Financial Services

The financial services sector comprises a broad range of organisations, from asset managers and alternative finance platforms, through to wholesale banking and zinc traders. All have their own challenges, nuances and, in some cases, “languages”. Our Financial Services team has the experience and capability to support you and your business in overcoming the complex issues you face on a daily basis.

One thing that unites the industry is the need to deal with complex  risk, regulatory and compliance issues. And whether you have to adhere to just the UK rules and regulations or have overseas offices and have to deal with international regulators, our specialists have the expertise and experience to  guide you through the complex landscape and provide you with integrated solutions.

Indeed, helping out clients deal with and adhere to the requirements of the PRA, FCA or international regulators is an important part of almost any piece of work we undertake in the sector. 

As you might expect, many of the team members at RSM have a sole focus on the financial services sector, we also have a number of team members who have been in senior roles in the industry including at CEO, CFO, COO level as well as having some with previous experience working at the regulator.

In additon to the regulatory issues, changes and challenges, the  financial service sector is in an almost constant state of change and evolution. Whether that’s products and services, client base and their needs, the systems and platforms being used, or as a result of mergers and acquisitions. We are able to support you as things change, be it with project assurance, cyber security advice on new systems, advice around system implementation or due diligence when you’re looking to make an acquisition.

Finally, like many firms in the sector, we work internationally. We have financial services focussed teams in all major financial  centres , meaning we are able to provide a full service  seamlessly across borders.

One of the key pillars of the Government’s Good Work Plan, coupled with its aims of fair and decent work for all and for greater clarity in employment relationships law was the fairer enforcement of workers’ rights.

On the topic of supporting employees’ enforcement of their statutory rights, often difficult if the corporate employer has failed, a new front was opened by the High Court in April 2019 for personnel who suffer egregious breaches of their working rights in the civil case of [Antuzis v DJ Houghton Catching Services, J Judge and D Houghton [2019] EWHC 843].

It was also a timely reminder of the impact of a breach by a company’s statutory officers, both directors and company secretary, of their Companies Act 2006 duty. In particular the duty in Section 172 Companies Act to act in good faith to promote the success of the company and to have regard to the interests of the company’s employees. In fact, now corporates with more than 250 employees are obliged to include in their directors’ report how they have done this.

This case decided that directors who were fully aware of several breaches by the corporate employer of minimum wage rate payment obligations, wrongful deductions from pay, wrongful accommodation charges to vulnerable agricultural workers, unpaid wages, and failures in holiday pay were personally liable to their corporate’s workers employed as chicken catchers.

In fact, breaching their duty to promote the interests of the company and its workforce will on its own not make officers personally liable to the aggrieved parties, although the officers can face a charge of breach of statutory duty from the company. Their personal liability stems from not acting in good faith and knowingly inducing the company to breach its contract with its staff. In this case the evidence was overwhelming that the directors well knew and orchestrated the abuse of the workers’ statutory rights by their employer. The directors and company secretary were decided to be personally liable because these were also statutory breaches of the workers’ rights by the company.

We are familiar with the enforcement of workers’ rights against their employers with statutory rights regularly being engaged. Therefore, we may well see more claims against individual directors who have wilfully orchestrated breaches of the statutory rights of their workforce for them to be found liable personally to the staff. The company’s directors’ and officers’ insurance policy may assist in the funding of the management of those claims against directors, especially where separate legal representation for directors is thought prudent to protect the employer.

More than ever, legal advice is needed when contentious workplace issues arise so that businesses and their leaders can manage their corporate, reputational and personal risk.

If you have any concerns about these issues, please contact Carolyn Brown.