Professional and financial risks
The beginning of the end for UK resident "non-doms"?
George Smith specialises in defending claims against financial professionals, including accountants, independent financial advisors, brokers and pensions professionals. Ben Simmonds is an Associate in the Professional & Financial Risks team at RPC, specialising in defending claims and complaints for professionals within the finance sector.
Read moreMoney Covered: The Week that Was - 19 April
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreFOS Plans and Budget for 2024/25
We take a look at The Financial Ombudsman Service's strategic plans and budget for the upcoming year ahead.
Read moreFCA vehicle finance review - the road trip continues
The FCA has provided a brief update on its ongoing review of vehicle finance arrangements. Difficulties with data gathering have been noted and firms are reminded of the need to maintain adequate financial resources. A judicial review application is also revving its engine!
Read moreFOS' plans to charge CMCs – an update (or lack of)
We reported back in February that the Financial Ombudsman Service (FOS) had announced plans to begin charging case management companies (CMCs) a fee for bringing a complaint. The consultation closed in January, and we've been eagerly awaiting the feedback. Following the publication of FOS' 2024/25 Plan and Budget, it seems there may be another opportunity for feedback to be provided.
Read moreWhat does it meme? The FCA's published guidance on 'finfluencers'
The FCA has published their guidance on financial promotions on social media, highlighting how firms and individuals can ensure their marketing strategy remains compliant with existing obligations.
Read moreA call for evidence: simplification of the Tax Administration Framework
As part of its ongoing review of the Tax Administration Framework, the government has issued a further call for evidence in relation to HMRC's enquiry and assessment powers, penalties and safeguards (the Call for Evidence). This follows two previous consultation publications and works towards the government's wider objective "to simplify and modernise the tax system, tackle non-compliance, make the tax system fairer for taxpayers and to make the customs system better for traders."
Read moreLawyers Covered - March 2024
It can be tough for busy lawyers to find enough time to service clients, make it safely through the regulation obstacle course, win new work and keep up-to-date with developments, but we've got you covered! Welcome to the March edition of our Lawyers Liability & Regulatory Update, in which we highlight the last month's key developments affecting lawyers and the professional risks they face.
Read moreFCA Business Plan 2024/25: Regulator sets out its plan of action for the next 12 months
The FCA has published its Business Plan for 2024/25, outlining its objectives over the next 12 months to deliver what it promised in its 3-year strategy, launched in April 2022. The FCA describes an "ambitious programme" of work ahead, seeking to achieve better outcomes for consumers and markets.
Read moreSome rumblings but little thunder – the FCA's Thematic Review of retirement income advice
The FCA has published the long-awaited result of its Thematic Review into retirement income advice. Predictably, this highlights some areas for improvement but (dare we say) the overall tone is perhaps positive.
Read moreFOS cap increases to £430,000 and £195,000 for complaints referred on or after 1 April 2024
In a press release yesterday, FOS announced increases to the applicable FOS cap that will impact complaints referred to FOS on or after 1 April 2024. £430,000 will apply to complaints about acts or omissions by firms on or after 1 April 2019 where the complaint is referred on or after 1 April 2024 and £195,000 will apply to complaints about acts or omissions by firms on or after 1 April 2019 where the complaint is referred on or after 1 April 2024.
Read moreWhen breach gets you nowhere – Ickenham Travel Group Ltd v Tiffin Green Ltd
In a recent judgement the High Court reiterated the principle that breach of duty alone is not sufficient to succeed in a claim of professional negligence against an auditor. This highlights the importance of evidencing actual loss and a chain of causation.
Read moreFCA consultation proposes changes to enforcement investigations
The FCA has recently released a consultation paper proposing changes to how it carries out enforcement investigations. We consider the key proposals and how they may impact upon both firms and individuals under the FCA's regulation.
Read moreFCA reviews ongoing client services following Consumer Duty implementation
The FCA has made a request for information from a number of networks with a view to determining what further work is needed to ensure that ongoing services provide fair value under the Consumer Duty. It has also recently published a webpage with examples of good practice and areas for improvement.
Read moreLawyers Covered - February 2024
Lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreFixing up the rules: changes to the fixed recoverable costs regime coming soon to a White Book near you!
Practitioners are eagerly awaiting the first decisions to see how the Court deals with tricky issues such as the effect of the transitional provisions and assignment of a complexity band. In the meantime, the Civil Procedure Rules Committee and the Ministry of Justice have been busy refining the rules and the 163rd update to the Civil Procedure Rules has been published. We've read it all so that you don't have to and explain below what's new in the world of FRC.
Read moreClaims against auctioneers: (not) going going gone!
Auctioneers – daytime TV shows suggest they are a rather friendly, energetic bunch of people, but did you know they're facing an increase in professional negligence claims? We delve into what happens if complaints are made after the gavel falls.
Read morePension Ombudsman upholds complaint against SSAS trustee for investment decision
In a complaint made against Rowanmoor as administrator and trustee of a small self-administered pension scheme (SSAS) regarding investments made by the SSAS in The Resort Group, the Pension Ombudsman has rejected the complaint against the administrator but upheld the complaint against the trustee. The decision addresses the responsibilities of a pension trustee when making investments including the obligation to diversify assets and to avoid investments "attended with hazard". As the customer was also a trustee of the SSAS (which is always the case with a SSAS) the Ombudsman also considered the contributory fault of the customer, finding that the customer as trustee was responsible for 20% of the loss and in doing so putting to one side the principle that trustees are jointly and severally liable for acts as trustee.
Read moreFOS aims to remain cost-free for consumers – by charging their CMCs
In what is perhaps a sign that the cost-of-living crisis is impacting more than just you and I, the Financial Ombudsman Service (FOS) has announced plans to begin charging case management companies (CMCs) a fee for bringing a complaint – the aim being to balance the needs of consumers, with financial sustainability. What impact is this likely to have on consumers and those facing complaints at FOS?
Read moreVehicle finance – FOS driving review forward, but is anyone behind the wheel?
In this article, David Allinson, Partner at RPC, has teamed up with Alex Barry, Claims Director at Collegiate Management Services Ltd, to consider a recent Financial Ombudsman Service decision concerning discretionary commission arrangements and vehicle finance loans. FOS has now published a small number of Final Decisions on this topic, which have been picked up by Martin Lewis (MoneySavingExpert.com) and the FCA, and could have wide-ranging consequences for a number of different professions and their insurers.
Read moreLawyers Covered - January 2024
We hope 2024 has started well for all of you. A new year but some things remain constant - lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreVehicle finance complaints gather speed
Following on from our recent blog on the changes to the FCA's complaint handling rules for complaints involving discretionary commission arrangements, the FOS has now published dedicated webpages concerning such complaints.
Read moreInsolvency trends and implications for claims against D&Os and Insolvency Practitioners
Looking into the crystal ball at the start of the year to forecast future trends isn’t possible, but one common theme that we expect will continue to impact upon both directors and officers and insolvency practitioners (IP) is the increasing rise of corporate insolvencies.
Read moreMoney Covered: January 2024 - predictions for the year ahead
Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.
Read moreDirectors' Duties to Disclose Interests In Proposed Transactions: Not a one-size-fits-all approach?
The Court of Appeal has recently grappled with the contentious issue of when directors will be considered to have acted in breach of their fiduciary duties for having pursued a business opportunity for their own benefit. In the case of Humphrey & Anor v Bennett [2023] EWCA Civ 1433, the Defendants were the directors and the majority shareholders of a property development SME company (the Company). The Claimants were former directors and minority shareholders of the Company. The Claimants' claim against the Defendants was brought derivatively in the name of the Company (with the permission of the Court) under section 260 of the Companies Act 2006 (CA06).
Read moreLawyers Covered - December 2023
What could be more festive than our December edition of Lawyers Covered – so here it is, a gift from the Lawyers Liability and Regulatory Group at RPC, to all of you, our lovely readers! If you have any feedback or ideas for topics that you would like us to cover in the newsletter or in our seminars, please let us know. Happy holidays!
Read moreMoney Covered: The Year That Was – a round up of all the key developments from 2023
Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.
Read moreAn insurance broker's standard of care – Bridging the insurance knowledge gap, not quite Sherlock Holmes but the broker must follow up obvious gaps and uncertainties
In a recent judgment, the High Court looked at the scope of duty of an insurance broker in circumstances where the claimant/policyholder had insufficient cover following a warehouse fire. The judgment arguably does not break new ground, but serves as a useful reminder that an insurance broker should make sure it fully understands a policyholder's business to be in a position to properly consider relevant insurance, notes of meetings are critical and warnings in generic documents are unlikely to discharge any duty if the insurance broker does not know enough about the business to recommend appropriate cover or is otherwise on notice of risks that it does not look to cater for. The judgment also looks at contributory negligence where the claimant/policyholder did not adequately calculate turnover for the purposes of business interruption cover, finding that the claimant contributed to the underinsurance position it was left in and reducing damages by 20%.
Read moreLawyers Covered - November 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreSevere consequences: severance of success fee provisions in a CFA not allowed
In Diag Human v Volterra Fietta [2023] EWCA Civ 1107 , the Court of Appeal held that a firm of solicitors that had entered into an unenforceable conditional fee agreement (CFA) could not obtain payment by severing the offending terms of the agreement and nor was payment on a quantum meruit basis permitted for public policy reasons. The consequence of this was that their clients were entitled to the return of sums paid on account.
Read moreNavigating professional risks and opportunities facing the legal profession in an ever-changing legal and commercial landscape
The legal profession is undergoing significant changes, driven by a range of challenges and opportunities. In recent years, the legal landscape has experienced a period of transformation, marked by unforeseen challenges and emerging horizons. This transformation has been propelled by factors such as the COVID-19 pandemic, evolving regulations, the increasing prominence of environmental, social, and governance (ESG) issues, and the growing role of artificial intelligence (AI). In this article, we examine the risks that lawyers face due to these factors, including the Solicitors Regulation Authority (SRA) focus on addressing toxic workplaces and sexual misconduct, cultural shifts, and the implications of AI.
Read moreKey considerations crime and D&O insurers cannot a-fraud to ignore
The UK government is committed to reforming corporate criminal liability and making it "quicker and easier" to prosecute companies involved in fraudulent conduct. These reforms will no doubt be welcomed by many where the nature and scale of fraud in the UK has evolved significantly and now constitutes more than 40% of all offences in England and Wales. However, it will inevitably have an impact on insurers, especially the D&O insurance market.
Read moreLawyers Covered - October 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreFOS complaint data, an accumulation of decumulation?
FOS has published its half yearly complaint data for January - July 2023, this shows an increasing upwards trend in decumulation, life and pensions complaints which is only likely to continue.
Read moreOverview of the key risks affecting the Professional and Financial Risks market
Last month RPC's Professional and Financial Risks team hosted a panel discussion to address the evolving challenges and responsibilities faced by professional clients in the current economic landscape. Access our document to explore the key insights from the session.
Read moreWhat the fix?! Get up to speed in 10 minutes with our new video
The first video in our new Getting Up To Speed series is now available below.
Read moreLawyers Covered - September 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreSRA fining powers – putting the SDT out of business?
The SRA is on a mission to increase its powers to levy financial penalties. The last 12 months have seen a substantial increase in its fining powers, and a grant of unlimited fining powers in matters relating to financial crime and SLAPPs is imminent. The SRA has now dramatically upped the ante, seeking the power to levy unlimited fines in all cases of serious misconduct. With the Legal Services Board appearing supportive, the proposal has the potential profoundly to affect the enforcement of professional discipline within the profession.
Read moreMoney Covered: The Week that Was - 25 August
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreSetting aside a transaction for a mistake - does it work for tax schemes?
The doctrine of mistake can be a useful tool if a professional provides advice that the transfer of an asset can save tax and it turns out that the advice was wrong. In circumstances where the structure of the transaction adopted involves a gift, then if a taxpayer can establish mistake, it is possible to unwind the transaction and remove the tax liability altogether (including interest and penalties).
Read moreAFMs receive B+ from the FCA: Good but could do better
In the wake of the FCA's new consumer duty requiring firms to deliver good outcomes for consumers that meet their needs and offer fair value, it comes as no surprise that the FCA has 'followed up' on its July 2021 review.
Read moreA Principal's responsibility for an Appointed Representative – a tale of a summary judgment
A recent summary judgment application, successfully made by claimants against a principal, provided that the principal was responsible for the acts of an appointed representative under the appointed representative agreement and highlights the risks of an unclear appointed representative agreement. The judgment also provides some useful commentary when it comes to considering the court's approach to the critical but potentially difficult distinction between limitations on what an appointed representative can do and on how the appointed representative should do it.
Read moreDirectors' duties post Sequana – a differentiating factor?
As expected, the scope of directors' duties whilst a company is in financial difficulties has been the source of further consideration by the Court. The recent case of Hunt v Singh [2023] EWHC 1784 raised the question as to whether, following the Supreme Court decision in BTI 2014 LLC v Sequana SA, a director's duty to take into account the interests of creditors arises where the company is at the relevant time insolvent if a disputed liability comes to fruition. In Hunt, the disputed liability was to HMRC where the directors (wrongly, as it later turned out) believed that the tax scheme they were involved in worked.
Read moreMoney Covered: The Week that Was - 04 August
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreFix up, look sharp: FRC update
What's the latest on fixed recoverable costs in professional negligence claims?
Read moreMoney Covered: The Week that Was - 28 July
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreLawyers Covered - July 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreEnhanced Regulatory Supervision of Asset Managers in Europe – Greenwashing Risks
A common methodology has been developed by ESMA to allow national European regulators to share knowledge and experiences to facilitate convergence in how they supervise sustainability related disclosures.
Read moreMoney Covered: The Week that Was - 07 July
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreLawyers Covered - June 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
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