BRIBERY ACT – NOW LAW

The Act simplifies previous inadequate laws on bribery and corruption which the UK had been criticised for internationally. It is evidence of the UK's commitment to getting tough on bribery and corruption and eradicating it from business practice. The Act allows for the prosecution of companies and individuals.

Individuals face the possibility of unlimited fines and/or imprisonment while a corporate failure could result in an unlimited fine.

All businesses will need to consider how the act affects them. Everything from standard practices with long established suppliers, policies on the acceptance of hospitality to relationships with overseas agents could find themselves under scrutiny.


Source: Pinsent Masons

Pinsent Masons Website

Can you afford to take the risk of not complying with the legislation?




Contact us on 0207 645 8808 about Money Laundering investigations and training or visit our website for more information.

We offer full ongoing support and have skilled individuals who can assist you in investigating any potential breaches.

Please visit AML Serious for a short demonstration of our innovative and exciting training module on anti-money laundering.

TCC Website

FSA – NEW APPOINTMENT

The Financial Services Authority announced the appointment of Tony Hobman as the chief executive of the newly created Consumer Financial Education Body (CFEB).

Tony Hobman is currently chief executive of the Pensions Regulator and has held a number of senior appointments within the financial services arena. He spent 20 years with Barclays Bank, and has been chief executive of ProShare, the Money Channel plc and the Occupational Pensions Regulatory Authority.

CFEB was established by the Financial Services Act, which received Royal Assent on Friday 9 April, to enhance the public’s understanding and knowledge of financial services and their ability to mange their own money matters.

Hector Sants, FSA chief executive, said:

"I am delighted that Tony is to become chief executive of the Consumer Financial Education Body at this pivotal time, as the new body is established to deliver national roll out of the Money Guidance service."

"The creation of a separate agency emphasises the importance of financial education in improving the effectiveness of the UK’s financial market for consumers. CFEB will be able to take a leading role in improving consumer understanding of money matters and, in turn, help to improve consumer confidence in financial services."

CFEB will take responsibility for the national roll out of the Money Guidance service, delivered under the Moneymadeclear brand. The service allows people to speak to trained money guides who will assist them with their money issues. A full national roll-out of the face-to-face service is due to be in place later in 2010.

The new body will also be continuing the programme of work established by the FSA’s financial capability division, including projects to help school children, young people, students, employees, new parents, and other targeted groups of consumers such as people facing redundancy, approaching retirement and those via its work with non-profit organisations.

Chris Pond, currently FSA director of financial capability, will become an FSA senior adviser working with both the FSA and CFEB.


Source: Financial Services Authority

FSA Website

CML – MORTGAGE RECOVERY

The number of loans advanced for house purchase increased by 12% in February, according to figures released by the Council of Mortgage Lenders. January was extremely weak due to one-off factors such as the effect of the end of the stamp-duty exemption in December 2009 and the severe winter weather. So the 35,000 loans advanced (worth £5 billion) signifies a modest recovery, although they were up by 49% in volume and by 67% in value from a year earlier.

The end of the stamp duty holiday in December meant there were fewer first-time buyers in January. As a result their numbers rose slightly faster than the rest of the market in February with 12,600 loans advanced (worth £1.5 billion), up 13% by number and 15% by value on January. Home mover activity, which was less affected by the stamp duty holiday of 2008 and 2009, did not see as much of a rebound. The number of transactions were still higher with 22,600 loans advanced, (worth £3.5 billion), up 11% by number and 6% by value on January.

Remortgaging activity remains weak, although the 24,000 loans in February was up 2%, representing an increase for the first time in five months. This weakness in remortgaging is expected to continue for some time yet.

With interest rates at an historic low, fixed rate mortgages remain less popular than in the recent past. The proportion of fixed rate mortgages was 47% in February 2010, unchanged from January and the lowest share in around five years. The share of tracker products in February was 36%, again unchanged from January, but remained at its highest level since the CML began recording this data in March 2005.

Commenting on the data, CML head of research Bob Pannell said:

"With the supply of credit still tight and the upcoming election causing political uncertainty, we are unlikely to see much change in the near future although the new stamp duty exemption for first-time buyers could boost the market somewhat and we hope to see the traditional seasonal pick-up as the weather gets warmer and the days get longer."

"The start of the year is traditionally a quiet period for mortgage lending. This year though, transactions have been affected by the ending of 2009's stamp duty concession and the harsh weather, making it hard to identify clear trends in recent months."


Source: Council of Mortgage Lenders

CML Website

CML – GROSS MORTGAGE LENDING UP

Gross mortgage lending was an estimated £11.5 billion in March, a 24% rise from £9.3 billion in February and a 3% rise from £11.2 billion in March 2009, according to data published by the Council of Mortgage Lenders. The figures are in line with the typical seasonal pattern of a rise in lending volumes in March.

Gross lending for the first quarter of 2010 was therefore an estimated £29.5 billion, a 24% decline from the fourth quarter of 2009 (£38.9 billion) and a 9% decline from £32.4 billion in the first three months of 2009. This is the lowest quarterly lending total since the first three months of 2000, but is very much in line with our forecast of a gross lending total of £150 billion this year.

In the CML market commentary, CML economist Paul Samter commented:

“Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago. Despite the increase in activity late last year and a subsequent fall early this year - due to the end of the stamp duty holiday - the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year."

"However, the longer-term problems facing the market remain and will limit the speed of recovery in the housing market and wider economy. Financial institutions still face the prospect of around £300 billion of official support schemes beginning to end from next year, and will need to find alternative funding sources. This will likely limit how much new funding can be made available to the housing market.”

CML Website

FOS – BBA SEMINAR

Tony Boorman addressed the BBA seminar on 19 April 2010. He set out how to improve dealing with complaints such as:

• Helping businesses understand the FOS approach
• Handling complaints in a way that works for all
• Planning and sharing information about trends; and
• Maintaining an open dialogue with businesses

Main topics covered were:

• FOS experience
• Understanding and acting on the ombudsman’s approach
• Making the process work for all
• Planning and information
• Working with your business


Source: Financial Ombudsman Service

FOS Website

Do you and your team have the time or skills to deal with complaints?


We do – we deal with the Financial Ombudsman Service (FOS), third party complaint handling companies and directly with customers for a number of high profile clients.

We offer a service that takes the pain out of complaints – we can design an end to end process and provide the skilled resources to support your firm.

Call now on 020 7645 8808 or visit our website and find out what we can offer.

TCC Website

FSSC – TREVOR MATTHEWS TO CHAIR FSSC

The Financial Services Skills Council (FSSC), the independent, employer-led sector skills council for finance, accounting and financial services, today announced the appointment of Trevor Matthews as Chairman.

The news comes just days after a panel of ministers endorsed the FSSC's new strategy, awarding a renewed licence to the organisation, which helps UK businesses achieve global competitiveness through investment in skills.


Source: Financial Services Skills Council

FSSC Website

EU LAW – LIMITED COMPETITION EXEMPTION GRANTED

The European Commission has adopted a new regulation partially renewing the automatic exemption from EU competition rules that applies to certain types of agreement between competing insurers.

Article 101 of the Treaty on the Functioning of the European Union (Article 81 under the old EC Treaty) prohibits agreements which may affect trade between member states and which prevent, restrict or distort competition. Individual agreements may be exempt, however, if it can be shown that the benefits they bring outweigh the restriction on competition.

In addition, the Commission has the power to grant sector-specific block exemptions which automatically exempt certain types of agreement, provided specified conditions are met.

The previous insurance block exemption applied to four categories of insurance-related agreement: agreements for the exchange of statistical information for the calculation of risk; agreements establishing non-binding standard policy conditions for direct insurance; the setting up of insurance pools for the joint coverage of certain risks; and agreements relating to specifications for security devices.

Following a review of the way the exemption operated, however, the Commission decided that it should be renewed (with some amendments) for the exchange of information and for insurance pools, but not for standard policy conditions or specifications for security devices. The new block exemption came into force on 1st April and will apply until 31st March 2017.

Announcing the adoption of the new regulation on 24th March, Joaquín Almunia, Commission Vice-President in charge of Competition Policy, said:

"The block exemption continues to be justified for pools and certain types of information exchange necessary for the industry to be able to carry out its business. This is in the interest of consumers and of the economy as a whole."


Source: Out-Law News

Out-Law News Website

RISK FRAMEWORKER TOOL

As a valid INF reader, ask for a demonstration of Risk Frameworker and get 30 bespoke Risk Frameworker questions FREE when you buy (worth £1,000).

Please call us on 0207 645 8808 or email us to arrange a demonstration.

2000 - 2010 .... celebrating 10 years of providing expert advice and guidance on FSA compliance.

TCC Website