In Practice
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Prudential 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.
Modernising 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 2025Key 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 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 2025Paying for investment research: welcome rule relaxations for EU and UK firms
As part of wider moves to enhance overall competitiveness, the EU and the UK are both making changes to legislation and regulation to boost their jurisdiction’s attractiveness for listing and capital-raising. This includes proposals to loosen the existing research unbundling rules in an effort to increase the amount and quality of available research on companies, along with other measures to ensure visibility of that research so that potential investors have access to a wider range of investment opportunities. The research-related proposals aim ultimately to improve liquidity and growth prospects for small and medium sized (SME) companies.
12 January 2025German obligors in cross-border financing transactions
English lawyers must navigate a landscape of legal and practical considerations on financing transactions involving German obligors. This In Practice article outlines the critical aspects to be aware of.
12 January 2025Is the FOS being fair and reasonable in its approach to unaffordable lending complaints?
This article explores the Financial Ombudsman Service’s (FOS) approach to limitation periods applicable to customers’ allegations of unfair relationship under s 140A of the Consumer Credit Act 1974 (CCA). Is the FOS’s approach still “fair and reasonable”?
24 November 2024
