Overview  |  Advisory services (Examples of our work)  |  Contentious services (Examples of our work)  |  Financial crime (Examples of our work)

PROTECTING YOUR BUSINESS, YOUR REPUTATION, YOUR LIVELIHOOD 

Overview

Regulatory influence and intervention in the UK and international financial services markets is increasing. Businesses need to assimilate and adapt to the changes and recognise the impact this has on them. Europe has a strong influence on the UK financial services market and The Markets in Financial Instruments Directive ("MiFID"), to be implemented in the UK by November 2007, shows how European harmonisation will bring about significant changes to the Financial Services Authority's ("FSA") Handbook and will impact most regulated firms.

The enforcement powers of the Regulators are also increasing. In the UK, the Financial Services and Markets Act 2000 ("FSMA") created tough new powers for the FSA to investigate and sanction conduct which is in violation of the rules.

The FSA has been increasingly vigorous in exercising its enforcement and disciplinary powers against regulated firms and individuals, which is a trend that is likely to continue. In such a dynamic environment, advice from experienced practitioners is more important than ever.

Our team offers a wide range of advisory services, coupled with unrivalled expertise in financial services-related contentious legal matters. We also help financial services organisations deal proactively with the rise of financial crime and fraud.

Our team brings together financial services regulatory and litigation lawyers with practical experience, much of which has been gained in-house or from working for the regulators in the UK and overseas.
 

Michael McKee discusses the regulation of insider dealing with Jeff Randall on Sky News. Watch the video.

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Advisory services

The financial services advisory team includes lawyers with significant expertise gained from in-house roles with financial services organisations, and has extensive experience in relation to FSMA, the associated statutory instruments and the FSA Handbook.

We assist clients with the establishment of new businesses, the development of products and compliance with the raft of regulatory obligations to which they are subject. We draft and negotiate customer terms and conditions, client agreements and compliance documentation.

We advise on issues involving cross-border activity throughout the European Union and the United States. We have in-depth experience of issues involving close cooperation between financial regulators across the EU as well as the Securities and Exchange Commission in the US.

We track and analyse proposals for change in domestic and international financial regulation, together with our government affairs and media relations practice. We maintain close links with relevant regulatory organisations and EU institutions.

We have particular experience in providing advice and representation in the following areas:

• authorisations and permission to conduct regulated activities
• financial promotion
• customer and investment transaction documentation
• collective investment scheme arrangements
• managing conflicts of interest
• senior management and approved persons obligations
• regulatory capital issues
• training and competence requirements
• systems and controls, compliance manuals and procedures
• requirements relating to client money and assets
• mortgage and general insurance mediation
• outsourcing in the financial services sector

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Examples of our work

• advising a major overseas holding company in relation to the proposed acquisition of a UK private bank, including financial regulatory due diligence
• advising a US broker/dealer on the efficacy of its Chinese Walls in its London branch, and associated compliance arrangements
• advising an international bank in setting up its private banking business including reviewing compliance arrangements and advising on the requirements of the rules
• reviewing the activities of an international financial services group in the UK, including an audit of the activities of the business group against its permissions in order to assess whether it had the necessary range of permissions in order to carry on its business in the UK

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Contentious services

Our contentious matter team acts for firms and individuals subject to investigation by the FSA, and advises on  all stages of the process. We help clients deal with:

• notices of appointment of investigators
• documentation requirements
• interviews
• meeting with the FSA
• appearances before the Regulatory Decisions Committee
• referrals to the Financial Services and Markets Tribunal
• Warning, Decision, and Final Notices

We regularly conduct internal investigations prior to, or in conjunction with, parallel regulatory investigations for both retail and investment banks.

We have also been appointed as a 'Skilled Person' under section 166 of FSMA to report to the FSA on compliance with regulatory requirements, in particular on conduct of business and past business reviews.

We have particular experience in providing advice and representation in the following areas:

• internal investigations, regulatory investigations and enforcement actions
• alleged breaches of UKLA listing rules
• mis-selling and other sales practice-related complaints in the retail sector
• notifications to the FSA and other regulatory authorities following termination or other disciplinary proceedings against authorised firms and approved persons
• responses to suspected regulatory breaches and relationship management with the FSA and other regulatory and law enforcement agencies

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Examples of our work

• acting for a large financial institution which had failed an FSA inspection, dealing with serious systems failures, reviewing a significant number of customer files and remedying failures
• acting for a compliance officer who was the subject of FSA disciplinary proceedings. Following interview, the FSA withdrew all allegations
• representing non-executive directors in relation to an FSA investigation into the activities of a listed Company and advising on issues relating to corporate governance
• acting for a major retailer and individual board members in an FSA investigation into alleged breaches of the Listing Rules
• representing a senior former employee of a listed company before the Financial Services and Markets Tribunal in respect of an allegation of market abuse
• acting in relation to AMF insider trading proceedings in France involving an FSA-authorised firm and approved persons

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Financial crime

Financial crime includes any offence involving money laundering, fraud, dishonesty, or market abuse. The government's best estimate of the amount of money laundered in the UK each year is £25bn.

Financial crime is a growth area and one which all financial services organisations have to deal with. Having the appropriate systems and controls in place to prevent an organisation becoming the victim of financial crime is imperative.

In recent years prosecutors and regulators have targeted banks, financial institutions and professionals to combat money laundering and financial crime. There have been several fines levied by the FSA against firms for anti-money laundering systems failing, including personal fines against directors.

Members of the team are recognised as experts in financial crime issues.

We have provided advice and representation in the following areas:

• financial crime investigations, including fraud, money laundering and market abuse cases
• reviewing, auditing, advising on and drafting clients' anti-money laundering systems and procedures
• training requirements
• asset tracing, freezing and recovering assets representing the proceeds of fraud, both in the UK and overseas
• obligations under the Proceeds of Crime Act 2002, anti-money laundering reporting requirements and the need for organisations to be compliant and protected

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Examples of our work

• acting for a major retail bank in relation to a £15m fraud involving multi-party proceedings, injunctive relief, money laundering, and an international police investigation
• advising the Joint Money Laundering Steering Group on 2006 Revised Guidance Notes for the financial sector
• advising and drafting policies and procedures designed to combat financial crime for numerous financial institutions
• acting for National Westminster Bank in the reported cases of Squirrell Ltd v National Westminster Bank Plc [2005] EWHC 664 (Ch) and K Ltd v National Westminster Bank Plc & Others [2006] EWCA Civ 1039  involving money-laundering consent issues under the Proceeds of Crime Act 2002

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