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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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Background to the scheme The Association of British Insurers ( ABI) and government operated an accord, the Statement of Principles ( So P), in effect from 2000. Through the So P, the insurance market pledged to make flood cover for homes and small enterprises available widely as part of standard household and small business insurance policies where flood risk was not considered material (typically interpreted as no worse than a 1 in 75 year annual chance of flooding). The So P also placed an obligation on insurers to consistently keep offering flood cover to existing domestic policyholders and small business customers at significant risk (more than a 1 in 75 year annual probability of flooding). The continuation of such cover relied on the Environment Agency having publicly announced plans to bring the local flood risk down to below a 1 in 75 annual...
The need for environmental insurance Bringing brownfield or previously developed plots back into use can boost a client’s property value. Yet the client could encounter the following liabilities: undetected contamination present on the site unrecognised continuing effects on third parties outside the site boundary worsening of existing pollution on-site (for example through contractors’ piling works), and the creation of new contamination at the location While some clients might choose to bear these risks, others—and stakeholders such as funders, prospective tenants and neighbours—may insist on the purchase of insurance. For further detail on environmental insurance in general, please refer to Practice Notes: Environmental insurance—when is......
Environmental insurance has become a routine instrument for managing environmental risk, used by operational businesses and across numerous transactions and development projects. Further guidance on environmental insurance generally can be found in the following Practice Notes: Environmental insurance—when is it needed? Environmental insurance—extent of coverage Environmental insurance—types Some of the principal advantages and disadvantages of environmental insurance are set out below: Advantages Competitive pressure in the market has lowered premium levels Gives reassurance where the strength of an indemnity covenant is in doubt Can serve several stakeholders (seller, purchaser, tenants, funder) and assist in closing transactions Cover can be arranged for defined scenarios (eg concerns about a contractor disturbing legacy contamination) Tackles worries and uncertainties around unknown contamination (eg the environmental report or remediation may have missed significant areas) Offers protection for...
Scope of this Practice Note The exemptions from the financial promotion restriction are set out in the Financial Services and Markets Act 2000 ( Financial Promotion) Order 2005, SI 2005/1529 (the FPO), as updated from time to time (for example by the Financial Services and Markets Act 2000 ( Amendment) ( EU Exit) Regulations 2019, SI 2019/632). For further information on the financial promotion restriction, see Practice Note: The financial promotion regime—essentials. The FPO carve-outs extend to communications concerning all forms of controlled activity. The exemptions are organised into four categories: provisions relevant to all controlled activities ( Pt IV) provisions addressing deposits and insurance ( Pt V) provisions for certain controlled activities ( Pt VI) provisions for controlled claims management activities ( Pt VIA) This Practice Note considers the exemptions that apply to communications relating to deposits and contracts of insurance other than life policies. These...
Scope of this Practice Note The Financial Services Authority’s ( FCA) rules set out in chapter 4 of the Conduct of Business sourcebook ( COBS 4) apply broadly and in general to firms when they communicate with a client or a prospective client while conducting designated investment business or Mi FID business, equivalent third country business, or optional exemption business, and when issuing or approving any financial promotion of any kind connected to investment business. This Practice Note describes the FCA’s requirements on the form and substance of client communications, including financial promotions, under the FCA’s COBS. This Practice Note sits within a series reviewing the provisions in COBS 4 and should be read alongside the following Practice Notes: Introduction to the FCA COBS 4 rules Application of the FCA's COBS 4 rules FCA COBS 4 rules— Putting together financial promotions COBS 4— Past, simulated past and future...
Scope of this Practice Note The Financial Conduct Authority’s ( FCA) provisions in chapter 4 of the Conduct of Business sourcebook ( COBS 4) broadly cover firms when they communicate with a client or prospective client while undertaking designated investment business, Mi FID, equivalent third-country, or optional exemption business, and when they communicate or approve a financial promotion relating to investment business. This Practice Note outlines the FCA’s requirements for approving and confirming compliance of financial promotions, together with record‑keeping obligations, as set out in the Conduct of Business sourcebook ( COBS) at COBS 4.10 and 4.11......
Scope of this Practice Note The FCA’s rules in chapter 4 of the Conduct of Business sourcebook ( COBS 4) apply broadly to firms when they communicate with a client or a prospective client while carrying on designated investment business, Mi FID, equivalent third country or optional exemption business, and when communicating or approving a financial promotion relating to investment business. This Practice Note sets out what direct offer financial promotions and cold calls are, and identifies which FCA provisions govern them. It forms part of a wider series on COBS 4 and should be read alongside the following Practice Notes: Introduction to the FCA COBS 4 rules Application of the FCA's COBS 4 rules FCA COBS 4 rules— Putting together financial promotions FCA COBS 4 rules— Form and content of promotions COBS 4— Approving and...
This Practice Note examines the strategic and operational aims and powers of the Financial Conduct Authority ( FCA). It reviews the FCA’s objectives and powers in general terms and considers changes brought in by the Financial Services and Markets Act 2023 ( FSMA 2023). The FCA was formed on 1 April 2013, assuming responsibility for conduct and relevant prudential regulation from the Financial Services Authority ( FSA). For more on the FCA and the other UK financial services and markets regulators, see Overview: UK regulators—financial services—overview and Diagram: UK financial services regulatory structure diagram. Guidance on the FCA’s functions and how the FCA works with other regulators and bodies is set out in Practice Note: Financial Conduct Authority—functions. For information on the FCA’s corporate governance and constitution, see Practice Note: FCA—corporate governance, structure and...
Environmental insurance Environmental insurance is a means of transferring risk to indemnify the insured for losses that may arise from potential environmental liabilities. A variety of policies are available to address the different types of loss linked to such liabilities. For more on environmental insurance, see Practice Notes on: When it is needed Scope of cover Advantages and disadvantages Transactions Businesses Remediation and development projects Contractors and consultants Chemical sites Landfills Petrol stations Scope of environmental insurance Losses covered Environmental insurance solutions can be arranged to cover a broad range of losses stemming from an environmental liability. Typical insurable losses include: On-site and off-site remediation: investigation and remediation costs, reinstatement of damaged property or services, settlement payments, and related legal expenses where contamination is identified Third-party property damage: remediation and restoration costs arising from harm to...
Pool Reinsurance Company Limited (also known as ' Pool Re') Formed in 1993 after a spate of terrorist attacks in the early 1990s across London and elsewhere in England connected to the situation in Northern Ireland, Pool Re arose when the scale of losses exposed how hard it was to insure commercial property against terrorism. Potentially vast claims and the absence of any reliable way to predict future losses meant traditional solutions failed. As insurers relied on reinsurers to shoulder exceptionally large claims, both sides concluded they could no longer offer terrorism cover through conventional means. Pool Re is a mutual reinsurer, funded and owned by the vast majority of insurers and Lloyd’s Syndicates that underwrite UK commercial property. The scheme benefits from a government guarantee that will meet claims if the pooled fund is exhausted, reviewed every five years; HM Treasury extended this in March 2022 for a...
Practice Note This Practice Note presents the law and regulatory framework aimed at preventing bribery and corruption across financial services firms......
Background to FCA suitability requirements This Practice Note examines the suitability rules set by the Financial Conduct Authority ( FCA)... For detailed guidance on gauging a customer’s risk appetite and capacity, and selecting suitable investments, see Practice Note: Establishing risk and suitable investment selections... Conduct of business rules for investment activity appear in the FCA Handbook’s Conduct of Business sourcebook ( COBS)... In 2006, the Financial Services Authority ( FSA)—now the FCA—reworked COBS to implement the Markets in Financial Instruments Directive ( Directive 2004/39/ EC) ( Mi FID)... Mi FID was subsequently superseded by the recast Markets in Financial Instruments Directive ( Directive 2014/65/ EU) ( Mi FID II Directive) and the Markets in Financial Instruments Regulation ( Regulation ( EU) 600/2014) ( Mi FIR), together forming the Mi FID II framework... The Mi FID II Directive and Mi FIR entered into force on 2 July...
Background to this Practice Note Section 19 of the Financial Services and Markets Act 2000 ( FSMA 2000) bars any person from undertaking regulated activities in the UK—or even holding themselves out as doing so—unless they are duly authorised or fall within an available exemption. This is commonly termed the general prohibition. In this Practice Note, references to exemptions concern persons who are relieved from applying to the Prudential Regulation Authority ( PRA) or the Financial Conduct Authority ( FCA) for the authorisation needed to perform regulated activities. For further detail on the general prohibition, in particular, see Practice Note: The general prohibition and implications of its breach. For additional practical guidance on regulated activities, see the Practice Note: What are regulated activities? For discussion of the territorial scope of the general prohibition and the meaning of carrying on regulated activities by way of business, see...
Practice Note This Practice Note sets out the Financial Conduct Authority’s ( FCA) principal priorities for supervising and enforcing adherence to the UK’s anti-money laundering ( AML) and counter-terrorist financing ( CTF) framework. It is applicable to financial services firms authorised under the Financial Services and Markets Act 2000; payment and e-money firms; cryptoasset businesses (such as exchanges and custodian wallet providers); and Annex 1 financial institutions that must register with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, SI 2017/692 ( MLRs). It covers: the FCA’s function in AML/ CTF priority areas of supervisory focus, including de-risking and the treatment of domestic politically exposed persons ( PEPs) priority sectors for AML/ CTF oversight, including cryptoassets, Annex 1 financial institutions, payment and e-money firms, and challenger banks ...
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...
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...
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...
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 ...
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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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