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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Caution! Temporary changes to Australian continuous disclosure regime likely to be ineffective to reduce class-action risk
The temporary changes, which are in effect for six months from 26 May 2020, ignore a number of provisions commonly invoked by class action plaintiffs to pursue damages claims in relation to alleged continuous disclosure failings
Jason Oliver Counsel 27 May 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.
David Rabinowitz Associate 12 May 2020
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FCA guidance for firms on financial crime systems and controls during the coronavirus crisis
On 6 May, the FCA published brief guidance as to its expectations of how firms should apply their financial crime systems and controls during the Covid-19 crisis.
Ellen Lake Senior Associate 11 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.
Adam Goldstein Associate 4 May 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.
Matthew Lee Senior Associate 28 April 2020
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Financial crime compliance in unprecedented times – key themes for financial services firms
In a world of increased financial crime threats and challenges as a result of coronavirus, we look at 6 key areas for financial services firms to take action to stay in compliance.
Ellen Lake Senior Associate 27 April 2020
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The NCA's 2020/21 Annual Plan and National Strategic Assessment: Criminal use of tech and crypto and the threat of cyber crime
The recently published Annual Plan for 2020/21 sets out the National Crime Agency's operational priorities for the year ahead and its enforcement response to the serious and organised crime threats set out in its National Strategic Assessment (NSA).
Ellen Lake Senior Associate 21 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 Lawyer 16 April 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.
Nicholas Grafton-Green Senior Associate 31 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 Partner 24 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.
Nicholas Grafton-Green Senior Associate 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 Senior Associate 10 March 2020
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Regulatory risk and compliance during the coronavirus outbreak
The FCA, Bank of England and HM Treasury has published a statement on coronavirus.
Ellen Lake Senior Associate 6 March 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 Senior Associate 5 March 2020
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SFC's powers in seizing digital devices and accessing electronic records confirmed
This is the first decision in Hong Kong confirming the SFC's powers to seize and require production of (i) digital devices and (ii) passwords to digital devices and email accounts.
William Wong Consultant 25 February 2020
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How will Tech predictions for 2020 impact Financial Crime?
I am interested to see the impact of AI in respect of financial crime. I expect to see criminals continuing to employ increasingly sophisticated technologies like machine learning to find and exploit weak points in businesses' security systems, and also to assist in concealing illegal behaviour like money laundering.
Ellen Lake Senior Associate 20 February 2020
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First Legal Action Under The 2017 French Vigilance Law
This lawsuit marks the first time a French multinational corporation has been taken to court under the French 2017 Vigilance Law.
Charles-Henri Boeringer Partner 17 February 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.
Nicholas Grafton-Green Senior Associate 11 February 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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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 Drake Lawyer 24 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 Partner 22 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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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 Senior Associate 16 January 2020
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5MLD Comes Into Force In The UK On 10 January: The Key Takeaways
On 10 January 2020, the bulk of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (MLRs 2019), which implement the Fifth Money Laundering Directive (5MLD) in the UK, come into force.
Ellen Lake Senior Associate 7 January 2020
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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 Drake Lawyer 23 December 2019
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Enforcement Risks In Becoming A Hong Kong SFC Licensed Virtual Asset Trading Platform
Some of the key enforcement risks that a virtual asset trading platform needs to be aware of when seeking to be regulated under the new framework
William Wong Consultant 4 December 2019
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New Guidance On Hong Kong Licensed Corporations' Use Of Cloud Services And Other External Electronic Data Storage
The Securities and Futures Commission sets out requirements for licensed corporations which keep regulatory records externally and clarifies their general obligations when using external electronic data storage providers.
Grace Fung Associate 8 November 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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Key points from the FCA's disciplinary action against Tullet Prebon
On 11 October the FCA published a Final Notice imposing a fine of £15.4m on Tullet Prebon for breaches of Principles, 2, 3 and 11.
Nadège Huart Senior Associate 22 October 2019
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The Wheels Of Justice Turn Slowly – Case Progression At The UK's Serious Fraud Office
Criminal practitioners know it, the current Director of the SFO has acknowledged it, and now HM Crown Prosecution Service Inspectorate has confirmed it – the SFO has room for improvement when it comes to the speed at which they progress cases under investigation.
Matthew Lee Senior Associate 17 October 2019
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Crypto and financial crime – what are the risks for Facebook's Libra?
Facebook’s proposed global digital currency, Libra, aims to provide instant money transfers using blockchain technology for the 1.7 billion adults globally without access to a traditional bank account.
Ellen Lake Senior Associate 8 October 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. 26 September 2019 Read more
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Hacked! High Court of Australia dismisses action to restrain use of "Paradise Papers" on grounds of LPP
The unanimous decision of all seven judges of Australia's highest court in Glencore International AG v Commissioner of Taxation [2019] HCA 26 underlines the importance of confidentiality in maintaining a claim for legal professional privilege (LPP) and leaves open the question of whether a claim of LPP will be available in litigation in the ordinary course if the otherwise privileged documents have entered the public domain following a cyber-attack.
Jason Oliver Counsel 23 August 2019
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The US imposes additional sanctions on Russia in response to the UK 'Novichok' Incident
On 2 August 2019, the US announced that new sanctions will be imposed on Russia as required under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 in response to the March 2018 "novichok" nerve agent incident against Sergei and Yulia Skripal in the UK.
David DiBari Managing Partner, Washington 9 August 2019
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New SFO Corporate Co-operation Guidance issued
The UK's Serious Fraud Office has published new guidance on corporate co-operation. The SFO meaning of co-operation? Providing assistance to the SFO that goes above and beyond what the law requires.
Ellen Lake Senior Associate 8 August 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 Associate 5 August 2019
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Expectations of Private Sector actors in the fight against economic crime
The UK's Economic Crime Plan for 2019-22 places heavy emphasis on new requirements for the private sector in defending against economic crime.
Ellen Lake Senior Associate 26 July 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 Lawyer 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.
Helen Wang Senior Associate 8 July 2019
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Crypto exchanges have 12 months to implement FATF anti-money laundering standards
FATF Recommendation 15 means that crypto exchanges and other virtual asset service providers must share originator and beneficiary information during transactions between exchanges.
Ellen Lake Senior Associate 4 July 2019
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Cybersecurity and financial sector firms: IOSCO poses 15 sample questions to ask when reviewing your practices
The IOSCO Cyber Task Force has produced a set of questions to assist in understanding core cybersecurity standards and to promote international consistency in the fight against cybercrime.
Ellen Lake Senior Associate 19 June 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 Advocate 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 Senior Associate 6 June 2019
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Outsourcing and operational resilience: Lessons from recent regulatory findings
As financial institutions increase their use of outsourcing, particularly in the FinTech sector, recent enforcement actions and authority publications offer useful indicators of key regulatory concerns.
Nicholas Grafton-Green Senior Associate 5 June 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 Lawyer 10 May 2019
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New Guidance from OFAC: A Framework for OFAC Compliance
Last year, OFAC signaled that it would be issuing much-anticipated guidance for companies on building sanctions compliance programs and, on May 2, 2019, OFAC delivered.
David DiBari Managing Partner, Washington 9 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 Drake Lawyer 8 May 2019
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New Guidance from DOJ on "Evaluation of Corporate Compliance Programs"
On April 30, 2019, the US Department of Justice, Criminal Division, published an updated "Guidance Document" on "Evaluation of Corporate Compliance Programs".
David DiBari Managing Partner, Washington 8 May 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.
Ellen Lake Senior Associate 29 April 2019
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Reform of corporate criminal liability – unresolved
On 7 May 2019, the Government published its response to the House of Commons Treasury Committee's March 2019 report "Economic Crime - Anti-money laundering supervision and sanctions implementation" – but deferred again on addressing calls for reform of the corporate criminal liability framework.
Ellen Lake Senior Associate 16 May 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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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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The UK Bribery Act is the gold standard, but more guidance is needed
The House of Lords Bribery Act 2010 Committee has concluded that the legislation is 'exemplary' in its post-legislative scrutiny report on the Bribery Act 2010, but has identified areas where more guidance is needed.
Ellen Lake Senior Associate 25 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 Senior Associate 20 March 2019
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How the Banking Royal Commission will change the Australian regulatory landscape
The final report brings Australia's Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to a close, with a series of 76 recommendations. In an election year, this promises to reshape the regulatory compliance and enforcement landscape for the entire industry.
Jason Oliver Counsel 15 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 Drake Lawyer 4 March 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 Senior Associate 26 February 2019
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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 Lawyer 31 January 2019
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Insider trading: What amounts to material non-public information (MNPI)?
The question of whether information amounts to materially non-public information (MNPI) is always a challenging one.
Janice Goh Partner, Cavenagh Law LLP* 25 January 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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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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AML failings and senior managers: what if senior managers don't have AML experience?
The FCA has again made clear that inexperience is no excuse when it comes to failings in the UK regulatory environment. But what if senior managers lack experience in an area for which they are responsible?
Ellen Lake Senior Associate 5 December 2018
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