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Jonathan Kelly’s practice focuses on substantial English and international commercial litigation and arbitration.

The English High Court has dismissed an application to discharge the U.K.’s first Unexplained Wealth Order which was obtained by the National Crime Agency on February 27, 2018.

Since January 31, 2018 a number of U.K. enforcement authorities have been able to apply to the English courts for an Unexplained Wealth Order in circumstances where a person’s assets appear disproportionate to their known income.  Once granted, an Unexplained Wealth Order requires an individual or company suspected of serious crime, or a politically exposed person from outside the EEA, to explain and account for the source of their wealth.

In summary, the High Court ruled that:

  1. The respondent fell within the category of persons against whom an Unexplained Wealth Order can be made as her husband is a non-EEA PEP (by virtue of his former role as the Chairman of the state-owned International Bank of Azerbaijan).
  2. There were reasonable grounds for suspecting that a property in London owned by the respondent was purchased with unlawfully obtained income.
  3. The order did not breach the respondent’s human rights.
  4. Neither privilege against self-incrimination nor spousal privilege excuse compliance with an Unexplained Wealth Order.

Please click here to read the full alert memorandum.

The £16.4 million fine imposed by the UK Financial Conduct Authority on Tesco Personal Finance plc provides a salutary lesson on the regulatory exposure associated with failing adequately to prepare for and respond to a cyber-attack – one of the FCA’s stated regulatory priorities.

The episode illustrates how cybersecurity failures can expose a business not only to increasingly draconian penalties under the EU’s General Data Protection Regulation where personal data is involved (effective from 25 May 2018), but also to regulatory enforcement penalties where systems are not in place or are not operated effectively in a crisis.

It highlights the critical importance for businesses of:

  • Establishing cybersecurity and data protection compliance firmly on the management and risk agenda. More than just the costs of doing business in the digital economy, these can give rise to serious regulatory and franchise exposure;
  • Taking effective action to prevent foreseeable cyber-attacks;
  • Establishing appropriate crisis management procedures and providing training to staff on how to invoke them, including through desktop exercises that provide scenario planning training; and

Engaging constructively and immediately with the relevant authorities and stakeholders to mitigate even greater damage to the business once an attack has occurred.

Please click here to read the full alert memorandum.

The Financial Conduct Authority and the Prudential Regulation Authority (together, the “Regulators”) have jointly fined Barclays’ CEO, Jes Staley, a total of £642,430. The fine was imposed for Mr Staley’s repeated attempts to uncover the identity of an anonymous whistleblower, which constituted a failure to act with the due skill, care and diligence the Regulators expect from a CEO. The case was observed with interest as the first brought by financial regulators under the UK’s Senior Managers Regime. The Regulators chose not to impose more severe sanctions (which could have involved the removal of Mr Staley from his role) after failing to find that Mr Staley was guilty of any deliberate wrongdoing. Continue Reading UK Regulators Fine Barclays’ CEO for Errors of Judgement in Relation to Whistleblower