The Legal Empowerment Blog What you need to know In the digital age, organizations are increasingly recognizing the importance of technological innovations to drive their success. Yet, the procurement processes that enable these innovations often remain overlooked. A recent report from the United Kingdom’s National Audit Office (NAO) reveals the critical gaps in the country’s tech procurement strategies, offering valuable insights that extend beyond the public sector and apply to industries, particularly payments firms, which are at the forefront of digital transformation. The key issue under scrutiny is how organizations can optimize their tech procurement strategies to foster innovation without jeopardizing their long-term business goals. The findings in the NAO report highlight that the UK government’s procurement processes are frequently ill-suited to digital programs. One of the most concerning issues identified was the allocation of funding based on broad assumptions rather than on accurate, evidence-based assessments. This lack of data-driven planning and evaluation significantly impacts the ability of organizations to effectively harness technology for transformation. The Importance of Data-Driven Procurement in the Digital Era A fundamental flaw in the UK government’s approach to procurement is the lack of centralized data. Without the ability to gather and analyze comprehensive information about spending, supplier performance, and anticipated future demand, procurement staff cannot make informed decisions. For payments firms, who rely on data for a range of functions from fraud detection to customer personalization, this blind spot can be especially harmful. Missing out on key insights makes it nearly impossible to optimize vendor relationships or secure the best possible value for digital transformation projects. The report highlights how the absence of robust data leads to poorly evaluated contracts, where technical risks are often downplayed or overlooked. This results in unforeseen challenges post-signature, where the complexities of the project may be too significant to address through standard change control processes. These kinds of issues underscore the importance of a data-driven approach in tech procurement — an approach that provides the insights necessary for effective risk management and long-term success. Ensuring Expertise and Collaboration in Procurement For firms in the payments industry, the stakes of successful tech procurement are particularly high. Innovations such as real-time payments, blockchain, and embedded finance systems demand not only cutting-edge technological solutions but also a strategic, long-term vision for implementation. According to the NAO report, the UK government’s failure to address the expertise gap in its procurement teams was a significant contributing factor to the inefficiencies and delays in modernization. This issue is echoed in the private sector, where many firms struggle with procurement teams that are unable to bridge the gap between commercial and technical functions, leading to missed opportunities and unfavorable contracts. Procurement success, therefore, hinges on ensuring that the right expertise is involved at every stage of the process. Payments firms must recognize that tech procurement is not just about securing the right tools, but about assembling a team with the skills and knowledge to understand the full scope of the technology being procured. This expertise is critical in evaluating suppliers, defining contract terms, and ensuring that procurement strategies align with the firm’s long-term digital and innovation goals. Another key takeaway from the report is the need to move beyond transactional relationships with suppliers. In the payments industry, third-party vendors often provide essential services such as fraud detection, compliance, and authentication. However, many firms approach these relationships from a purely transactional perspective, focusing on cost negotiations rather than on long-term collaboration and innovation. To foster innovation, payments firms should view their suppliers as strategic partners. Engaging suppliers in collaborative initiatives — from product development to aligning on long-term strategic goals — can unlock new value and drive faster, more efficient innovation. This shift from transactional to strategic supplier relationships can fundamentally transform how procurement functions, allowing firms to build stronger, more resilient partnerships and deliver superior customer experiences. Managing Legacy Systems and Ensuring Future-Proof Procurement In the payments industry, one of the biggest challenges to innovation is the continued reliance on legacy systems. These systems, while reliable and secure, are often slow to adapt to new technological requirements, creating a significant barrier to digital transformation. For many payments firms, integrating new technologies with outdated infrastructure can be complex and costly. The NAO’s report draws attention to the challenges of maintaining legacy systems within the UK government’s procurement strategy, pointing out that the government’s approach led to a modernization delay of up to 29 years and significant cost increases. Payments firms face similar risks if they do not proactively address the integration of new and old systems. Choosing the lowest-cost bidder for technology services may seem like an attractive option, but it often results in short-term savings at the expense of long-term efficiency and flexibility. To avoid this pitfall, payments firms must prioritize suppliers who have a proven track record in modernizing legacy systems. These suppliers should not only offer state-of-the-art solutions but also have the experience and expertise to facilitate the transition from outdated infrastructure. Investing in strategic partnerships with vendors capable of handling the complexities of legacy transitions is a key step toward future-proofing the organization. Building Internal Capabilities for Effective Procurement Equally important is the need for payments firms to build internal capabilities to manage procurement processes effectively. Firms that develop their internal teams to understand the technical and operational implications of their procurement decisions will be better positioned to navigate the complexities of modern procurement strategies. Ensuring that procurement teams are equipped with the right knowledge and resources enables firms to make informed decisions, optimize vendor relationships, and avoid common pitfalls associated with traditional procurement strategies. In particular, firms should foster a culture of continuous learning, encouraging their procurement teams to stay abreast of emerging technologies, trends, and best practices in the procurement space. This knowledge will allow teams to act as “intelligent clients,” ensuring that procurement strategies are aligned with the broader goals of innovation and digital transformation. Conclusion: The Future of Procurement in the Digital
Continue ReadingRethinking UK-China Climate Cooperation: A Path Forward Amid Tensions
The Legal Empowerment Blog What you need to know The political relationship between the United Kingdom and China has significantly cooled since the “golden era” of the mid-2010s. However, despite deteriorating diplomatic ties, cooperation in areas like climate policy has persisted. As the UK reevaluates its relationship with China, particularly under the context of an ongoing diplomatic “audit,” there exists both a need and an opportunity for the two nations to enhance their climate action efforts. The role of joint climate initiatives is becoming increasingly important, particularly as climate multilateralism faces significant challenges. As global cooperation on climate action begins to fray, nations committed to tackling climate change must step forward and play a more prominent role in guiding international efforts. This paper explores the potential for strengthened UK-China climate cooperation and outlines key areas where collaborative work can be particularly fruitful. The Case for UK-China Climate Collaboration A key opportunity lies in the complementary strengths both countries bring to the climate challenge. The UK has long been recognized for its expertise in carbon budgeting and climate policy frameworks, while China has emerged as a leader in the rapid deployment of low-carbon technologies at an unprecedented scale. Together, the UK and China offer a powerful partnership in the global fight against climate change, making it all the more critical to maintain and expand this collaboration. In addition to their technical capacities, the UK and China have a history of working together on climate-related research, particularly in climate risk assessment. This foundation sets a strong precedent for future cooperation, especially as both countries pursue ambitious decarbonization goals and strategies for climate adaptation. Their shared commitment to science-driven, evidence-based environmental policymaking further strengthens the potential for enduring collaboration on climate issues, even amidst broader political frictions. For instance, the UK’s experience in regulating carbon emissions and implementing market-based mechanisms such as carbon trading schemes could complement China’s rapid industrialization and progress on green technologies. China’s leadership in renewable energy, such as solar and wind power, offers valuable insights into scaling up solutions that can be applied in the UK’s efforts to transition towards net-zero emissions. By merging these strengths, both countries can help bridge the gap between developing and developed nations in terms of sustainable practices. Fostering Climate Cooperation Amid Political Tensions One area that could remain insulated from broader political disagreements between the UK and China is climate change. Given the mutual understanding of the importance of climate action, both nations have the opportunity to set aside political tensions and prioritize joint efforts to combat climate change. The UK government’s commitment to maintaining collaboration on climate during the January 2025 visit by Chancellor Rachel Reeves to Beijing serves as a promising sign that climate cooperation remains a priority, regardless of the broader diplomatic landscape. In practice, this means the UK and China could lead by example, forging a path of collaboration that emphasizes shared goals, such as reducing global carbon emissions and enhancing climate resilience. These joint efforts may also inspire other countries, particularly those in the Global South, to strengthen their own climate actions and work together on innovative solutions. As the global community grapples with the long-term effects of climate change, the collaboration between the UK and China could serve as a model for how large economies with complex political relations can nonetheless come together on shared environmental concerns. This model of climate cooperation can help shift the focus from political divisions to the collective good of the planet. Conclusion: A Shared Agenda for Climate Action Looking ahead, a focused agenda for UK-China climate cooperation could yield significant benefits for both countries and the global community. Areas of emphasis might include: Carbon budgeting and financial mechanisms for climate action. Research and development of low-carbon technologies. Climate risk assessment and collaborative adaptation strategies. Additionally, climate cooperation should not only be seen as a matter of bilateral benefit but as an essential contribution to the global effort to mitigate the effects of climate change. As we face an increasingly uncertain climate future, it is crucial that nations like the UK and China continue to lead the way through strong and focused collaboration, setting an example for the rest of the world. By doing so, they can overcome diplomatic challenges and ensure that the climate crisis is addressed with the urgency and collective commitment it requires.
Continue ReadingUK and EU’s Proposed Changes to Research Payment Rules: What Fund Managers Need to Know
The Legal Empowerment Blog What you need to know Background: Why the Change? The shift towards “bundled” payments—where fund assets cover both research and execution services—comes in response to the evolving nature of investment management. Under the current rules, fund managers must often separate research costs from execution services, which can create administrative challenges and make it harder to access certain research sources, especially from US-based broker-dealers who may not accept unbundled payments. To address these challenges, the UK Financial Conduct Authority (FCA) and the EU MiFID II regulations are moving closer to allowing fund managers more flexibility with payment models. What’s Happening in the UK? In the UK, the FCA is proposing to give fund managers an option to use fund assets for joint payments—a method that combines execution and research costs in one bundled payment. While this option isn’t mandatory, it presents an appealing way for firms to simplify payment structures, particularly when dealing with US broker-dealers who cannot accept separate payments for research. However, there are some important guardrails attached to this new option: Fund managers would need to disclose to clients how funds are being spent. The FCA would require managers to demonstrate that their research spend is delivering value for money for each fund client. If a fund manager opts for joint payments, it will be considered a significant change, requiring prior FCA approval and 60-day notice to unitholders. The European Union’s Approach Across the Channel, the European Union is aligning its regulations with the UK’s proposed changes, though there are differences in the implementation timeline and conditions. Under the MiFID II amendments proposed in the Listing Act Directive, EU member states must implement new rules by June 2026. These changes will allow investment firms, including separate account managers, to bundle execution and research payments. Key differences in the EU proposal: Expanded Scope: The current restriction that excludes research on companies with a market capitalization over €1 billion will be removed. Firms will be required to assess the quality, usability, and value of research they acquire to ensure it contributes to the fund’s performance and objectives. Why Does This Matter to Fund Managers? The changes are not just a technical shift; they could reshape how research is sourced and used by fund managers. The key benefits of adopting bundled payments include: Access to a wider range of research, particularly from US broker-dealers. Simplified accounting and fewer administrative burdens associated with maintaining separate research payment accounts. Greater flexibility in how funds manage their research budgets and allocate capital. However, these benefits come with the responsibility of maintaining transparency and ensuring compliance with both UK and EU regulations. Fund managers will need to: Adjust their client communications to reflect changes in research payment structures. Be prepared to provide value assessments for the research they purchase. Stay updated on the approval process for any significant changes to fund payment structures. Looking Ahead: What’s Next? The rules proposed by the FCA and the EU are not yet final. The FCA plans to finalize the UK rules in the first half of 2025, while the EU’s changes will be rolled out by June 2026. In the meantime, fund managers should: Stay informed about the ongoing rule developments in both regions. Evaluate their current research payment models and how they may need to adapt. Begin preparing the necessary disclosures and procedures to ensure smooth implementation if they choose to adopt bundled payments. Conclusion The UK and EU are paving the way for a more streamlined approach to research payments in investment management. Fund managers should stay ahead of these changes, ensuring they can take advantage of the flexibility offered while meeting the regulatory requirements. By embracing these proposed rules, firms can enhance their access to critical research and improve overall fund performance, all while maintaining transparency and accountability to clients. For further details on these regulatory updates, feel free to reach out to us, or visit the full article by Philip J. Morgan and Andrew J. Massey of K&L Gates LLP on Global Investment Law at The National Law Review.
Continue ReadingApply Now for the 2027 European Green Capital and Green Leaf Awards
The Legal Empowerment Blog What you need to know Commission Launches Competition for the 2027 European Green Capital and Green Leaf Awards The European Commission invites European cities committed to sustainability to apply for the 2027 European Green Capital and Green Leaf Awards. The application process is now open, and the deadline for submission is 15 April 2025. These prestigious awards recognize and reward European towns and cities that have taken significant steps to reduce their environmental impact while enhancing the quality of life for their citizens. The winners will receive financial prizes and gain access to a growing network of leading sustainable cities. Key Highlights of the Awards: European Green Capital Award: Open to cities with over 100,000 inhabitants. European Green Leaf Award: Available for smaller towns and cities with populations over 20,000. Prizes: Green Capital Winner: €600,000 Green Leaf Winners: Up to €200,000 each (for one or two winners) The financial prize will assist the winning cities in implementing sustainability initiatives and engaging their citizens in environmental projects during the award year. All applicants will also receive personalized feedback to help refine their sustainability plans. Application Process Interested cities can apply through the EU Survey Portal to gain access to the relevant documents and application form. The application deadline is 15 April 2025. Cities will be assessed on seven key environmental indicators: Air quality Water management Biodiversity Green spaces and land use Waste management and circular economy Noise reduction Climate change mitigation and adaptation Finalists will be selected around June/July 2025 and will be invited to present additional information on their sustainable governance and communication strategies. The final winners will be chosen in October 2025. Why Apply? The European Green Capital and Green Leaf Awards provide cities with the opportunity to showcase their dedication to environmental sustainability and receive financial support for future projects. Winning cities also gain recognition and can inspire other urban areas across Europe and the world to adopt more sustainable practices. Important Dates Application Deadline: 15 April 2025 Finalist Announcement: June/July 2025 Winner Announcement: October 2025 Apply Now Cities eager to make a difference in the fight for a greener future should not miss this opportunity to apply. Submit your application now for the chance to become a European Green Capital or Green Leaf Award winner. Apply hereLearn More About the Awards Background Launched by the European Commission, the European Green Capital Award aims to inspire cities to adopt sustainable policies that improve both their environmental performance and quality of life. With over two-thirds of Europe’s population living in cities, urban areas play a pivotal role in achieving the goals of the European Green Deal and ensuring a sustainable future for all. To date, 17 cities have received the European Green Capital Award and 19 cities have won the Green Leaf Award, forming a network of innovative and sustainable cities. For more information, visit the official European Green Capital website and follow the awards on Twitter, Facebook, and LinkedIn.
Continue ReadingJoin the Investors Dialogues on Energy Webinar: Strategic Energy Technology Plan
The Legal Empowerment Blog What you need to know Investors Dialogues on Energy Webinar: Strategic Energy Technology Plan The Investors Dialogues on Energy (ID-E) invites professionals from the energy and finance sectors to join an exclusive webinar focused on the European Strategic Energy Technology Plan (SET Plan). This event will take place on Tuesday, 21 January 2025, from 14:00 to 15:30 (CET), exclusively online. The SET Plan plays a pivotal role in the European Union’s transition towards a climate-neutral energy system. Since its establishment in 2007, the plan has driven the development of low-carbon technologies, aligning with the EU’s decarbonisation goals. The revision of the SET Plan, adopted in October 2023, will harmonise it with the European Green Deal, REPowerEU, and the Green Deal Industrial Plan, ensuring a unified approach to achieving the EU’s ambitious net-zero targets. This webinar offers an opportunity to gain insights from experts from the European Commission (DG ENER, DG RTD, and JRC), who will present key aspects of the SET Plan and its revision, with a focus on: An overview of the SET Plan and its objectives The various implementation Working Groups (IWGs) and European Technology and Innovation Platforms (ETIPs) Structure and focus of cross-cutting task forces, especially in Access to Market The revision of the SET Plan to align with new EU initiatives Financing instruments supporting SET Plan technologies and their deployment Additionally, experts will discuss the Investors Dialogue on Energy (ID-E), a multi-level platform that connects energy and finance sector leaders across the EU. ID-E aims to assess and upgrade financing schemes to mobilise funding for the European Green Deal and REPowerEU. Why Attend? Understand the strategic goals and the role of the SET Plan in achieving EU decarbonisation targets. Learn about key financing opportunities and schemes available to support clean energy projects. Network with stakeholders from the energy and finance sectors. Engage in discussions about the future of low-carbon technologies and their financing. Event Details Date: Tuesday, 21 January 2025 Time: 14:00 – 15:30 (CET) Location: Online (Zoom/Virtual) Language: English How to Register Don’t miss out on this essential event! Registration closes on 21 January 2025, 15:00 (CET). Secure your spot today by registering through the link below: Register here Join the ID-E Community To join the Investors Dialogue on Energy Community or inquire about the webinar, contact the organisers at: [email protected] #InvestorsDialogueEnergy Related Links: Investors Dialogue on Energy Website Event Registration Link
Continue ReadingEU to Allocate €1.9 Billion for Humanitarian Aid in 2025
The Legal Empowerment Blog What you need to know The European Union continues to uphold its role as a global leader in humanitarian support, committing an initial humanitarian aid budget of €1.9 billion for 2025. With projections indicating that over 300 million people worldwide will need urgent humanitarian assistance next year, this substantial financial commitment reinforces the EU’s dedication to addressing complex global crises. This budget is part of the EU’s broader strategy to foster international solidarity, promote sustainable development, and ensure the protection of human dignity in regions affected by conflict, natural disasters, and socio-political instability. Through strategic funding and partnership with international humanitarian organizations, the EU aims to mitigate the effects of humanitarian crises and offer hope to those most vulnerable. Regional Allocation of EU Humanitarian Aid The €1.9 billion will be distributed across multiple regions, focusing on areas with the most urgent humanitarian needs. These regions are facing extreme challenges, requiring both immediate relief and long-term solutions. The aid will be allocated as follows: Middle East and North Africa: A significant €375 million will be allocated to the Middle East, with a focus on Gaza, where the humanitarian situation has reached critical levels. Syria also remains a priority, with a portion of the funds addressing the ongoing crisis exacerbated by conflict and displacement. An additional €95 million will be earmarked for North Africa and Yemen, which are facing compounded challenges, including political instability, food insecurity, and health crises. Ukraine and Moldova: The EU remains committed to supporting Ukraine amidst its ongoing conflict. For 2025, an initial €140 million will be provided, alongside €8 million for Moldova to assist in humanitarian projects that focus on displaced populations and critical infrastructure. Africa: Africa receives one of the largest allocations, with €510 million targeting humanitarian needs across West and Central Africa, the Sahel, the Lake Chad basin, and other regions experiencing conflict and food insecurity. Vulnerable populations in the Great Lakes region, the Horn of Africa, and North-West Nigeria will also benefit from this allocation, which aims to provide life-saving support and promote resilience in the face of crises. Latin America and the Caribbean: €113 million will be dedicated to Latin America, focusing on Venezuela’s ongoing crisis, the impact of armed conflicts in Colombia, and the humanitarian situations in Haiti, Central America, and Mexico. These funds will support health care, food security, and the protection of vulnerable populations. Asia and the Pacific: A total of €182 million will be allocated to humanitarian projects in Asia, particularly addressing the crisis in Myanmar and its regional impact, as well as the situation in Afghanistan. Additionally, €35 million will support the Southern Africa and Indian Ocean regions, and €5 million will be allocated to the Southern Caucasus and Central Asia. Additional Emergency and Global Funding Beyond regional allocations, the EU has reserved more than €295 million for responding to unforeseen humanitarian crises that may arise throughout the year. This emergency fund ensures the EU can act swiftly in the face of sudden-onset disasters, such as natural calamities or conflicts that may require immediate intervention. Furthermore, over €110 million will be dedicated to enhancing the EU’s global humanitarian response capabilities. This includes funding for innovative humanitarian projects, multi-year partnerships, and initiatives designed to improve preparedness, capacity building, and the overall effectiveness of aid delivery. A focus on increasing the EU’s ability to provide efficient, timely, and sustainable humanitarian relief will ensure that aid reaches those in most dire need. Commissioner’s Statement on EU Humanitarian Commitment Commissioner for Equality, Preparedness, and Crisis Management, Hadja Lahbib, underlined the EU’s humanitarian commitment: “With over 300 million people estimated to need humanitarian assistance in 2025, the EU continues to be a leading donor in the global humanitarian landscape. This funding will help our partners on the ground, including the UN, Red Cross, and numerous local and international NGOs, to deliver critical life-saving support. However, funding alone is not enough. We must ensure safe and unimpeded access to those in need, which can only be achieved if all parties adhere to International Humanitarian Law and prioritize the well-being of civilians.” This €1.9 billion commitment reflects not only the EU’s responsibility as a key player in international humanitarian efforts but also its broader policy priorities, including the promotion of human rights, sustainable development, and conflict prevention. The EU’s strategic approach ensures that funds are directed where they are most needed, focusing on the most vulnerable populations affected by conflict, displacement, and socio-political unrest. From a professional perspective, this humanitarian aid package is an essential component of the EU’s foreign policy, highlighting its role as an advocate for peace, stability, and human dignity. Furthermore, the EU’s commitment to working with local governments, NGOs, and international organizations fosters an integrated, collaborative approach that enhances the overall impact of aid delivery. This multi-faceted approach is vital for ensuring the long-term effectiveness and sustainability of humanitarian interventions. Conclusion The EU’s €1.9 billion humanitarian aid budget for 2025 underscores its unwavering commitment to addressing humanitarian crises across the globe. By working closely with trusted partners and focusing on the most urgent needs, the EU aims to save lives, alleviate suffering, and build resilience in communities facing extreme challenges. With these funds, the EU is not only responding to immediate crises but also laying the groundwork for a more sustainable, equitable future for the world’s most vulnerable populations.
Continue ReadingEU Announces New €120 Million Humanitarian Aid Package for Gaza
The Legal Empowerment Blog What you need to know In response to the ongoing humanitarian crisis in Gaza, the European Commission has announced a significant new aid package worth €120 million. This marks a continuation of the EU’s unwavering support for Palestinians in need, bringing the total EU humanitarian assistance to Gaza to over €450 million since 2023. This new funding is in addition to the EU’s ongoing Air Bridge Flights, which have delivered over 3,800 tonnes of aid to the region. Key Areas of Aid The new package aims to address the urgent needs of Gaza’s population, focusing on critical areas such as: Food Assistance: Aimed at alleviating acute food insecurity and preventing further malnutrition. Healthcare Support: Ensuring the continuation of healthcare services and the provision of essential medical supplies. Water, Sanitation, and Hygiene: Providing access to clean water and sanitation services to improve public health. Shelter: Offering safe accommodation for displaced persons in the region. Protection: Ensuring the safety and dignity of the most vulnerable groups, especially in conflict-affected areas. The EU is working closely with key international organizations, including the United Nations and various humanitarian groups, to ensure swift and effective delivery of aid to those who need it most. European Leadership Speaks Out President Ursula von der Leyen emphasized the EU’s commitment to the Palestinian people, stating, “While the ceasefire and hostage release agreement offer hope, the humanitarian situation in Gaza remains dire. Europe will continue to support Palestinians with €120 million in 2025, along with significant in-kind aid.” Commissioner Hadja Lahbib, responsible for crisis management and preparedness, echoed these sentiments, saying, “The ceasefire provides a glimmer of hope for Gaza, but our work is far from finished. We urgently need safe and sustained access for humanitarian operations to reach those in critical need. This new package will help address Gaza’s pressing challenges, including food insecurity, shelter, and healthcare.” Background and Ongoing EU Support The European Union has been a strong advocate for Palestinian humanitarian aid, providing consistent support to organizations operating in both Gaza and the West Bank. However, the volatile security situation in Gaza has posed significant challenges for aid delivery, restricting the capacity of humanitarian partners to carry out their work effectively. Despite these obstacles, the EU continues to facilitate critical assistance to the region. In addition to the €120 million aid package, the EU has launched a Humanitarian Air Bridge (HAB), which has conducted over 60 flights to transport vital supplies, including cargo from humanitarian partners and donations from EU Member States. This initiative underscores the EU’s commitment to providing direct and immediate relief to those affected by the ongoing crisis. Conclusion The EU’s €120 million aid package for Gaza represents a vital step in addressing the humanitarian needs of the population during this difficult time. Through continued collaboration with international partners, the EU remains determined to support the people of Gaza, offering hope and essential aid for a better future.
Continue ReadingEuropean Commissioner McGrath Enhances Global Criminal Justice Cooperation with Eurojust
The Legal Empowerment Blog What you need to know On January 16, 2024, European Commissioner for Democracy, Justice, and the Rule of Law, Michael McGrath, visited Eurojust’s headquarters in The Hague to mark the beginning of a pivotal collaboration between the European Commission and Eurojust. During his visit, McGrath was warmly received by Eurojust President Michael Schmid and Vice-Presidents Margarita Šniutytė-Daugėlienė and José de la Mata Amaya, who provided an in-depth overview of how Eurojust plays a critical role in supporting authorities both within Europe and globally in tackling cross-border criminal activities. Strengthening International Judicial Cooperation Eurojust is a vital organization in the global fight against transnational crime. Through its work, the agency helps prosecutors exchange vital information, formulate effective prosecutorial strategies, and utilize judicial cooperation tools. The agency’s involvement in joint actions has made it possible to streamline international legal cooperation, especially in intricate and cross-border criminal cases. In 2024 alone, Eurojust supported more than 12,000 criminal investigations, resulting in the seizure of over EUR 1 billion and the arrest of more than 1,000 individuals. A Unified Approach to Combatting Crime Commissioner McGrath expressed his appreciation for Eurojust’s role in ensuring justice across borders, emphasizing that the organization embodies the collective effort needed to combat increasingly sophisticated criminal networks. He noted, “Eurojust’s collaboration with various jurisdictions is crucial to tackling evolving threats. Together, we can build safer, more secure societies.” Global Partnerships for Enhanced Security McGrath’s visit also highlighted Eurojust’s global reach, showcasing its collaboration with over 70 jurisdictions through a network of Contact Points, working arrangements, and liaison prosecutors stationed at Eurojust. This system enables prosecutors to collaborate across borders, ensuring that crucial information is shared and investigations can progress unhindered by geographic or legal barriers. Tackling Complex Criminal Networks Eurojust has launched several networks, such as the Genocide Network and the European Judicial Cybercrime Network (EJCN), designed to enhance the capacity of specialized prosecutors to engage in cross-border investigations. In addition, the recently formed European Judicial Organised Crime Network (EJOCN) addresses a broad range of criminal activities, from organized crime to migrant smuggling. This strategic approach helps address the changing nature of criminal networks, which are increasingly agile in adapting to new challenges. Holding Russia Accountable for War Crimes in Ukraine The Commissioner’s visit concluded with a presentation on Eurojust’s ongoing efforts to support investigations into Russian war crimes committed in Ukraine. Since Russia’s invasion in 2022, Eurojust has been instrumental in collaborating with the European Commission and other partners to gather evidence, provide expertise, and guide the legal process. The Core International Crimes Evidence Database (CICED) has already collected over 3,000 pieces of evidence from 16 countries, helping bolster national investigations in Ukraine and surrounding nations. President Schmid emphasized that the challenges ahead, such as drug-related organized crime and the prosecution of war crimes, require a united approach. He stressed that with Commissioner McGrath’s support, Eurojust aims to continue strengthening its role as a key partner in ensuring the safety and security of European citizens. This collaborative effort between Eurojust and the European Commission is a testament to the power of international cooperation in the fight against transnational crime. Through their work, both organizations are committed to building a safer and more secure Europe, working tirelessly to ensure that justice knows no boundaries.
Continue ReadingEU Court Upholds Credit Suisse and Crédit Agricole Fines, Shaping Future of Fair Competition in EU Financial Markets
The Legal Empowerment Blog What you need to know On November 6, 2024, the EU General Court issued a landmark ruling, upholding the European Commission’s decision to impose hefty fines on Credit Suisse (now part of UBS) and Crédit Agricole. The penalties, totaling over €15 million, were the result of alleged involvement in anti-competitive practices within the bond market. This ruling highlights a growing trend in the EU’s commitment to regulating financial markets, ensuring transparency, and enforcing fair competition. The Case Behind the Fines In 2021, the European Commission launched an investigation into a cartel involving several major financial institutions, including Credit Suisse and Crédit Agricole, who were accused of engaging in collusion within the secondary market for SSA (super-sovereign, sovereign, and agency) bonds. These practices included the exchange of sensitive information and price-fixing strategies carried out via chat rooms over a five-year period. Despite receiving full immunity, Deutsche Bank also participated in these activities, having been the first to report the cartel to the authorities. The Commission’s findings revealed that these institutions had coordinated their trading strategies, ultimately distorting the market and harming competition. SSA bonds, widely used by institutional investors, were especially vulnerable to manipulation, affecting not just the immediate market but also the broader investment landscape. The Banks’ Appeal and the Court’s Ruling Both Credit Suisse and Crédit Agricole filed appeals against the Commission’s findings, arguing that the Commission had not proven the extent of their involvement and had incorrectly applied the concept of “a single and continuous infringement.” They also contested the size of the imposed fines, claiming that the penalties were disproportionate given the nature of the alleged infringement. However, the EU General Court rejected their appeals, reaffirming the European Commission’s penalties. The court’s decision sends a clear message that informal or historic collusion is still grounds for stringent regulatory action. Despite the banks’ arguments that their communications were sporadic or informal, the court found no reason to reduce the penalties, upholding the Commission’s stance on market integrity. What Does This Mean for the Financial Sector? This ruling is part of a broader EU regulatory push to ensure transparency and prevent anti-competitive practices within financial markets. The European Commission is increasingly focused on not just blatant collusion, but also on addressing the culture of complicity that often exists among financial institutions. The outcome also underscores the growing scrutiny of informal communications, with regulators examining chatroom exchanges and other less formal channels of collusion. Margrethe Vestager, the EU’s competition commissioner, condemned the actions of the traders involved, highlighting the importance of maintaining fair competition in markets that handle institutional investments and pension funds. The message from EU regulators is clear: institutions must uphold the highest standards of fairness, even if the anti-competitive behavior is historic or sporadic. The Wider Impact on the Financial Services Industry The EU’s rigorous enforcement of fair competition comes with both positive and negative implications. On the one hand, such actions help preserve the integrity of financial markets. On the other hand, they increase the compliance burden on financial institutions, especially smaller firms that may struggle to meet the new demands for oversight. With EU regulators pushing for greater transparency and the use of regulatory technologies (RegTech) to monitor compliance in real-time, firms may face escalating costs in managing their operations. For smaller firms, this growing burden could stifle growth and innovation, leading to unintended consequences where the cost of compliance outweighs the benefits of regulatory enforcement. Looking Ahead: The Future of Competition and Oversight The ruling against Credit Suisse and Crédit Agricole serves as a stark reminder that EU regulators are not only vigilant about overt anti-competitive behavior but also about informal collusion. Financial institutions now face heightened pressure to ensure full transparency and avoid any potential market manipulation, regardless of the form it may take. As the regulatory landscape continues to evolve, firms will need to adapt quickly, integrating more advanced technologies to ensure compliance. However, the cost of compliance could place smaller institutions at a disadvantage, potentially skewing the competitive playing field that the EU aims to protect. This case illustrates the EU’s commitment to a fair and transparent financial sector, where market integrity is a top priority, even at the cost of stiffer penalties and increased operational scrutiny.
Continue ReadingEU Gender Balance Directive for Corporate Boards: A New Era of Gender Equality
The Legal Empowerment Blog What you need to know In a major move towards improving gender equality in corporate leadership, the European Commission has formally launched its Gender Balance on Corporate Boards Directive, which came into force at the end of December 2024. This directive aims to ensure a more balanced representation of genders on the administrative and oversight boards of companies across the European Union. The directive is a response to the ongoing gender disparity observed in leadership positions, particularly in corporate boards. It is specifically targeted at enhancing gender balance within larger companies, with a focus on non-executive and executive director roles. However, micro, small, and medium-sized enterprises (SMEs) are excluded from this requirement, allowing for a focus on larger, publicly listed companies that can set an example for broader industry trends. The Directive’s primary provision, outlined in Article 5, offers EU Member States two options for achieving gender balance. The first is ensuring that the underrepresented gender holds at least 40% of non-executive director positions. Alternatively, companies can aim for a broader measure: achieving 33% representation of the underrepresented gender across all director positions, including both executive and non-executive roles. The distinction between these roles is important, as executive directors typically manage the day-to-day operations of a company, while non-executive directors oversee corporate governance. While the directive provides clear targets, the onus falls on EU member states to implement these measures at the national level. Member States were given until December 28, 2024, to transpose the directive into their national laws. As of now, 12 Member States have yet to notify the European Commission of their transposition, putting them at risk of enforcement action, which could lead to fines. This development is part of the European Commission’s broader “Gender Equality Strategy 2020-2025.” The directive plays a key role in achieving one of the five objectives of this strategy—improving gender representation in decision-making and leadership positions. After a decade-long negotiation process, this directive represents a significant milestone in the EU’s commitment to gender equality. Historically, corporate governance in the EU has emphasized shareholder rights to nominate and select board members. The introduction of this directive further aligns these practices with modern societal goals of equality. However, the success of its implementation will depend on how national governments approach the directive’s transposition and whether companies adhere to the spirit of gender balance. As we move forward into this new era of corporate governance, this directive signals a critical shift in the European Union’s approach to gender equality in leadership roles. It will be interesting to monitor how the directive impacts the corporate landscape and whether it encourages similar initiatives worldwide.
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