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Seven years after London Capital & Finance collapsed owing £237m, the Times reports that similar concerns are emerging around loan-note schemes marketed to ordinary investors. The FCA warns these high-return investments are particularly risky but says a legal exemption allows unregulated promoters to rely on investors self-certifying as sophisticated. Collapses including 79th Group and Godwin Capital have left about £365m owed, while Hunter Jones has previously introduced clients to failed schemes such as Dolphin and Magna. Ombudsman findings concluded inexperienced investors were wrongly classified and inadequate due diligence was conducted. Hunter Jones says it never knowingly promoted fraud, has strengthened its practices and now follows a different model. The FCA has asked the Treasury to consider banning self-certification and making promoters verify investor eligibility.

 

The Times

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Andrew Bailey told policymakers on Tuesday that the Bank of England was open to simplifying regulations further but stressed the importance of a robust set of rules to sustaining a healthy banking system. The Governor of the Bank of England also said capital requirements for banks were important to absorb losses and protect deposits, while current regulation should be sufficient to prevent excessive profit-taking. In a speech to business leaders at Mansion House, Bailey also warned investment banks and hedge funds to consider the risks of deploying AI tools for trading. He noted that while human traders are held accountable, it remains unclear how regulators would manage errant AI systems.

 

Financial Times

Daily Mail

The Daily Telegraph

The Independent UK

The Financial Conduct Authority (FCA) has proposed reforms to simplify reporting for asset managers, potentially saving the industry £128m annually. The new framework, Fund Reporting for Asset Management Entities (FRAME), aims to modernise the outdated Alternative Investment Fund Managers Directive (AIFMD) rules. Simon Walls, FCA's executive director of markets, said: "By tailoring the regime for UK asset managers, we can collect better data while also saving the industry tens of millions of pounds a year." The consultation on these proposals will close on 22 September 2026.

 

City AM

Fintan Slye, chief executive of the National Energy System Operator (Neso), dismissed allegations of a blackout cover-up during an all-staff meeting. Claire Coutinho, the shadow energy secretary, claimed that Neso staff were pressured to hide evidence of grid instability during June's heatwave. Slye insisted the claims were false, aiming to "dispel misinformation" and reassure employees. An independent investigation by Eversheds Sutherland will examine decision-making and record-keeping related to the incident. Ofgem will monitor the investigation to ensure transparency and impartiality, addressing concerns of potential intimidation among staff.

 

The Daily Telegraph

South East Water has faced significant criticism for its inability to provide reliable water supply to 2.3m customers in Sussex and Kent. Following multiple supply outages, Ofwat has ordered shareholders to pay a £30.5m redress package. The company has been under investigation for its failures, including a breach of licence conditions. David Hinton, the former CEO, resigned after being heavily criticised, while new CEO John Halsall is set to take over. Despite the company's apologies, confidence in its ability to improve remains low, raising questions about its future.

 

The Times

The European Commission will this week look to lower the leverage ratio, which sets the minimum capital a bank needs as a percentage of its total assets, following similar moves by the US and UK.

 

Financial Times

The UK Supreme Court has ruled that company directors must act "in good faith," impacting their conduct and intentions. The unanimous decision arose from a dispute involving Saxon Woods and Spring Media Investments, where a director was accused of breaching the Companies Act 2006. The court found that directors can no longer justify unilateral decisions based on personal beliefs. Genevieve Quierin from Stephenson Harwood commented: "The court has sent a clear message that directors must act loyally and transparently."

 

The Times

A coalition of major publishers, including Hachette Book Group, Cengage Learning, and Elsevier, has filed a lawsuit against Google in New York. They accuse the tech giant of illegally using millions of copyrighted books to train its Gemini AI models. The lawsuit claims Google repurposed works provided for limited services without permission, risking potential fines of $10bn to $100bn. The plaintiffs argue that AI-generated content threatens authors and the publishing industry. They seek statutory damages and an injunction to prevent further infringement. "No publisher or author can compete with that," the lawsuit states.

 

The Guardian

A coalition of US states, led by California, has filed a lawsuit to block the $110bn merger between Warner Bros. and Paramount. California Attorney General Rob Bonta stated the merger would harm audiences, leading to higher prices and reduced content. The deal would create a company controlling over a quarter of major film releases, alongside Disney, Universal, and Sony, which dominate 86% of the market. Paramount has called the lawsuit "fundamentally flawed" and plans to defend the transaction vigorously and has threatened to leave its Hollywood headquarters.

 

The Daily Telegraph

The Independent UK

BBC News

Freshfields has reduced the number of equity partners and downgraded others' equity shares as part of a new pay structure aimed at fostering growth. The changes, affecting offices in Germany, Paris, and London, follow a shift to a performance-based compensation system introduced in late 2025. This system allows for more flexibility in pay adjustments. Partners at rival firms reported that Freshfields lawyers have sought new positions due to dissatisfaction with these changes. The firm reported a 6% rise in global revenue to £2.3bn, with US revenue increasing by 21% to £473.3m.

 

Financial Times

City AM

Toby Fowlston, chief executive of Robert Walters, stated that the global hiring market's three-year slowdown is primarily cyclical, not driven by AI. He reassured shareholders that the market is recovering, despite a 4% drop in net fee income to £69.4m in the second quarter. Fowlston noted that the downturn stems from trade wars, political upheaval, and cost of living crises. However, he highlighted that fees are increasing in half of their markets, including the UK, Japan, and New Zealand, indicating a potential recovery ahead.

 

The Times

Labour plans to broaden equal value pay claims, allowing workers to sue for race and disability discrimination. The Government's consultation, led by the Office for Equality and Opportunity, aims to reform the current system, which only covers sex discrimination. Seema Malhotra, the minister for equalities, stated: "The Equal Pay Act was a huge achievement. But 50 years on, it is clear that this landmark legislation needs reform." Critics, including Claire Coutinho, the shadow minister for equalities, argue this expansion could burden taxpayers and promote divisive identity politics in the workplace.

 

The Daily Telegraph

The UK and Switzerland have announced a trade deal allowing visa-free work for professionals for 90 days per year. The agreement also enables British travellers to use automated passport gates and avoid roaming charges in Switzerland. Business and Trade Secretary Peter Kyle described it as "the most significant services trade deal the UK has ever negotiated" adding that it could unlock an additional £5.2bn a year in additional UK services exports to Switzerland. Allie Renison from SEC Newgate noted the deal's unprecedented liberalisation in professional services and intellectual property protection.

 

Financial Times

GOV.UK

The Guardian

The U.S. leads in AI adoption, with 88% of companies using it in some capacity, compared to just 26% in Japan, according to McKinsey and Yano Research Institute. However, the U.S. struggles with depth of integration, as only 39% report measurable EBIT impact. In contrast, Japan excels in integrating AI into physical operations, with companies like Toyota successfully building AI models. Both nations face unique challenges: the U.S. deploys quickly but lacks depth, while Japan's cautious approach slows its adoption. "AI adoption is not merely a technology decision, but a test of organizational will to change," the report noted.

 

Harvard Business Review

Morrisons is exploring a property financing deal worth up to £600m as it seeks to strengthen its finances after being overtaken by Lidl as Britain's fifth-largest supermarket. The retailer is reportedly in discussions with Realty Income Corporation over a transaction linked to its largely freehold store estate, rather than a traditional sale-and-leaseback.

 

The Daily Telegraph

The Times