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The US audit regulator, the Public Company Accounting Oversight Board (PCAOB), has imposed a total fine of $8.5m on the Dutch branches of Deloitte, PwC, and EY due to widespread cheating on internal training exams, including ethics tests. The PCAOB reported that "hundreds" of staff, including senior leadership, improperly shared answers from 2018 to 2022. The fine follows a similar incident in which KPMG Netherlands was fined $25m for answer-sharing. The PCAOB noted that the firms cooperated with the investigation and have since implemented clearer policies. Deloitte and PwC will each pay $3m, while EY will pay $2.5m in civil penalties.

 

Financial Times

The Times

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Glasgow City Council is currently grappling with a cyber incident that may involve the theft of customer data. The council's ICT supplier, CGI, detected "malicious activity" on servers managed by a third-party supplier on June 19. Investigations are ongoing, with Police Scotland, the Scottish Cyber Co-ordination Centre, and the National Cyber Security Centre involved. Although no financial systems have been compromised, the council is operating under the assumption that customer data related to unavailable web forms may have been exfiltrated. The council said: "At this stage we can't confirm whether data has actually been removed and, if so, what that data is." The disruption has affected various online services, including planning applications and penalty charge payments. 

 

STV

BBC News

The Daily Record

Chancellor Rachel Reeves is under pressure from both the Bank of England and banking leaders regarding the future of ring-fencing rules. In a letter obtained by Sky News, Reeves said she is "open-minded" about potentially scrapping the 15-year-old legislation, which has been deemed “redundant” by top banking executives. However, Bank of England Governor Andrew Bailey warned that removing these rules could negatively impact UK lending, saying that ring-fencing "helps . . . because it requires for the most part UK deposits to be used to lend into the UK economy." NatWest and Lloyds could save hundreds of millions if the rules are relaxed. As the Treasury prepares to unveil its Financial Services Growth and Competitiveness Strategy, analysts expect Reeves to opt for a compromise rather than a complete repeal of the regulations.

 

City AM

As officials, business leaders, and scientists convene in Uruguay to discuss the UN Global Framework on Chemicals, a coalition of 43 investors managing $4tn in assets is urging chemical companies to phase out hazardous substances. The coalition emphasises the need for alignment with global targets, including the UN Kunming-Montreal Global Biodiversity Framework. Alexandra Pinzon, head of biodiversity at ShareAction, said: "Chemical companies have a huge role to play in curbing pollution, which would help address the interlinked crises of biodiversity loss and climate change." The investors warn that failure to tackle chemical pollution poses significant financial risks, and highlight the growing public awareness and regulatory scrutiny surrounding the issue. They advocate for enhanced transparency and strategies to transition to safer, sustainable products, while also calling on governments to strengthen global policy frameworks to support this shift.

 

The Independent UK

The Competition and Markets Authority (CMA) has proposed new measures to regulate Google's search business, aiming to designate the tech giant with "strategic market status." The designation would allow the CMA to impose conditions on Google, such as altering search result rankings and providing users with more options. However, the CMA faces challenges due to a political shift favouring big tech investment, which may limit its enthusiasm for taking a hardline approach. That said, Tom Smith, a competition lawyer at Geradin Partners and a former CMA legal director, argues that the regulator is still implementing the UK’s competition regime properly, pointing out that the US Department of Justice had proposed measures that could lead to a breakup of Google.

 

Daily Mail

David Solomon, CEO of Goldman Sachs, has called for a reassessment of Europe's "extensive" regulatory framework, which he described as "overbearing, duplicative, and costly," in an opinion piece for Les Echos. Solomon argues that these regulations hinder investment and complicate cross-border activities, ultimately putting Europe at a disadvantage compared to the US. He emphasises the need for member states to contribute to building long-term capital pools to enhance financing in both public and private markets, which are crucial for economic activity in the region.

 

Reuters

A Swiss parliamentary committee has approved a motion that may postpone stricter banking regulations for UBS, allowing the lender additional time to secure approximately $3bn in extra capital. The motion mandates that all planned regulations be submitted to parliament rather than enacted through ordinance measures. If adopted, the measures could delay the implementation of stricter asset valuation rules until at least 2028.

 

Reuters

The legal profession is preparing for reforms to anti-money laundering regulations, which have been described as "time-consuming and costly to comply" by Colette Best, a regulation specialist at Kingsley Napley. The government plans to unveil a reform package by year-end, aiming to make the system "clearer and more proportionate." Over the past decade, many law firms have faced hefty fines. Richard Atkinson, president of the Law Society, stressed the need for compliance measures that are "proportionate, targeted and risk-based" to avoid hindering access to justice. The government's strategy also addresses technology funding for smaller firms and the implementation of AI in case management, highlighting the urgent need for investment in the civil justice system to maintain the UK's competitive edge.

 

The Times

French investigators have ordered Tesla to cease what they describe as "deceptive business practices" related to the marketing of its fully autonomous driving capabilities and other contractual issues, or face fines of €50,000 per day. The investigation, which began in 2023, highlighted several infractions, including the issuance of sales contracts lacking delivery details and delays in providing refunds. Tesla's struggles in Europe have been compounded by a recent lawsuit from a group of owners who claim the company's vehicles have become associated with far-right politics due to CEO Elon Musk's political affiliations.

 

Reuters

The scrutiny of corporate climate commitments is intensifying, with a recent report from the London School of Economics revealing a surge in legal challenges against companies regarding their carbon offset claims. The report analysed nearly 3,000 climate-related lawsuits since 2015, highlighting that "courts will continue to play a crucial role in clarifying legal boundaries for corporate responsibility in the context of net zero commitments." Notable cases include Energy Australia's admission that carbon offsets do not negate greenhouse gas damage, and a lawsuit against NW Natural in the United States for misleading marketing. The report indicates that legal risks and consumer awareness are influencing corporate strategies. A shift away from potentially misleading offset claims is expected in future reports.

 

The Guardian

Energy Secretary Ed Miliband has announced government support for banks and large companies to develop climate transition plans. Speaking at the Climate and Innovation Forum, he said the government is "determined to make the UK the sustainable finance capital of the world." Transition planning involves creating a roadmap for businesses to align their operations with climate goals, which is crucial for attracting investment. The government aims to stimulate billions of pounds in private investment in net zero sectors, and has plans to publish consultations on transition planning and sustainability reporting standards. Alok Sharma, chairman of the Transition Finance Council, pointed to the importance of high-quality disclosure for investors, saying: "A clear message from the Transition Finance Market Review was that high-quality disclosure and information are vital for investors."

 

Daily Mail

London Evening Standard

Worldline, a major payments provider for retailers including Marks & Spencer, is facing allegations of fraud and poor money-laundering controls. Following claims from a consortium of 21 European newspapers, the company's shares fell nearly 40%, resulting in a loss of €300m (£256m). The allegations suggest that Worldline processed payments for "high risk" customers while ignoring warning signs. The company has reportedly strengthened its compliance measures, including terminating €130m worth of contracts with non-compliant clients. However, the investigation highlights that Worldline had only two employees overseeing its anti-money laundering processes.

 

The Daily Telegraph

Shell has denied reports of a potential merger with rival BP, saying: "This is further market speculation. No talks are taking place." The denial follows a report in the Wall Street Journal suggesting early-stage discussions between the two oil giants. BP, valued at £59bn, has faced challenges in its green transition; Shell's valuation stands at £151bn. BP's chief executive, Murray Auchincloss, acknowledged the company's missteps in its green strategy, leading to speculation about vulnerability. Any merger would likely face significant regulatory scrutiny due to the differing cultures and overlapping exploration territories of the two companies.

 

Financial Times

The Daily Telegraph

The Times

Eurostar cross-channel rail services experienced a second successive day of severe delays and cancellations yesterday after the theft of cable near Lille forced the diversion of trains to slower routes.

 

Financial Times

The UK’s largest wealth managers are preparing to sell private markets products to their retail customers, as investment groups battle to maintain relevance as the importance of public markets dwindles.

 

Financial Times

Data from Indeed reveals that graduate jobs in the UK have reached their weakest level since at least 2018, with postings down 12% compared to last June. The decline follows Chancellor Rachel Reeves' £20bn increase in national insurance contributions, which has led employers to hesitate in hiring junior workers. The UK is now the only developed nation with job postings remaining below pre-pandemic levels, approximately 21% lower than in February 2020. Jack Kennedy, senior economist at Indeed, noted that while the labour market is "holding out overall," new graduates are facing significant challenges in securing employment. The analysis also highlights a decrease in job postings for HR, marketing, and media, alongside a reduction in work-from-home opportunities.

 

City AM

The Guardian