United Kingdom: Finance and Banking

The Prudential Regulation Authority has unveiled proposals for a new UK captive insurance regime designed to boost competitiveness and provide businesses with greater flexibility in managing risk. The consultation paper outlines a bespoke framework with lower capital requirements, faster authorisation processes, and simplified governance structures compared to Solvency UK.

Market participants employ four main credit risk transfer structures—bank-issued CLNs, SPV-issued CLNs, credit default swaps, and participation interests—each carrying distinct risk, regulatory, and funding profiles that require careful evaluation. Asset managers must navigate critical considerations including due diligence protocols, credit event definitions, and recovery rights to optimize returns. Recent Basel 3 re-proposals in the U.S. and regulatory developments in the E.U. and U.K. are res

The Financial Conduct Authority has published comprehensive final rules establishing an end-to-end regulatory framework for cryptoasset firms in the UK, marking one of the largest extensions of the FCA's regulatory reach in recent memory. With authorisation requirements taking effect in October 2027 and a critical application window opening in September 2026, firms operating in the cryptoasset space face significant compliance obligations including financial resilience requirements, market integrity provisi

The decision indicates that the minority creditors intend to bring a claim against the security trustee and majority creditors, in which they will seek to unwind an out-of-court restructuring

The Bank of England (Bank) has published its long‑awaited policy statement on sterling-denominated stablecoins and a draft Code of Practice for sterling‑denominated systemic stablecoin issuers...

The European Union's Listing Act package has introduced its final wave of changes to the Prospectus Regulation, fundamentally reshaping how debt capital markets participants must structure and present offering documents. These reforms include mandatory sequencing requirements, consolidated disclosure annexes, and new ESG-specific disclosure obligations that will affect issuers, underwriters, and legal advisors across EU regulated markets.

Scotland's Moveable Transactions Act 2023 has fundamentally transformed security enforcement and insolvency procedures by introducing statutory pledges and assignations. How do these new fixed security regimes expand practical enforcement options beyond traditional administration, and what boundary issues will insolvency practitioners need to navigate as secured creditor rights evolve?

The decision illustrates the margin of discretion afforded to lenders to include provisions to defend their legitimate interest in repayment.

In UK real estate finance transactions, high-net-worth sponsors are sometimes required to provide personal guarantees to lenders. These guarantees serve as additional security when lenders cannot fully recover debts from the underlying real estate, or when specific risks emerge that require the sponsor to take particular actions within defined timeframes. The personal guarantee creates a financial incentive for sponsors to fulfill their obligations and mitigate identified risks.

Herbert Smith Freehills Kramer LLP have published an article in Butterworths Journal of International Banking and Financial Law examining the increasing use of AI in financial services...

In a statement, the FCA explains that it is concerned about a number of risks it has identified among unregulated lenders, safe custody providers, money brokers and financial leasing companies...

The FCA's proposed remuneration reforms could fundamentally reshape how private equity sponsors structure management incentive plans in regulated financial services firms. While the changes promise greater flexibility...