Active risk meaning

Checklist Intensifying geopolitical conflict — including open hostilities, regional volatility, cyber interference and closure of sea lanes — can exert rapid, multifaceted strain on energy-sector contracts. This checklist offers a structured, practical approach to evaluating force majeure (FM) risk in an active conflict or war setting, and to judging whether FM can be effectively invoked under English law. It also maps how that assessment intersects with frustration and contractual termination rights, and sets out drafting considerations for parties to weigh in future transactions so that FM provisions expressly address war risks. It is intended for legal and commercial teams operating across oil and gas, LNG, trading, infrastructure and energy supply chains, where disruption frequently stems from direct physical impossibility at the point of delivery, or indirectly via upstream or downstream domino effects. The objective is not solely to test the viability of an FM claim, but also to enable informed, risk-aware choices in rapidly evolving conflict environments. This checklist focuses on FM arising from war-related physical and operational disruption....

In this issue: Banking and Finance case round-up Lending Security Debt capital markets Derivatives Regulation for derivatives lawyers Securitisation and structured products Restructuring Technology in banking & finance transactions Regulation for banking lawyers Scotland Daily and weekly news alerts New and updated content Useful information Banking and Finance case round-up Banking & Finance—November 2024 case round-up For a summary of the cases we flagged in Banking & Finance during October 2024, refer to News Analysis: Banking & Finance—November 2024 case round-up. Lending Re KRF Services (UK) Ltd [2024] EWHC 2978 (Ch) The judgment addressed a High Court application for an administration order, heard in that court, and centred on two key points of interest: (i) whether the sole director’s resolution to seek an administration order was effective; and (ii) the effect of the sanctions regime. On the first question, the court examined the company’s unamended Model...

Following a disorderly 2025—marked by shifting rules and unproven legal theories—2026 looks marginally more predictable, though no less tough. Businesses should anticipate ongoing growth in disputes, from greenwashing class actions to state‑led consumer protection cases. A fragmented regulatory scene—a tug‑of‑war between US federal and state authorities, alongside indecision within the European Union—will keep compliance complex for multinational companies. Greenwashing risk shifting from regulation to litigation Where we are For at least a decade, companies have encountered rising exposure from government enforcement and private actions over ‘greenwashing’—overstated or misleading claims about environmental benefits tied to products or corporate behaviour. Attempts on both sides of the Atlantic to toughen the rules—an update to the Federal Trade Commission’s Green Guides and the draft EU Green Claims Directive—have stalled. Meanwhile, consumer‑centred litigation is accelerating. Recently, firms across technology, food, fashion, airlines and other sectors have been hit with class actions alleging greenwashing, challenging claims ranging from carbon neutrality to green product labels. State attorneys general have also been active, notably in...

In this issue: Beyond Brexit UK, EU and international regulators and bodies Authorisation, approval and supervision Prudential requirements Operational resilience Complaints, compensation and claims management Financial crime and sanctions Consumer credit, mortgage and home finance Conduct requirements Investigations, enforcement and discipline Regulation of capital markets Regulation of derivatives Sustainable finance and ESG Banks and mutuals Investment funds and asset management UK MiFID II EU MiFID II Regulation of insurance Payment services and systems Fintech and cryptoassets LexTalk®Financial Services: a Lexis®Nexis community Dates for your diary Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts Beyond Brexit FCA updates guidance on the financial services contracts regime, temporary permissions regime and leaving SRO or CRO The Financial Conduct Authority (FCA) has refreshed its guidance covering the temporary permissions regime, the financial services contracts regime, and how firms...

A risk with employment cessation events is that they can be set off unintentionally, for example because the last remaining active member of an employer in a multi-employer defined benefit scheme has left. The Employer Debt Regulations, SI 2005/678 were amended with effect from 6 April 2008 to introduce grace periods, a device intended to help employers deal with accidental employment cessation events. For further information on employment cessation events and other section 75 triggers, see Practice Note: When is a section 75 debt triggered? When can a grace period be used? When can a grace period be used? An employer in a multi-employer defined benefit scheme may notify the trustees that it wishes to enter a grace period (by giving a grace period notice) if: that employer ceases to employ active members at a time when at least one other employer still employs active members, thereby creating an employment cessation event, and it intends to employ at least one individual who is an...

This Practice Note explores international regulatory cooperation with an emphasis on cross-border regulatory investigations. It outlines the Financial Conduct Authority’s (FCA) statutory obligation to collaborate with overseas authorities and the supervisory and investigatory powers it may deploy to support those authorities’ inquiries. It also explains how cross-border investigations operate in practice and offers practical guidance for individuals responding to an overseas regulator’s information request or engaged in concurrent cross-border investigations... Key points The FCA is legally required to cooperate with overseas regulators; this can range from supplying requested information to using its own investigatory powers on an overseas authority’s behalf The FCA retains discretion over the scope of its cooperation and is subject to defined limits on the assistance it may provide Early, proactive and inquisitive engagement can benefit recipients of information requests and those who are the subject of investigations Where domestic and overseas investigations run in parallel, careful coordination of information, steps taken and eventual outcomes with both UK and foreign...

Flexible loan structures In the wake of the financial crisis, mainstream bank lending pulled back, creating space for non-bank lenders (NBLs) such as insurers and real estate debt funds. Through 2012 and 2013, this gap allowed NBLs to consolidate their position and become established market participants. With confidence returning to the real estate investment market and banks re-entering from 2014, some NBLs, especially real estate debt funds, shifted up the risk spectrum away from the senior debt arena. This has produced a competitive environment for real estate debt across the capital stack. Banks, insurers and debt funds adopt different approaches, each targeting an optimum deal size, asset class and loan purpose. Four often-used flexible loan structures are: flexible senior loans stretched senior loans mezzanine loans preferred equity loans Flexible senior loans Banks are particularly active in this space alongside some insurers, although senior facilities have typically been provided at conservative loan-to-value, loan-to-gross development value and loan-to-cost ratios. Real estate...

Ahead of the firm’s strategic review and development, all [ equity ] partners are asked to complete this questionnaire. Please email it to [ insert name and email address ]. Return by: [ insert date ] [ Name OR Department ] [ insert name of respondent ] Vision/future What is your vision for the firm in five years? [ insert response ] Top challenges the firm faces What are the top three business challenges for the firm? Culture and values Please circle five options that best describe the firm: ambitious dynamic pro-active innovative business-like traditional client-focused unimaginative team-focused reactive successful under achieving efficient working in silos forward thinking lacking ambition declining modern struggling expanding SWOT Strengths Name three things the firm does well: ...

1 Introduction 1.1 Competition serves both enterprises and customers. It highlights where firms must raise their game; spurs organisations to chase greater efficiency, nurture innovation, boost productivity and, ultimately, become stronger businesses. 1.2 We conduct our business [ es ] with integrity and in an honest, ethical manner. All of us must act together to ensure [ it OR they ] remain [ s ] strictly within the limits of competition law. 1.3 This policy is central to that aim. It carries the full backing of the [ insert, eg board ]. It explains the measures everyone must follow to comply with competition law in our business. 2 What is competition law and how does it affect us? 2.1 Competition law exists to protect businesses and consumers from anti-competitive behaviour and to preserve effective competition. Every business must comply, and failure can bring serious consequences for companies and individuals, including directors. These may include substantial fines, prison sentences, director...

Date of review [Insert date] • Reviewer(s): [Insert name(s)] Business planning A current, market-aware plan with medium aims and short targets; covers succession, positioning and financial health; actionable, reviewed regularly; three‑year funded investment, suitable premises, flexible finances, and fit‑for‑purpose IT. Finances Prudent borrowing, three months’ cash, ongoing reinvestment and funded commitments without single‑funder dependence; balanced KPIs, WIP control and gross‑margin focus (~50% after partner ‘salary’); cash targets met; pricing, fees and spend reviewed; planned IT, marketing and training budgets. People Balanced senior/junior mix, shared business development and external challenge; competitive rewards aid recruitment and retention; broad skills training; future managers developed via exposure to planning, finance and decisions. Clients Profitable long‑term clients plus enough new wins; active cross‑selling; acceptable losses; diversified portfolio; regular, objective feedback; targets can pay, sectors show growth, and our niche positioning sustains advantage. Marketing Client needs asked...