Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

Revolut has slammed Meta's recent anti-fraud initiatives, labelling them as inadequate. Woody Malouf, Revolut's head of financial crime, said that Meta's plans are “baby steps, when what the industry really needs is giant leaps forward.” The London-based fintech criticised Meta for not committing to reimburse scam victims, despite profiting from fraudulent advertisements. Revolut's latest financial crime report revealed that 62% of scams reported to the bank in the first half of 2024 originated from Meta platforms, a figure consistent with the previous year. The comments follow news that Meta will work with more banks to remove scam accounts and were made as new rules from the Payment Systems Regulator (PSR) come into effect, requiring banks to reimburse victims of authorised push payment fraud up to a limit of £85,000 per claim. Banks have also been given the power to pause payments for up to four days to give them more time to investigate fraud.

 

City AM

The Guardian

Mastering GRC with the power of workflow automation and orchestration

Increased regulations of increasing complexity can force security teams to choose between GRC and other security goals. But embedding GRC processes into a broader security automation strategy means you don’t have to choose. On October 9th, join Tines as we dive into how leading security teams are using automation to solve the challenges facing compliance processes today. From enhancing risk management to improving policy enforcement and monitoring, we’ll share how workflow automation and orchestration can simplify the way you enforce compliance, reduce human error, and improve visibility of your environment.

Register now

 

Andrew Bailey, the Governor of the Bank of England, has indicated that the central bank might adopt a more proactive stance on interest rate cuts if inflation continues to improve. Currently, rates stand at 5% following a reduction in August. Bailey said he was encouraged that inflation pressures had proved less persistent than the Bank had feared, but he also highlighted the potential impact of geopolitical tensions in the Middle East on oil prices. He cautioned: "There’s a point beyond which that control could break down if things got really bad," stressing the need for vigilance in monitoring such developments. Sterling fell 1.5¢ against the US dollar following Bailey’s comments to trade at about $1.31 – its lowest level in three weeks. Kathleen Brooks, a research director at XTB, said: “The market has used Bailey's comments as a green light to price in more [interest rate cuts]. The pound has already sold off sharply this week, so further downside could be limited in the short term, however, Bailey has made it harder for the pound to recover.”

 

Reuters

The Guardian

The Times

Deputy Prime Minister Angela Rayner is set to introduce the Employment Rights Bill next week, with key proposals including protections against unfair dismissal, immediate sick pay access, and a ban on zero hours contracts. A survey by Opinium reveals that 66% of business leaders believe the reforms will positively impact their operations. Commenting on the survey, TUC General Secretary Paul Nowak said: "Most managers understand that if you treat your staff well they will perform better." Additionally, Dr George Dibb from IPPR highlighted that secure employment benefits both workers and businesses. Elsewhere, Tesco's chief executive, Ken Murphy, has urged the government to collaborate with businesses on the new rules to ensure they don’t inhibit growth.

 

Daily Mirror

The Guardian

The future of the North Sea's oil and gas industry is at risk due to a lack of clarity around the fiscal regime, according to a new report from Wood Mackenzie. The report criticises recent changes to the Energy Profits Levy (EPL), which is set to increase from 35% to 38% on November 1, creating significant uncertainty for investors. Graham Kellas from Wood Mackenzie said: “Price responsiveness, predictability, fairness, simplicity and transparency must all be considered to ensure the correct outcome is reached at what is a crucial juncture for the sector.” Meanwhile, Ineos UK E&P, owned by Sir Jim Ratcliffe, has reported a £280m loss for 2023, which it attributed to a total tax bill of £585m, largely due to the energy profits levy and decommissioning costs.

 

The Daily Telegraph

The Scotsman

Half a million small businesses have folded since the start of 2020, with official figures showing that the total number of private sector businesses stood at 5.5m in the year to January. The British Chambers of Commerce said that the decline in private businesses "underlines the challenging economic conditions many firms are still facing.” Tina McKenzie, policy chair at the Federation of Small Businesses, said that the "disappointing" figures highlighted in "stark terms the need for a renewed focus on economic growth and entrepreneurial culture." She added: "There are now well over half a million missing small business owners. That's half a million wealth creation units missing, which means local jobs and local enterprise are also missing."

 

The Times

According to a report by the Commission for Healthier Working Lives, Britain's ill-health crisis is significantly impacting the workforce, with over 8m adults either jobless or limited in their work capacity. The study reveals that one in five working-age individuals suffers from health conditions that hinder their employment, with those affected being three times more likely to be unemployed. The report highlights a 37% increase in such cases since 2013, with 4.3m people currently out of work due to health issues. It goes on to call for reforms in sick pay and urges the government to incentivise employers to support workforce health. Some 60,000 women are currently off work due to symptoms relating to the menopause, costing the UK economy £11bn annually. Sacha Romanovitch, chairman of the commission, said: “If we intervene early and provide the right support, people can stay at work for longer. That is a goal that is great for individuals, great for businesses and great for society.”

 

The Daily Telegraph

Daily Mail

The Guardian

In the UK, many firms are failing to tap into the working-class talent pool, with only half actively seeking candidates from less advantaged backgrounds. The Social Mobility Commission highlights that adults from lower working-class families are three times more likely to remain in working-class jobs compared to those from higher professional backgrounds. The Sutton Trust suggests that improving social mobility could add £170bn to the UK economy annually. Alun Francis, chairman of the Social Mobility Commission, said: "It's not true that social mobility is getting worse on all counts, nor does our country compare badly with others. In reality, the picture is complex. But we don't need a crisis to recognise that opportunity can be improved." The Times notes that law firm Linklaters, Nationwide, KPMG and PwC are among those taking part in this week's Somo Awards, which highlight the work done by organisations actively supporting working-class talent.

 

The Times

Sir Keir Starmer has said negotiations with the European Union will be "difficult," after a trip to Brussels where he had his first bilateral meeting with Ursula von der Leyen, the European Commission president. The UK’s prime minister hailed a "reset" in relations that will include his attendance at regular summits in Brussels. "We're putting our relationship with Europe on a more solid, stable footing," he said. "Tone does matter. Resetting does matter. The detailed work to take this forward starts now. We've agreed to hold regular UK-EU summits at leader level to review progress, starting in the first half of next year." As he set out "red lines" ruling out Britain rejoining the EU's single market, returning to free movement rights or signing up to Europe's customs rules, Starmer conceded that trade-offs would have to be made. "There will be issues which are difficult to resolve - but we will find constructive ways to work together," he said.

 

The Times

French President Emmanuel Macron has issued a grave warning about the future of the European Union if current trends continue. Speaking at the Global Dialogue event, Macron said: “The EU could die, we are on a verge of a very important moment. Our former model is over – we are over-regulating and under-investing. In the two to three years to come, if we follow our classical agenda we will be out of the market.” Macron urged member states to pursue the banking union package to ensure stability in the Eurozone. His comments follow a report by Mario Draghi, former Italian Prime Minister, which stressed the need for a more integrated single market and a proposed €800bn industrial strategy to keep pace with global competitors.

 

Daily Mail

The Police Service of Northern Ireland (PSNI) has expressed its "extreme disappointment" after the Information Commissioner's Office (ICO) upheld a £750,000 fine related to a significant data breach. Chief Constable Jon Boutcher described the fine as "regrettable," especially given the PSNI's current budget shortfall of £34m. The breach, which occurred in August last year, involved the accidental release of personal details of all 9,400 officers and staff, later accessed by dissident republicans. Information Commissioner John Edwards said: "A lack of simple internal administration procedures resulted in the personal details of an entire workforce, many of whom had made great sacrifices to conceal their employment, being exposed."

 

BBC News

Jozsef Varadi, chief executive of WizzAir, is set to earn £100m if the airline's share price reaches 12,000p by 2028. Despite the airline being rated the worst for customer service for three consecutive years and a significant drop in share price, Varadi remains undeterred. He is currently in line for a one-off bonus of £2.1m, which is 300% of his salary of over £710,000. Varadi dismissed criticism of his pay, stating: "Look at the United States . . . I don't know what bonus Elon Musk took, but he took billions." At the recent AGM, nearly 20% of shareholders opposed his reward package, yet Varadi claimed it was an "absolute victory" for shareholder confidence.

 

Daily Express

Lord Agnew of Oulton has urged the government to consider whether there needs to be a clawback on any of the taxpayer funds paid to Starling through the bounceback loan scheme after the Financial Conduct Authority (FCA) fined the bank £29m for inadequate financial crime controls. Starling lent over £1.6bn through the bounceback loan scheme and claimed £84m on taxpayer guarantees citing fraud.

 

The Times

Mark Carney, the former Bank of England governor, has cautioned that "significant stranded assets" will emerge in commercial property as governments strive for net zero.

 

Financial Times

Financial Times

Ford is urging the Labour government to reconsider its ambitious electric vehicle targets and the penalties for manufacturers failing to meet them. Lisa Brankin, chair and managing director of Ford UK, said: "Without customer incentives the industry is going to struggle to hit the targets." The current zero-emission vehicle (ZEV) mandate requires 22% of manufacturers' output to be electric cars, but sales are projected to fall short at 18%. Brankin advocates for a one-year pause on fines and the introduction of customer incentives to stimulate the market.

 

The Times

Credit Commercial de France (CCF), a French retail bank owned by Cerberus Capital Management, is set to reduce its workforce by over 1,000, approximately one-third of its total staff. The decision follows a works council meeting where management revealed plans to close between 90 and 110 branches, nearly half of CCF's locations. The bank was acquired from HSBC in early 2024.

 

Reuters