some of the key areas of focus for financial services firms in 2020.
Carlos Conceicao Consultant 22 January 2020
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SFO to evaluate firms' compliance programmes during an investigation
On 17 January 2020, the Serious Fraud Office (SFO) published guidance setting out how and when SFO investigators will assess the effectiveness of the internal compliance programme of a firm under investigation.
Luke Tolaini Partner 28 January 2020
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U.S. Commodities Anti-Manipulation Law and Open Market Trading
A recent Wall Street Journal article highlights threat of vague regulation to lawful trading strategies.
Robert Houck Partner 22 January 2020
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Operational resilience: increased regulatory scrutiny and new obligations
The increased regulatory focus on operational resilience stems from a combination of factors, including: a shift in the way customers access financial services; the use of new technologies; the significant negative impact of IT failures/incidents; and the introduction of new types of risk.
Kate Scott Partner 11 February 2020
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CMA secures further director disqualification in an increased focus on individual responsibility for competition breaches
The CMA can prohibit directors from having any involvement in the management of any company for up to 15 years. These tools are now a key part of CMA enforcement.
Ben Jasper Partner 5 March 2020
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Coronavirus: Five steps to building a financial institution's resilience
In the financial services sector, particularly in the UK, regulated firms such as banks, asset managers and insurers must ensure that their Coronavirus contingency planning meets not just the complex challenges raised by this event but also increasingly stringent regulatory standards.
Monica Sah Partner 11 March 2020
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CMA loses in the Court of Appeal in landmark case on unfair pricing
As well as clarifying the law on unfair pricing, this judgment has important implications for the duty of competition authorities to investigate and the evidential burden placed on defendants.
Ben Jasper Partner 10 March 2020
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FCA publishes guidance to financial services firms on COVID-19
The FCA has set out information for, and the expectations of, firms during the coronavirus pandemic (COVID-19).
Carlos Conceicao Consultant 24 March 2020
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Regulators provide further clarity of senior managers' obligations in response to COVID-19
Both the FCA and PRA have recently issued statements providing guidance to senior managers on ensuring that they are supporting the Government's efforts to protect the public during the COVID-19 health emergency.
Carlos Conceicao Consultant 31 March 2020
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Latest Ofgem enforcement action gives much for the wholesale energy markets to consider
Significant financial penalty and redress payment signals Ofgem's intention to take strong action in respect of the manipulation of the wholesale energy markets, but leaves questions unanswered for market participants.
Luke Tolaini Partner 28 April 2020
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Responding to change and challenge: FCA publishes its Business Plan for 2020/21
On 7 April 2020, the FCA released its Business Plan for 2020/21, setting out its priorities for the year ahead, with specific focus on the unprecedented challenges arising from the coronavirus (Covid-19) pandemic. In this context of uncertainty and disruption, the Business Plan is understandably shorter in length this year.
Emily Goddard Senior Associate 16 April 2020
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The PCAOB's International Focus – The US Public Company Accounting Oversight Board's Activity Abroad
PCAOB registered non-US audit firms and individuals continue to be a focus for the PCAOB. Enforcement statistics for 2015-19 show significant non-US activity, which we expect to continue.
Anna Mount Associate 12 May 2020
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CARES Act Funding Comes with Enforcement Risk
CARES Act funding from the US government aims to help businesses weather the COVID-19 storm, but companies will need effective compliance measures to mitigate the risk of government enforcement.
Steve Nickelsburg Partner 4 May 2020
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Culture in financial services: developing thinking in the year of Coronavirus and BLM protests
The FCA's thinking on culture is continuing to develop in the year of Coronavirus and BLM protests with focus on corporate purpose and the role of discrimination as both a symptom and cause of poor culture.
Oliver Pegden Partner 24 June 2020
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Is Poland ready for the EU Whistleblower Protection Directive?
Currently, Polish law contains no universal regulations on whistleblower protection. However, there are some specific laws in various business sectors that already contain provisions that are in line with the requirements laid down by the EU Whistleblower Protection Directive.
Monika Diehl Counsel 17 June 2020
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Issuer claims for share manipulation – where are we after Burford?
The recent Commercial Court decision in Burford v LSE has highlighted the difficulties faced by listed companies who wish to bring civil claims for manipulation of their own shares.
Jason Epstein Partner 15 June 2020
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The ICC emphasises the threats that sanctions clauses pose to trade finance
The ICC Banking Commission has issued updated guidance to banks concerning the use of sanctions clauses in trade finance-related instruments subject to the ICC Rules, including documentary and standby letters of credit, documentary collections and demand guarantees and counter-guarantees.
Carla Lewis Director – Sanctions 15 June 2020
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What lies ahead? The Federal False Claims Act
What lies ahead? Our investigations, enforcement, litigation, and compliance teams have been thinking hard to help you stay two-steps in front. In this video, partner Glen Donath brings you up to speed on the Federal False Claims Act and what business across all industries need to know about the investment and enforcement of the Act when pursuing Federal Government support during the current pandemic.
Glen Donath Partner 27 July 2020
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Partner Joshua Berman highlights investigations trends for 2020
Our clients can't predict the future – but we can help them stay ahead of trends in investigations, enforcement, litigation, and compliance.
In this video, Josh Berman highlights the expected spike in investigations and inquiries from prosecutors, law enforcement agents and regulators during the current pandemic and into the future – take a look to see why.
Joshua Berman Partner 24 July 2020
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New investigation reveals risks of biometric data processing for law enforcement purposes
The regulatory woes of facial recognition firm Clearview AI deepened last week when data regulators in the UK and Australia (the ICO and OAIC) announced a joint investigation into their personal information handling practices, and signalled that they would liaise with other global data protection authorities.
Kate Scott Partner 16 July 2020
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Preeminent French criminal lawyer, Eric Dupond-Moretti, appointed Minister of Justice by President Macron: three key takeaways from his inaugural speech
It has been 34 years since a criminal lawyer was appointed Minster of Justice in France. The announcement on Monday of the make-up of the new French cabinet with Mr. Dupond-Moretti as new Minister of Justice came as a shock to the legal profession as this talented but controversial criminal lawyer, known for his strong criticism against judges and the judicial system, was totally unexpected.
Thomas Baudesson Of Counsel 9 July 2020
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UK Government announces first sanctions under a new global human rights regime
On 6 July 2020, Foreign Secretary Dominic Raab announced the first set of autonomous UK sanctions to be imposed since the country left the European Union. Marking a potential divergence in approach between the UK and the EU towards tackling human rights abuses, this latest step adds to the growing complexities businesses face when conducting international trade. Particularly UK financial institutions.
Carla Lewis Director – Sanctions 8 July 2020
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Is Italy ready for the EU Whistleblower Protection Directive?
Italy enacted the "Law on Whistleblowing" to establish general laws applicable alongside sector legislation. This is however limited to entities that adopted systems and controls under the Italian Vicarious Liability Act.
Simonetta Candela Partner 3 August 2020
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Record-setting CFTC and DOJ penalties imposed after failure to provide complete and accurate information
On August 19, 2020, the U.S. Commodity Futures Trading Commission (“CFTC”) announced a $127.4 million settlement with a bank headquartered outside the United States (the “Bank”) for spoofing and false statements
David Yeres Senior Counsel 27 August 2020
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FCA Enforcement on AML – the risks associated with a supervisory visit laid bare
In its annual AML and CTF supervision report, HM Treasury has reported on the work of the FCA and other supervisory bodies in relation to the supervision and enforcement of the Money Laundering Regulations in the UK. The report highlights the enforcement risk associated with supervisory visits.
Michael Lyons Partner 7 August 2020
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FCA Reveals Data on Cyber Notification and Investigation Trends
New data released by the FCA reveals significant insights into the number of cyber incidents that have been reported to them and the number of investigations they have consequently opened
Kate Scott Partner 25 August 2020
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FCA to extend the scope of the REP-CRIM reporting regime
The Financial Conduct Authority (FCA) is consulting (CP20/17 'Extension of Annual Financial Crime') (24 August 2020) on a proposal to significantly extend the scope of firms required to provide information under the current annual financial crime reporting (REP-CRIM) requirements.
Michael Lyons Partner 27 August 2020
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FCA Proceedings and Privilege
Reasoning in the recent FCA v Carillion PLC (In Liquidation) decision may be relevant to the question of when litigation privilege arises during a regulatory investigation.
Oliver Pegden Partner 16 September 2020
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FCA issues statement on cannabis-related businesses
The FCA has issued a statement in response to queries from companies involved in the lawful cannabis industry outside of the UK who are interested in listing in the UK. In its statement the FCA sets out its analysis of the Proceeds of Crime Act in relation to cannabis-related businesses and how this impacts any application to list in the UK.
Lydia Tuckey Senior Associate 21 September 2020
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Is Belgium ready for the EU Whistleblower Protection Directive?
Belgium as yet does not have a comprehensive framework for whistleblower protection. Two piecemeal regulations, however, regulate such protection for financial markets and money laundering.
Dorothée Vermeiren Partner 2 September 2020
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Is Luxembourg ready for the EU Whistleblower Protection Directive?
The EU Whistleblower Directive (the "Directive") provides for a general framework of whistleblower protection, in stark contrast to the number of sectorial rules currently in force in Luxembourg.
Albert Moro Partner 4 September 2020
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Is the Netherlands ready for the EU Whistleblower Protection Directive?
In the Netherlands, whistleblower protection legislation (the "Whistleblower Act") has been effective since 1 July 2016. Relevant legislation provides for an obligation for employers that generally have at least 50 people working within their organisation in the Netherlands to draw up an internal procedure for reporting wrongdoing. The new EU Whistleblower Protection Directive (the "Directive"), will bring several changes to the existing legal framework.
Sara Schermerhorn Senior Advisor 22 September 2020
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L'AFA publie un guide sur les cadeaux et invitations en entreprise
Le guide pratique sur la gestion des cadeaux et invitations publié le 11 septembre précise certaines bonnes pratiques sans être pour autant prescripteur.
Charles-Henri Boeringer Partner 22 September 2020
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OFSI issues Maritime Financial Sanctions Guidance
Over the summer, the UK Office of Financial Sanctions Implementation ("OFSI"), issued new sanctions compliance guidance for entities and individuals operating within the maritime shipping sector.
Lydia Tuckey Senior Associate 3 September 2020
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PSR interim report on the supply of card acquiring services encourages smaller merchants to switch
Following the launch of its market review into the supply of card-acquiring services in July 2018, the Payment Systems Regulator's (PSR) has published its interim report: Market Review (MR18 1.7) (15 September 2020) (MR18/1.7), setting out a number of key recommendations that include advising smaller merchants to switch supplier and removing perceived barriers which potentially impede the switching process.
Samantha Ward Partner 22 September 2020
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The French Anti-bribery Agency publishes Gifts and Hospitality guidelines
Guidelines on the management of Gifts and Hospitality published on 11 September by the French Anti-bribery Agency ("AFA") specify some good practices but leave some room for corporate entities to tailor their Gifts and Hospitality policy to their risk profile.
Charles-Henri Boeringer Partner 22 September 2020
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The FCA's latest published figures show that skilled person reviews remain a key supervisory tool
Section 166 reviews are likely to be an attractive means to assist regulators in assessing the impact of the pandemic.
Hannah Ovaisi Senior Associate 30 September 2020
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European Digital Operational Resilience – the next chapter
The European Commission unveils wide-ranging proposals to regulate digital operational resilience in financial services.
Kate Scott Partner 2 October 2020
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Ransomware: More than your data is at risk warns latest US Treasury Advisories
The US Department of Treasury recently issued advisories aimed at financial institutions and corporates being extorted to make or process payments relating to ransomware attacks. The advisories are a reminder to consider money laundering and sanctions risks as part of ransomware crisis management.
Michelle Williams Partner 6 October 2020
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ICO Announces Significantly Reduced GDPR Fine for British Airways
The ICO has issued a Penalty Notice fining British Airways £20m for infringements of the GDPR, a reduction of £163 million from its original intended fine.
Kate Scott Partner 19 October 2020
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UK Government publishes new guidance for post-Brexit sanctions
With less than two months to go until the end of the Brexit Implementation Period, the UK Government is continuing its efforts to help ensure UK businesses are fully prepared for the transition, publishing further guidance on the UK's post-Brexit sanctions regime.
Michael Lyons Partner 16 November 2020
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First Legal Action Under The 2017 French Vigilance Law
On 10 December 2020, the Court of Appeal confirmed the decision of the juge des référés of the Tribunal of Nanterre ruling that it did not have jurisdiction to hear the complaint filed by NGOs against the oil company under the French Vigilance Law.
Charles-Henri Boeringer Partner 22 December 2020
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What you need to know about UK sanctions post-Brexit
At 11pm on 31 December 2020, EU sanctions will cease to apply within the UK, and will be replaced by a new UK sanctions regime which is similar, but not identical to the current EU sanctions regime.
Michael Lyons Partner 30 December 2020
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FCA consultation on further amendments to the SMCR: Head of Legal function excluded
On 23 January 2019, the Financial Conduct Authority (FCA) issued a consultation paper (CP19/4) on amendments and clarifications to the Senior Managers and Certification Regime (SMCR).
Emily Goddard Senior Associate 31 January 2019
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President Trump, human rights, US sanctions and global business: Traps for the unwary
Over the past year, completely contrary to public expectations, President Trump has unleashed the power of US economic sanctions to champion human rights and fight corruption globally.
George Kleinfeld Partner 14 January 2019
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FCA issues first decision using its Competition Act powers
The FCA's decision on 21 February 2019 underscores the risks associated with competitors exchanging strategic information with each other, particularly in relation to prices and volumes.
Ben Jasper Partner 26 February 2019
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Final transitional period under DFS Cybersecurity Regulations ends March 1, 2019
The New York State Department of Financial Services (DFS) reminded regulated entities last week that the final transitional period for DFS's Cybersecurity Regulations ends March 1, 2019.
Brian Yin Associate 12 February 2019
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Looking ahead to whistleblower protections in 2019 in the US, UK and EU
Financial institutions should be monitoring expected changes to whistleblower protections in the US, UK and EU, which will require enhancements to existing policies to prevent your financial institution from making a critical misstep in an ever-changing legal area.
Michelle Williams Partner 27 March 2019
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There may be changes ahead: UK Treasury Select Committee has recommended a sweeping overhaul of the fight against economic crime
On 8 March 2019, the UK Treasury Select Committee released its report into economic crime, anti-money laundering supervision and sanctions implementation.
Carla Lewis Director – Sanctions 20 March 2019
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FCA Enforcement action against Carphone Warehouse: Key points
The recent FCA fine imposed on Carphone Warehouse raises important points regarding systems and controls, whistleblowing and the FCA's partial settlement and penalty policies.
Oliver Pegden Partner 14 March 2019
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Canadian Cannabis vs POCA: High time for guidance
It is now over four months since the Canadian Cannabis Act 2018 was passed but there has yet to be any guidance provided by the UK government in light of the wide ambit of the UK's money laundering legislation.
Lydia Tuckey Senior Associate 4 March 2019
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Cyber-enabled crime highlighted as key risk area for financial and economic crime in the NCA's 2019/20 Annual Plan
The National Crime Agency's Annual Plan highlights risks for cyber crime, money laundering, fraud, bribery, corruption and sanctions evasion – in particular the use of more complex and cyber-enabled methods by organised crime groups.
Michael Lyons Partner 29 April 2019
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US Department of Justice CLOUD Act White Paper
The US Department of Justice released in April a White Paper addressing a so-far unused aspect of the CLOUD Act.
Steve Nickelsburg Partner 26 April 2019
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US Department of Treasury's FinCEN penalizes individual operating peer-to-peer virtual currency exchange
Last week, US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) assessed a $35,350 civil money penalty against an individual operating a peer-to-peer virtual currency exchange without registering as a Money Services Business (MSB).
Megan Gordon Partner 24 April 2019
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US expands focus on corporate officer wrongdoing with novel prosecution under the Consumer Product Safety Act
For the first time ever, the US Justice Department has prosecuted corporate officers for violations of the Consumer Product Safety Act.
Joshua Berman Partner 23 April 2019
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Trump's Iran oil embargo: What if China ignores it?
The White House announced on 22 April that it will terminate in early May an exception to the US secondary sanctions that had enabled 8 countries, including China and India, to import crude oil from Iran without risking the imposition of US sanctions in response.
George Kleinfeld Partner 23 April 2019
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AMF's recent action on insider trading: lessons learned
The AMF has recently imposed fines; punishing the Chairman of a French telecommunications company for insider trading, whilst letting bankers who acquired the information by looking over a neighbour's shoulder on the Eurostar off scot free. We consider the reasoning, as well as key takeaways from this decision.
Charles-Henri Boeringer Partner 22 May 2019
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Highlights from the FCA's 2019/2020 Business Plan
On 17 April 2019, the FCA released its latest Business Plan, setting out its key priorities and main areas of focus for 2019/2020. The FCA has since published its Approach to Enforcement and Approach to Supervision, which aim to help explain how the FCA carries out its activities in accordance with its Mission. We consider some of the key themes.
Emily Goddard Senior Associate 10 May 2019
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HM Treasury considers gold-plating 5MLD requirements for cryptos
HM Treasury's consultation on the transposition of 5MLD highlights the potential gold-plating of 5MLD in relation to the requirements for cryptos. We look at the proposal and consider some of the potential impacts.
Lydia Tuckey Senior Associate 8 May 2019
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Senior Manager Delegation – some wise words from a US President
Delegation of responsibilities has taken on new significance for insurance firms since the implementation of the Senior Managers Regime. For the first time, senior managers have an express obligation under the conduct rules to take reasonable steps when delegating responsibilities and providing oversight of them.
Dorian Drew Partner 13 June 2019
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Focus on the protection of whistleblowers in Poland and the EU
The current proposal of the new Polish law on corporate criminal liability provides for protection for whistleblowers. This is in line with the most recent EU policy.
Monika Diehl Counsel 7 June 2019
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Russian sanctions post-Brexit: Further risks
As at the date of publication, leaving the EU without a deal seems an increasingly realistic outcome. To prepare for this eventuality, the Government has put into place various regulations to implement sanctions into UK law that will apply from "Brexit Day".
Carla Lewis Director – Sanctions 6 June 2019
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FCA publishes Enforcement Annual Performance Report 2018/2019
Alongside its Annual Report and Accounts, on Tuesday 9 July 2019 the FCA published its Enforcement Annual Performance Report, which provides an overview of the FCA's enforcement activities during 2018/2019.
Emily Goddard Senior Associate 11 July 2019
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Hong Kong Competition Tribunal's first decisions: Six key takeaways
On 17 May 2019, the Competition Tribunal handed down its judgments in Hong Kong's first two competition cases involving bid-rigging, market sharing and price fixing.
Richard Blewett Partner 8 July 2019
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Turbulent Times: OFAC warns Aviation industry on deceptive practices
On 23 July 2019, "Iran-Related Civil Aviation Industry Advisory", the US Department of Treasury Office of Foreign Assets Control (OFAC) delivered a warning as to the "deceptive practices by Iran with respect to the Civil Aviation Industry".
Michelle Williams Partner 8 August 2019
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Raising the bar: New Fit and Proper and CPD Guidelines published for insurance intermediaries in Hong Kong
In preparation for the new regulatory regime for insurance intermediaries in Hong Kong, the Insurance Authority has published two new guidelines on Fit and Proper Criteria and Continuing Professional Development to come into effect on 23 September 2019.
Helen Fu Senior Associate 5 August 2019
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U.S. Treasury Department Issues Proposed Rules Implementing New CFIUS Regulations Under FIRRMA
Pursuant to the Foreign Investment Risk Review Modernization Act of 2018, the United States Treasury Department's Office of Investment Security has issued Proposed Rules implementing the changes FIRRMA brought to the Committee on Foreign Investment in the United States.
Joshua Berman Partner 26 September 2019
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Do the U.S. Securities and Commodities Laws Reach Foreign Conduct?
Two recent appellate court decisions shed light on the limited circumstances in which regulators and private plaintiffs can pursue claims for violations of the U.S. securities and commodities laws for conduct occurring outside the United States.
David Yeres Senior Counsel 24 October 2019
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Tensions Between The EU And US On Iran Sanctions: Are The Solutions Real Or Illusory?
Recent events suggest that EU measures aimed at frustrating US sanctions on Iran are unlikely to be a match to the threats imposed by the Trump Administration on those who try to use them.
Lydia Tuckey Senior Associate 23 December 2019
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The Financial Conduct Authority - Crypto Roadmap timeline
On 26 November 2024, the FCA published a series of pieces on crypto regulation, including its anticipated Crypto Roadmap. In doing so, it has set out key dates for the development of a comprehensive regulatory framework for crypto in the UK and forecasts the publication of all Policy Statements to be completed by 2026, with the regime taking effect shortly thereafter.
Kate Scott Partner 8 January 2025
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Potential Implications of the Tax and Criminal Proceedings on the "Meta case"
The Prosecution Service of Milan's unprecedented allegations on VAT may have relevant repercussions on free IT services when users provide their own data.
Antonio Golino Partner, Co-Regional Practice Area Leader Litigation & Dispute Resolution for One Europe 15 January 2025
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To pay or not to pay? UK government consults on new ransomware rules
The UK Government has proposed new restrictions on making ransom payments following cyber attacks and sweeping changes to reporting arrangements.
Chris Stott Senior Associate Knowledge Lawyer 21 January 2025
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FCA issues first fine for transaction reporting failures under MiFIR
On the 29th January, the FCA announced in a press release that it had fined Infinox Capital Limited ("Infinox") £99,200 for failing to submit 46,053 transaction reports between 1 October 2022 and 31 March 2023, which risked market abuse going undetected. This is the first fine that has been imposed for transaction reporting failures under the UK Markets in Financial Instruments Regulation (Regulation (EU) No 600/2014) ("MiFIR").
Bethan Lovett Senior Associate 17 February 2025
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UK Supreme Court narrows test for extradition
The UK Supreme Court has delivered an important judgment in the case of El-Khouri v Government of the United States of America, clarifying the interpretation of the dual criminality rule under the Extradition Act 2003 (and in the process clarifying the territorial scope of the UK primary money laundering offences).
Chris David Partner 21 February 2025
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UK Government presses on with corporate criminal liability reform
Further significant changes to the law on corporate criminal liability in the UK are once again on the horizon.
Chris Stott Senior Associate Knowledge Lawyer 3 March 2025
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UK regulators report on climate change risks
The FCA and PRA have given some clues about their views as to how firms should approach climate change-related risks. The reports create no additional regulatory obligations but are likely to be followed by more concrete guidance.
Chris Stott Senior Associate Knowledge Lawyer 4 March 2025
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FCA Private Asset Valuations Review – Why it is important for firms to take notice
The FCA has explored the risk of harm to investors and market integrity flowing from inappropriate valuations of private assets through a multi-firm review. The results, published on 5 March 2025, identified weaknesses in governance, identifying, documenting, and addressing conflicts of interest, and having defined processes for carrying out ad hoc valuations. Some of these issues are likely to crop up again in the FCA's multi-firm review of conflicts of interest in private markets later this year.
Sophie Cunliffe Senior Associate 11 March 2025
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Business Risks and Unintended Consequences – Drug Cartels as Designated Foreign Terrorist Organizations
One of President Trump's first Executive Orders directed the US State Department to recommend the designation of drug cartels as Foreign Terrorist Organizations ("FTOs") and Specially Designated Global Terrorists under US law. The State Department quickly complied. While much of the ensuing focus has been on what this means for the cartels, designation as an FTO brings a host of other consequences under US law – including the authorization of private treble-damages suits by US persons who allege injury at the hands of the FTOs, under the Anti-Terrorism Act ("ATA"), as amended by the Justice Against Sponsors of Terrorism Act ("JASTA"). In part because FTOs are hard to sue, victims in past terrorism cases have brought lawsuits against corporations and financial institutions alleging that the FTOs' reliance on their business services such as bank accounts and telecommunications entitled the victims to relief against those corporations. Does the designation of drug cartels as FTOs open new areas of risk for companies and financial institutions?
Jacquelyn Desch Associate 17 March 2025
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FCA drops 'name and shame' proposals for regulated firms
The FCA has indicated that it will not proceed with its proposal to routinely name regulated firms that are the subjects of enforcement investigations.
Hannah Ovaisi Senior Associate 21 March 2025
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European anti-corruption prosecutors issue statement of intent
European anti-corruption prosecutors issue statement of intent
The lead UK, French and Swiss agencies responsible for anti-corruption enforcement have established an "International Anti-Corruption Prosecutorial Taskforce".
Chris Stott Senior Associate Knowledge Lawyer 27 March 2025
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FCA sets out its position on motor finance
As the Supreme Court hearing concerning motor finance commission arrangements approaches, the FCA has announced that if non-compliance and consequential consumer loss are found, an industry-wide redress scheme will likely be put in place.
Lauren Park Lawyer 28 March 2025
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Spotlight on ESG in Australia: ASIC secures a civil penalty in its third greenwashing case and pursues a second target for inadequate cybersecurity measures
This month, the Federal Court fined LGSS Pty Ltd (LGSS) $10.5M for greenwashing, and the Australian Securities and Investments Commission (ASIC) sued FIIG Securities Limited (FIIG) for inadequate cybersecurity and risk management measures.
James Constantine Senior Associate 31 March 2025
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US DOJ to Focus on Reverse False Claims Related to Tariff Circumvention
The US Department of Justice (DOJ) has announced that it intends to be vigilant in monitoring tariff compliance and to take action against tariff circumvention.
Sanaz Payandeh Associate 7 April 2025
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FCA LME Fine Highlights Disorderly Market Control Weaknesses
The FCA has imposed its first ever fine on a recognised investment exchange, London Metal Exchange ("LME"), for failing to ensure its systems and controls were adequate to deal with severe market stress. This followed an unprecedented period of volatility in the nickel market in March 2022 in which, over the course of less than two days, the price of nickel on LME's electronic trading platform rose approximately 250%.
Akanksha Bhagat Senior Associate 8 April 2025
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NCA Annual Report Highlights Key SAR and DAML Trends for 2023-2024
This article summarises and analyses the National Crime Agency's annual Suspicious Activity Reports report for 2023-2024 to understand current trends and what this may indicate for the future.
Craig Hogg Senior Associate 14 April 2025
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Insights from ASIC's Sustainability Reporting Guide
On 31 March 2025, the Australian Securities and Investments Commission (ASIC) released Regulatory Guide 280: Sustainability Reporting (RG 280), designed to help reporting entities comply with the Australian sustainability reporting regime.
Naomi Griffin Partner 16 April 2025
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Navigating Operational Risks: CPS 230's Influence on AI and Cybersecurity Strategies
APRA's CPS 230 seeks to enhance operational risk management for financial institutions and safeguard Australian entities' stability by ensuring robust systems to identify, assess, manage, and mitigate operational risks, including artificial intelligence (AI) and cybersecurity related risks.
Naomi Griffin Partner 25 April 2025
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UK Serious Fraud Office sets out expectations on corporate co-operation
The UK Serious Fraud Office ("SFO") has published revised Corporate Co-operation guidance ("the Guidance") aimed at encouraging corporate organisations to proactively self-report suspected fraud, bribery and corruption.
Chris David Partner 24 April 2025
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FCA prioritises "loud and in your face" enforcement on financial crime
"Enforcement needs to be loud and in your face", according to Therese Chambers, joint executive director of enforcement and market oversight at the FCA. On 11 April 2025, Ms Chambers delivered a speech at the Spring Conference of NYU's Program on Corporate Compliance and Enforcement where she highlighted the FCA's enforcement priority on tackling financial crime.
Bláithín Dockery Lawyer 25 April 2025
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Prosecution for failure to prevent bribery may bring further clarity on "adequate procedures"
The UK Serious Fraud Office ("SFO") is prosecuting a UK based insurance broker for failing to prevent its overseas agents from bribing Ecuadorian public officials.
Chris Stott Senior Associate Knowledge Lawyer 2 May 2025
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Understanding the role of financial services regulation in diversity and inclusion: contextualising the FCA and PRA's withdrawal of proposals
In March 2025, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) announced that they would not pursue their proposed rules on diversity and inclusion (D&I) in the financial services sector.
Amy Bird Partner 9 May 2025
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New SFO cases underline commitment to proactive enforcement activity – key points for corporates to watch
Recent weeks have seen a flurry of activity by the Serious Fraud Office ("SFO"), with two key developments suggesting it is taking a more proactive approach to enforcement of the UK's anti-corruption laws. The agency has initiated a corporate prosecution for failing to prevent bribery and has announced a new investigation concerning alleged overseas corruption.
Chris Stott Senior Associate Knowledge Lawyer 12 May 2025
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DOJ Criminal Division: Revised Corporate Enforcement, Monitorship, and Whistleblower Policies
On Monday, the DOJ's Criminal Division announced significant changes to its corporate enforcement policy, monitor selection policy, and corporate whistleblower program, and further clarified going forward enforcement priorities. These changes are intended to alleviate the perceived burden on US business from "unchecked and long-running investigations" unnecessarily costly to American businesses and to the DOJ, and to focus government resources on areas that pose the highest threat to American interests. The key takeaways from this announcement and the resulting White-Collar Enforcement Plan, which prioritizes "focus," "fairness," and "efficiency," are below.
Jacquelyn Desch Associate 14 May 2025
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Maintaining Legal Professional Privilege – Recent decisions involving ASIC
The Full Federal Court in ASIC v Macleod [2024] FCAFC 174 (ASIC v Macleod) has dealt with the operation and effectiveness of Voluntary Disclosure Agreements (VDAs) in preserving legal professional privilege (LPP) by finding that production of documents, pursuant to VDAs, will not necessarily waive any claim for legal advice or litigation related LPP.
On 20 December 2024, the Full Federal Court upheld the appeals brought by ASIC and Noumi against ASIC v Noumi Ltd [2024] FCA 349 (Noumi) with initial non-publication orders being lifted on 6 February 2025. The decision of the Full Court reversed the primary judge's finding that Noumi Ltd had waived legal advice privilege by providing a PwC Report to ASIC pursuant to a VDA. The appeal decision provides necessary clarification on the dominant purpose test and highlights the importance of determining the nature and intent of disclosed documents in establishing whether LPP has been waived.
In this post, we discuss the Full Federal Court decision of ASIC v Macleod, provide a comparison to the Full Federal Court decision of Singtel Optus v Robertson [2024] FCAFC 58 (Singtel Optus), and consider the more recent judgment of Justice Markovic in ASIC v ASX Limited [2025] FCA 552 (ASIC v ASX) with respect to LPP released on 27 May 2025. This post concludes with key takeaways concerning the maintenance of LPP, particularly in the context of commissioning a third-party investigative report and carrying out witness interviews during an investigation.
Naomi Griffin Partner 6 June 2025
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FCA releases recast Enforcement Guide: What is changing (and what is not)?
The FCA's revised Enforcement Guide, released on 3 June, confirms that regulated firms or listed companies that are subjects of enforcement investigations will not be routinely 'named and shamed'. It also clarifies the FCA's approach to some important practical aspects of enforcement investigations.
Akanksha Bhagat Senior Associate 6 June 2025
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FCA sets out key considerations for potential motor finance redress scheme
In anticipation of the Supreme Court's judgment on the Hopcraft and another v Close Brothers Limited appeal on motor finance commission arrangements, the FCA has outlined steps for a potential industry-wide redress scheme. More detail will be released in due course, but this post sets out the key indications given by the FCA so far.
Lauren Park Lawyer 9 June 2025
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DOJ Presses Play on FCPA Enforcement: New Playbook Prioritizes U.S. Interests and Targeted Approach
On June 9, 2025, Deputy Attorney General ("DAG") Todd Blanche issued the Department of Justice's ("DOJ") long-awaited and expected "Guidelines for Investigations and Enforcement of the Foreign Corrupt Practice Act" ("Guidelines").
Joshua Berman Partner 13 June 2025
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FCA updates rules on non-financial misconduct
The Financial Conduct Authority ("FCA") has released its long-awaited updated rules on non-financial misconduct, alongside a consultation paper on proposed accompanying guidance about how those rules should be applied.
Chris Stott Senior Associate Knowledge Lawyer 3 July 2025
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Upper Tribunal decision in Urra, Lopez & Sheth v FCA.
On 1 July 2025 the Upper Tribunal, Tax and Chancery Chamber, handed down a decision dismissing the references brought by Diego Urra, Jorge Lopez Gonzalez and Poojan Sheth. It directed the Financial Conduct Authority to impose prohibition orders on all three men and to levy individual financial penalties of £223,400, £100,000 and £57,600 respectively. The Decision is important because it represents a rare example of the Upper Tribunal conducting a detailed examination of so-called "spoofing" allegations.
Oliver Pegden Partner 3 July 2025
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