In Practice

AI lemons and the economics of unverifiable quality: Part 2 – new kinds of firms

The proposed reforms to the financial promotions regime for consumer credit: a move to an outcomes-based approach

The overarching requirement that financial promotions must be “fair, clear and not misleading” remains unchanged. However, firms will have greater discretion in how they meet this standard, with less reliance on detailed CONC rules and more emphasis on their own judgement. In practice, compliance will increasingly be assessed by reference to whether communications deliver good consumer outcomes – particularly in terms of consumer understanding under PRIN 2A.5. This In Practice article reviews the key changes. 

SMF7 extension: from conduct to control

In this In Practice article the authors consider the practical implications of extending the SMF7 role to controllers.

DeFi exploits, on-chain interventions and the private key: recent developments in cryptoasset recovery

The author examines the significance of the Arbitrum Security Council’s recent decision to freeze and transfer misappropriated cryptoassets without the private key. The author assesses the implications of this intervention for the principle of “not your keys, not your coins”, the blurring of boundaries between custodial and non-custodial wallets, and the broader ramifications for cryptoasset enforcement and recovery in the English courts and beyond.

Withholding tax: treaty shopping – or not?

In this In Practice article, the authors consider the recent Court of Appeal decision in Revenue and Customs v Burlington Loan Management DAC  [2026] EWCA Civ 461 and its implications for practitioners. 

Raising the resilience bar: UK operational incident and third-party reporting reforms

New UK requirements will introduce a unified regulatory regime for operational incident reporting and reporting of material third‑party arrangements (MTPAs) from 18 March 2027. The rules, which are designed to align as far as possible with international regimes, introduce aligned definitions, templates, and processes for notifying regulators of serious operational incidents above a defined threshold and for registering and notifying new or significantly changed MTPAs. We take a look at the aims of the new regime, highlight key points to note and discuss implementation considerations for firms.

Golden Power 2026: navigating the latest Italian FDI screening developments

In this In Practice article the authors consider Italy’s Law No. 4 of 15 January 2026 which amends its foreign investment screening mechanism. The authors assess how the reform materially reshapes the procedural framework applicable to transactions concerning Italian banks, insurers and other financial institutions, as well as recent judicial developments affecting notification triggers for security interests in financing transactions and draw comparison with the UK National Security and Investment Act 2021.

AI lemons and the economics of unverifiable quality: Part 1 – old kinds of firms

The mainstream adoption of generative AI systems has raised the stakes around the issue of unverifiable quality. For lawyers and most clients the hard part with AI is verification, not performance. Generative AI is world changing but it is not currently possible to reliably predict when its mistakes will be trivial or obvious and when its mistakes will be catastrophic or not apparent. For investors the related problem is that verification of quality (in other words, what is investible) requires a mix of expertise and experience that is rare.

ECCTA 2023: implications for finance transactions

A key aim of the Economic Crime and Corporate Transparency Act 2023 (ECCTA) is to reform the UK’s prevention, detection and prosecution measures for economic crime, particularly through strengthening corporate transparency and ensuring that legitimate business activities are not abused for illicit purposes. Recently core provisions have come into force and new guidance has emerged providing further insight and clues as to the practical implications and potential risks that ECCTA poses for workflows on loan finance transactions.

Referral to the Upper Tribunal: worth the risk?

The authors consider recent decisions in which the Upper Tribunal has closely scrutinised FCA penalty calculations and reduced fines. They consider the implications for firms and the regulator.