Jilan Shah

If you have to look at commercial or financial contracts, in particular, force majeure clauses which contain reasonable endeavours provisos, read on.... In RTI Ltd v MUR Shipping BV, the UK Supreme Court unanimously overturned the split Court of Appeal decision and held that reasonable endeavours does not require a party to accept non-contractual performance (in this case payment in another currency), providing much needed clarity on this very fundamental point as a matter of principle. https://lnkd.in/euWvapN4

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Last week the FCA published a detailed roadmap setting out its timeline for making cryptoassets a fully regulated asset class by 2026. The FCA roadmap follows a speech made on 21 November by Tulip Siddiq, the Economic Secretary to the Treasury, in which she said that the Labour government intends to proceed with the previous government's proposals to regulate cryptoassets. Rather than rolling out the regime in two phases as originally anticipated, the government intends to implement the new regime for stablecoins and other cryptoassets at the same time, and it has scrapped plans to bring stablecoins into UK payments regulation. For a timeline and analysis, see the latest blog post from Freshfields by my colleagues Cyrus Pocha, Claire Harrop and me. https://lnkd.in/eD9b2jz3

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On 30 September 2024, the Bank of England (the “Bank”) and the Financial Conduct Authority (the “FCA”) announced that the Digital Securities Sandbox (the “DSS”) is now open for applications. The Bank and the FCA have also published a policy statement (the “Policy Statement”) in response to the consultation earlier this year on the implementation and operation of the DSS, (the “Consultation”), as well as final guidance on the DSS, relevant online application documents and the rules applicable to firms who have passed through Gate 2 to the Go-live stage of the DSS. Following feedback received to the Consultation, the Bank and the FCA have made some targeted changes to the DSS, including extending the scope to include non-GBP denominated assets, providing more flexibility to the firm-specific limits at the go-live stage and adding an optional third Gate 3 progress review window to ensure that firms are not stuck at the Go-live stage for an extended period of time.

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Bank of England set for August interest rate cut – but general election means doubts linger : When the rate cut eventually comes, it’ll be the first since early 2020. Since the last MPC meeting, two rounds of labour market updates have been released as well as April’s inflation figures. The figures reveal worryingly high levels of inflationary persistence. Annual wage growth is still running around six per cent, more than twice the level which is consistent with inflation remaining at the two per cent target. Likewise, services inflation is still around six per cent. #wagesandsalaries #employmentlawuk via City AM

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The SRA have now updated their sanctions guidance - the key changes are: 💬 References to the newness of the sanctions regime have been updated throughout to reflect its more established status. 💬 The document has been restructured to move key information relevant to all firms to the top, followed by specific guidance for firms operating under the sanctions regime. 💬 Additional feedback showcasing good practices from recent sanctions inspections has been incorporated throughout. 💬 Controls for all firms: A new case study has been added to illustrate how firms may inadvertently become involved in the sanctions regime. 💬 Red flags for attempted circumvention of the sanctions regime: Updated red flags now include self-reporting responsibilities and the need to screen staff during onboarding. 💬 Reporting requirements: These have been clarified, and a new section has been added on when you must report to us. 💬 Licensing: Further clarification on staying compliant with licence responsibilities has been provided. 💬 Other resources: We have updated links to external information. Read the updated guidance here: https://lnkd.in/etujhPEb HiveRisk = Strategy - Compliance - Innovation for Law Firms #regulatorycompliance #lawfirms #aml #amlcompliance #sourceoffunds #sra #legal #compliance

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FCA joins other regulators to warn firms on debt collection News stories First published: 18/03/2024 Last updated: 18/03/2024 Share page Together with Ofgem, Ofwat and Ofcom, we've set out our expectations for firms across markets, as many consumers feel the strain from cost of living pressures. We’ve joined forces with other regulators to call on firms to improve debt collection practices. This is especially important as many consumers continue to feel the strain from cost of living pressures and risk falling into arrears. Together with Ofgem, Ofwat and Ofcom, we've set out our expectations across markets, urging firms to: make sure customers in debt do not receive excessive communication use supportive language clearly signpost free debt advice make it easy for debt advisers to contact them on behalf of clients The expectations are based on the comprehensive rules and guidance already in place in financial services. The Consumer Duty has set a higher standard of consumer protection, building on guidance for how firms should support vulnerable customers and borrowers in financial difficulty. Where firms fail to meet the high standards we expect, we take robust action. In 2020, we fined firms a total of £90m for failures in how they treat customers in arrears, with firms paying over £570m in compensation to customers. We've also worked with nearly 100 lenders to improve the way they treat customers in difficulty, securing almost £60m in compensation for 270,000 customers. To protect consumers dealing with the cost of living squeeze, we've also: reminded 3,500 lenders how we expect them to provide tailored support to borrowers who get into financial difficulty updated our rules to support key commitments made by lenders as part of the Government’s mortgage charter, building on our guidance for how lenders can help customers worried about keeping up with payments overhauled overdraft charges, saving consumers nearly £1bn banned providers of debt advice from receiving referral fees from debt solution providers, saving consumers struggling with debt thousands of pounds in unnecessary fees and ensuring they receive better quality advice warned banks to improve the way they treat small business owners when collecting and recovering debts warned insurers to protect customers from unnecessary products or add-ons and unfair penalties  Was this page helpful? Yes No Accessibility Complain about us Copyright notice Corporate responsibility Cymraeg Freedom of information Modern Slavery and Human Trafficking Statement Privacy Sitemap Translated languages Social LinkedIn RSS Feed

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The FCA's New UK Listing Rules: Key Changes and Implications for Equity Capital Markets * The UK Financial Conduct Authority (FCA) has introduced new UK Listing Rules, effective from 29 July 2024, aimed at creating a more accommodating regulatory environment for a wider range of companies seeking a listing in the UK, particularly high-growth companies. * The new rules merge the current premium and standard listing categories into a single category for equity shares of commercial companies admitted to the Official List, simplifying admission criteria and ongoing obligations. * Key changes include a reduction in admission eligibility criteria, such as the removal of the requirement for a three-year financial and revenue-earning track record, potentially enabling earlier listings for high-growth companies. * The new rules introduce more flexibility in dual/multiple class share structures, allowing individual founding investors, employees, and directors to hold enhanced voting rights at the time of IPO. Pre-IPO institutional or corporate investors can now hold the enhanced voting rights for a maximum of 10 years. * The FCA aims to strike a balance between accommodating innovation and growth while ensuring appropriate investor protection, with specific safeguards for certain Listing Rules matters. https://lnkd.in/gKNX9X5U

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Please take a look at the latest edition of Financial Crime Watch, where our Financial Services and Regulatory experts give their thoughts on Starling, what recent FCA speeches are telling us about the direction of travel and much more

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Barclays Bank UK PLC v Terry & Anor In this series of two articles, James Hall and William Golightly discuss points of interest arising from the recent case Barclays Bank UK PLC v Terry & Anor (“the Barclays litigation”, “Barclays” and “Mr and Mrs Terry”) in which James and William were counsel for the defendants. The first article discusses a point of substantive law (the court’s exercise of its equitable jurisdiction to rescind disposition made as a result of a unilateral mistake) the focus of the second article will be procedural (re: representative claims under CPR 19.8). To access both articles, please click below ⬇️ https://lnkd.in/enUHue4w #litigation #CDR #barristers #ai #commerciallitigation

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The FCA has published its expectations on registered or regulated firms partnering with unregistered cryptoasset firms, which may be illegally promoting to UK consumers. #crytpoassets #regulation

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We have recently seen the PRA issue CP11/24 which contains draft guidance on its approach to booking models which will apply to both branches and UK trading banks. There is a lot of detail in the draft text and I think that it raises a number of policy issues. Please find link below to a thought piece on some of these. https://lnkd.in/dZ4XDvgT

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The FCA published the findings from its review of firms’ compliance with ‘back end’ cryptoasset financial promotions rules which includes: - personalised risk warnings; - the 24-hour cooling off period; - client categorisation; and - appropriateness assessments The FCA found some examples of firms demonstrating good practice which it has shared in its good and poor practice to help firms get their compliance with the rules right. However, it also found multiple instances where firms did not meet the required standards. The FCA urges all firms to read its good and poor practice, as well as its previously published guidance. There is also a reminder that all firms communicating or approving financial promotions must make sure they have strong systems and controls for compliance in place. The FCA warns that if firms do not improve, it will act. It will also consider firms’ compliance with regulatory requirements, including the financial promotions regime, as part of any application to be authorised under the future financial services regulatory regime for cryptoassets. Find the link to the reports in the comments below

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Important weekend reading for anyone interested in systemic liabilities and the FCA's powers to compel redress.... Here's the case (for next weekend's reading) - https://lnkd.in/eBdXgSrG

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A recent decision of the UT (Lands Chamber) in Deane v London Borough Of Newham [2024] has highlighted important differences between the FTT (Property Chamber) Rules and the Civil Procedure Rules (“CPR”) which apply to the Courts and, in particular, how these differences affect the way in which the Tribunal should approach applications for relief from sanctions (e.g. breach of a Tribunal direction or deadline). In the context of the CPR, the Court of Appeal in Denton v T H White Limited [2014] had previously explained that efficiency in litigation and compliance with rules are to be given particular weight when considering relief from sanctions (i.e. a stricter approach). In contrast the UT in relation to the FTT (Property Chamber) Rules stated: “52. Nor should necessary considerations of efficiency and compliance be allowed to overshadow those aspects of the FTT's overriding objective identified in rule 3 which are missing from CPR 1.1. It might fairly be said that these emphasise some of the less muscular features of dealing with a case fairly and justly, including the avoidance of formality, the search for flexibility and the importance of ensuring, so far as practicable, that the parties are able to participate fully in the proceedings. 52. Of course, it cannot be suggested that those same considerations are irrelevant to doing justice in courts, but that is not a reason to diminish or disregard their special significance for tribunals. CPR 1.1 and rule 3 of the FTT Rules lean in subtly different directions in describing how justice is to be achieved. The differences which appear on the face of the rules are not accidental and should not be forgotten.”    The UT went on to hold that the FTT had erred in law by considering the appellant’s application in line with the CPR and not the FTT Rules. What’s interesting is that the approach taken in this case is at odds with that in Tax Tribunal cases where the rules are similar if not identical. In McCarthy & Stone (Developments) Ltd v HMRC [2014] the UT considered that despite the difference in wording between Tribunal Procedure (Upper Tribunal) Rules 2008 and the CPR that it should follow the approach in Denton (i.e. the stricter approach). That decision was endorsed by the Court of Appeal in BPP Holdings v Revenue and Customs [2016] and was not disturbed on appeal to the Supreme Court. I prefer the reasoning in Deane to that of McCarthy / BPP as it pays respect to the actual wording used in the FTT rules which clearly differ from that in the CPR. Nevertheless, for Tax cases the stricter approach as in Denton will continue to apply to such applications. ☹

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The FCA has released a suite of Dear CEO letters, providing sector-specific expectations for firms navigating CD closed products changes. These insights offer crucial guidance on key risks and compliance priorities. #FCA #Compliance #FinancialServices #RegulatoryM&A #RiskManagement

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Delighted to see my article on the trends in law firm funding published in Litigation Funding Magazine. The article reflects our experience advising both funders and law firms, as borrowers, on various funding arrangements for law firm portfolios and corporate loans in recent years.

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Court of Appeal Ruling in Houssein v London Credit Ltd: Key Lessons for Lenders In Houssein & Ors v London Credit Limited & Anr [2024] EWC, the Court of Appeal recently upheld a ruling deeming a 4% Default Interest rate on a £1.88M loan unenforceable as a penalty, offering critical guidance for lenders and legal teams. Key Findings 🔹Default Interest as a Penalty: Rates must be proportionate to the lender’s legitimate risk. A 400% increase from the Standard Interest (1%) was deemed excessive and disproportionate. 🔹Standard Interest Post-Repayment: Standard Interest didn’t apply post-repayment, as the agreement clearly distinguished it from Default Interest. Takeaways for Lenders 🔸Default rates must be commercially justified and proportional. 🔸Clear, unambiguous drafting of interest provisions is essential. 🔸Courts assess agreements holistically, emphasizing clarity and alignment with intentions. This decision reinforces the need to balance commercial risk management with legal enforceability in loan agreements. #FinancialServices #LoanAgreements #CourtOfAppeal #DefaultInterest #Lending

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