Regulation Expert Witness

Regulation Witness

Regulatory Approvals

Regulation in the financial sector has rapidly become a focus for banks, the general public and the government. Since the credit crunch of 2007, governments have been pushing for banks to be subject to far stricter regulation than they are currently and there has been a renewed emphasis on ensuring that the banks treat their customers correctly. In the United Kingdom, the FCA requires financial institutions to comply with its General Principles, the Conduct of Business Sourcebook (‘COBS’) and the Treating Customers Fairly (‘TCF’) outcomes.

Regulation goes a long way to protecting users of financial services and is helpful for making a strong case against banks where it has been breached.

At Expert Evidence we are well versed in all regulatory requirements applicable in the UK and are able to assist both banks who will seek to show compliance and customers who are questioning the bank’s conduct. We have previously opined on regulation in, amongst others, interest rate swap cases. We are also able to base our opinions on the regulations of other jurisdictions including the Isle of Man, Jersey, Guernsey and Ireland.

Non Regulated Business

Under European law, companies can operate across the European Economic Area while only being regulated in their home country. With more and more companies passporting into the UK, there have been questions raised around whether these companies are a threat because they do not come under the same level of scrutiny from FCA regulation as the equivalent UK firms. The spot FX market is one such example. Accounting for over 90% of currency trading, it’s big business and yet remains largely unregulated so that it has come under recent regulatory questioning.

Client Money

Companies that hold or receive clients’ money are subject to a set of regulations drawn up by the FCA which focus on improved due diligence and new disclosure rulings. These regulations are constantly evolving and in June 2014 the FCA released a new policy statement which makes changes to the rules in the Client Assets sourcebook (“CASS“). These changes are shaking up how businesses handle client assets and money, from IT operations to how client relationships are managed.

EU Institutions (MiFID)

The Markets in Financial Instruments Directive (‘MiFID‘) is legislation introduced in November 2007 to regulate investment services in the European Economic Area (‘EEA‘). Replacing the Investment Services Directive (‘ISD‘), it aimed to create clearer rules around cross border business, responsibility and conduct, as well as broaden the services and products that companies could passport. In the wake of the financial crisis and further regulation reform that was shown to be necessary, the European Commission published its proposal for the Markets in Financial Instruments Directive 2 (‘MiFID 2‘) in October 2011 which further aims to reduce risk, and increase stability, security and transparency across the EU.


Under the EU single market directives (which include ISD and MiFID), passporting allows companies to offer financial advice, products or services to clients, or to open a branch of their business, anywhere within the EEA. Equally a company operating in an EEA state can offer these services to the UK and other EEA states.

Cross Border Financial Issues

Cross border financing has been increasing rapidly over the past decade as businesses have had to increasingly evolve and diversify post the financial crisis and resulting regulations that were introduced. But as the practice has become more common, so too has it grown in complexity. Expert Evidence’s team of experts have in-depth experience of the ins and outs of the associated regulatory and tax implications of passporting and cross border financing, and have provided advice and assessment in a number of cases involving cross border financial issues.

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