UK Knowledge Collection | CBAM transition phase, new building control regime, and sanctions compliance in financial services
Published on 22nd Sep 2023
Welcome to this week's Knowledge Collection
New EU measures to tackle "carbon leakage" (where carbon-intensive industries are located outside the EU, and the goods produced are then imported) are about to apply. From 1 October, as part of the transition phase of the Carbon Border Adjustment Mechanism (CBAM), importers of certain goods in scope of the CBAM regulation must report to the European Commission on the amount of carbon dioxide emitted during production. UK exporters will need to prepare to help their customers in scope of the CBAM.
The new building control regime in England for higher-risk buildings (buildings of at least seven storeys/18 metres containing two or more residential units) comes into force on 1 October, with transitional arrangements for developers on certain projects. Our Insight looks at the potential impact of the new requirements.
New enforcement powers for the Office of Financial Sanctions Implementation (OFSI) were introduced by the Economic Crime (Transparency and Enforcement) Act 2022. OFSI exercised its new disclosure enforcement power for the first time last month, and its decision is likely to be of particular interest to payment service providers. The Financial Conduct Authority (FCA) has also published guidance on sanctions compliance across the financial services sector which clarifies some key risk points for firms.
Next week, our compliance webinar series looks at IR35, independent contractors and umbrella companies and how to mitigate and manage risk posed by generative AI.
Insights
EU implements a Carbon Border Adjustment Mechanism to combat carbon leakage to third countries
The reforms to the EU's carbon market will cover many sectors of the economy. There will be a cost associated with emitting CO2, including for producers outside of the EU. Indeed, the indirect goal of the CBAM is to incentivise non-EU producers of the in-scope goods to make their production processes more sustainable and efficient.
Long-awaited clarity received on building control for higher-risk buildings
Last month, the government published a response to a consultation response on the new building control regime for higher-risk buildings and the associated regulations. They bring clarity on how the regime is changing - albeit with only around six weeks between the date of publication and the date on which the regulations come into force.
UK OFSI issues first 'disclosure notice' censuring sanctions breach
OFSI's disclosure notice and the FCA's guidance provide clarity for financial services firms on a number of points in respect of sanctions compliance.
When are dissenting creditors 'no worse off' under an English restructuring plan?
The "no worse off" test has been a substantial battleground of restructuring plan case law, and a wide variety of factors can be considered by the court in determining whether a dissenting class is worse off under a contested restructuring plan.
Twelve tips for a successful mediation
Mediation is a flexible, confidential process in which a neutral person actively assists the parties in a dispute to work towards a negotiated agreement. How can you get the most out of a mediation?
Events
The future of procurement challenges and remedies
4 October | 09:00-09:45
What is the scale of the changes introduced by the Procurement Act and what are the implications for suppliers considering bringing a procurement challenge?
Eating Compliance for Breakfast series
Umbrella, employer of record and independent contractor update (including IR35)
26 September | 09:00-09:30
How to prepare for likely new enforcement and new legislation in 2024-25.
Generative AI: managing current and future risks
28 September | 09:00-09:30
An overview of the commercial, employment, regulatory and compliance risks associated with generative AI and how to mitigate and manage them.
Martyn's law: what's changed?
3 October | 09:00-09:30
An update on the draft Terrorism (Protection of Premises) Bill and areas to watch following the select committee's report issued this summer.
PFAS regulation update and market insights
5 October | 09:00-09:30
What is the current status of regulations on Per- and polyfluoroalkyl substances (PFAS, also known as "forever chemicals") in the UK and EU from a product liability and environmental law perspective? How has the market responded to the increased regulation?
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 tech M&A transactions in unpredictable market conditions.
The EU's MiCAR legislation and a UK perspective
29 September | 13:30-15:00
The financial regulation team from around Europe discuss the Markets in Crypto-assets Regulation and compare the new regulatory framework for the European Economic Area with emerging UK policy.
OC Ventures Live | First-hand experiences from those in the ventures ecosystem
London Wall | 3 October | 16:30-19:30
A panel of founders and investors share practical experiences and views on starting up, scaling and the investment process into high-growth businesses, from both company and investor perspectives.
