Nicola Bailey

Good insight into some events in the legal industry this week.

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Congratulations to LegalTechnology Hub Hub on joining forces with Legal Tech Consultants and expanding into full-service consulting! This strategic move will undoubtedly enhance their service offerings and provide greater value to the legal tech community. Exciting times ahead for the industry! #LegalTech #LegalInnovation

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📈Ogier's Funds team in Jersey has advised Geiger Counter Limited on its listing on Main Market of the London Stock Exchange. Geiger Counter Limited invests in the securities of companies involved in the exploration, development and production of energy and related service companies in the energy sector. The team was led by partner Niamh Lalor and managing associate Alexandra O'Grady with support from senior associate Stephanie Edge and associate Hugo Reid. 🔗Read the full press release via the link in the comment below 👇

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Rahman Ravelli partner Syed Rahman has written an insightful article that features on Lexology, examining the High Court's latest guidance on the 'ownership and control' test under UK sanctions law. This important judgment clarifies key aspects of sanctions compliance, particularly in determining whether a company is owned or controlled by a designated person. Syed’s analysis provides a clearer framework for assessing risks and ensuring compliance in light of this significant ruling. https://buff.ly/4cydrzj #uksanctions #legalinsights #sanctionscompliance #highcourtruling #regulatoryupdate #legal #law #lawfirm

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⚖ High Court hands down judgment on Jaffé v Greybull Capital LLP [2024] EWHC 2534 (Comm), following a 3-week, multimillion-pound Commercial Court fraud claim brought by the insolvency administrator of Wirecard. The Claimants had sought c. £12m in damages for deceit, alleging that a deliberate oral misrepresentation at a meeting in 2016 led to Wirecard Bank extending credit to Monarch Airlines (which subsequently became insolvent). Mrs Justice Cockerill DBE dismissed the case in its entirety. In her judgment, she considered the conflicting accounts of two “equally patently honest and truthful witnesses”, the inherent probabilities and the surrounding circumstances, and, notwithstanding a near-contemporaneous note of the meeting taken by one of the Claimants’ witnesses, concluded that the alleged misrepresentations had not been made. The Judge agreed with the Defendants that German law applied to the claim and considered and applied the German law of causation, concluding that even if the misrepresentations had been made, they had not been relied upon. Of particular interest is the Judge’s consideration of “Gestmin” and the matters raised by Popplewell LJ in his 2023 COMBAR lecture “Judging Truth from Memory”. John Wardell KC, instructed by Andrew Head, Bryan Shacklady and David Young (Forsters LLP) and leading Thomas Elias (Serle Court), acted on behalf of the successful Defendants. To read more, including the full judgment: https://lnkd.in/e4vR6q5u #CommercialLaw #CivilFraud #Litigation

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Breaking news on Law360 UK Top UK Court Blocks Gazprom Unit's Russian UniCredit Claim Britain's highest court upheld an injunction on Tuesday barring a Gazprom subsidiary from pursuing a €450 million ($480 million) claim against UniCredit Bank AG in Russia after the German lender withheld financing for the construction of gas processing plants because of sanctions. The Supreme Court dismissed the appeal by RusChemAlliance LLC, which sought to restart litigation in Russia with UniCredit over the bank's refusal to pay out under seven bond contracts owing to European Union sanctions imposed over the war in Ukraine. The decision by the five justices backs findings by the Court of Appeal that the decision by RusChemAlliance to litigate in Russia breached its agreement to arbitrate with UniCredit. Ruschem JSC is represented by @Alexander Gunning KC and Alexander Brown of One Essex Court, instructed by Enyo Law LLP. UniCredit is represented by Stephen Houseman KC and Stuart Cribb of Essex Court Chambers and Jonathan Harris KC (Hon.) of Serle Court, instructed by Latham & Watkins LLP. The case is UniCredit Bank GmbH v. RusChemAlliance LLC, case number 2024/0015 in the Supreme Court of the United Kingdom. Read more Law360 UK #sanctions #finance #energy #gas #electricity

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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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At the start of the week the Bank of England and the Financial Conduct Authority announced that the Digital Securities Sandbox is open for applications. Check out the article from my team at Hogan Lovells for everything you need to know about it (link in comments). In the meantime, here is a quick rundown of how the Policy Statement stacked up against 5 points that came out of our discussion with the Bank of England and the FCA a few months ago: ✅ We highlighted that firms that use digital assets within the DSS that fall under the definition of a cryptoasset under the MLRs will need to be registered with the FCA for MLR purposes. It is great to see that HMT has decided to bring the MLRs into scope of the FMI sandbox powers in FSMA 2023 and provide a temporary exemption so that engaging in DSS activity does not in itself make a firm a cryptoasset exchange provider or a custodian wallet provider under those Regulations. ❗ One of the shortcomings of the EU DLT Pilot Regime has been the thresholds that have been set out. With the DSS, we noted that there is a lack of transparency as to what the allocation of the overall limits are and therefore it is hard for firms to ascertain whether it is commercially viable to enter into the sandbox. It is reassuring to see that there is a new mechanism to allow the Bank to grant uplifts to the limits. However, it is important that the Bank use this mechanism to allow firms to trade with volume to not just make this commercially viable but also sufficiently test the infrastructure. ❗ We noted that the cost of operating in the sandbox is quite high. It is understood that these fees reflect the cost of the BoE and the FCA to stand up this function and that reducing fees could compromise the ability to effectively run this. However, there is a concern that this could price out some participants especially for those who consider the limits inhibiting from a commercial viability perspective. The BoE and the FCA have acknowledged this but kept it as is. ✅ The BoE Discussion Paper on innovation in money and payments noted that the BoE would not allow stablecoins or e-money to be used for wholesale settlements, which is reiterated in this Policy Statement. Whilst this is in some way disappointing, the Policy Statement does outline a number of other digital money solutions that are being pursued. ✅ With both the FCA and the BoE involved in the DSS, there was a suggestion that there should be a single point of contact for firms wishing to interact with the regulator as at present there is a fragmented approach which is over complicating the DSS. The Policy Statement acknowledged this and has ensured that the process is streamlined to avoid duplication however has reaffirmed its position that there will still be two distinctive assessments and no single point of contact. A lot has been taken on board and there is plenty to look forward to! Feel free to get in touch if you want to discuss any of this further.

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👀 Hogan Lovells enters the chat 👀 The London salary war continues to burn well as Hogan Lovells has just upped its NQ pay by £15,000 to £135,000 - surpassing the last remaining Magic Circle firm (Slaughters), who have opted to keep its NQs on £125,000. It's a great move in a lot of respects from HL as it: (i) keeps them in touching distance to Freshfields, Links, CC and A&OS; (ii) all but matches some other US firms such as Orrick, Jones Day and S&C; and (iii) adds some decent daylight between them and the chasing pack, namely HSF, Mayor Brown, NRF, Bakers, and Ashurst. The vital question of to what extent these rises have been made equal all the way up the PQE ladder will of course be an extremely important one, especially as the four MC firms that made the rise to £150,000 at NQ matched the £25k bump all the way up ladder. Stay tuned for updates on this. Slaughters - arguably above all other firms - are now going to come under even more pressure to raise its associate salaries, as will a host of other firms of course. I can't imagine this will be my last post related to salary increases in June - and potentially not even this week! https://lnkd.in/e6325N3P

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𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝘂𝗽𝗵𝗼𝗹𝗱𝘀 𝗛𝗠𝗥𝗖'𝘀 𝗙𝗶𝘅𝗲𝗱 𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 𝗿𝗲𝘃𝗼𝗰𝗮𝘁𝗶𝗼𝗻, 𝗿𝗲𝗷𝗲𝗰𝘁𝗶𝗻𝗴 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝘀𝘂𝗯𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝘀 (𝗟𝗲𝗳𝗼𝗿𝘁 𝘃 𝗛𝗠𝗥𝗖) Rowena Wisniewska and Isabella Taylor have written a case analysis in partnership with LexisNexis UK. Pensions analysis: In Lefort v Revenue and Customs Commissioners, the First-tier Tribunal (the FTT) dismissed the appeal by Mr Lefort (the Appellant) against the revocation of his Fixed Protection 2014 (FP 2014) certificate by His Majesty’s Revenue and Customs (HMRC). An FP 2014 certificate allows taxpayers to access the preserved lifetime allowance of £1,500,000 before extra tax is chargeable on their pensions. Eligibility is dependent on pension contributions stopping before 6 April 2014, but the Appellant’s former employer made contributions to the Appellant’s pension after the deadline. The Appellant argued the protection-cessation event in his case was a mistake eligible for rescission, an equitable remedy. The FTT declined to follow Hymanson v HMRC and held that the FTT cannot apply the tax legislation as if the High Court had ordered any equitable remedies. You can read the full analysis here - https://shorturl.at/fzHMw

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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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Mark Cooper and Tom Parry have added a new briefing to our Court Orders Hub. They look at HHJ Pelling KC’s recent judgment in CJSC Alfa Bank (Belarus) v Lek Securities UK Limited [2024] EWHC 804 (Comm), in which he refused to grant an applicant’s request for an interim proprietary injunction in respect of certain assets. Instead, the Judge issued a non-proprietary freezing injunction. He also accepted a cross-undertaking in damages that was expressly conditional on obtaining a licence from the Office of Financial Sanctions Implementation. The briefing looks at the practical implications of this decision for applicants, respondents, and third parties to freezing orders.    Read the full article: https://lnkd.in/eKG3jm9U   Visit our Court Orders Hub: https://lnkd.in/eM69Aw3Y           #ESCourtOrders #Litigation #Injunctions #FreezingOrders #AssetRecovery #CivilFraud 

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In the final instalment of our weekly Q&A series with LexisNexis UK exploring the top 10 questions asked by lawyers looking to move in-house from Private Practice; Karolina Mikulicz-Church and I are considering: 💥 Can you return to private practice after moving in-house? 💥 ❇ Having made the move in-house does not preclude you from returning to private practice although it is not a frequently trodden path.   ❇ Many lawyers we work with have successfully made this move, and the experience gained whilst in-house can be invaluable when returning to private practice. ❇ It is important to recognise that transitioning from in-house to private practice may involve a different set of challenges compared to your initial move. Be ready and prepared to effectively articulate the rationale for your move and how your in-house experience adds value to private practice clients. ❇ Some lawyers find that their in-house experience enhances their marketability, while others may need to strategically position their skills and experiences to align with the expectations of law firms.   ❇ Emphasise any commercial knowledge and practical experience gained during your time in-house. Clients often value lawyers who not only understand the law but can also provide strategic advice aligned with business objectives. ❇ Be proactive, maintain a strong professional network with solid relationships, and highlight the value you bring because of your in-house experience. ❇ Recognise that every career path is unique, and the process of returning to private practice may take time.   If you’re thinking about making the move and would like a confidential discussion, we'd love to hear from you. Drop us a line: 📧 [email protected] 📧 [email protected]

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Renée Wright and Ianthe Roper-Elliott discuss whether a legal process known as the Financial Markets Test Procedure could provide an alternative legal route for people seeking collective redress. In recent years, the UK legal landscape has seen a significant increase in group actions, allowing individuals to come together to bring same or similar claims against a defendant. Historically, there have been three main options available to people wishing to bring group actions: group litigation orders, representative action (or same interest 'opt-out' claims), and competition claims. https://lnkd.in/eirrn8tw

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Legal Newsflash! Addleshaw Goddard has hired three corporate partners from Pinsent Masons in London. London-based corporate partners Julian Stanier and Gareth Jones, and US securities partner Roberta Markovina, have quit Pinsent to join its UK law firm rival, people familiar with the matter told Financial News. 

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Is this a common sight in the corner of your fee earners' offices? If it is, you may now have to answer to the Solicitors Regulation Authority, as it is on the hunt for residual balances! Some firms have already been told that in January they will have to provide the SRA with details of any residual balances they have, but I suspect some are going to have to do some considerable work over the festive period to gather this information! Residual balances, as opposed to legitimate retentions, occur for a couple of reasons: 1. Fee earners don't do their job properly at the end of a matter. 2. Firms hold them to help finance their operations. When I used to prepare for visits to firms to carry out compliance reviews, one of the key documents I used to ask for was a list of residual balances because it provided so much intelligence around compliance operations, for example, failing to carry out file closing procedures, risks to client money, failing to assess client vulnerability/circumstances, etc. I have often said to firm managers that residual balances should be considered when looking at bonus payments and salary increases, and where they exist, adjustments downwards should be made; for some, hitting them in the pocket is the only way to get them to comply! Here are some of the questions being asked by the SRA: - What percentage of all current matters have residual balances? - How many current matters have residual balances? - What is the value of the largest residual balance your firm currently holds? - How long have you held the oldest residual balance you currently hold? - Which work category currently has the largest total value of residual balances for your firm? Any thoughts?

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𝗤𝘂𝗶𝗻𝗻 𝗘𝗺𝗮𝗻𝘂𝗲𝗹 𝗵𝗮𝘀 𝗿𝗮𝗶𝘀𝗲𝗱 𝗡𝗤 𝘀𝗮𝗹𝗮𝗿𝗶𝗲𝘀 𝘁𝗼 £𝟭𝟴𝟬𝗞 𝗶𝗻 𝗟𝗼𝗻𝗱𝗼𝗻 This follows a standout year for Quinn Emanuel which reported a 47% increase in revenue in January and saw the firm's average London partner profit rise to £5.3m. This adjustment to the firm's NQ salary bandings from £152,000 to £180,000 proves to be an 18% increase and is further complemented by the announcement that these increases will be applied to all the firms internal bandings up to 7PQE. It is also worth mentioning that this increase brings them level with Gibson Dunn at the top of the market for junior lawyer salaries in London and comes swiftly after Freshfields Bruckhaus Deringer’s announcement to increase junior salaries to £150,000. Expect more firms to follow suit in the weeks ahead.

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Oliver Woodhouse, senior associate and financial services regulatory lead in the commercial team and Andrew Roberts, trainee solicitor, recently presented at the second FinTech West masterclass, hosted by Barclays Eagle Labs. Our article provides a summary of the key takeaways from their session, covering everything from the challenges of securing FCA authorisation to the critical regulatory updates that FinTech companies need to be aware of. If you’re involved in the FinTech space and looking to ensure your compliance strategies are watertight, read our article below. https://lnkd.in/eC4_ZW9n #FinTech #FinTechWest #FinancialRegulation

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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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