UK Knowledge Collection | AI and business risk, social media and financial promotions, M&A in the tech sector
Published on 25th Aug 2023
Welcome to this week's Knowledge Collection.
Artificial intelligence (AI) has rarely been out of the headlines this year – and offers businesses both opportunities and risks. Regulators are also scrambling to understand the implications of this rapidly evolving technology. Our experts have explored some of the legal and compliance risks of AI, including the scope for contractual protection, emerging AI-specific regulation and broader considerations (including ESG).
Adapting to the changing technological landscape is something the Financial Conduct Authority (FCA) continues to focus on in its drive to enhance consumer protection in financial services. It has launched a consultation on its new guidance covering financial promotions on social media: its previous guidance predates the rise of "finfluencers" (influencers on social media who may have little or no expertise on the products they are promoting). New rules are also coming into force in October to regulate the promotion of cryptoassets in the UK.
The EU is also tackling the regulation of cryptoassets. Our webinar next month looks at the requirements of the Markets in Crypto-assets Regulation, and compares it with emerging UK policy.
Meanwhile, uncertain market conditions and rapid technological change means that M&A transactions in the tech sector can be particularly challenging. Our panel discussion, hosted at our London office, will consider strategies and practical steps to take when approaching M&A transactions.
Recent Insights
What risks need to be considered by a UK business using artificial intelligence?
The risk of artificial intelligence applications has been a "gradually, then suddenly" scenario, with generative AI now at the top of many corporate agendas. Our overview of the legal and compliance risks that AI poses for business was published in Compliance & Risk journal.
UK regulator's guidance for financial promotions on social media set for revamp
The FCA has launched a consultation on new guidance for financial promotions on social media, which will replace existing guidance on this area dating back to 2015.
UK employers face threefold rise in penalties for illegal workers
The Home Office has announced that, from early 2024, employers will face initial fines of up to £45,000 per illegal worker, up from £15,000. This will increase from £20,000 to £60,000 for repeat breaches. The government will also consult on how to deter licensed businesses from employing workers without lawful immigration status.
Does 'a prudent uninsured' still need the insurer's consent to settle with a third party in England and Wales?
If an insurer has denied cover, or wants more time to decide if a claim is covered, an insured will often be told to act as a "prudent uninsured". A recent case highlights a potential waiver issue for insurers when insureds are negotiating and settling with third party claimants.
UK Financial Reporting Council consults on revisions to its Ethical Standard
The transition of the Financial Reporting Council (FRC) into the new Audit, Reporting and Governance Authority is now expected in 2024. Despite the delays, the FRC continues to pursue its objectives by implementing further reforms and issuing new consultations on the scope of its powers, and strengthen the impact of its enforcement action.
Events
Procurement Act 2023 | KPIs, exclusion and debarment
12 September | 09:00-10:00
We will discuss the new rules around monitoring supplier performance in public contracts, how and when suppliers could be excluded from a public procurement, and how the new debarment list will work.
Procurement Act 2023 | A new age of transparency
20 September | 09:00-09:45
The Procurement Act requires authorities to publish information during a procurement process and beyond. What notices can suppliers expect to see?
Carried interest structures: topical issues and pitfalls
London Wall | 26 September| 08:30-11:00
A breakfast seminar on some of the topical issues and pitfalls for carried interest, its tax treatment and structural issues.
Tech transactions: M&A in an uncertain market
London Wall | 28 September | 17:00-19:00
A panel discussion on the challenges and opportunities of M&A transactions in the tech sector in unpredictable market conditions.
The EU's MiCAR legislation and a UK perspective
29 September | 13:30-15:00
Our financial regulation team from around Europe will discuss the EU's Markets in Crypto-assets Regulation and compare the new regulatory framework for the European Economic Area with emerging UK policy.
