Legal News

Competition policy The CMA has named three additional Senior Legal Directors, who will be responsible for leading and managing legal teams across the CMA’s programme of activity, working alongside the existing Senior Legal Directors—see further, press release The CMA has issued its reply to the Ministry of Housing, Communities and Local Government’s consultation on planned reforms and changes to the National Planning Policy Framework and the planning system—see further, CMA’s response NOTE— For an overview of all current competition law legislation, guidance and other policy movements, see further, UK competition law—ongoing legislation and policy tracker Subsidy control The Subsidy Advice Unit has agreed to produce a formal report advising the Department for Science, Innovation and Technology on its proposed subsidy for Bio NTech UK Limited—see further, report NOTE— For all decisions formally referred to the Subsidy Advice Unit under the Subsidy Control Act 2022, see...

Willoughby v Cole and another [2024] EWHC 1410 ( Ch) What are the practical implications of this case? It is not uncommon for minority shareholder-directors to be removed from office under CA 2006, s 168. However, when taking that course, the majority faces the very real possibility of an unfair prejudice petition and a compelled share purchase, which may inflate the valuation of the minority’s interest. As a result, majority owners often try to defend a director’s exclusion by pointing to every logged lapse, however old or insignificant, in an effort to blunt any assertion of unfairness. This judgment is a clear reminder that such misconduct must be both material and recent. Substantial but historic wrongdoing can be treated as forgiven—and hence relied on to support an unfairness claim—where it was known to, and waived by, the majority. The converse holds true as well. Timing and...

Original news Mr L ( CAS-40908- V9G4)—28 May 2024 Summary The PO has partly upheld a complaint regarding the non-payment of a dependant child’s pension. The pension scheme failed to apply the proper test, wrongly presumed that any employment barred payment, and ought to have asked extra questions about the complainant’s capacity to earn a living. The scheme had not misinformed the complainant about his entitlement to benefits, as it had never assured him that his application would succeed. The PO’s decision serves as a reminder that schemes must ensure they use the correct test when determining eligibility for a benefit in this case. What were the facts? Mr N’s father belonged to the Teachers’ Pension Scheme (the Scheme). Following his father’s death (when Mr N was a child), his mother was paid a widow’s pension. The Scheme awarded a dependant child’s pension where a member’s child was...

Putney Power Ltd and another v HMRC [2024] UKFTT 870 ( TC) The two companies were established by an investment manager to build and run power plants with capital raised through the EIS. Each company allotted shares on 4 April 2016 and sought from HMRC the issue of EIS compliance certificates. In 2020, HMRC determined that EIS relief was not available. The decisions rested on the conclusion that neither entity had commenced trading by the statutory deadline under the EIS rules, namely 4 April 2018. For the first appellant ( Putney), construction of its plant started in September 2017; however, due to the contractor’s delays, the facility did not become operational until August 2018. Ahead of the EIS deadline, Putney had entered into two electricity supply agreements, both expressed to take effect once the plant went live. The sole question before the FTT was...

Russia & Yukos ex-shareholders look to Next Era in US$50bn arbitral award Moscow argues that the judgment in Next Era Energy Global Holdings BV v Kingdom of Spain strengthens its position that the DC Circuit should not defer to the arbitrators in this matter and must instead determine for itself whether Russia ever consented to arbitrate the dispute. It is asking the court for leave to lodge additional briefing advancing that contention, while it urges the appeals court to restore its sovereign immunity defence in the case. At the same time, the former shareholders are likewise seeking to persuade and to convince the DC Circuit that Next Era supports their stance in the appeal before the court, asserting it confirms that an arbitration agreement between them and Russia exists under the Energy Charter Treaty, which the Kremlin signed previously. The ECT was the...

Mudan and another v HMRC [2024] UKUT 307 ( TCC) In August 2019, the taxpayers purchased a property in London and at first paid SDLT on the footing that it was a residential property. They subsequently amended their return, instead treating the property as non-residential. They contended that substantial work was needed before it was safe for them to live there. The works undertaken included: rewiring installing a new boiler putting a new roof over the boiler house repairing broken windows stripping out the kitchen tanking the basement clearing lots of rubbish from the house and garden Accordingly, they argued that, at the effective date, the building was not suitable for use as a dwelling and therefore was not residential property within section 116(1) of the Finance Act 2003. Following an enquiry, HMRC issued a closure notice...

See Q& A: Can a law firm have a compliance officer for legal practice ( COLP) who is an unqualified employee? Under the SRA Authorisation of Firms Rules, any authorised law firm must, at all times, appoint an individual as its COLP, with that appointment submitted to, and approved by, the SRA to satisfy regulatory requirements......

From 7 October 2024, UK payment firms moved under a fresh regime that compels them to reimburse fraud victims. For consumers, it feels reassuring, but it also marks a material shift in responsibility for providers. It sounds like a tidy fix for customers fatigued by relentless would‑be scammers, yet what liability do banks and payment companies actually bear? In brief, they must repay the great bulk of people duped into transferring funds to criminals via Authorised Push Payment ( APP) scams. In practice, that covers most instances where a person is coaxed into authorising a transfer to a fraudster. Banks and payment providers secured a notable win only weeks ago, persuading the Payment Systems Regulator ( PSR) to cut the maximum reimbursement from £415,000. Under the PSR’s final framework, APP fraud victims can claim up to £85,000. The payer’s provider, which sent the funds, and the...

On 4 October 2024, the Investment Association ( IA) set out proposals addressing costs, tax and regulation, aiming to help make the national pensions system operate more efficiently. Representing UK investors overseeing £2.2trn for pension schemes and £1.1trn via insurers, the association issued its report in reply to a call for evidence from HM Treasury and the Department for Work and Pensions as part of their pensions investment review, covering workplace pensions and the local government pension scheme. In the paper, the trade body argued that folding smaller pension schemes into bigger entities to boost efficiency, broaden investment exposure and bolster governance would be insufficient. It said: ' Explicitly embrace the concept of 'sophisticated scale', with an emphasis on the importance of strong governance, accountability and appropriate investment expertise as the starting point for success, regardless of size or legal delivery...

Mergers The Commission authorised: the purchase resulting in joint control over Joyn International NV by KBC Bank NV and BNP Paribas Fortis NV ( M.11678), following a Phase I inquiry—see further, Midday Express the transaction conferring joint control over Planet Koper by ALFI RE and ERSTE ( M.11687), following a Phase I inquiry—see further, Midday Express......

Motorola Mobility LLC and another v Ericsson Ltd and another [2024] EWCA Civ 1100 What are the practical implications of this case? Practitioners and industry participants engaged in negotiating SEP licences will note the relationship between FRAND licensing undertakings and the discretionary remedy of an interim injunction. The court offered helpful observations likely to matter in forthcoming FRAND contests: when assessing whether to grant injunctive relief for infringement of a UK patent, loss arising from a party’s pursuit of overseas patent rights through injunctive measures was not something to weigh, as expressly stated by the court in this decision for clarity......

By contrast, domestic corruption matters are frequently reviewed on appeal all the way up to and including the highest court in the land—often trimming prosecutors’ scope to use federal statutes to charge certain domestic behaviour that many would, in everyday terms, regard as corrupt conduct. At the same time, more individuals are taking FCPA cases to trial and being convicted on those counts. For example, most recently, Glenn Oztemel was found guilty by a jury in the US District Court for the District of Connecticut on 26 September 2024 on FCPA charges brought against him. Against that backdrop, a natural question is what effect, if any, a narrowing of domestic corruption statutes might have on the FCPA, should an FCPA case ultimately reach the Supreme Court. In this article, we assess the potential application of three recent Supreme Court decisions to the FCPA...

Original news: Mr S ( CAS-52887– B6H4) – 8 July 2024 Summary The PO has partly upheld a complaint concerning a scheme’s pension transfer due diligence. The complainant first applied to transfer before the Pensions Regulator ( TPR) released its Scorpion guidance, then revived his request once that guidance was in force. The scheme ought to have identified several red flags, and its failure amounted to maladministration. Nonetheless, the scheme had sufficiently cautioned about the risks of pension scams, and the complainant would, in any case, have proceeded with the transfer. The PO’s decision underscores the importance of warning members about pension scam risks. What were the facts? Mr S was a member of the City and County of Swansea Pension Fund (the Scheme)......

Addressing the Times Tech Summit on 1 October 2024, Feryal Clark underlined that the route—be it new legislation or a change to existing policy—has not yet been determined, though she anticipated a conclusion in the coming weeks, by year-end, in the very near future. She added that both are vital to the UK economy, so the issue must be settled; it has persisted far longer than it should for all parties concerned......

Revenue and Customs Commissioners v Professional Game Match Officials Ltd [2024] UKSC 29 What are the practical implications of this case? The Supreme Court has endorsed HMRC’s long-held stance on mutuality of obligations: there can be adequate mutuality to satisfy the gateway to an employment contract even where obligations exist only during periods when the putative employee is actually working for the putative employer. Although the nature and breadth of mutuality remain relevant within the overall status evaluation, the absence of continuing mutuality between assignments is not, by itself, a bar to someone being classified as an employee for tax while performing work for their engager. This may, in consequence, create a mismatch between the employment rights an individual accumulates (particularly those dependent on continuity and length of service) and that individual’s tax position. On control, the Supreme Court emphasised the crucial role of...

Parkdenton Ltd v Euro General Retail Ltd trading as Eurogiant [2024] IEHC 387 What are the practical implications of this case? Although the challenge failed, the ruling highlights the issues that can arise when evidence is introduced and then withdrawn, and the need for a carefully reasoned award. The judgment also underlines the importance of jurisprudence from other jurisdictions in arbitration matters. Both parties cited English authorities on applications under section 68 of the Arbitration Act 1996 ( AA 1996). What was the background? The dispute concerned a rent review in the lease of a retail unit......

Original news Mr S ( CAS-59986– N3Z2)–8 July 2024 Summary The PO dismissed a grievance concerning the method used to determine pensionable pay. The complainant, a deferred member of a public sector scheme, pointed to a court ruling which confirmed that training allowances are pensionable. He sought to rely on that judgment; however, the PO considered it reasonable to enforce a six-year limitation period for claims. Consequently, none of the complainant’s periods of active pensionable service fell within the applicable redress window, and his benefits therefore did not require recalculation. This determination underscores the weight of limitation defences in cases seeking retrospective benefits. What were the facts? ......

The FCA’s biggest fine of 2024 so far signals its expectation that financial crime controls at a scaling business must mirror the organisation’s size and complexity—something lawyers say did not occur at Starling. ‘ Starling’s case is a cautionary tale for those with ambitious plans to expand,’ said James Alleyne, legal director at Kingsley Napley LLP. ‘ Breakneck growth can be commercially tempting, but if it comes at the cost of compliance, firms put themselves and their customers at needless risk and can find themselves in difficulty with the regulator.’ Alleyne points to Starling’s breach of a voluntary requirement, or VREQ, as a particularly notable element of the matter. A VREQ is where a firm voluntarily asks the FCA to restrict aspects of its business activities. Practitioners often treat the “voluntary” tag as a euphemism for “voluntary or else”, although it is...

Mergers The Commission has given the green light to The TURNER Corporation’s acquisition of sole control over Dornan Engineering Holdings Limited ( M.11683) following a phase I review—see Midday Express for more. The Commission has also received the notification in KKR/ Baupost/ JV ( M.11763) under the simplified merger procedure. Note— For all active merger investigations before the Commission, see the EU mergers—ongoing cases tracker. Russia’s war against Ukraine Under the Temporary Crisis and Transition Framework, the Commission has approved a Romanian scheme (worth €500m) to support investments in new biofuel production capacities—see Midday Express for details. Note— For all Commission decisions adopted under the Temporary Crisis Framework, and the Temporary Crisis and Transition Framework, in the context of Russia’s war against Ukraine, see Conflict in Ukraine— EU State aid...

On 3 October 2024, AXA Climate, a unit of French insurer AXA Group, announced a new offer within its Altitude suite of climate services. The tool calculates the climate risk burdening corporate sites and operations, enabling better stewardship of climate strategies. Industrial players can, for instance, identify locations most vulnerable to climate threats and evaluate likely impacts. According to AXA Climate, as the severity and likelihood of weather-related hazards rise, companies must refine building design, adjust production workflows and strengthen site oversight. The service supports better adaptation planning across sites and operations......