Emerging legal and regulatory requirements
Emerging legal and regulatory requirements
New legal and regulatory requirements are being introduced that will have wide-ranging impacts for UK business and which bring new organisations (in particular tech companies) into the regulated sphere. An increased focus on compliance is being driven by the Online Safety Act, corporate transparency obligations, new and emerging greenwashing regulations, and new fraud-related corporate governance standards.
These regulatory developments have emerged from the growing public perception that businesses should be responsible for protecting their customer, and wider society, from harms facilitated by their services. One such harm has been fraud, with headline fraud rates rising over the last decade. Fraud now accounts for more than 40% of reported crime in the UK, according to the Home Office 2023 Fraud Strategy.
The introduction of a corporate ‘failure to prevent’ fraud offence will drive increasing board-level scrutiny of fraud risk management, similar to that seen as a result of the introduction of the UK Bribery Act.
Environmental, Social and Governance
Environmental, Social and Governance
ESG is an increasing area of focus for governments, businesses, regulators and consumers. Climate change is an area of particular focus, but ESG covers a wide range of environmental, social and governance-related topics. Across government and the private sector, risks relating to ESG fraud (including greenwashing) within organisations and their supply chains are increasing, as are obligations on organisations to make accurate disclosures on ESG commitments.