Professional Indemnity – There may be trouble ahead

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It feels like 2014 again as the SRA pushes for an upheaval to the PII market amid benign conditions for insuring law firms. But with negligence claims mounting, how long can the calm last?

In what felt to many in the profession like a bureaucratic version of Groundhog Day, the Solicitors Regulation Authority (SRA) again issued a discussion paper on professional indemnity insurance (PII) in July. Groundhog Day, because the SRA put back on the table many of the proposals it had originally suggested around the same time last year, again suggesting a reduction in the minimum compulsory cover levels for PII from £2m-£3m to £500,000 and the requirement that law firms assess the PII cover level appropriate for their work themselves.

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‘It has certainly shown its teeth’: Fraud specialists fear SFO budget cuts put agency’s progress at risk

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The Serious Fraud Office’s (SFO) annual report has shown improvements on last year, both in its levels of activity and the number of convictions achieved but white collar crime specialists are worried that planned budget cuts of 34% will ‘put that progress at risk.’.

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Quindell suspends shares as financial watchdog launches probe into company accounts

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The Financial Conduct Authority (FCA) has confirmed it has launched an investigation into professional services company Quindell, looking at public statements made regarding the company’s 2013/14 financial accounts – covering the period it owned a raft of legal brands.

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FCA fines triple to £1.5bn in 2014 but drop off expected as regulators switch focus to individuals

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After the landmark fines issued to banks over Libor and foreign exchange market manipulation, the Financial Conduct Authority (FCA) saw the total value of penalties triple to £1.47bn in 2014. However, the increase looks to set a high-water mark as enforcement agencies switch attention to individuals.

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Simpson Thacher’s Glover: Tied up and tied down – a peculiar way to police the private funds market

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The financial crisis ushered a wave of new regulations aimed at mitigating systemic risk to the financial system. While no-one has been able to rationally point a finger at private funds as a cause of the crisis, the industry has nonetheless seen a dramatic rise in the level of regulation and scrutiny. As legal and compliance costs soar, one is hard-pressed to find a private fund manager or – perhaps more importantly – an investor welcoming these changes.

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Cultural revolution: will the UK Anti-Corruption Plan create a US enforcement regime?

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Michael West reports on how a shift in enforcement will herald a raft of new advisory work

At the tail end of last year, the government launched its long-awaited UK Anti-Corruption Plan, a disparate collection of actions, initiatives and priorities aimed at improving the UK’s transparency, strengthening investigation powers and toughening enforcement options. The strategy, if implemented, will mean an increasing workload for defence lawyers and further overhaul of companies’ compliance regimes.

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Q&A: Heath Tarbert, US banking partner at A&O, talks competing for regulatory work and if US regulators are setting the pace

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A year on from his move to Allen & Overy (A&O) from Weil, Gotshal & Manges, US bank regulatory head Heath Tarbert talks to Jaishree Kalia about the expanding influence of US regulators and why it’s easier for Magic Circle firms to compete for regulatory work.

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Clifford Chance leads for Barclays in ongoing Forex investigation as regulators levy £2bn fine on five banks

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Five banks have been collectively fined £2bn by UK and US regulators for failing to stop traders from trying to manipulate the foreign exchange market, in what constitutes the first settlement in a global investigation and the largest-ever imposed by the FCA.

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A chance to turn the corner for the SFO but a high-stakes test on ‘blockbuster’ cases could define its fate

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Michael West assesses the prospects for the agency after settlement of the Tchenguiz claims

He was always going to have a painfully full in-tray on taking over as head of the troubled Serious Fraud Office (SFO) a little over two years ago, but even against that context, the previous 12 months must have looked something like an annus horribilis to David Green QC. Lows during this period saw the Public Accounts Committee issue trenchant criticism of the body, important investigation documents misplaced and the chaotic collapse of the trial against Victor Dahdaleh.

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