Edward Fennell’s LEGAL DIARY
Diary news plus insights, commentary and appointments from the legal world
9 January 2026
Editorial contact: fennell.edward@yahoo.com
SHORT THOUGHT FOR THE WEEK
EU/UK – Back Together?
The perennial debate about how Britain should live with its continental neighbours is taking another turn with the Prime Minister hinting that a closer relationship might be a good idea. Rather like a divorced couple with kids, the penny is dropping that without getting back together again they still need an effective working relationship.
However ‘It’s complicated’.
As Penny Miller, UK Country Head and Partner, Financial Services Regulatory at Simmons & Simmons (and one of Financial News’ 50 Most Influential Lawyers 2025) points out today, “Starmer’s commitment to closer co-operation with the EU, while maintaining the UK’s regulatory autonomy in financial services, has seen mixed views amongst our clients… Whilst the ability for UK and EU frameworks to co-exist sensibly is vital, the UK’s vision for a globally competitive regulatory environment should not be compromised by a return to a framework constrained by a need for wider alignment with the EU.”
So there are arguments on both sides? Who would have guessed. Brace yourself for a return to the Brexit battle which never quite ended.
The LegalDiarist
In this edition
+ LEGAL DIARY OF THE WEEK
Tick Tock for Tech
E-State Agency
ILCA Looms Over the Horizon
Grosvenor Fighting to Win in White Collar Crime War
+ LEGAL COMMENT OF THE WEEK
Naming of transgender fathers, interest of Lawyers’ Client Accounts, high use of drugs in prisons, gender differences in pension holdings, regulating estate agents, improving the conveyancing process and immigration figures
+ APPOINTMENTS OF THE WEEK
Morgan Lewis and Quinn Emanuel
LEGAL DIARY OF THE WEEK
Tick Tock for Tech
Tech, tech tech… it’s everywhere in the law. So let’s bite on the bullet and reflect on what Jonathan Armstrong, Partner at Punter Southall Law (who has a track record for successful soothsaying) thinks will be the big stories in tech and the law in the year ahead.
Among a number of interesting predictions – including the risks emerging from ‘AI Vacuums’ where ‘legitimate organisational content may be missing or misrepresented’ – Armstrong highlights the probability that as AI adoption grows, “Errors caused by lack of employee understanding or training are expected to drive legal claims.” He points out that sectors such as law, where AI ‘hallucinations’ still occur, could be particularly exposed if organisations fail to demonstrate adequate AI literacy programmes.
Inevitably though there will be increasing AI-related regulation from Governments. “AI legislation is expanding rapidly,” he comments. “While the EU AI Act sets a framework, countries such as Italy and Hungary are introducing additional measures. In the US, regulation is likely to emerge reactively, driven by incidents, creating fragmented compliance challenges.” Linked to this
Moreover AI enforcement under GDPR will rise. “Enforcement action around AI and data protection is already significant, with fines approaching €300m in the EU. This trend is expected to accelerate, highlighting the importance of AI compliance and data governance strategies.”
On top of all that ‘State actors’ are increasingly leveraging AI to pursue political and strategic aims, as seen in investigations into platforms like Deepseek and ReplikaAI.
So AI risky for lawyers? Yes – but also likely to generate plenty of work.
E-State Agency
Want to know where house prices will be going this year? Daniel Chard, a Partner at Bird & Co, reckons that he has the answers and has published them in his housing market predictions for 2026.
Last year ended on a quiet note but Chard expects some edging up in the months ahead. The interesting point he makes, though, is that the market is becoming increasingly granular (our term not his). “Rather than broad regional trends, future price performance is increasingly likely to be shaped by highly local factors, such as school catchment areas, everyday amenities within walking distance, access to EV charging and proximity to neighbourhood green space,” he says.
In other words, potential purchases are becoming increasingly fussy and thinking long term. There is not the kind of wild indiscriminate rush out of the big cities as in Covid-times. If people are going to move then it needs to be to exactly the right place. “Where buyers once compared towns or regions, they’re now comparing postcodes and even individual streets,” says Chard. “The difference in demand between two areas half a mile apart can be astonishing.”
No great surprise that AI is also starting to figure – not always helpfully.
“AI is also set to play a more prominent role across the property sector,” he says. “Adoption has accelerated over the past year, with technology now being used to analyse market data and forecast price trends. AI valuations will bring consistency, but they’ll also create friction where sellers feel their home is worth more than the algorithm suggests. By 2026, this could be one of the biggest industry debates.”
ILCA Looms Over the Horizon
There is growing awareness of the potential impact on the law business of the proposed Interest Lawyers’ Client Account Scheme (ILCA). If introduced this would see a proportion of interest earned by law firms via client accounts in England and Wales handed over to the government to be spent in buttressing the criminal justice system.
Consultations are now under way but whilst admirable in its aspirations it might be a killer for smaller firms who need every penny they can get to keep going.
“The proposed ILCA scheme marks a potentially seismic shift for the legal sector,” said Hywel Pegler, Head of Professional and Business Services at RSM UK. “The scheme would aim to offer a ‘middle ground’ between existing international approaches to the same issue, applying to client funds held in both pooled and individual accounts. The aim and principle is to ensure these funds are utilised to support and strengthen a sustainable justice system, offering a much-needed injection of investment. However, the ILCA could have a significant impact on firms who have historically generated large associated interest income from clients’ money held.”
Pegler signs off with some good advice for firms so they are not caught out by this possible development.
“It’s crucial that firms across the sector take time to consider the potential implications of the consultation and ensure they are adequately prepared for any future changes,” he says. In practice this means modelling out the proposals and exploring the implications from a profit and loss perspective.
“ Whilst these proposals are still in the consultation phase; a proactive approach is the best way to mitigate any potential disruption and ensure resilience across business operations in the long term,” he advises.
Fighting to Win in White Collar Crime War
Along with ever-expanding use of AI it’s also a reasonable prediction that white collar crime will also see a spurt in 2026 – indeed the two are likely to be linked. So it’s smart move on the part of Grosvenor Law to launch a new White Collar Crime and Investigations practice.
Based in Mayfair and operating under the motto ‘The Law Firm that fights to Win’ – it is noted for its aggressive approach – Grosvenor specialises in dealing with complex disputes. So it is no great surprise that they are now moving into the white collar crime world. And they are not starting from scratch. To get the practice up and running they have brought in Chris Roberts from Mayer Brown as the Partner to lead the team.
Roberts has more than 15 years of experience successfully representing a broad range of individuals and companies, including publicly listed multinational firms, who have been subjected to internal, regulatory and criminal investigations. So he knows what he is doing.
“The white collar crime landscape is becoming ever more complex, shaped by new laws, evolving enforcement approaches and cross-border issues,” he says.“ Corporates and individuals facing investigations need responsive, pragmatic advice free from legal and commercial conflicts. Firms such as Grosvenor Law are well placed to provide this, including for internal investigations where conflicts and the appearance of conflicts must be avoided.”
Roberts has heaps of experience to go on in handling matters involving multijurisdictional internal and external investigations. But his role has also included regulatory compliance advisory, global policy design and rationalisation, and implementing controls to mitigate legal, financial, and reputational risk.
“Chris’ appointment and the launch of the practice mark the latest step in this period of growth for the firm,” pointed out Grosvenor Managing Partner Daniel Astaire. “He brings with him a wealth of knowledge and expertise, and further strengthens Grosvenor’s position as a leading disputes firm in the London legal market.”
Mayfair can expect fireworks ahead.
LEGAL COMMENT OF THE WEEK
TOPIC: Transgender father not to be named on birth certificate
COMMENT BY: Rachel Frost-Smith, Head of Children and Legal Director, Birketts LLP
“It’s unsurprising that, in line with previous decisions, the High Court has confirmed that a transgender man cannot be registered as the father on the birth certificate of his children.
This decision reflects current domestic law. Judges may recognise (as in this case) that the lived role of the parent is that of the child/ren’s father, but they cannot be registered as such as they were not a biological or gestational parent.
This case is part of a wider group where the courts are facing difficulties legally recognising the roles that parents play in a child’s life, particularly fathers, where legislation has not kept pace with the developments in fertility and other medical treatments, or with societal changes in family structures.”
TOPIC: The Ministry of Justice’s consultation on ‘Interest on Lawyers’ Client Accounts’
COMMENT BY: Victoria Morrision-Hughes, Vice-chair, Association of Costs Lawyers
“Costs Lawyers may sometimes have to hold client money simply to ensure that funds are available for payment of both disbursements and their own fees. This is not a money-making exercise – simply a way to ensure that work is done smoothly and efficiently. The Ministry of Justice must ensure the new scheme does not disadvantage the firms that do this.”
TOPIC: The high level of drug use in prisons
COMMENT BY: Andy Slaughter MP, Chair of the Justice Committee and Labour MP
“The [Justice] Committee’s report laid bare a prisons drugs crisis at ‘endemic’ levels requiring an urgent multi-faceted response underpinned by the necessary funding to turn around a ‘dangerous culture of acceptance’.
“It is disappointing that of the 29 recommendations made, only eight have been accepted, two rejected and the rest ‘partially accepted’. When HM Prison and Probation Service’s ability to maintain safety and control, and offer effective rehabilitation is being critically undermined by the scale of the trade and use of illicit drugs, a selective response is not enough to grip and solve this wide-ranging issue.
“As the Committee’s report recommended further immediate measures are needed to address and reduce the underlying demand for drugs and combat the alarming rise in the use of sophisticated drone technology.
“Without such reform and investment that tackles the profitable supply networks, the discrepancies in treatment provision and purposeful activity, plus the poor condition of the estate and serious capacity pressures, prisons will remain unstable, unsafe and incapable of gaining control over the drugs crisis.”
TOPIC: The disparity in pension holdings between divorced men and divorced women
COMMENT BY: Simon Blain, Family Partner, Forsters
“Effective pension sharing or offsetting on divorce requires expert input from a Pensions on Divorce Expert (PODE). Such reports cost several thousand pounds and there is often a wait of several months for a report to be produced. PODEs are, unsurprisingly, reluctant to take instructions from unrepresented litigants, which can lead to further delay. This means that parties who are keen to achieve a quick or cost-effective divorce settlement, or who are reluctant to engage professional advisers, will often either ignore pensions, or resort to over-simplified offsetting (assuming that £1 of pension is of equivalent value to £1 cash).
“It is vital that the party with fewer pension assets (usually, but not always, the wife) obtains professional advice at an early stage from a specialist family lawyer, who will be able to advise on the best way of dealing with pension assets. The family lawyer, in turn, will be able to seek advice from pension specialists and, if necessary, a PODE. The cost of seeking such professional advice is likely to be recouped many times over if an appropriate division or offset of pension resources is achieved.”
TOPIC: The proposed plans by the Government to regulate estate agents as part of major reforms to the home buying and selling process.
COMMENT BY: Stephen Ward, director of strategy and external relations, Council for Licensed Conveyancers
“We regret that although the professions involved have it within their power to make the changes needed in the consumer and wider public interest, it might be necessary for government or regulators to require certain changes to ensure progress is made. The current fall-through rate of 30% [of home purchase deals] simply must be reduced. Consumers need certainty much earlier in the process that their sale or purchase will complete, something which the CLC has been working with the HBSC and DPMSG to deliver.
“We welcome the government’s support for the agenda for transformation of home buying and selling and hope our collaborative efforts can make our vision a reality, raising standards so that consumers’ interests are protected at all stages of the home buying and selling process.”
TOPIC: The need for stronger regulation of the high-volume, low-value conveyancing sector in order to improve the speed and efficiency of the conveyancing process
COMMENT BY: Sara Fowler, CILEX President
“We need a faster and more reliable conveyancing process that keeps pace with technological advances, holds all professionals involved to high standards and engenders the trust and confidence of consumers.
“It is imperative that in pursuit of speedier transactions there is no compromise on quality of service and that consumers get the expert advice they need. The government’s proposals offer much needed change to the sector but if the reforms are to be a long-term success, we need to see strong regulation and education, a review of current fee structures and transparency on referral fees to ensure that consumer protection is at the heart of these reforms.”
TOPIC: The Monthly Entry Clearance Visa Application figures for December 2025 which show a fall in applications for both Health and Care Worker visas and Skilled Worker visas
COMMENT BY: Lynsey Blyth, Immigration Partner, Michelmores
“The latest figures continue to show strong global appetite for UK opportunities, but they also reveal the profound impact of the government’s July 2025 reforms on skilled migration. The White Paper ‘Restoring Control over the Immigration System’—implemented in stages from July 2025—raised the skill threshold for Skilled Worker visas from RQF Level 3 to RQF Level 6, effectively removing around 180 previously eligible occupations from sponsorship. This shift, combined with significantly increased salary thresholds and new restrictions on key routes such as Health and Care, has had a dramatic effect on the number of skilled individuals able to qualify for UK entry. Although demand for UK visas remains robust overall, the tightening of skilled routes has undeniably reduced the flow of talent in sectors that previously relied on medium‑skilled international workers.
“From a practitioner’s perspective, these statistics highlight a rapidly changing environment. While the UK continues to benefit enormously from migration, these reforms underscore the need for a policy approach that balances control with competitiveness. The sustained demand visible across other visa categories demonstrates that the UK’s international appeal remains strong, but if the country is to maintain economic dynamism and sector resilience, ensuring accessible pathways for genuinely skilled workers must remain a central priority.”
LEGAL SECTOR APPOINTMENTS OF THE WEEK
MORGAN LEWIS
Katherine (Kat) Gibson is joining Morgan Lewis as a partner in its global labour and employment practice in London. “Kat’s addition expands cross-practice opportunities and strengthens our ability to support clients in London and beyond,” said said Nick Bolter, managing partner of the London office. “Her arrival reflects our continued investment in the London office, adding depth to our labor and employment offering and supporting the growth of both new and longstanding client relationships across the platform.”
Previously with DLA Piper and working in-house Gibson has extensive experience in employment litigation, transactional support, business protection matters, and workplace data privacy. She is also able to advise clients on workplace data protection issues, including data subject access requests, employee monitoring, cross-border data transfers, and GDPR compliance. She has a reputation for adopting a a pragmatic approach to addressing employers’ operational and compliance needs.
“Global employers today are operating amid increasing regulatory shifts, technological advancement, and cross-border obligations,” said Firm Chair Jami McKeon. “With her blend of in-house and private practice experience, Kat brings a practical perspective that will help clients navigate these pressures and opportunities and prepare their business for what’s next.”
QUINN EMANUEL
William Charles has joined Quinn Emanuel Urquhart & Sullivan UK LLP as a Partner in the London office. Previously at Milbank LLP he was a partner in the firm’s Litigation and Arbitration group where he represented private equity and credit firms, asset managers, hedge funds, financial institutions and senior executives, as well as energy and technology firms, in a broad range of business disputes. Most notably he recently acted successfully for an investment vehicle for a fund affiliated with a FTSE 100-listed global alternative asset manager which was cited by The Lawyer as one of the Top 20 cases of 2025.
“We are looking to grow our practice and are of the strong belief that, after 17 years in the market, we are now part of the established litigation order,” said Richard East, Quinn Emanuel’s London Senior Partner. “Our London disputes revenues already surpass those at all of the Magic Circle’s UK practices which is an incredible achievement. The hire of Will will have a significant impact upon us becoming the number one litigation firm in the City.”
We hope that you’ve been interested or amused by something in this week’s LEGAL DIARY. If so do send on to colleagues.
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fennell.edward@yahoo.com