Lilian Small

Lilian specialises in advising clients in financial services on a wide range of issues including assisting with internal and FCA enforcement investigations, the implementation of regulatory change projects such as the Consumer Duty, managing remediation programmes, advising on compliance with the Conduct Rules and SM&CR requirements, FCA notification obligations and responding to supervisory enquires. Lilian acts for a broad range of clients from individuals and whistleblowers to financial institutions including retail banks, asset managers, brokers, commodity trading houses and alternative investment managers.

Lilian has previously held senior roles at the FCA, in-house at a global investment bank where she was responsible for managing a number of high-profile regulatory enforcement and internal investigations across the EMEA region and was Of Counsel at Simmons & Simmons.

Lilian is a member of the Executive Committee of the Financial Services Lawyers Association and Chair of the Equality, Diversity and Inclusion Committee.

Advisory practice

Lilian advises on a range of regulatory compliance issues including AML and financial crime systems and controls, competition, corporate governance, conduct risk issues, remuneration rules and supervisory processes including skilled person reviews, remediation programmes, regulatory notifications and perimeter advice (whether activities fall within the FCA’s regulatory perimeter). Lilian also advises firms and individuals on how to navigate data protection issues including bringing and/or responding to a Data Subject Access request and how to mitigate the risks of data breaches.

Recent matters include:

• supporting a retail bank on the implementation of the Consumer Duty with a specific focus on the “Consumer Understanding” requirements (including the review of key customer communications and assessing the needs of vulnerable ecostumers);
• advising an FCA regulated stockbroker on the implementation of a business winddown programme and the protection of client assets;
• designing and delivering a bespoke Conduct Rules training programme to the board of a global asset manager and conducting a virtual roll out to certified employees;
• advising a non-FCA regulated firm on investor KYC requirements and financial promotions in response to enquiries made by the FCA’s Financial Promotions team;
• advising on remuneration policies and procedures for an alternative investment manager including the implementation of long-term incentive plans, deferral requirements and malus and clawback polices;
• advising a global investor consortium impacted by the failure of a student property development including advising on the creation of a compliant Unregulated Collective Investment Scheme and financial promotions requirements;
• advising an investment platform on enhancements to AML and KYC policies and procedures required to assess potential clients from high-risk jurisdictions; and
• advising on various FCA applications: including firm authorisation, Change of Control and applications for Senior Management Functions.

Contentious regulatory practice

Lilian advises on a range of contentious regulatory issues including how to manage contentious regulatory enquires and early intervention mechanisms (including section 165 FSMA information requirements, skilled person reviews, solvency issues and VREQs), conducting and advising on internal investigations, whistleblowing issues and defending regulatory enforcement investigations. Lilian advises on fitness and propriety issues and the assessment of conduct rule breaches, regulatory notification obligations and regulatory references. Lilian also assists clients with other professional discipline matters including investigations by the SRA, ICAEW and the Insolvency Service.

Recent matters include:

• advising a global asset manager in respect of an internal investigation of misconduct by a junior member of back-office staff including an  assessment of fitness and propriety, regulatory notifications and disciplinary sanctions;   
• acting for a whistleblower portfolio manager in raising concerns about fund mandate breaches in respect of a UCITS fund;    
• acting for an investment banker in respect of an internal investigation, regulatory enforcement investigation and satellite litigation;   
• acting for a FCA regulated investment manager and former General Partner of a fund resulting from a dispute between the founding partners;
• acting for a Compliance Officer and Director of an FCA regulated stockbroker in respect of a regulatory enforcement investigation and proposed action by the Insolvency Service;  
• conducting an internal investigation for an FCA regulated investment manager concerning fraud allegations against a founding partner;
• advising on suitability issues and financial advice complaints including DB pension transfers; and
• advising a mortgage broker on recruitment policies and regulatory references in light of lender decision to remove the broker from the lending panel.  

Client Testimonials

“Ever since our first conversation Lillian has always been very clear, calm and above all practical. Were it not for Lillian I would not have been able to continue working as the legal issues would have overwhelmed me. I am extremely grateful for all her help and recommend her unreservedly”. – Portfolio Manager, Investment Manager

“I’ve worked with Lilian for almost 10 years and am consistently impressed with her. Lilian is super responsive, friendly, professional and highly knowledgeable within the FS sector. Lilian can take extremely complex legal matters and break it down into lay terms, which can then be easily understood and digested within the business. I’ve dealt with numerous alternative attorneys in the past and they do not compare to the service level provided by Lilian.” – Head of Human Resources, Alternative Asset Manager

“Lilian is a highly skilled regulatory lawyer who has excellent client relationship skills and has a pragmatic and commercial approach to issues. Having been instructed on short notice to assist on an ongoing project she impressed the whole team with her approach and input. Her support was invaluable”. – Head of Regulatory Legal, Retail Bank

“I am incredibly grateful for the outstanding and always fast service provided by Lilian. Her unparalleled knowledge, practical approach and unwavering dedication have been instrumental in navigating complex regulatory matters with ease. I wholeheartedly recommend her to anyone seeking top-tier legal counsel in the UK financial services industry”. – Founder, Alternative Investment Fund

“I have had the opportunity to work with Lilian for a number of years. Her insights and guidance are always well balanced, she is extremely responsive, highly knowledgeable and most importantly a pleasure to partner and work with.” – Head of Human Resources EMEA, Global Asset Manager