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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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Investment Firms Prudential Regime ( IFPR), MIFIDPRU and the MIFIDPRU Remuneration Code The UK Investment Firms Prudential Regime ( IFPR) took effect on 1 January 2022. For information on the IFPR, see Practice Note: The UK investment firms prudential regime ( IFPR). The IFPR is delivered, in part, through MIFIDPRU and the MIFIDPRU Remuneration Code ( SYSC 19G) (the Code) contained in the Financial Conduct Authority ( FCA) Handbook. MIFIDPRU replaced BIPRU and IFPRU in the FCA Handbook, and SYSC 19G replaced the BIPRU and IFPRU Remuneration Codes. SYSC 19G came into force on 1 January 2022, with firms required to apply the new requirements from the start of their next performance year beginning on or after 1 January 2022. The Code sets out minimum regulatory expectations on remuneration for a MIFIDPRU investment firm, designed to be appropriate and...
ARCHIVED : This Practice Note has been archived and is not maintained. Sections 1 and 4 of the Financial Services and Markets Act 2023 ( FSMA 2023) allow for the revocation and restatement of assimilated financial services law (including UK CRR) via secondary legislation, with dates to be specified in that secondary legislation. This transition enables a comprehensive ‘ FSMA model’ of regulation, whereby UK CRR provisions are largely superseded by the PRA Rulebook and other PRA policy materials. The Financial Services and Markets Act 2023 ( Commencement No. 12 and Saving Provisions) Regulations 2026, SI 2026/45, were made on 13 January 2026. Regulation 3 revoked the provisions of UK CRR identified in SI 2026/45, Sch 1, Pt 1, taking effect from 1 January 2027. On 20 January 2026, the PRA published PS3/26- Restatement of CRR...
This Checklist This Checklist is aimed at professionals advising financial services businesses (credit and financial institutions, cryptoasset exchanges and custodian wallet providers) on meeting the UK’s anti-money laundering ( AML) and counter-terrorist financing ( CTF) legal and regulatory regime. It focuses on the record-keeping obligations for customer due diligence ( CDD)-often referred to as ‘ Know your customer’ ( KYC)-together with data protection considerations under the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, SI 2017/692, regs 40 and 41 ( MLRs), and under Financial Conduct Authority ( FCA) rules. The Checklist brings together regulatory guidance issued by the FCA and the Joint Money Laundering Steering Group ( JMLSG), and reflects guidance prepared for the insurance and banking sectors by the International Association of Insurance Supervisors ( IAIS) and the Basel Committee on Banking...
This Practice Note outlines the organisational, valuation and delegation obligations that stem from the Alternative Investment Fund Managers Directive ( Directive 2011/61/ EU) ( AIFMD). In the UK, these obligations were carried into law by the Alternative Investment Fund Managers Regulations 2013, SI 2013/1773 ( AIFM UK Regulations) and the Financial Conduct Authority ( FCA) Handbook-most notably the Investment Funds sourcebook ( FUND)-and are further supported by Assimilated Regulation ( EU) 231/2013 ( UK AIFM Level 2 Regulation). For a comprehensive summary of the UK AIFM regime, see Practice Note: UK regulation of alternative investment fund managers-essentials; for the corresponding EU AIFMD position, see Practice Note: EU AIFMD-organisational, valuation and delegation requirements. UK implementation of AIFMD organisational, valuation and delegation requirements AIFMD was put into effect in the UK through a mix of primary legislation in the Financial Services and Markets Act 2000 ( FSMA 2000),...
What is share ramping? Share ramping is an unlawful type of market manipulation that involves hyping the value of shares to deceive the market. It is often referred to as ‘pump and dump’ or ‘book ramping’. There are various methods, the most common being to float a company on the market while planting unrealistic expectations about its profitability. Another tactic is to acquire shares when prices are depressed and then circulate a rumour that a takeover is imminent. As the price climbs, the perpetrators sell and pocket the gain. The internet, chat rooms, emails and other channels are exploited to create buzz or apparent interest in the market, pushing the price higher. Typically, those behind the scheme then dump or off-load their holdings for profit, leaving ordinary investors holding worthless shares. At times the objective is the...
This Practice Note sets out the UK financial sanctions legal and regulatory framework as it applies to firms regulated by the Financial Conduct Authority ( FCA) under the Financial Services and Markets Act 2000 ( FSMA 2000), and to firms within the FCA’s supervisory scope, such as e-money and payment firms (collectively, firms). It outlines the FCA and Prudential Regulation Authority ( PRA) regulatory requirements for firms and senior management concerning sanctions. It also explores the interplay between the anti-money laundering ( AML)/counter-terrorist financing ( CTF) framework and sanctions compliance, and the FCA and Joint Money Laundering Steering Group ( JMLSG) guidance on sanctions compliance, including the scope and status of that guidance. Key points Firms have legal and regulatory duties to put in place, and maintain, robust defences and risk management frameworks that identify and mitigate financial crime risk, including sanctions risk The FCA does not make,...
This Practice Note sets out requirements for reporting suspicious transactions and orders under Assimilated Regulation ( EU) 596/2014 (the UK Market Abuse Regulation) and Commission Delegated Assimilated Regulation ( EU) 2016/957. For an overview of divergence between provisions of Regulation ( EU) 596/2014 (the EU Market Abuse Regulation) and UK Market Abuse Regulation, see Practice Note: Market Abuse Regulation—key provisions divergence table. Definition of STOR A suspicious transaction and order report ( STOR) is a submission concerning suspicious orders and transactions, including any cancellation or amendment to them, that may constitute insider dealing, market manipulation, or attempted insider dealing or market manipulation, made pursuant to Articles 16(1) and (2) of the UK Market Abuse Regulation. For information on insider dealing, see Practice Note: UK Market Abuse Regulation ( MAR)—essentials— Insider dealing. For information on market manipulation, see Practice Note: UK Market Abuse...
This Practice Note explores core regulatory features relevant to high-cost short-term credit ( HCSTC), covering definitions, the regulatory architecture, the Financial Conduct Authority’s ( FCA) scrutiny of high-cost credit, and conduct rules aimed at HCSTC providers (such as restrictions on roll-overs, continuous payment authorities ( CPAs), the use of price comparison websites ( PCWs), and cost caps). From 15 July 2026 ( Regulation Day), a substantial slice of the previously unregulated ‘ Buy now, pay later’ ( BNPL) sector—namely interest-free, short-term arrangements offered by third-party lenders—will come within FCA oversight as deferred payment credit ( DPC). This Practice Note concentrates on the HCSTC regime. For detail on BNPL and the DPC framework (including the revised perimeter and conduct obligations), see Practice Note: Buy now, pay later ( BNPL) and deferred payment credit ( DPC). What is 'high-cost short-term...
This Practice Note offers a concise outline of major UK legal and regulatory changes influencing investment funds and asset managers. It summarises HM Treasury’s review of the UK funds framework; proposed updates to the UK asset management regulatory regime set out in the Financial Conduct Authority ( FCA) discussion paper DP23/2; FCA and HM Treasury proposals for a more proportionate approach to alternative investment fund managers ( AIFMs); the overseas funds regime ( OFR); and a new UK unauthorised vehicle, the Reserved Investor Fund ( Contractual Scheme) ( RIF). It also highlights the FCA’s supervisory priorities for 2026. For further detail on UK investment funds and asset management, and links to in-depth materials, see: Funds and asset management—general—overview Collective investment schemes ( CIS)—overview UK AIFM regime—overview UCITS—overview For UK sustainable finance and environment, social and governance ( ESG) topics relevant to...
What is a friendly society? Since the first Friendly Societies Act in 1793, friendly societies have been subject to registration and regulation. Two Acts now govern the area: the Friendly Societies Act 1974 ( FSA 1974) and the Friendly Societies Act 1992 ( FSA 1992). Before FSA 1992, all friendly societies were unincorporated associations of individual members. Although unincorporated societies may continue, the larger ones have become bodies corporate under FSA 1992, and any new societies must be created as incorporated societies. A friendly society is a type of mutual society: a voluntary association of individuals who subscribe for provident benefits, meaning benefits intended to meet future needs. Today, every friendly society must include among the benefits it offers at least one of the permitted activities listed in FSA 1992, Sch 2, and may in addition pursue social or benevolent purposes and other...
What does this Practice Note cover? This Practice Note offers an introduction to the principal London venues for listing and trading debt securities. It outlines the applicable regulatory framework and summarises, for each market, the key stages for listing and admission. It is not a detailed handbook for listing debt securities on these markets. For fuller guidance on listing debt securities on these markets, please refer to Practice Note: Guide to listing debt securities on the London Stock Exchange. This Practice Note delivers a high-level overview of the main available markets for listing debt securities in London. It signposts the regulatory framework governing listing and admissions to trading, explains the separate concepts of listing and admission to trading, the London Stock Exchange ( LSE) markets that are relevant in a debt capital markets context, and the process for listing and/or admission to trading on those...
This Practice Note reviews the remuneration framework originating from the Alternative Investment Fund Managers Directive 2011/61/ EU ( AIFMD) and set out in the alternative investment fund manager ( AIFM) Remuneration Code (the Code) within the Senior Management Arrangements, Systems and Controls sourcebook ( SYSC) of the Financial Conduct Authority ( FCA) Handbook at SYSC 19B. It outlines the main elements of the Code, including its reach, the meaning of remuneration and the Code’s principles. Managers of alternative investment funds ( AIFs), including hedge funds, private equity funds and other AIFs (such as commodity funds, venture capital funds, real estate funds and investment funds), may all potentially fall within the scope of the remuneration requirements. For an accessible checklist of the relevant requirements, see: —checklist. For details on the equivalent EU requirements, see Practice Note: EU...
Role The role of credit rating agents ( CRAs) is to deliver an independent, analytical view of the likelihood of payment default, by assessing multiple factors that guide investors on whether to commit to specific securities. Capital market investors are highly sensitive to risk, and some are constrained by their internal constitutional documents from investing in lower grade instruments. As a rule, the greater the investment risk, the higher the return (interest/coupon) demanded by investors. Ratings may apply to both the company issuing the instruments and the instruments themselves. An issuer’s debt can be rated apart from the issuer, for example where the issuer is a special purpose vehicle created solely for the issuance, or where the debt benefits from credit enhancements (eg a guarantee) that lift it above the issuer’s own standing rating. For example, the following can be rated: the issuer senior...
Tracker overview This Disclosure Guidance and Transparency Rules ( DTR) tracker offers a synopsis of recent and proposed amendments to the provisions in the Disclosure Guidance and Transparency Rules Sourcebook, alongside connected legislative and regulatory developments, guidance and updates. It also includes links to consultation papers, policy statements, practical guidance and notices issued by the Financial Conduct Authority ( FCA) (and previously by the Financial Services Authority ( FSA)). Within this tracker, PRM denotes the Prospectus Rules: Admission to Trading on a Regulated Market sourcebook, NSM denotes the National Storage Mechanism, and PIP denotes Primary Information Provider. Developments in 2026 27/03/2026 — FCA: Prospectus Rules ( Miscellaneous Amendments) Instrument 2026 ( FCA 2026/9); Handbook Notice 139, March 2026; Quarterly Consultation CP25/35 No 50, December 2025. Following Quarterly Consultation CP25/35, this instrument ( FCA 2026/9) introduced minor amendments to DTR 8 Annex 2R to create a new NSM...
This Practice Note explores aspects of, and specifically, the government’s work on developing the UK Sustainability Reporting Standards. The UK government has pledged to establish a UK Sustainability Disclosure Requirements ( SDR) regime that consolidates new and existing sustainability reporting obligations for businesses, the financial sector and investment products. Its objective is a single, integrated framework of sustainability‑related disclosure requirements and metrics, so investors receive clear, comparable information to support their decision‑making. A key element of the UK SDR regime is the introduction of UK Sustainability Reporting Standards—reporting standards for use by certain UK companies and businesses to disclose sustainability‑related information. These standards emphasise sustainability‑related risks and opportunities. This Practice Note concentrates on the creation of the UK Sustainability Reporting Standards ( UK SRS) and proposals for transition plan disclosures. Within Greening Finance: A Roadmap to Sustainable Investing ( October 2021) ( Roadmap), the...
This Practice Note sets out the situations and procedures by which a borrower can bring a credit agreement to an early close. Introduction to early settlement Borrowers may terminate regulated agreements at any time by giving statutory notice and paying the sums then due, less any rebate ( Consumer Credit Act 1974, s 94 ( CCA 1974)). Unless the agreement is secured on land, they are entitled as of right to clear all or part of what they owe. Contracting out is prohibited; creditors cannot remove the right to early settlement or make it conditional. When can borrowers settle early? Borrowers under a regulated consumer credit agreement may settle some or all of the agreement at any time, provided they: give notice to the creditor; and pay all amounts then due under the...
In some situations, borrowers can step away from agreements covered by the Consumer Credit Act 1974 ( CCA 1974) within 14 days. This Practice Note sets out when that withdrawal right arises and how to use it in practice. It clarifies availability and the steps to take in detail. It also looks at parallel provisions for P2P agreements contained in the Consumer Credit sourcebook ( CONC) too. Introduction The withdrawal right for regulated agreements is anchored in CCA 1974, s 66A, which transposed the EU Consumer Credit Directive (2008/48/ EC). Two preliminary points deserve emphasis at the outset. First, the substance of this right has remained largely unchanged since responsibility for consumer credit was assumed by the Financial Conduct Authority ( FCA) in April 2014, following the transfer of functions. Nevertheless, alterations to the framework are anticipated, so readers should stay alert to legal...
This Practice Note examines core aspects of the UK framework for money market funds ( MMFs) that stems from Regulation ( EU) 2017/1131 (the EU MMF Regulation). It also looks at suggested changes to the framework, with the Financial Conduct Authority ( FCA), HM Treasury and the Bank of England ( Bo E) working jointly to bolster its resilience and align it with post‑ Brexit regulatory objectives. For background on the EU MMF Regulation, see Practice Note: EU MMF Regulation—essentials. What is an MMF? Money market funds ( MMFs) are investment funds that invest in short‑term debt instruments and so play a significant role in the short‑term financing of the economy. In particular, MMFs are open‑ended, liquid investment funds that invest in fixed income through short‑term debt, for example money market instruments issued by banks, governments or companies (including treasury bills, commercial paper and...
This Practice Note provides an overview of the applicable rules and guidance on arrears, default and recovery in the Financial Conduct Authority ( FCA)’s Consumer Credit sourcebook ( CONC). It also identifies separate obligations under the Consumer Credit Act 1974 ( CCA 1974) that must be met before a lender may enforce an agreement, including serving a notice of sums in arrears ( NOSIA) and issuing a default notice. Background Firms undertaking consumer credit activities must adhere to Chapter 7 of CONC, which sets out the relevant standards on arrears, default and recovery. In broad terms, these provisions prescribe the conduct expected when collecting debts and dealing with borrowers in arrears or forbearance, covering how firms communicate and how they intend to support customers in difficulty. During the coronavirus pandemic, the FCA introduced its Tailored Support Guidance ( TSG) for Consumer Credit, Mortgages and...
What is repo? A repo, the market shorthand for a 'repurchase transaction', is an arrangement whereby one party (the seller) sells an asset to another (the buyer) with a simultaneous contractual undertaking that the seller will repurchase the asset from the buyer on a future date for a specified price agreed between both parties in advance. Any asset capable of being transferred from one person to another may, in principle, be the subject of a repo transaction. The assets most commonly used in repos are debt securities (bonds), equity securities (shares) and other financial assets, including loans and commodities. However, commodity repos can raise distinctive documentary, structural and legal issues, which are not addressed in this Practice Note. For guidance on commodity repos, see Practice Note: Commodity repo transactions and true sale considerations......
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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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