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FCA consultation proposes changes to enforcement investigations

Published on 12 Mar 2024. By Ben Simmonds, Associate

The FCA has recently released a consultation paper proposing changes to how it carries out enforcement investigations. We consider the key proposals and how they may impact upon both firms and individuals under the FCA's regulation.

Home run! - Tribunal finds that taxpayer who bought and sold three properties in quick succession was not trading

Published on 11 Mar 2024.

Taxpayer purchasing, renovating and selling properties allowed private residence relief on capital gain and held not to be trading as property developer for tax purposes.

A look into HMRC's toolbox during a criminal investigation

Published on 05 Mar 2024. By Adam Craggs, Partner and Michelle Sloane, Partner

HMRC has far-reaching powers it can deploy during a criminal investigation into suspected tax fraud, which include applying for and executing search warrants (colloquially referred to as a "dawn raid"), making arrests and the compulsorily obtaining information and documentation through production orders and disclosure notices/orders. A criminal investigation conducted by HMRC is one of the most stressful events a business can experience and failing to properly respond can have serious repercussions, including significant financial and reputational damage or even prison time for individuals.

FCA reviews ongoing client services following Consumer Duty implementation

Published on 04 Mar 2024. By Hattie Hill, Associate and David Allinson, Partner

The FCA has made a request for information from a number of networks with a view to determining what further work is needed to ensure that ongoing services provide fair value under the Consumer Duty. It has also recently published a webpage with examples of good practice and areas for improvement.

Lawyers Covered - February 2024

Published on 26 Feb 2024. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Helen Lindup, Associate and Georgia Durham, Associate

Lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Tribunal allows taxpayers' appeals against discovery assessments as company could not distribute goodwill it did not own

Published on 26 Feb 2024. By Alexis Armitage, Senior Associate

Tribunal allows taxpayers' appeals against HMRC discovery assessments as company could not distribute goodwill it did not own.

Tribunal varies Schedule 36 information notice as it sought material not reasonably required by HMRC

Published on 19 Feb 2024. By Jasprit Singh, Senior Associate

In Parker Hannifin (GB) Ltd v HMRC [2023] UKFTT 00971 (TC), the First-tier Tribunal found that an information notice issued by HMRC, under Schedule 36, Finance Act 2008, was not invalid because it required electronic searches using a list of specified search terms but it did seek information that was legally privileged or not "reasonably required" and the notice was varied accordingly.

Claims against auctioneers: (not) going going gone!

Published on 15 Feb 2024.

Auctioneers – daytime TV shows suggest they are a rather friendly, energetic bunch of people, but did you know they're facing an increase in professional negligence claims? We delve into what happens if complaints are made after the gavel falls.

Pension Ombudsman upholds complaint against SSAS trustee for investment decision

Published on 13 Feb 2024. By Rachael Healey, Partner

In a complaint made against Rowanmoor as administrator and trustee of a small self-administered pension scheme (SSAS) regarding investments made by the SSAS in The Resort Group, the Pension Ombudsman has rejected the complaint against the administrator but upheld the complaint against the trustee. The decision addresses the responsibilities of a pension trustee when making investments including the obligation to diversify assets and to avoid investments "attended with hazard". As the customer was also a trustee of the SSAS (which is always the case with a SSAS) the Ombudsman also considered the contributory fault of the customer, finding that the customer as trustee was responsible for 20% of the loss and in doing so putting to one side the principle that trustees are jointly and severally liable for acts as trustee.

Upper Tribunal remits CGT appeal back to Tribunal for rehearing

Published on 12 Feb 2024.

In M Campbell v HMRC [2023] UKUT 265 (TCC) the Upper Tribunal (Tax chamber) remitted the taxpayers' appeals back to the First-tier Tribunal to consider the liability to capital gains tax, after the taxpayer flipped four residential properties.

Tribunal allows taxpayers' appeals against discovery assessments

Published on 05 Feb 2024. By Liam McKay, Of Counsel

In Smith v HMRC [2023] UKFTT 00912 (TC), the First-tier Tribunal (FTT) allowed the taxpayers' appeals against discovery assessments, finding that a transfer of goodwill did not amount to a distribution under section 1000, Corporation Tax Act 2010 (CTA), because the goodwill was owned personally by the taxpayers.

Lawyers Covered - January 2024

Published on 30 Jan 2024. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Krista Murray, Senior Associate and Scott Robins, Senior Associate and Charlotte Thompson, Associate and Poppy Hay, Senior Associate

We hope 2024 has started well for all of you. A new year but some things remain constant - lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

AIM higher!

Published on 30 Jan 2024.

In Graham Chisnall and Others v HMRC [2023] UKFTT 857 (TC), the First-tier Tribunal (FTT) held, in allowing the taxpayers' appeals, that evidence derived from the sale price of shares on the Alternative Investment Market (AIM) was more reliable than evidence provided by a valuer employed by HMRC.

Vehicle finance complaints gather speed

Published on 25 Jan 2024. By David Allinson, Partner and Rachael Healey, Partner

Following on from our recent blog on the changes to the FCA's complaint handling rules for complaints involving discretionary commission arrangements, the FOS has now published dedicated webpages concerning such complaints.

Insolvency trends and implications for claims against D&Os and Insolvency Practitioners

Published on 23 Jan 2024. By Kerone Thomas, Associate and Matthew Watson, Partner

Looking into the crystal ball at the start of the year to forecast future trends isn’t possible, but one common theme that we expect will continue to impact upon both directors and officers and insolvency practitioners (IP) is the increasing rise of corporate insolvencies.

Money Covered: January 2024 - predictions for the year ahead

Published on 18 Jan 2024.

Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.

Tax Tribunal allows taxpayer's appeal against discovery assessment

Published on 18 Jan 2024. By Alexis Armitage, Senior Associate

FTT allows taxpayer's appeal against HMRC discovery assessment seeking to charge CGT on the disposal of a property between separating spouses.

Recouping overpayments - The Pensions Ombudsman v CMG Pension Trustees Limited and CGI IT UK Limited – the implications of needing a County Court order

Published on 17 Jan 2024. By Dorian Nunzek, Trainee Solicitor and Rachael Healey, Partner

In November last year the Court of Appeal dismissed the Pensions Ombudsman's (Ombudsman) appeal of the 2022 High Court decision in CMG Pension Trustees Ltd v CGI IT UK Ltd [2022]. The Court of Appeal's decision upheld the High Court's decision that the Ombudsman is not a "competent court" to recoup overpayments under section 91(6) of the Pensions Act 1995.

Vehicle finance could drive redress scheme

Published on 15 Jan 2024. By David Allinson, Partner

We're barely into 2024 and it looks like vehicle finance arrangements could drive forward the next miss-selling saga. The volume of complaints in this area has prompted the FCA to suspend and extend certain time limits and an industry wide redress scheme could be on the horizon.

Court of Appeal considers 'main purpose' test and finds in favour of taxpayer

Published on 11 Jan 2024. By Jasprit Singh, Senior Associate

Directors not liable under PLNs as HMRC failed to establish deliberate conduct by company

Published on 05 Jan 2024.

In Sharon Suttle and another v HMRC [2023] UKFTT 873 (TC), the Tax Tribunal allowed the taxpayers' appeals against Personal Liability Notices (PLNs) on the basis that the company did not make a deliberate inaccuracy in its returns.

Lawyers Covered - December 2023

Published on 19 Dec 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Krista Murray, Senior Associate and Scott Robins, Senior Associate and Charlotte Thompson, Associate and Poppy Hay, Senior Associate

What could be more festive than our December edition of Lawyers Covered – so here it is, a gift from the Lawyers Liability and Regulatory Group at RPC, to all of you, our lovely readers! If you have any feedback or ideas for topics that you would like us to cover in the newsletter or in our seminars, please let us know. Happy holidays!

Lawyers Covered - November 2023

Published on 29 Nov 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Simon Love, Senior Associate and Jo Makin, Senior Associate and Charlotte Thompson, Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - October 2023

Published on 31 Oct 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Simon Love, Senior Associate and Jo Makin, Senior Associate and Charlotte Thompson, Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - September 2023

Published on 28 Sep 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Cheryl Laird, Senior Associate and Ruth Lancaster, Senior Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - July 2023

Published on 26 Jul 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Daniel Austin, Assistant General Counsel and Cheryl Laird, Senior Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - June 2023

Published on 28 Jun 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Richard Seymour, Associate and Cheryl Laird, Senior Associate and Sally Lord, Knowledge Counsel – Insurance and Litigation

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - May 2023

Published on 30 May 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Richard Seymour, Associate and Cheryl Laird, Senior Associate and Sally Lord, Knowledge Counsel – Insurance and Litigation

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - April 2023

Published on 02 May 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Richard Seymour, Associate and Cheryl Laird, Senior Associate and Sally Lord, Knowledge Counsel – Insurance and Litigation

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

New developments in AI may put law firms at greater risk of phishing fraud

Published on 28 Apr 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group

As the computing power of Artificial Intelligence continues to grow exponentially, we consider how generative technology may expand the reach of traditional phishing frauds aimed at law firms.

Lawyers Covered - March 2023

Published on 27 Mar 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Richard Seymour, Associate and Cheryl Laird, Senior Associate and Sally Lord, Knowledge Counsel – Insurance and Litigation

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - February 2023

Published on 01 Mar 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Peter Mansfield, Partner

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - January 2023

Published on 31 Jan 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Peter Mansfield, Partner

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - December 2022

Published on 21 Dec 2022. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Peter Mansfield, Partner

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - November 2022

Published on 29 Nov 2022. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Tina Campbell, Senior Associate and Scott Robins, Senior Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - October 2022

Published on 31 Oct 2022. By Carmel Green, Partner and Daniel Charity, Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Hong Kong – Claim pleading duty of care against auditor struck out for "putting the cart before the horse"

Published on 28 Oct 2022. By Antony Sassi, Managing Partner and David Smyth, Senior Consultant and Anson Lo, Associate

In Chan Kam Cheung v Ronnie K W Choi & Anor [2022] HKCFI 3028, a judge upheld a master's (judicial officer's) decision to strike out the plaintiff shareholder's action against the former auditors of the company.

Solicitors Entitled to Insurance Cover for Liability for Fees: Royal Sun Alliance Insurance Limited & Others v Tughans (a firm)

Published on 27 Oct 2022. By Nick Bird, Partner and Cheryl Laird, Senior Associate

In a recent judgment, Foxton J held that a claim for damages against a firm of solicitors for fees which it was contractually entitled to was covered under the firm's professional indemnity insurance. He held that it did not matter if the fees were obtained through the solicitor's fraudulent misrepresentation provided that the solicitor had done what was required under the contract to earn the fees. The decision will not be welcomed by insurers.

Lawyers Covered - September 2022

Published on 30 Sep 2022. By Carmel Green, Partner and Daniel Charity, Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers' Risks in Acting for Corporate Clients Without Authority

Published on 08 Sep 2022. By Nick Bird, Partner and Georgia Durham, Associate

The recent decision in Rushbrooke UK Ltd v 4 Designs Concept Ltd [2022] EWHC 1687 (Ch) has highlighted the dangers for lawyers in acting for corporate clients on the instructions of a director without authority of the company. Most of the authority in this area has focused on commencement of litigation but the principles apply too to transactional matters.

Shorter time limit for Third Parties (Rights Against Insurers) Act 2010 claims

Published on 08 Sep 2022. By Robert Morris, Partner

A recent judgment has reduced the limitation period for third parties to make direct claims against insurers under the Third Parties (Rights Against Insurers) Act 2010 when compared to claims under the predecessor 1930 Act. The decision will make it easier for insurers to defend such claims on limitation grounds.

Lawyers Covered - August 2022

Published on 30 Aug 2022. By Carmel Green, Partner and Daniel Charity, Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Risky Business: what to do when former clients ask further questions

Published on 22 Aug 2022. By Anna Murley, Senior Associate

In Spire Property Development LLP & Anor v Withers LLP [2022] EWCA Civ 970, the Court of Appeal considered the scope of a solicitor's duty when a former client posed questions to a solicitor concerning a transaction after the retainer had ended. The judgment will be of interest to solicitors who are asked for advice in circumstances where no retainer exists.

The Professional Negligence Law Review, Edition 5

Published on 29 Jul 2022. By Nick Bird, Partner

The Professional Negligence Law Review provides an indispensable global overview of the law and practice of professional liability and regulation. It covers the fundamental principles of professional negligence law in each jurisdiction, including obligations, fora, dispute resolution mechanisms, remedies and time bars. The authors then review factors specific to the main professions and conclude with an outline of recent developments and issues to look out for in the year ahead.

Lawyers Covered - July 2022

Published on 28 Jul 2022. By Carmel Green, Partner and Aimee Talbot, Knowledge Lawyer

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Double warning for legal professionals: do not cut corners with disclosure

Published on 26 Jul 2022.

Further to a recent decision made by the Bar Tribunals and Adjudication Service, the Bar Standards Board has suspended a "top criminal silk" from practice on grounds of professional misconduct in respect of his failure to disclose material evidence during criminal proceedings in 2007. The decision, and the judgment made by the Court of Appeal in those proceedings, reiterates the importance of the ongoing obligation on legal professionals to give disclosure and comply with their duties to the court.

Is the FCA to blame for BSPS? MPs seem to think so

Published on 22 Jul 2022. By Rachael Healey, Partner

The House of Commons Public Accounts Committee (PAC) yesterday published a report entitled "Investigation into the British Steel Pension Scheme". The report makes a number of recommendations in light of its investigations in to the FCA's conduct and regulatory oversight at the time of the issues arising from the British Steel Pension Scheme (BSPS) and in particular the decision by 7,834 members to transfer to a personal pension arrangement. The report is heavily critical of the FCA's handling of BSPS and its regulatory oversight of the defined benefit transfer market generally. Given the request in the report for an update from the FCA on its progress on the various recommendations and conclusions in 6 months' time, we wait to see how the FCA reacts to yet further criticism of its handling of BSPS at a time when it is reviewing responses to the consumer redress scheme consultation.

Post COVID-19 UK: What Will the Professional Negligence Claims Landscape Look Like?

Published on 28 Jun 2022. By Cheryl Laird, Senior Associate and Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group

The cost of living is at an all-time high, with interest rates increasing and inflation currently sitting at around 9%. The chances of a recession in the UK over the next two years have increased. It will come as no surprise that we expect the number of claims against law firms to rise as the economic downturn takes hold, as was the case in 2008 and recessions before it.

Lawyers Covered - June 2022

Published on 28 Jun 2022. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Tina Campbell, Senior Associate and Aimee Talbot, Knowledge Lawyer and Graham Reid, Partner and Alifya Bharmal, Associate and George Barratt, Senior Associate

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.

Lawyers Covered - May 2022

Published on 26 May 2022. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Carmel Green, Partner and Tina Campbell, Senior Associate and Aimee Talbot, Knowledge Lawyer

Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.