Regulation

FSA secures another high-profile conviction for insider dealing

By Claire Ruckin | February 3, 2011

The Financial Services Authority (FSA) has secured a high-profile prosecution against a former Dresdner investment banker for insider dealing, in the latest crackdown on market abuse by the City regulator. Christian Littlewood has been sentenced to three years and four months in prison for eight counts of insider trading which occurred between 2000 and 2008 during his employment at Dresdner and most recently Shore Capital. During this time he accrued a total of £590,000 in relation to the charged offences.

1 minute read

A team of two - why GCs and chief compliance officers must work in tandem

By Legal Week | February 1, 2011

The role of the chief compliance (and ethics) officer (CCO) is currently a hot, if confused topic. What does she do - ensure good process or enforce strict compliance? To whom does she report - general counsel/chief financial officer or to chief executive officer/board? What is her role in shaping the company's voluntary adoption of ethical standards beyond what the law requires? This issue has been thrust into high relief by regulators and enforcers who, in light of various scandals, want a more independent compliance function in corporations. For example, changes in the US federal sentencing guidelines would give corporations extra credit if the "specific individual" in the corporation with "day-to-day operational responsibility for the compliance and ethics programme" has direct access to the board of directors.

1 minute read

Offshore: Keeping quiet

By Legal Week | February 1, 2011

Like other well-regulated jurisdictions, Guernsey's money laundering regime requires, in broad terms, that when a financial services business (FSB) suspects that one of its clients may be involved in money laundering, it must make a suspicious transaction report (otherwise known as an STR) to the Financial Intelligence Service (FIS), a joint unit of the Guernsey Police and Customs & Immigration Department tasked with receiving and analysing STRs. Common sense suggests that the utility of the STR would be greatly reduced if the FSB, as the same time as making an STR, could inform the client that it had done so. The client could then act to frustrate any potential action which might be taken by the FIS. For that reason, the International Monetary Fund's (IMF) Financial Action Task Force (FATF), among its 40 recommendations, included a recommendation (number 14) that businesses should be prohibited by law from disclosing the fact that an STR had been made.

1 minute read

£150m cap on fines for Tesco law breaches is 'too low', says SRA

By Suzi Ring | January 28, 2011

The Solicitors Regulation Authority (SRA) has challenged the £150m cap on Tesco law licensing breaches recently set out by the Legal Services Board (LSB). The SRA has questioned the maximum penalty recommended by the LSB last month, citing the miners' compensation case that saw 500 firms paid £1bn for acting for sick coalminers. A raft of firms involved later faced claims over their conduct in handling the work.

1 minute read

OTC regulation must avoid introducing systemic risk

By Legal Week | January 25, 2011

On 15 September 2010, exactly two years after the bankruptcy of Lehman Brothers, the European Commission (EC) published its Proposal for a Regulation of the European Parliament and of the Council on Over-The-Counter (OTC) Derivatives, central counterparties and trade repositories. It is aimed at enhancing transparency, withstanding shocks of the credit default swaps and reducing the overall vulnerability of the counterparty credit risk. It will enter into force on 1 July 2012. The main goal of the proposal is the establishment of central counterparties (CCPs) for OTC derivatives clearance and the creation of trade repositories (TRs) responsible for gathering data to identify, early on, where imbalances may be building up. The scope of the regulation is wide, laying down uniform requirements covering financial counterparties, non-financial counterparties (exceeding certain thresholds) and all categories of OTC derivatives.

1 minute read

K&L Gates adds two partners to London base

By Friederike Heine | January 19, 2011

K&L Gates has strengthened its project finance and regulatory practices with the hire of two partners in its London office. Project finance partner Matthew Kidwell joins K&L Gates from fellow US law firm Shearman & Sterling, where he was a partner in the energy team. He advises international oil and gas companies on all aspects of the energy chain including oil and gas exploration, production, refining, pipelines and transportation, regulation and power generation and transmission.

1 minute read

Senior SFO duo quit for moves to London offices of US firms

By Friederike Heine | January 18, 2011

The Serious Fraud Office (SFO) has rejigged its legal team following the departure of two senior officials for of counsel roles at US firms Covington & Burling and White & Case. The head of the SFO's anti-corruption team, Robert Amaee, has left the government body to join Covington & Burling as of counsel, as Covington moves to strengthen its London white-collar crime group.

1 minute read

Litigation & Regulatory Team of the Year

By Legal Week | December 7, 2010

Herbert Smith wins Litigation and Regulatory Team of the Year thanks to its work securing British Sky Broadcasting (BSkyB) damages of at least £272m from EDS following the botched installation of a customer relationship management (CRM) system. The firm was originally instructed by BSkyB in 2002, shortly after EDS was removed from its role as systems integrator. The challenge was to overturn a liability cap arranged at the outset of the deal that limited EDS' liability for damages to a maximum of £30m.

1 minute read

SRA set to review LPO regulation in wake of recent outsourcing deals

By Suzi Ring | November 30, 2010

The Solicitors Regulation Authority (SRA) is gearing up to carry out a review of legal process outsourcing (LPO), as the number of firms using external outsourcing companies for legal work increases. The body is considering conducting a "thematic review" to identify issues or risks that warrant regulatory changes or additional supervision. The prime focus for the SRA is to ensure that outsourcing legal work to an external provider does not absolve the law firm of responsibility for the matter outsourced.

1 minute read

Patchy regulation raises queries over Chinese imports

By Legal Week | November 2, 2010

Last year 990 'dangerous' Chinese products were identified within the European market and, with recent safety fears over cars, 'toxic' leather sofas, baby milk and ongoing issues with Chinese-imported toys, it sometimes feels as though the regulators are fighting a losing battle. However, China is now the European Union's main import trading partner. While this means that, inevitably, recalls are more likely to involve goods imported from China, some major changes to legislation and a number of high-profile cases offer reassurance.

1 minute read

Legaltech News

Virtual Try-On Technology: Practical Guidance to Mitigate Biometric Privacy Liability Risk

By David J. Oberly, Blank Rome | July 7, 2021

With regulatory and litigation issues surrounding virtual try-on technology, brands should take proactive steps to build out their biometric privacy compliance programs in order to mitigate their liability exposure. Fortunately, there are several key best practices they can implement today.

9 minute read

The Recorder

As California Moves Closer to Decriminalizing Psychedelics, Harvard Law Launches Research Center

By Karen Sloan | July 2, 2021

The law school's Petrie-Flom Center is launching the nation's first research initiative on psychedelics and the law.

3 minute read

The Recorder

Despite Dismissal of Facebook Suits, Lawyers Say an Antitrust Surge Is Still Coming for Silicon Valley

By Andrew Goudsward | July 1, 2021

Facebook notched a temporary antitrust win this week, but lawyers say bipartisan support remains for targeting Silicon Valley.

5 minute read

Legaltech News

Florida Could Be Next on the Docket for Outside Ownership of Law Firms

By Dan Packel | July 1, 2021

A Florida committee is recommending opening the doors to law firm ownership rules in the state, but it also acknowledged resistance among lawyers in the state.

4 minute read

New York Law Journal

Hemp and CBD Regulation: Beyond Delta-8 THC

By Alex Malyshev | June 29, 2021

In his Cannabis Law column, Alex Malyshev reviews New York's soon-to-be-finalized hemp and CBD regulations and their interplay with federal guidance.

7 minute read

National Law Journal

Kellogg Hansen Lands Temporary Win for Facebook in Antitrust Showdown

By Andrew Goudsward | June 28, 2021

The blow comes as the Biden administration is expected to step up antitrust enforcement of Big Tech.

3 minute read

Law.com

Where Is the Consumer In Consumer Privacy Legislation?

By Rita W. Garry | June 25, 2021

In the past several months, the amount of state legislative activity around consumer data privacy laws has been frantic, by state legislatures standards. So much so, it is not easy to discern the cause for all this effort.

8 minute read

New York Law Journal

Resolving Cannabis Disputes in New York

By Paul D. Sarkozi | June 24, 2021

The Marijuana Regulation and Taxation Act, legalizing adult use of cannabis in New York, has provided a framework for the potential multi-billion dollar, highly regulated industry but passage of the bill is only the first step before growers, distributors and retailers can legally sell cannabis to consumers.

8 minute read

The Recorder

Google's Ad Business Faces European Commission Antitrust Investigation

By Linda A. Thompson | June 23, 2021

Previous antitrust investigations into Google's search, mobile operating system and advertising services have resulted in billion-euro fines.

3 minute read

Legaltech News

Virtual, Augmented Reality Tech Has Arrived—But Isn't Receiving Special Regulatory Attention

By Victoria Hudgins | June 23, 2021

With indirect regulation, little public outcry and a tech industry eager to self-regulate, AR and VR platforms aren't likely to come under the scrutiny that technologies like AI have garnered over the past few years.

4 minute read