GDPR[1] together with increasingly stringent data protection legislation in many jurisdictions presents a major headache for companies conducting investigations[2]. There are now significant challenges in lawfully reviewing employee data and doing so requires careful consideration and management of data privacy risks (and documentation of this process). Many organisations do not adequately manage these risks when conducting investigations but failure to do so may create new regulatory issues. Why is this an issue?…

On 9 July 2019, the FCA published its Anti-money Laundering (AML) Annual Report for 2018/2019. The report echoes Mark Steward’s comments in a speech earlier this year in relation to the FCA’s increasing focus on criminal investigations for money laundering. The newly published Report states that ‘some’ of the FCA’s current AML investigations are now dual track (i.e. investigations which may result in either criminal or civil proceedings). The FCA describes these dual track…

London Capital & Finance (LC&F), which collapsed in January 2019, was authorised by the FCA in relation to its promotional activities. However, the actual sale of mini-bonds by LC&F was not a regulated activity and so not typically protected by the Financial Services Compensation Scheme (FSCS), which has called into question the scope of protection for investors in these circumstances. In an encouraging development for investors, on 31 May 2019, the FSCS released a statement…

In a recent speech, FCA Director of Enforcement and Market Oversight Mark Steward again made clear that the FCA is prepared to use its power to bring criminal proceedings for breaches of anti-money laundering (AML) obligations set out under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017). Mr Steward stated that it was time for the FCA to give ‘effect to the full intention of the…

In this on-demand webinar, members of our Regulatory, Compliance and Investigations team in London, France, the US and Hong Kong give their thoughts on likely regulatory enforcement and sanctions trends for the rest of this year based on recent enforcement cases and forward looking statements from the regulators. Topics discussed include individual accountability, anti-money laundering and cybersecurity. To access the webinar, please click the below link and enter your details when requested.   https://event.on24.com/wcc/r/1900629/CE0C95915E3A7CF20DB873DC36966D7B…

On 1 April 2019, the FCA announced that there will be an independent investigation into the failure of London Capital & Finance (LC&F). The FCA stated that the investigation should cover: whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm; and the FCA’s supervision of LC&F. LC&F was the issuer of mini-bonds which it stated it used to make loans to corporate borrowers to provide capital for further…

The Financial Conduct Authority (FCA) has fined a multinational investment bank and financial services company (the Firm) £27,599,400 for failing to ensure it provided complete and accurate information to approximately 86 million reportable transactions and erroneously reporting 49 million transactions to the FCA. The Final Notice states that over a period of more than nine years, the Firm made 135 million errors in transaction reporting, which was in breach of FCA rules. The FCA found…