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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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ARCHIVED : This Practice Note has been archived and is not maintained. These Q& As address many of the most common queries on consultations relating to the EU Sustainable Finance Disclosure Regulation ( SFDR), covering proposed adjustments to the delegated regulations and the SFDR review ( SFDR II). There are a number of ongoing consultations on SFDR—are material changes expected? In 2023, numerous consultations on Regulation ( EU) 2019/2088 ( EU SFDR) took place, including an assessment of the SFDR Delegated Regulation (which contains the regulatory technical standards) ( Commission Delegated Regulation ( EU) 2022/1288, as amended) concentrating on revisions to the principal adverse impacts ( PAI) regime and specific financial product disclosures, alongside a targeted and public consultation seeking feedback on amendments to the EU SFDR itself ( EU SFDR II). Possible outcomes may feature updated templates, stricter obligations for data collection and diligence on...
The FCA has, in recent years, acknowledged that weak culture — notably any acceptance of non-financial misconduct — frequently underpins serious conduct breaches across financial services. Consequently, the regulator has sharpened its oversight of non-financial misconduct when supervising firms and individuals. September 2023 saw consultation CP23/20, outlining measures to advance diversity and inclusion and proposing clarifications on how its rules apply to non-financial misconduct. In July 2025, the FCA issued the resulting policy statement alongside CP25/18, detailing its stance on non-financial misconduct. As part of that package, the Code of Conduct ( COCON) sourcebook was revised to introduce new non-financial misconduct rules for the sector. The scope of COCON was broadened to bring banks and non-banks into alignment on non-financial misconduct, confirming that for non-banks the rules capture serious bullying, harassment, violence and comparable behaviour directed at a colleague — defined to include fellow...
This Practice Note explores how the Financial Conduct Authority’s ( FCA) Consumer Duty affects insurers, touching in particular on key matters such as claims handling, methods for calculating and setting premiums, the appropriateness of policy wordings, and the role of third parties. It also flags important regulatory movements (including supervisory reviews) that bear on insurers’ roll‑out of the Consumer Duty. For an overview of the core components of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For commentary on what the Consumer Duty means for insurance intermediaries, see Practice Note: The FCA Consumer Duty—implications for insurance intermediaries. For a record of key milestones associated with the FCA’s Consumer Duty, see: The FCA Consumer Duty—timeline. Claims For insurers, claims handling is expected to be a prime area of FCA attention when evaluating compliance with the Consumer Duty. The reason is that, in...
This Practice Note This Practice Note explores the implications of the Financial Conduct Authority ( FCA)’s Consumer Duty ( Duty) for FCA authorised firms holding permissions to: (i) manage an alternative investment fund ( AIF); (ii) manage an undertaking for collective investment in transferable securities ( UCITS); or (iii) manage investments. It focuses on the key components of the Duty, such as its scope and application (including relevant exclusions, the concept of material influence, and proportional application), the overarching Consumer Duty principle, the cross-cutting rules, and the four outcomes as they pertain to asset management firms. For a summary of the core features of the Consumer Duty with broader application, see Practice Note: The FCA Consumer Duty—essentials. The Duty took effect for new and existing products and services that remained open to sale (or renewal) from 31 July 2023, and for closed book...
In March 2026, the FCA published FG26/2: Good and Poor Practice on identifying harm. FG26/2 sits alongside broader regulatory changes aimed at modernising redress and complements the Consumer Duty material in FG22/5 Final non- Handbook Guidance. This Practice Note is currently in the process of being revised to take full account of this development. See: HMT and FCA outline planned reforms of the FOS. The Financial Conduct Authority’s ( FCA) Consumer Duty (the Duty) applied from 31 July 2023 for open products, and from 31 July 2024 for closed products, establishing heightened protections by obliging firms to act to secure good outcomes for retail clients. The Duty is anticipatory, requiring firms to embed customers at the centre of their operations, and to provide products and services that are suitable and offer fair value. This also entails the ongoing tracking, careful...
Introduction This Practice Note explores the implications of the Financial Conduct Authority’s ( FCA) Consumer Duty for wholesale firms. For the purposes of this note, a wholesale firm broadly means a firm active in the wholesale financial services markets that lacks a direct relationship with retail customers for the relevant product or service offered. Because the Consumer Duty is confined to a firm’s retail market business, and to financial promotions that are addressed to, or distributed so they are likely to reach, a retail customer, some wholesale activities fall outside the scope of the Duty. However, where a firm operates within a distribution chain that ultimately involves an end retail customer, the Consumer Duty applies to the extent the wholesale firm determines or materially shapes retail customer outcomes in practice. This Practice Note examines the scoping analysis for wholesale firms, including relevant...
This Practice Note explores the ramifications of the Financial Conduct Authority’s ( FCA) Consumer Duty for insurance intermediaries, covering the assessment of fair value in insurance products, the FCA’s expectations for rollout, and a range of intermediary-specific considerations linked to scheme policies, placing and producing brokers, claims handling and renewal activity, broker remuneration and potential insurer conflicts. It also signposts key regulatory developments (including supervisory reviews) that are pertinent to intermediaries’ delivery of the Consumer Duty. For an overview of the core components of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For commentary on what the Duty means for insurers, see Practice Note: The FCA Consumer Duty—implications for insurers. For significant milestones on the Consumer Duty, including go-live dates, see: The FCA Consumer Duty—timeline. FCA’s reviews into value measures Under the Consumer Duty, firms must achieve and test four...
Scope of this Practice Note The Financial Services and Markets Act 2023 ( FSMA 2023) originated as the Financial Services and Markets Bill ( FSMB), which was presented to the House of Commons and received its first reading on 20 July 2022. This Practice Note outlines the background to FSMA 2023, gives a high-level summary of FSMA 2023 and highlights its principal reforms. It also explains how FSMA 2023 aligns with the Retained EU Law ( Revocation and Reform) Act 2023. Background to the FSMA 2023: the implementation of financial regulatory reviews FSMA 2023 is designed to implement the conclusions of the government’s Financial Services Future Regulatory Framework Review ( FRF Review) and the regime for central counterparties ( CCPs), together with other updates to modernise the UK regulatory regime. In delivering those further updates, FSMA 2023 also seeks to implement outcomes from...
This Practice Note sets out: This Practice Note explains the criminal offences that the Financial Conduct Authority ( FCA) is able to bring before the criminal courts. The FCA’s overarching policy on criminal prosecutions—together with its stated treatment of financial services offences arising from market abuse, and crimes under the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, SI 2017/692 ( MLRs) and the Consumer Credit Act 1974 ( CCA 1974)—is contained in its Enforcement Guide. For prosecutions stemming from investigations begun before 3 June 2025, Chapter 12 of the Enforcement Guide ( EG 12)— Prosecution of Criminal Offences—remains the point of reference. This Practice Note also outlines the FCA’s approach under the updated Enforcement Guide ( ENFG) that applies to FCA investigations commenced on or after 3 June 2025 through the statutory appointment of...
UK financial sanctions obligations UK financial sanctions duties apply to every person and corporate body located in, or carrying out activities in, the UK. This Practice Note concentrates on what that means for firms authorised by the Financial Conduct Authority ( FCA) under the Financial Services and Markets Act 2000 ( FSMA 2000), and for e-money and payment institutions and cryptoasset businesses within the FCA’s supervisory ambit. The FCA does not enforce financial sanctions; its function is to see that the firms it oversees put in place sufficient systems and controls designed to meet the UK financial sanctions framework. This Practice Note sets out the FCA’s requirements and expectations for a firm’s financial sanctions systems and controls in relation to: risk assessments policies and procedures governance and senior management responsibility management information ( MI) resource provision ...
ARCHIVED : This Practice Note has been archived and is not maintained. These Q& As address many of the most common queries on the EU Sustainable Finance Disclosure Regulation ( EU SFDR) regulatory technical standards ( RTS) ( Regulation ( EU) 2019/2088, as amended by Regulation ( EU) 2020/852). Product categorisation Article 8 features Principal adverse impacts ( PAI) data gathering Reliance on third-party data Human rights due diligence Implications for non- EU managers On 6 April 2022, the European Commission signed off the final RTS and their Annexes supplementing the EU SFDR ( Regulation ( EU) 2019/2088, as amended by the EU Taxonomy Regulation ( EU) 2020/852). EU SFDR places substantial ESG transparency duties on asset managers offering funds in the EU. The RTS set out compulsory website, pre-contractual and periodic reporting templates for financial market...
Introduction This Practice Note outlines the Financial Conduct Authority ( FCA)’s main areas of focus on sustainable finance and environmental, social and governance ( ESG) matters, covering the FCA’s ESG strategy; its work on climate-related disclosures; and sustainability disclosure requirements ( SDR) and investment labels (designed, among other aims, to build trust and address greenwashing). It also describes the FCA’s role in international reporting standards. For material on the UK Prudential Regulation Authority ( PRA)’s priorities—chiefly prudential supervision of climate risk management and related stress testing—see the Practice Notes on prudential supervision of climate risk management in the UK and on climate scenario analysis, stress testing and capital requirements in the UK. For the UK green taxonomy, see the Practice Note: Sustainability Disclosure Requirements and UK Green Taxonomy—government’s 2021 roadmap to sustainable investing. FCA’s priority areas as set out in its November 2021 ESG...
Scope of this Practice Note The Financial Conduct Authority’s ( FCA) chapter 4 of the Conduct of Business sourcebook ( COBS 4) broadly applies to firms when they communicate with a client or prospective client while undertaking designated investment business, Mi FID business, equivalent third country business or optional exemption business, and when they communicate or approve a financial promotion relating to investment business. This Practice Note reviews COBS 4.12A and COBS 4.12B, which set out the rules on promoting restricted mass market investments ( RMMIs) and non-mass market investments ( NMMIs). It also addresses the provisions in COBS 4.13 concerning the marketing of undertakings for collective investment in transferable securities ( UCITS). This Practice Note forms part of a wider series examining the COBS 4 rules and should be read alongside the following Practice Notes: Introduction to the FCA COBS 4 rules ...
Introduction to the FCA's COBS requirements on distance communications, client agreements and cancellable contracts Introduction to distance communication requirements This Practice Note reviews the regulatory framework and guidance governing distance communications set out in chapter 5 of the Financial Conduct Authority's ( FCA) Conduct of Business sourcebook ( COBS 5). COBS 5 gives effect to provisions of the Distance Marketing of Consumer Financial Services Directive ( Directive 2002/65/ EC) (the DMD), as amended by the Unfair Commercial Practices Directive ( Directive 2005/29/ EC). The DMD covered consumer financial services, defining these as any banking, credit, insurance, personal pension, investment or payment service. Its objective was to ensure that consumers interacting with a financial services firm via distance sales channels are not placed at a disadvantage compared with those using traditional channels, by requiring that they receive minimum standard information about the firm they intend to deal with and...
The following flagship financial services resources are available in Lexis+® UK and referenced throughout the Financial Services content, delivering practical commentary, legislation, rules and guidance for financial services lawyers in private practice or in-house. Access to these titles requires the relevant Lexis+® UK subscription(s). Annotated FSMA 2000 ( Archive) This resource offers active links to materials supporting all chosen provisions of the Financial Services and Markets Act 2000 ( FSMA 2000), together with commentary on each section and how it has changed over time. It is produced by an author team under the general editorship of Michael Blair QC. It will interest all financial services lawyers advising on every aspect of FSMA 2000, the principal statute regulating the UK financial services industry. Butterworths Securities & Financial Services Law Handbook This resource compiles the primary and secondary legislation that underpins the regulatory framework for the financial services...
The background of the FCA’s client money requirements in relation to claims management activities On 1 April 2019, the FCA assumed responsibility for regulating claims management companies ( CMCs). CMCs carrying on regulated claims management work must now be authorised by the Financial Conduct Authority ( FCA). As part of this oversight, the FCA prescribes rules for CMCs that accept or hold client funds for customers when delivering claims management services, set out in chapter 13 of the FCA’s Client Assets Sourcebook ( CASS 13). For broader guidance on FCA regulation of CMCs, see Practice Note: FCA regulation of claims management companies—essentials. Before FCA authorisation applied, CMCs that handled client money were governed by the Ministry of Justice’s Client Account Rules 2006. The CASS 13 provisions address the same subjects, though they are more detailed. Additional obligations also apply, such as...
This Practice Note outlines the Prudential Regulation Authority ( PRA)’s rules on pay awarded by banks, building societies and systemically important investment firms to their staff, and traces how those rules developed from the legislation and provisions that transposed the EU Capital Requirements Directive 2013/36/ EU ( CRD IV) requirements. It also covers measures brought in by UK legislators and regulators after the UK left the EU in 2020, alongside the amendments set out in the joint PRA and Financial Conduct Authority ( FCA) policy statements PRA PS21/25 and FCA PS25/15 on the reform of the remuneration regime. Remuneration requirements under CRD IV and EU CRR Following the financial crisis, the Financial Stability Board ( FSB) and several national regulators assessed the governance and configuration of remuneration across the financial services industry. Their principal conclusions were that: firms (and supervisors) had not recognised how...
This Practice Note sets out a summary of the scope and obligations arising under the EU Sustainable Finance Disclosure Regulation ( Regulation ( EU) 2019/2088) together with Commission Delegated Regulation ( EU) 2022/1288. Overview of EU SFDR and related regimes Regulation ( EU) 2019/2088 ( EU SFDR) on sustainability‑related disclosures for the financial services industry creates a disclosure and transparency framework for the EU financial sector as a whole. The EU SFDR sits within a wider EU sustainable finance rulebook of measures, most notably the EU’s Sustainable Finance Action Plan adopted in March 2018 ( Action Plan). For further details on the Action Plan (including a concise overview of the EU legislation that falls within it, such as the EU SFDR, the EU Taxonomy Regulation ( Regulation ( EU) 2020/852 ( EU TR)), and requirements on integrating...
This hub brings together Financial Services materials that pertain to EU law. For broader guidance on EU law, see EU structure, EU legislative process, EU judicial system, and EU rights and policies within the EU Law topic in the Public Law practice area. AIFMD EU AIFMD—essentials EU Cross- Border Distribution of Funds ( CBDF) package EU AIFMD II—key changes to AIFMD and UCITS UK AIFM regime—disclosure, reporting and anti-asset stripping requirements EU AIFMD—the marketing of AIFs, passporting and third-country regimes EU AIFMD—organisational, valuation and delegation requirements EU AIFMD—transparency rules and the prospectus EU AIFMD—depositaries EU AIFMD—remuneration requirements The European Long- Term Investment Funds ( ELTIF) Regulation—essentials European Venture Capital Funds ( Eu VECA) Regulation The European Social Entrepreneurship Funds ( Eu SEF)...
Background to the Complaints Scheme Under Part 6 of the Financial Services Act 2012 ( FSA 2012), the Bank of England ( Bo E), the Financial Conduct Authority ( FCA) and the Prudential Regulation Authority ( PRA)—collectively the 'regulators'—must put in place arrangements to investigate complaints made about them. These arrangements are termed the ' Complaints Scheme' and are explained in full in the FCA and PRA/ Bo E joint document titled Complaints against the Regulators: The Complaints Scheme (updated November 2023). Part 6 also obliges the regulators, with HM Treasury’s approval, to appoint an independent individual to oversee the conduct of complaint investigations within the scope of the Complaints Scheme. This appointee is the ' Financial Regulators Complaints Commissioner' (the ' Complaints Commissioner'). See the Complaints Commissioner’s website here. The Complaints Commissioner and their team investigate complaints...
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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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