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This Practice Note outlines the law concerning criminal recklessness. The subjective test for recklessness Certain statutory and common law offences allow the prosecution to prove mens rea through ‘recklessness’. Put simply, recklessness is where the accused takes an unjustified risk that results in unlawful harm or damage. The House of Lords in R v G reaffirmed the subjective approach to recklessness. Before R v G, two distinct tests were used, depending on the offence charged: Subjective recklessness from R v Cunningham: the prosecution had to establish that the accused personally foresaw the risk. Objective recklessness from R v Caldwell: the prosecution only needed to show that the risk would have been obvious to a reasonable person, without proving the accused themselves foresaw it. In R v G, the House of Lords concluded that the objective test could operate unfairly where a defendant did not foresee the
This Practice Note examines the remedy of rescission, explaining when and in what manner a contract can be unwound (at common law, in equity and under statute) and thereby terminated and brought to an end. It covers the consequences and effects of rescission, the principal grounds for setting aside an agreement (misrepresentation, mistake, undue influence, duress, non‑disclosure, fiduciary misdealing and bribery) and the main obstacles to claiming rescission—affirmation, the intervention of third‑party rights and the impossibility of restitution. For further guidance on rescission in the context of misrepresentation, see Practice Note: Misrepresentation—rescission as a remedy. There are many ways in which a contract may reach its end; see: Terminating contracts—how and when a contract ends—overview for a brief and accessible summary, with links to the related further practical guidance, including Practice Note: Termination and expiry of contracts. For a table
What is a res judicata? A res judicata is a determination by a court or tribunal with jurisdiction over the cause of action and the parties, which finally disposes of the issues decided so they cannot be litigated again by those bound, save on appeal. Final judgments entered by default or by consent fall within this concept, whereas rulings on purely procedural points and any decision lacking finality do not. The doctrine’s aim is to bring litigation to an end and shield parties from being harassed by the same dispute twice. in personam—binds the parties and their privies in rem—binds all persons, privy or otherwise (ie a judgment binding the whole world) A party may rely on res judicata: as an estoppel to defeat an opponent’s claim or defence; and/or as the basis of their own claim or
The offence of causing grievous bodily harm with intent Wounding or causing grievous bodily harm (GBH) with intent can be tried solely in the Crown Court on indictment. Elements of the offence Under the Offences against the Person Act 1861 (OATPA 1861), the prosecution must establish that the defendant unlawfully and maliciously: wounded with the intention of causing GBH, or caused GBH with that intention, or wounded intending to resist or prevent the lawful arrest or detention of any person, or caused GBH intending to resist or prevent the lawful arrest or detention of any person ‘Unlawfully’ and ‘maliciously’ Unlawfully The wounding or causing of GBH must be unlawful. Such conduct may be lawful if used: in self-defence in defence of another in defence of property for the prevention of crime where the victim gave express or implied consent For further information on these defences, see below:
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Practice Note This Practice Note has been archived and is no longer being updated. It summarises the former civil/regulatory framework that governed market abuse and insider dealing prior to the Market Abuse Regulation ( EU) 596/2014 taking effect on 3 July 2016. That framework applies to breaches and civil offences under the FSMA 2000 that took place before 3 July 2016. Insider dealing and market manipulation may amount to market abuse......
Application and purpose of the client money distribution and transfer rules The client money distribution framework was overhauled on 1 January 2013 to meet the requirements of articles 39 and 48 of the EU European Market Infrastructure Regulation ( Regulation ( EU) No 648/2012, OJ L 201, 27.7.2012) ( EU EMIR). Following the UK’s departure from the EU, this legislation was kept as the retained European Market Infrastructure Regulation ( UK EMIR) (see Impact of Brexit on CASS and the FCA’s powers and requirements below). Subsequent modifications were introduced in July 2013 through policy statement PS14/9: Review of the client assets regime for investment business, implementing consequential revisions to the client money distribution provisions prompted by the extensive range of proposed amendments to the client money rules set out in PS14/9. Material further changes were made in July 2017 via policy statement PS17/18: CASS 7A and the...
Background to the The collapse of firms including Lehman Brothers International ( Europe) ( LBIE) in 2008 and MF Global UK Ltd in 2011 triggered complaints about the Financial Services Authority’s ( FSA) rules in the Client Assets Sourcebook ( CASS), as insolvency practitioners struggled to obtain information and records for client money and custody assets ( CMCA). At the time, these events highlighted problems in accessing information and records, and the limitations in the existing framework. Consequently, the FSA — the predecessor to the Financial Conduct Authority ( FCA) — concluded that CASS compliance standards at numerous firms were inadequate. In 2010 the regulator therefore moved to strengthen its client asset regime by refining the CASS provisions (see, for instance, consultation paper 10/09, Enhancing the Client Assets Sourcebook) and by allocating greater resources to the safeguarding of CMCA, for example by creating the Client Asset Unit to...
This Practice Note sets out an overview of the nature of building societies and mutual organisations, the legislation that supports their existence, and the activities they are allowed to undertake... Nature of a building society The principal statute regulating the activities of building societies is the Building Societies Act 1986 ( BSA 1986), as amended by the Building Societies Act 1997 ( BSA 1997) and the Building Societies Act 1986 ( Amendment) Act 2024 ( BSA( A) A 2024)... A building society is a financial institution whose core business is offering savings accounts and mortgages. Building societies operate on a mutual basis. As a result, most customers with a savings account or a mortgage are also members and enjoy rights to: vote receive information attend and speak at meetings Each member has a single vote, irrespective of how much they have invested or...
The Bribery Act 2010 ( BA 2010) Enacted to secure the UK’s adherence to the Organisation for Economic Co-operation and Development’s ( OECD) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the Bribery Act 2010 ( BA 2010) delivers an effective framework to address corruption across public and private spheres, updating the UK’s anti-corruption regime and supplanting Prevention of Corruption Act 1906 and Prevention of Corruption Act 1916. BA 2010 carries significant consequences for any company incorporated in, or trading from, the UK. Its global reach covers bribery undertaken by a business, or by third parties acting for it, regardless of where in the world the conduct occurs......
Brexit-related financial services statutory instruments ( SIs) This tracker compiles all Brexit-related financial services statutory instruments ( SIs) and, for each SI, provides: explanatory memoranda additional information links to primary sources Most financial services SIs have been issued by HM Treasury under the European Union ( Withdrawal) Act 2018 ( EU( W) A 2018), to make sure the UK retains a workable financial services regulatory framework when the UK departs the EU in a no-deal Brexit scenario or upon the conclusion of any relevant transition period. The government has also introduced further regulations under the Sanctions and Anti- Money Laundering Act 2018, so that sanctions in force in the UK under EU legislation and related UK regulations continue to operate effectively......
This Practice Note offers high-level guidance on Assimilated Regulation ( EU) 2016/1011, commonly referred to as the UK Benchmarks Regulation. For a fuller overview, see Practice Note: UK Benchmarks Regulation—essentials. Proposed Specified Authorised Benchmarks Regime On 17 December 2025, HMT released the consultation, Future regulatory regime for benchmarks and benchmark administrators, proposing to replace the UK Benchmarks Regulation with the Specified Authorised Benchmarks Regime ( SABR). Under SABR, regulation would apply only to benchmarks and administrators that present systemic risks to UK financial markets. For details, see Practice Note: UK Benchmarks Regulation—essentials— Proposed Specified Authorised Benchmarks Regime. Background to the UK Benchmarks Regulation Benchmarks are crucial to the pricing of many financial instruments and to both commercial and non-commercial contracts. After reports of manipulation across a range of benchmarks, including LIBOR, widespread concerns emerged about benchmark integrity, leading regulators to undertake...
This concise guide explains which UK enactments and retained EU measures were altered and/or repealed by the Benchmarks ( Amendment and Transitional Provision) ( EU Exit) Regulations 2019, SI 2019/657 (the Benchmarks Exit Regulations), together with other instruments at the close of the implementation period following the UK’s departure from the EU, and highlights matching updates to the Financial Conduct Authority’s ( FCA) rules and guidance. Overview of onshored and preserved EU-derived law post- IP completion day The Benchmarks Exit Regulations were laid on 25 March 2019. They sat within HM Treasury’s series of statutory instruments made under the European Union ( Withdrawal) Act 2018 ( EU( W) A 2018) to provide contingency arrangements for a no-deal Brexit. As part of the wider effort to onshore EU law, they aimed to maintain legal continuity once the UK left the EU. The EU( W) A 2018 was later...
This Practice Note provides high-level guidance on the administration regimes for UK banks, investment firms, building societies and investment banks under: the Banking Act 2009 ( BA 2009) the Building Societies ( Insolvency and Special Administration) Order 2009, SI 2009/805 ( Building Societies Order 2009) the Investment Bank Special Administration Regulations 2011, SI 2011/245 ( IB Regulations 2011) Banking Act 2009 BA 2009 was devised to reinforce the resilience of the UK financial system and to promote financial stability by bolstering depositor protection and introducing mechanisms to tackle banks in difficulty. Among other measures, BA 2009 established a special resolution regime ( SRR). The SRR confers powers on HM Treasury, the Prudential Regulation Authority ( PRA), the Financial Conduct Authority ( FCA) and the Bank of England ( Bo E) to address issues concerning banks, banking group companies, investment firms, building...
Publication and approval In this Practice Note, ‘bank’ denotes a UK institution authorised under Part 4A of the Financial Services and Markets Act 2000 ( FSMA 2000) to conduct the regulated activity of taking deposits (as defined by FSMA 2000, s 22, read with Schedule 2 and any order made under FSMA 2000, s 22). Any later references to ‘bank’ also cover a resolution company. Following the failure of Silicon Valley Bank, the government consulted on additional reforms and, in May 2025, enacted the Bank Resolution ( Recapitalisation) Act 2025 (see: LNB News 19/07/2024 30). These changes are not confined to smaller institutions: from 16 July 2025 they extend to banks of any scale (subject to meeting the other entry criteria) to enable recapitalisation of in-scope entities using FSCS monies rather than taxpayer funding, thereby lowering the likelihood that small bank failures give rise to calls on...
Practice Note In this Practice Note, the term ‘bank’ denotes a UK institution authorised under Part 4A of the Financial Services and Markets Act 2000 ( FSMA 2000) to undertake the regulated activity of accepting deposits (as defined by FSMA 2000, s 22, read with Schedule 2 and any order under FSMA 2000, s 22), and any mention of ‘bank’ below also covers a resolution company. In the wake of Silicon Valley Bank’s failure, the government consulted on additional reforms and, in May 2025, passed the Bank Resolution ( Recapitalisation) Act 2025 (see: LNB News 19/07/2024 30). These changes are not confined to smaller banks and, from 16 July 2025, apply to banks of any size, provided the other entry conditions are met (see Practice Note: Bank resolution reforms under the Bank Resolution (...
This Practice Note summarises the principal changes to the UK banking regime introduced by the Financial Services ( Banking Reform) Act 2013 ( FS( BR) A 2013), notably the ring-fencing provisions that segregate wholesale and investment banking services from retail banking services. It also captures amendments arising from the review of the UK ring-fencing framework and set out in the Financial Services and Markets Act 2000 ( Ring-fenced Bodies, Core Activities, Excluded Activities and Prohibitions) ( Amendment) Order 2025, SI 2025/30. For background to the review and an outline of the main reforms, see Practice Note: The post-reform ring-fencing regime—issues for financial institutions. Introduction to the Financial Services ( Banking Reform) Act 2013 FS( BR) A 2013 received Royal Assent on 18 December 2013. The Act aimed to strengthen the resilience of UK banks, limit the incidence of bank failures to ensure the...
Special resolution regime toolkit The Bank of England ( Bo E) leads the response when banks, building societies and designated investment firms supervised by the Prudential Regulation Authority ( PRA) fail, using a process called resolution, which is separate from insolvency, and is described in the Bank of England’s approach to resolution (published 15 December 2023). The Bo E will trigger resolution where intervention is required to safeguard financial stability. The framework does not aim to prevent all failures; rather, it ensures that, when they occur, they are managed in an orderly way that seeks to avoid deploying public money to prop up failed banks. Under the special resolution regime ( SRR), the most suitable tool must be chosen for resolving or winding up a failed bank, including combinations of tools where appropriate. Through secondary legislation implementing the Financial Services Act 2012 and the Bank...
The economic and legal backdrop Ordinary corporate insolvency regimes were ill-suited to troubled banks. Notably: the insolvency practitioners appointed to conduct proceedings were under no obligation to factor in broader public policy goals connected to preserving overall financial stability banks are exposed to crises of confidence, so swift resolution and prompt intervention are particularly critical depositors, unlike the creditors of an industrial firm: are many in number are not professional market actors, and whose claims on the bank, as ‘money’, play a significant role in the broader functioning of the economy a banking failure can generate very serious external effects for the overall stability of the financial system Before the measures outlined in this Practice Note were...
Introduction On 7 October 2024, the Payment Systems Regulator ( PSR) and the Bank of England unveiled a compulsory reimbursement regime for payment services providers ( PSPs) when customers fall victim to Authorised Push Payment ( APP) fraud. As the PSR describes it, APP fraud arises where a criminal deceives someone (often a consumer) into sending funds to an account they do not control. The principal scam types include: ‘malicious payee’—for example, a fraudster induces a person to pay for goods that do not exist or are never delivered; ‘malicious redirection’—for instance, a criminal impersonates a member of bank staff to persuade someone to move money from their bank account into the fraudster’s account. In-scope payment firms The APP fraud reimbursement duty applies to these categories of payment firms: all payment firms participating in the Faster Payments Scheme ( FPS) that provide relevant accounts; and all payment firms...
BREXIT: At 11pm ( GMT) on 31 December 2020 — the ‘ IP completion day’ — the transition/implementation period that followed the UK’s withdrawal from the EU came to a close. From that moment, core transitional measures ended and substantial changes began to take effect across the UK’s legal regime. This document offers guidance on subjects affected by these developments. Before continuing your research, see: Brexit and financial services: materials on the post- Brexit UK/ EU regulatory regime [ Archived]. Increasing use of platforms Advisers and, with increasing regularity, consumers themselves now use online platforms to support the administration and management of their investment portfolios. The label ‘platform’ includes both wrap platforms and fund supermarkets. The difference between these models frequently determines how they generate revenue streams and receive payments. As usage and popularity continue to rise among professionals and the public, platforms are coming under...
FORTHCOMING CHANGE relating to Co ACS: On 2 April 2024, the government released draft regulations for consultation which, in addition to setting out the tax framework for the new reserved investor fund, introduce modest updates to the tax rules for co-ownership authorised contractual schemes ( Co ACS). These adjustments are intended to ensure the rules function as designed and to deal with matters raised during the reserved investor fund policy consultation. The consultation closes on 14 May 2024. This Practice Note reviews a form of UK authorised investment fund termed an authorised contractual scheme ( ACS). It explains the two distinct legal forms an ACS may adopt and the tax treatment applicable to the funds and their participators (ie investors). The primary emphasis is on direct taxes, with brief coverage of UK transfer taxes and non- UK withholding tax. Both ACS legal forms, and their...
This Practice Note sets out an overview of the regulatory duties and contractual obligations that firms authorised by the Financial Conduct Authority ( FCA) or the Prudential Regulation Authority ( PRA)—the 'principals'—owe in connection with their appointed representatives ( ARs). It addresses topics such as selecting and appointing an AR, carrying out verification and due diligence, entering into appropriate contracts, and the notifications and filings a principal is required to submit to the FCA in relation to its ARs... New regime for appointed representatives Alongside HM Treasury’s call for evidence on the AR regime, in December 2021 the FCA set out, in consultation paper CP21/34, proposals to enhance the AR framework. These proposals included collecting additional information on ARs and on Introducer Appointed Representatives ( IARs), increasing the reporting obligations placed on principals, and clarifying as well as strengthening the...
Organisations caught by the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017 ( MLR 2017), SI 2017/692 must: apply enhanced customer due diligence ( CDD) measures and strengthened ongoing monitoring for any transaction or business relationship with a person established in a high-risk third country not place reliance on a third party established in a high-risk third country The obligation to undertake enhanced due diligence in relation to high-risk third countries applies where there is a relevant transaction and an establishment in a high-risk third country. A relevant transaction is one for which you are required to apply CDD under MLR 2017, reg 27, and being established in a country means: for a legal person, being incorporated in, or having its principal place of business in, that country, or—where a financial...
Overview This one‑minute guide summarises updates to the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, SI 2017/692 ( MLRs), introduced by the Money Laundering and Terrorist Financing ( Amendment) ( No. 2) Regulations 2022, SI 2022/860, as they apply to financial services. It concentrates on revisions regarding: proliferation financing cryptoassets businesses Annex 1 financial institutions FCA AML/ CTF supervision information sharing and information gathering reporting discrepancies and the Register of overseas entities trust or company service providers ( TCSPs) account information service providers ( AISPs) The Amendment No. 2 Regulations 2022, SI 2022/860, implement a targeted set of measures, while a separate review of the MLRs is ongoing to inform the UK’s broader AML/ CTF approach for the coming years. For additional detail, see the following Practice Notes: Introduction to the UK AML/ CTF legal and regulatory framework for financial services— UK AML/ CTF...
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When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...
This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...
Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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