Regulated Financial Services

We work closely with our top-ranked Islamic Finance team and our Islamic clients, advising on regulatory aspects of various structures from retail FS products to bespoke sukuk structures, developing solutions to ensure that our clients in this rapidly evolving sector are operating in accordance with UK regulatory requirements.

We can assist with and advise on the various B2C and B2B contractual arrangements that will commonly be entered into by wealth management firms including platform agreements, introducer and AR agreements, client agreements, fee agreements and terms of business and discretionary fund management agreements (reliance on adviser and agent as client).

Our employment team can advise clients on the specific issues that regulated status can raise in the context of employment and HR relationships. This includes drafting contracts and policies which take account of the regulated environment, particularly under SMCR, and advising on disciplinary issues involving certified and senior manager staff.

We can advise regulated firms on transformational technology projects and material outsourcing in the FS sector, including the specific requirements that apply to regulated firms outsourcing to a non-regulated partner (third party or intra-group). This is an increasing area of focus for the PRA and FCA, creating significant regulatory risk if requirements are not met.

We understand that retailers engaged in limited regulated activities (usually credit broking) need to take a proportionate approach when complying with their regulatory obligations.  Retail is a core focus of the firm, facilitated through our award-winning Retail and Consumer sector. As a result, we have significant experience in working with a number of large retailers in the UK to implement appropriate policies and procedures which ensure compliance but also allow retailers to get on with running the main business.

We can assist firms when the need arises to engage directly with the FCA/PRA on supervisory issues. This includes notifications to the FCA and/or PRA, requests for VREQs and helping firms to manage skilled persons processes. We will always look to work with the firm or individual to identify the appropriate strategy early in the process and then assist in executing that strategy.

Where a potential regulatory breach comes to light, we are experienced in advising firms and senior individuals on next steps.

At all times, we seek to mitigate both immediate and any potential legal, reputational and litigation risks on the horizon, drawing on our extensive experience and work within the regulator.

Disputes are an unfortunate fact of life for all businesses. Our disputes team are regulatory experts and are used to dealing with the key B2B and B2C disputes that consistently arise for regulated firms, including PI coverage disputes, customer claims and complaints and disputes between regulated firms. This includes current areas of focus in the sector such as APP fraud and claims concerning secret commissions.

Our Restructuring and Insolvency team are market leaders in advising investment firms, credit unions and other FCA regulated businesses which are in financial distress and are placed into either special administration or a standard insolvency process. This work focuses on two key areas. Firstly, advising directors of distressed investment firms on their directors’ duties, working alongside other advisers to ensure firms remain compliant and directors protected from personal liability.

Secondly, advising the appointed officeholders (eg Liquidators/Administrators) on the management  and workout of the insolvency estate. This includes advising on the default provisions within CASS 6, 7 and 11, making applications for waivers or amendments to CASS Rules, working alongside the FCA, FSCS and the Insolvency Service to mimimise the impact for Clients and the drafting and implementation of Custody Assets Distribution Plans, Client Money Pool distributions and a variety of other methods for the return of other Client Assets and the closure of cases.

Our financial services regulatory lawyers have significant experience of acting on the sell side and buy side for regulated businesses, from designing and executing buy-and-build strategies for PE-backed acquirers (and representing those businesses when taking in such investments), to representing SME founders on exiting businesses they have spent their career building. We also understand issues associated with operating or being part of a vertically integrated platform offering and valuation and consideration structures in the market. Our focus is always on working collaboratively to get deals done, whilst ensuring that our clients are adequately protected from key risks.