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

OpenAI has granted nine major UK banks access to its cyber security AI tool, GPT-5.5 Cyber. The move comes as Anthropic's rival tool, Claude Mythos, remains inaccessible to UK banks. Both AI models excel at identifying security vulnerabilities in digital systems. George Osborne, a former Tory chancellor and now a senior executive at OpenAI, commented: "The key things with these tools is that they need to be in the hands of the right people." The banks gaining access include Lloyds Banking Group, HSBC, and Nationwide. NatWest and Santander already have access under existing agreements.

 

Cyber News

BBC News

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Cybercrime is now the risk business leaders feel least prepared to handle, according to a BDO survey of global executives. Around 40% of respondents ranked cyber-attacks as their biggest preparedness gap, ahead of inflation and geopolitical tensions. While businesses remain optimistic about the potential of artificial intelligence, concerns persist around data security, compliance and fraud.

 

The Times

Deloitte has appointed Hayley McKelvey as its first chief AI officer in the UK. McKelvey, who has over 20 years of experience at Deloitte, will be responsible for "accelerating the firm's progress towards becoming the leading AI-enabled professional services firm in the UK." Three other roles have been created across technology and risk to support the AI expansion. "Data, AI and technology are changing how business is done, with profound implications for economies, organisations and the future of work," McKelvey said. "Harnessing the power of AI responsibly and strategically, both for our clients and in our own operations, is my priority."

 

City AM

British pension providers have been warned that companies on smaller exchanges have experienced minimal impact from the Mansion House accord, which aimed to boost domestic investment. The Quoted Companies Alliance expressed concern to 17 major pension funds and the pension minister about the lack of funding for its members. James Ashton, CEO of the QCA, said: "Twelve months on from this pledge, the Aim and Aquis companies we represent have seen little or no visible effect in terms of new capital flows." The accord requires pension providers to allocate 10% of their portfolios to private markets by 2030.

 

The Times

Private equity interest in professional services is declining, with investors growing more selective as the most attractive targets have already been acquired. Investors are also proceeding with caution as partnership structures, reliance on key individuals, and weak client "stickiness" make many firms harder to buy. At the same time, AI is creating uncertainty about future growth in services like recruitment and consulting, adding to caution. A recent report by Macfarlanes shows that 75% of professional services firms are ‘very likely' to consider private capital investment in the next five years. 

 

City AM

Shares in Wise fell 15% to 796.00p following news of a criminal investigation by Belgian prosecutors. The inquiry focuses on whether Wise's accounts were used for illicit activities, with suspect transactions totalling approximately €500m (£432m). Investigators are examining potential violations of anti-money laundering (AML) laws. Wise said it is cooperating with the Brussels prosecutor and noted that a third of its staff is dedicated to combating financial crime. The investigation does not directly affect Wise's 3m UK users.

 

City AM

London Evening Standard

The Guardian

Lawyers say the Serious Fraud Office (SFO) engaged an agent who improperly paid Sierra Leone public officials to obtain evidence against London Mining, who were themselves accused of bribing officials to win favourable treatment. The SFO was forced to drop its charges in February after a software bug threatened to put the body in breach of stringent disclosure rules.

 

The Sunday Telegraph

The Telegraph details how new EU border controls that require British travellers to have their fingerprints taken and faces scanned could trigger tax investigations for holiday home owners and workers staying abroad. Accountants warn that the data captured by the new biometric checks will be available to tax authorities, including HMRC, making it easier to identify those who have failed to correctly register their tax residency. Dawn Register at BDO points out that although HMRC already uses Border Agency data and other sources to check taxpayer movements, information from the EU’s entry-exit system will provide even more data to help them determine a person’s residency status.

 

The Daily Telegraph

Midos Management Co is under scrutiny for alleged connections to Midos Group, which is linked to a tax avoidance scheme involving bogus prayer rooms. The Schreiber family, who own Midos Group, reportedly exploited a loophole to avoid £18m in business rates. Dover district council is pursuing £1.7m in unpaid tax from related companies. Elizabeth Endzweig, owner of Midos Management, claims no ties to Midos Group, stating: "Any familial relationship is entirely irrelevant." However, records suggest significant overlaps between the companies, raising concerns among campaigners and local authorities.

 

The Guardian

A group of UK chefs and restaurant owners have urged the Government to cut VAT on hospitality businesses from 20% to 10%, arguing the current rate is squeezing already thin margins. The industry says rising employment costs - including higher employer National Insurance contributions, minimum wage increases and business rates - alongside VAT are making restaurants and pubs increasingly unprofitable. UKHospitality data suggests that three hospitality businesses have closed every day since the start of 2026.

 

BBC News

Aviva is diversifying its operations, focusing on wealth management and financial education while becoming the UK's largest motor insurer. Chief executive Dame Amanda Blanc has streamlined the company, the Times reports, divesting non-core businesses and generating over £8bn. Aviva aims to bridge the gap between workplace pensions and direct wealth schemes, with inflows rising 49% to £3.3bn in Q1 2026. However, challenges include the impact of self-driving vehicles on insurance and a shaky housing market. Analysts remain optimistic, however, predicting sustainable profits despite these concerns.

 

The Times

Christian Sewing's leadership has stabilised Deutsche Bank, the FT reports, shifting focus to European corporate banking, but challenges remain in profitability and competition with US banks.

 

Financial Times

Liam Byrne, the chair of the Commons business and trade committee, has warned that the UK's new steel tariffs could jeopardise warship and nuclear submarine production. The Government plans to double steel import taxes and halve tariff-free quotas from July 1, aiming to protect the domestic steel industry. However, Byrne says the measures "risk serious and immediate harm to downstream industries that are critical to UK growth."

 

The Sunday Times

Thames Water was responsible for 25 of the 78 serious pollution incidents reported in England last year, according to the Environment Agency (EA). This marks the second consecutive year Thames has been the worst offender. The EA categorises serious incidents as those causing significant environmental damage, including raw sewage discharges.

 

The Times