In Practice
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Business and human rights developments in the financial sector
Since the adoption of the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011, significant discussions have ensued around the responsibility of financial institutions to respect human rights across different types of transaction and business relationships. Unique challenges for the sector arise from the diverse range of investment types and asset classes, and the limited leverage financial institutions may have in relation to the conduct of co-financiers, investees and borrowers, particularly in the context of minority investments and syndicated financings.
07 April 2025Wirral v Indivior: a setback for securities law class actions
The rise of group securities litigation, often backed by third-party funders, has been a dominant theme of recent years. But just because more claims are being issued does not mean they are being won. The Court of Appeal’s recent judgment in Wirral v Indivior and Reckitt Benckiser [2025] EWCA Civ 40 illustrates the particular issues in bringing mass claims under the statutory regime for misleading market statements.
07 April 2025A defining moment for US digital asset policy
The recent Executive Order issued by President Trump on 23 January, titled ‘Strengthening American Leadership in Digital Financial Technology’ (the Order) represents a significant shift in US digital asset policy. With a clear emphasis on supporting the “responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy”, this Order outlines an ambitious regulatory framework, which we explore in this article.
07 April 2025Prudential assessment of acquisitions and increases in control: new-old guidance, particularly relevant for fund managers
The Financial Conduct Authority and the Prudential Regulation Authority have respectively published finalised guidance and a supervisory statement on prudential assessment of acquisitions and increases in control (the Guidance).1 The Guidance took effect on publication on 1 November 2024 and replaces the EU's Joint Committee Guidelines on Acquisitions and Increases of Qualifying Holdings in the financial sector that came into force on 1 October 2007.
This In Practice article summarises the Guidance and highlights areas relevant to fund managers.
Agency and AI: types of agents and what they do
AI agents are becoming common in technology firms and will soon be widely used in all firms. They are not necessarily agents in the sense that lawyers think of them.
02 March 2025Court of Appeal decision on Motor Finance: lenders’ secondary liabilities
There has been significany commentary following the Court of Appeal's decision in Johnson v FirstRand Bank LTD [2024] EWCV Civ 1282 regarding liability for undisclosed motor finance commissions. This is not surprising given the unexpected nature of the decision, its impact on the motor finance industry, and potential to impact other industries which use intermediaries remunerated by commissions from product providers. The decision will be reviewed by the Supreme Court in April.
This In Practice article examines the Court of Appeal’s approach to the lenders’ secondary liability for a credit broker’s breach of fiduciary duty, which we consider is ripe for criticism by the Supreme Court.
Key hedging considerations in negotiating intercreditor terms
In this In Practice article, the authors outline the benefits of negotiating flexible hedging terms in financing arrangements and demonstrate how certain key considerations can impact the ability of sponsors/borrowers to effectively implement their hedging strategies.
09 February 2025Interest deductibility: the “unallowable purpose” rule after Blackrock, JTI and Kwik-Fit
In this In Practice article the authors consider recent challenges to loans or related transactions where UK tax relief for the financing costs was denied.
09 February 2025Modernising the redress system: exploring the need for alternative processes
Following the announcement in the Chancellor’s Mansion House speech, the Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) on 15 November 2024 published a joint Call for Input (CFI) seeking views from stakeholders on “how to modernise the redress framework, so it better serves consumers and provides greater stability for firms to invest and innovate”. With the CFI response deadline having just passed and the FCA and FOS now reviewing responses, we outline the key issues to be addressed.
09 February 2025Car finance commission arrangements: implications for speciality finance transactions
In this In Practice article the authors explore the impact of consumer claims for rebate of commission on speciality finance transactions.
12 January 2025
