Legal Practice Notes

What’s new and what’s changed in 2018— Risk & Compliance [ Archived] ARCHIVED: This Practice Note is archived and not maintained. For further details, see subtopic: New and updated content in Risk and Compliance. It provides month-by-month notice of revisions and fresh additions within Risk & Compliance, introduced to mirror regulatory change or through ongoing content development. December 2018 New subtopic: Whistleblowing— Practice Note: Protection for whistleblowers; Precedents: policy and procedure (short form), report form, report register, annual review, and training materials— Reason: content development. New precedent: Register of super SAR requests and responses— Reason: content development. New Practice Note: How to deal with the FCA— Reason: content development. New precedent: Data protection impact assessment ( DPIA)—short form— Reason: content development. New precedent: Automated processing enquiry form— Reason: content development. New Practice Note: Direct marketing risk...

ARCHIVED: This Practice Note has been archived and is not maintained For further details, see the subtopic New and updated content in Practice Compliance. This Practice Note outlines, month by month, whether we have revised existing material or issued new material in Practice Compliance. Updates may follow regulatory change or form part of ongoing content development. December 2018 New or updated? New subtopic: Brexit—compliance and risk management Practice Notes: Brexit—exiting the EU under Article 50 [ Archived] Brexit legislation tracker Brexit risk management guide [ Archived] The status of EU law in the UK after Brexit [ Archived] The Data Protection Act 2018 ...

This Practice Note sets out the essentials of a sponsorship arrangement, covering: sponsor hierarchy where multiple partners are involved exclusivity provisions standard and additional rights typically included fees and value-in-kind payments protection of the sponsorship compliance and regulatory considerations Brands increasingly seek associations with events or content that matter to consumers. As a result, sponsors are looking beyond the traditional sports model. There has been notable growth in the backing of music events and artists, an area once avoided by brands because of the multitude of rights owners. For more on the sponsorship (or endorsement) of individuals, see Practice Note: Endorsement agreements—key issues. Under English law, there is no proprietary right in a sports or other event; accordingly, no recognised ‘sponsorship rights’ exist for an event, team or league. Any rights granted to brands by rights holders are not...

Successful bids to strike out, or to secure summary judgment on, a claim, defence or discrete issue are, at core, about bringing that matter, or that identified point, in the proceedings to a close. A summary judgment application is frequently pursued alongside a strike out request. It is therefore helpful to explore where these applications overlap, as well as how they differ. Further, there are additional mechanisms by which parties can be stopped from pressing on with a claim, or a particular issue within it, and it is again helpful to assess how summary judgment and strike out interact with those other routes. For general guidance on strike out applications, see Practice Note: Strike out applications—what, who and when and related content. For general guidance on summary judgment applications, see Practice Note: Summary judgment...

This Practice Note outlines summary judgment under CPR 24, setting out in clear terms who may seek such an order, when an application can be brought, and the circumstances in which it is not permitted under the rules. For procedural guidance on issuing a summary judgment application, see Practice Note: Summary judgment—making an application. For the judiciary’s approach to determining these applications, see Practice Note: Summary judgment—general principles. Amendments to CPR Part 24 and CPR PD 24—1 October 2023 Practitioners should be aware that the Civil Procedure Rules ( CPR) on summary judgment changed with effect from 1 October 2023. CPR Part 24 was replaced and CPR PD 24 was withdrawn. The reforms aim to streamline the rules and do not significantly affect the substantive law or day-to-day practice. The numbering and placement of certain provisions have been altered accordingly....

FORTHCOMING CHANGE : The Pension Schemes Bill, expected to receive Royal Assent in 2026, will allow regulations to define which trust-based schemes meet value for money ( Vf M) standards and will require trustees to act accordingly. Produce and publish annual Vf M assessments and notify TPR when published Conduct member satisfaction surveys Provide specified metric data The Bill introduces a Vf M rating system with grades of ‘fully delivering’, ‘intermediate’ (with turnaround plans required), and ‘not delivering’ (which may lead to transfers or closures). TPR will be able to enforce the framework through compliance measures and fixed penalties of up to £10,000 for individuals and £100,000 for entities, with routes to contest any incorrect ratings. In parallel, the FCA is preparing equivalent rules for contract-based schemes. For more information, see Reform of the Vf M duty below and Practice Note: Pension Schemes...

This Practice Notice explains what ought to be taken into account when considering an appeal against a costs order—the starting position being that such appeals are generally discouraged. It outlines the preliminary factors and the foundation for a costs-only appeal, which falls under CPR 52. It also covers the time limits for appealing, obtaining permission to appeal, challenging a refusal of permission, the correct venue for the appeal, the documents required to initiate it, and the consequences of bringing an appeal. This Practice Note does not consider: an appeal against the decision of a costs officer, as these are governed by special provisions in CPR 47.21 to CPR 47.24. For information, see Practice Note: Detailed assessment—appeals recovering the costs incurred in an appeal. For guidance, see Practice Note: Appeals—costs recovery appeals generally. For guidance, see: Civil appeals: general and preliminary...

This Practice Note explains the steps available once a judgment is received, covering when you may seek to correct a judgment, have it revoked, pursue an appeal, or apply for it to be set aside because it was given without jurisdiction or procured by fraud. For broader guidance on the aftermath of a judgment or order, refer to Practice Note: Judgments and orders—service, compliance, interpretation. The need carefully to review all draft judgments and orders of the court As noted in Practice Note: Reserved judgments—purpose and restrictions, it is usual for the judge to reserve judgment and issue a draft version before it is handed down. Accordingly careful review of any draft judgment or order is essential also......

Licence due diligence When advising the purchaser of a hotel, there are a range of potential licensing matters connected to food, drink and entertainment that may arise, which will depend on the activities undertaken at the property. These can include: supplying alcohol to guests in a bar, dining room, lounge, via room-service or through in-room mini-bars playing music in shared hotel areas, the restaurant, dining room and bar providing food throughout the night, whether by vending machines or room service installing gaming machines or offering gambling facilities on site dancing performed to guests or opportunities for guests to take part showing films other than within a community premises hosting weddings It will be necessary to assess whether the trading activities of the target hotel require licences and, if so, whether those licences can be transferred to the buyer. This Practice Note addresses licences under the Licensing Act 2003 ( LA 2003), Live Music Act 2012 (...

Corporate deals are a routine part of a solicitor’s work yet among the most demanding. Beyond the particularities of any purchase (including its configuration and price), legal teams examine every facet of the target’s operations, bargain for suitable safeguards for all participants, and arrange handover measures to ensure ownership passes smoothly for both parties. As a critical component of most enterprises, information technology sits at the heart of this exercise and must be considered throughout. Matters of data protection fall outside the scope of this Practice Note but should be taken into account where relevant. For links to guidance on data protection concerns that may surface during a corporate deal (including those tied to IT systems), refer to the section on Data protection considerations below. How corporate transactions work Typically, and for clarity, from a technology lawyer’s perspective, a corporate purchase can be viewed in three...

This Practice Note sets out essential guidance for firms when delivering unbundled advocacy services or aiding a client in a contentious matter. A distinct Practice Note addresses the provision of general advice and assistance on an unbundled basis: Unbundled legal advice, alongside an overarching Practice Note on What to consider when offering unbundled services. If you are contemplating unbundling legal services to, or from, a separate business, consult also Practice Note: Separate business and unbundling legal services. Litigants in person may prefer to obtain advice before attending court where they will speak for themselves. Alternatively, they might run the claim personally yet ask a firm to secure representation for a specific hearing. Some clients are court-literate, eg because they possess a legal background or other expertise that prepares them to handle their own case. Many others have little choice but to act without a lawyer due to...

Purpose of the Financial Ombudsman Service The Financial Ombudsman Service ( FOS) is an independent scheme for settling disputes, helping consumers resolve complaints with financial services businesses. Its ombudsmen consider and determine cases between customers and firms. The FOS is not a regulator. Its service is neutral and its decisions are made entirely separately from the Financial Conduct Authority ( FCA) and the Prudential Regulation Authority ( PRA). It is free for complainants and its remit extends to most regulated financial products and services provided in or from the UK. The FCA Handbook’s Dispute Resolution: Complaints ( DISP) section explains the FOS’s role, remit and processes in detail. For further background on the FOS and complaints about firms generally, see: Complaints against firms—financial services—overview and Practice Note: Complaints handling by financial services firms... Scope of the Financial Ombudsman Service's...

Japanese knotweed Japanese knotweed was brought to the UK in the 19th century as an ornamental garden plant. In Japan it had been used to stabilise sand banks, and it has been suggested it served a similar role in the UK on embankments. Free from the competitors, diseases and animals that restrain it in its native range, its unchecked, invasive habit soon made it a pest here. Because only female plants were introduced, there was no pollen from male plants, so fertile seeds failed to form. Consequently, virtually all knotweed in the UK has spread from tiny fragments of plant material, mainly roots, carried to new places within knotweed-contaminated soil. The plant expands rapidly below ground and sends up annual shoots each spring. Roots and shoots alike can exploit cracks in buildings and hard surfaces such as concrete and tarmac, gradually causing...

A limited company may repurchase its own shares, provided the conditions in the Companies Act 2006 ( CA 2006) are met. This is often termed a share buyback or a purchase of own shares. Besides the CA 2006 provisions, further rules apply when a listed company or an AIM company intends to purchase its own shares. Specifically, a listed company must have regard to the UK Listing Rules ( UKLRs) and the Disclosure Guidance and Transparency Rules ( DTRs). An AIM company must consider the AIM Rules for Companies ( AIM Rules), although these do not explicitly address buybacks; AIM Regulation has confirmed that, in most situations, adherence by an AIM company to the UKLRs for buybacks would be regarded as best practice. An AIM company is also subject to DTR 5. In addition, both categories of company may follow...

The preface to the Organisation for Economic Co-operation and Development ( OECD) model tax convention ( MTC) expressly states that, when concluding a double tax treaty ( DTT), the contracting jurisdictions neither seek to open avenues for tax avoidance nor are compelled to extend treaty benefits where arrangements amount to an abuse of the treaty concerned. Accordingly, the parties are not required to confer relief where abusive arrangements exist under the relevant treaty framework. Specific anti-avoidance measures that stop a given article of the treaty from applying to a transaction or category of income (eg provisions on dividends, interest and royalties), including ‘beneficial ownership’ conditions and anti-conduit rules designed to ensure the person legally receiving the income is also its real economic beneficiary; and General anti-avoidance rules that limit the operation of the treaty......

Harassment under the Equality Act 2010 ( Eq A 2010) This Practice Note examines harassment within the Equality Act 2010 ( Eq A 2010), meaning exposing a person to unwelcome behaviour linked to a relevant protected characteristic (race, sex etc), where that behaviour is intended to, or in fact does, undermine the victim’s dignity or produce an environment that is intimidating (eg bullying), hostile, degrading, humiliating or offensive. Sexual harassment (ie unwelcome behaviour of a sexual kind with the necessary purpose or effect), and employers’ obligations to prevent sexual harassment, are addressed separately in Practice Note: Sexual harassment and the duty to prevent it. The Note also looks at the Protection from Act 1997 ( PHA 1997) (see: Protection from Act 1997, below). This Practice Note includes citations to case law of the Court of Justice of the European Union ( CJEU). For...

Under the Companies Act 2006 ( CA 2006), there are rules governing payments a company makes to a director by way of compensation for loss of office. Because these arrangements are especially susceptible to misuse, they must be approved by shareholders. Their interplay with the general statutory duties of directors is addressed in Practice Note: Directors' duties—scope, nature, interpretation and application. Among those duties is an obligation to inform the board whenever the director has, directly or indirectly, any interest in a proposed transaction or arrangement with their company, specifying the nature and extent of that interest. In relation to: the requirement to disclose an interest in a company transaction or arrangement, see Practice Note: Declaration of a director's interests—the statutory provisions; a director’s ability to participate, whether as a director or as a member, in decisions on such a...

This Practice Note provides a concise overview of the principal capital gains tax ( CGT) reliefs and exemptions relevant to business assets and available to trustees, as well as to individual business owners. It considers the following areas. CGT reliefs for trustees carrying on a business, namely: business asset roll-over relief incorporation relief CGT reliefs and incentives for trustees as investors, namely: enterprise investment scheme ( EIS) and seed enterprise investment scheme ( SEIS) relief on company reorganisations relief for losses on loans to traders EIS and SEIS play a significant role in drawing investment into a business. That said, this Practice Note concentrates on the tax treatment of both schemes for trustees in an investor capacity, ie the EIS income tax and CGT benefits available to an investor. The reliefs excluded from this Practice Note, but covered in separate Practice Notes, are: CGT...

This Practice Note provides practical guidance on how to respond to a Notice of Arbitration under the Hong Kong International Arbitration Centre ( HKIAC) Administered Arbitration Rules 2018 (the 2018 HKIAC Rules; HKIAC 2018). As outlined in Practice Note: HKIAC (2018)—the HKIAC Administered Arbitration Rules—application and key features, the 2018 HKIAC Rules generally govern HKIAC arbitrations started on or after 1 November 2018, unless the parties agree otherwise; for HKIAC cases begun before 1 November 2018, the 2013 HKIAC Rules generally apply, save where the parties agreed differently. For a general overview of the HKIAC and its organisational structure, see Practice Note: HKIAC—background to and structure of the institution. Under the 2018 HKIAC Rules, proceedings, in general terms, commence when the claimant ‘communicates’ a Notice of Arbitration ( Notice) to the HKIAC—see Practice Note: HKIAC...

This Practice Note outlines the legal and procedural importance of the Financial Conduct Authority’s ( FCA) decision to appoint investigators under Part XI of the Financial Services and Markets Act 2000 ( FSMA 2000). It explores the statutory grounds for appointment, distinguishing between general and specific inquiries, the breadth and notification of an appointment, and the immediate legal effects that follow. It also addresses the role of limitation periods and the interplay with criminal and dual-track investigations. In addition, the Practice Note explains how appointing investigators signifies the formal start of an enforcement inquiry by the FCA’s Enforcement and Market Oversight division ( Enforcement) and how this links to later stages of the FCA’s enforcement process. Key points Appointing investigators is the FCA’s first formal step in an enforcement investigation and activates the FCA’s formal investigative powers Depending on the...