The Devolution Distraction

According to this report by Tom Meirs "Since the Scottish Parliament was established in 1999, Scotland’s politicians have neglected to address the deep-seated social and economic problems faced by the country.
This report calls for a new approach to politics in Scotland, based on honesty in measuring performance, radicalism in policy making and a generational truce on the constitutional issue."

Litigation culture is 'unfair' warns KPMG accounting head

Bill Michael, UK head of financial services at KPMG, attacked what he described as "unfair", "deep pocket" lawsuits which pay "little or no attention to the balance of responsibility between auditor and management".
"We operate in a highly litigious environment where the balance of risk and reward has driven us to a world of caveats," said Mr Michael. "Any corporate failure or financial loss invariably carries with it the risk of suing the auditor."

CEBS statement on key features of the extended EU-wide stress test

Following its statement issued on 18 June 2010, CEBS provides further information on the EU-wide stress test exercise which is now being finalised by CEBS and the national supervisory authorities, in close cooperation with the ECB.

Cheers to China

In a meeting today with Shuping Zhi, Deputy Minister for General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), the First Minister was reassured that the Chinese Government would shortly introduce Geographic Indication (GI) of Origin Status to Scotch - a move that will provide additional legal protection against imitations, ensuring all products labelled as Scotch Whisky must come from Scotland.

Stewardship Code for Institutional Investors

In his report on the governance of banks and other financial institutions, published in November 2009, Sir David Walker recommended that the FRC’s remit should be extended to cover the development and encouragement of adherence by institutional investors to best practice in stewardship of UK listed companies; that the FRC should ratify and regularly review the Code on the Responsibilities of Institutional Investors issued by the Institutional Shareholders’ Committee (ISC); and that this Code should operate on a “comply or explain” basis with appropriately independent monitoring.The Stewardship Code is due to appear on 2nd of July 2010

FSA publishes annual report for the year 2009/10

The Financial Services Authority (FSA) has published its Annual Report, outlining its performance against the priorities set out in its 2009/10 Business Plan and the FSA's statutory objectives.
In his foreword, FSA chairman, Adair Turner, commented that over the last three years, the FSA has transformed its approach to regulation and supervision and as a result, has had to go through a process of intense internal change

BVCA Emergency Budget Submission 2010Ahead

Ahead of the June 2010 Emergency Budget by the new coalition government, the BVCA has taken the opportunity to raise and re-highlight issues with HM Treasury for consideration.
1. Maintaining a stable and competitive tax framework, particularly on capital gains
2. Ensure the EU AIFM Directive does not undermine the private equity and venture capital industry
3. Encourage investment to bring about the transition to the low carbon economy through the creation of a Green Investment Bank

Scotland 's enterprise activity falls to 'worrying' low

Business start-up rates in Scotland fell significantly below UK rates last year, and to their lowest since recording began in 2000, according to research by academics at the University of Strathclyde.
The Global Entrepreneurship Monitor (GEM) 2009 found that Scotland's rate of total early stage entrepreneurial activity, which includes proportions of people setting up businesses or owning and managing new businesses, was among the lowest in 20 developed countries that participated in the survey.

IIFM embarks on series of industry workshops on hedging and Tahawwut Master Agreement

In March, the International Islamic Financial Market (IIFM) in collaboration with the International Swaps and Derivatives Association (ISDA) published the much awaited ISDA/IIFM Tahawwut Master Agreement. The agreement is a framework or governing document and has been welcomed as an essential step in the development of the market for Shari’ah compliant hedging transactions. It is the first step towards bringing a full set of definitions, confirmations, necessary law reforms and other benefits to the Islamic Financial Services Industry over a period of time.

BCC sets next Government 90 day challenge to prove business credentials

With the General Election just days away, the British Chambers of Commerce (BCC) has challenged the next government – whatever its composition – to put business at the very heart of its thinking from day one in charge.
The BCC has published a 90 day plan for business growth, a prescription to return our economy onto a sound and sustainable footing. The organisation argues that failure to implement these measures will mean a slower, or even non-existent, recovery.

Revolution or Evolution: Information Security 2020

This roadmap was commissioned by the Technology Strategy Board and jointly prepared with PricewaterhouseCoopers LLP (UK). The research focuses on the commercial aspects of Information Security, but remains cognisant of trends in cyber security and warfare for military and intelligence applications. The research primarily illustrates trends in the UK Information Security market, but the implications are relevant globally.

Directors of ALSTOM arrested in corruption investigation following raids on nine properties

Three members of the Board of ALSTOM in the UK have been arrested on suspicion of bribery and corruption, conspiracy to pay bribes, money laundering and false accounting, and have been taken to police stations to be interviewed by the Serious Fraud Office.

Six arrested in FSA and SOCA insider dealing investigation

In the first operation carried out jointly between the Financial Services Authority (FSA) and the Serious Organised Crime Agency (SOCA), 16 addresses have been searched this morning in London, the South East and Oxfordshire in the FSA’s largest ever operation against insider dealing.
Documents and computers have been seized from residential and business premises.
Six men including two senior city professionals at leading city institutions and one city professional at a hedge fund have been arrested on suspicion of being involved in a sophisticated and long-running insider dealing ring.

FSA publishes Business Plan for 2010/11

The Financial Services Authority (FSA) has today published its Business Plan setting out its priorities for 2010/11.

Relentless flow of employment law is stifling UK competitiveness, says BCC

The relentless flow of complex employment law is stifling UK competitiveness and risks future job creation, according to a new report by the British Chambers of Commerce (BCC).

Bank payroll tax

Further changes to the scope of bank payroll tax in relation to capital resources requirement, excluded companies and banking groups have been announced.

FRC Statement on issues raised in report on Lehman Brothers

Following the publication of the recent report on Lehman Brothers, the FRC is ascertaining the facts on how the “Repo” transactions were accounted for and audited in the UK in order to determine any implications. To that end, we have asked Ernst & Young to provide further information in relation to what happened in the UK.

FSA and Police contact 1,000 share fraud targets after seizing another boiler room 'master list'

The Financial Services Authority (FSA) and City of London Police (CoLP) have contacted 1,000 people across the UK to warn them that their personal details are on a ‘master list’ being used by fraudsters to target and sell them worthless shares.

Making Corporate Reports Readable

The Institute of Chartered Accountants of Scotland's publication Making Corporate Reports Readable demonstrates that it is possible to produce a corporate report in less than 30 pages which tells management’s story of what is important – eliminating the boilerplate narrative and providing decision-useful information

Assessing possible sources of systematic risk from hedge funds

In the conclusion to this report, the FSA state that:-
The results from this survey work were mostly in line with our expectations. The HFACS data suggests that on 31 October 2009 major hedge funds did not pose a potentially destabilising credit counterparty risk across the surveyed banks.

FSA returns £270,000 to victims of share fraud

The Financial Services Authority (FSA) has recovered approximately £270,000 as a result of action taken against companies involved in a share fraud activity.

Framework to give businesses greater certainty on tax policy

The Government has published a draft Tax Framework for business. Developed in discussion with the Business-Government Forum on Tax and Globalisation, the document is intended to provide greater certainty for large businesses about the Government's approach to the development of tax policy

Finance is fighting to function finds PwC study

A new study by PricewaterhouseCoopers LLP (PwC) into the effectiveness of the finance functions at over 100 of the top 200 FTSE companies and international companies, has highlighted a gap between the expectations of business leaders for their finance functions and the role the functions actually perform.

Faculty blasts rights of audience review

Severe criticisms of the Thomson review's draft recommendations on rights of audience in Scotland's supreme courts have been unleashed by the Faculty of Advocates.

In its response, published today, to the review carried out by banker Ben Thomson, at the request of the Scottish Government, the Faculty claims that the report contains “fundamental deficiencies”.

Maintaining financial stability across the United Kingdom's banking system

Banks are vital to the functioning of the economy. In 2007, financial institutions across the world began to encounter difficulties raising the funds needed to keep their operations going, leading to a crisis of confidence in the banking system. In response, governments have intervened to support the financial system.
The complexity of the problems across the financial sector and the speed with which events unfolded presented the Treasury and the other Tripartite Authorities with a formidable challenge.

FSA chief executive officer to step down in the summer

The Financial Services Authority (FSA) today announces that Hector Sants will leave the organisation in the summer of 2010, after three years as chief executive officer (CEO).

FSA outlines latest steps to address corporate governance at firms

The Financial Services Authority (FSA) has today issued a Consultation Paper (CP) on effective governance standards within firms.

Tax Group warning over 'code mistake'

HM Revenue and Customs (HMRC) are being urged to do more to alert people that they may have been sent the wrong tax code.
The Chartered Institute of Taxation (CIOT) is calling on HMRC to be proactive and mount a publicity campaign to highlight that wrong information is being sent out to huge numbers of people that, unless corrected, may cost them hundreds of pounds.

The Audit Firm Governence Code

With a committee chaired by Norman Murray, the introduction to this publication states:
The Audit Firm Governance Code (the Code) is intended to assist in promoting continuing confidence and choice in the market for the audit of listed companies and should be relevant to everyone who sees audit as playing a vital role in a market economy. The primary purpose of the Code is to provide a formal benchmark of good governance practice against which firms which audit listed companies can report for the benefit of shareholders in such companies.

CBI reacts to Obama bank regulation plan

Responding to the announcement by US President Barack Obama to make major regulatory reforms to the banking sector, Richard Lambert, CBI Director-General, said:
"A unilateral move of this nature undermines the considered G20 approach for effective global reform."

Government fulfils its pensions promise helping thousands who lost their savings

Thousands of people who lost pensions when their employers went bust will get at least 90 per cent of their pensions guaranteed, as the final phase of the Financial Assistance Scheme (FAS) regulations are put before Parliament. The Government will pay out £3.5 billion to around 150,000 people.
Minister of State for Pensions Angela Eagle said:
“The Government is completing its promise to provide a just and final settlement for those who lost pension savings when their employers went bust. There can be few greater cruelties than to find the pension you have earned has suddenly disappeared through no fault of your own. That is why the Financial Assistance Scheme, which we are completing with these regulations, is so important to around 150,000 people.”

Banks are different: should accounting reflect that fact?

Speech by Adair Turner, Chairman, FSA
The Institute of Chartered Accountants in England and Wales (ICAEW), London
London, 21 January 2010
FSA chairman, Lord Turner,called for close engagement between global accounting standard setters and those responsible for prudential regulation of the banking sector to address issues arising from the unique systemic nature of banks.

FSA fines Standard Life £2.45m for serious systems and controls failures

The Financial Services Authority (FSA) has today fined Standard Life Assurance Limited (SLAL) £2.45m for serious systems and controls failings that resulted in the production of misleading marketing material for its Pension Sterling Fund (the Fund). There were approximately 98,000 retail consumers invested in the Fund as at 23 December 2008.

Banking on the State

In the conclusion to their paper 'Banking on the State',and looking back to the last 800 years, Andrew Haldane and Piergiorgio Alessandri of the Bank of England,state:
For the majority of this period, the state was reliant on the deep pockets of the banks to finance periodic fiscal crises. But for at least the past century the pendulum has swung back, with the state often needing to dig deep to keep crisis-prone banks afloat. Events of the past two years have tested even the deep pockets of many states. In so doing, they have added momentum to the century-long pendulum swing. Reverting direction will not be easy. It is likely to require a financial sector reform effort every bit as radical as followed the Great Depression.

'20/20 VISION' - TWENTY LEADING FIGURES GIVE THEIR VIEWS ON THE FUTURE OF THE UK FINANCIAL SERVICES INDUSTRY

On 20th anniversary of the CBI/PwC Financial Services Survey


The competitiveness of the UK's financial services sector is more likely to be undermined by the uncertainty surrounding future regulation of the industry, than by further aftershocks from the recent crisis. That is the view of leading industry figures featured in The Future of Financial Services, which is published today (Monday) to mark 20 years of the CBI/PwC Financial Services Survey.

£25.6bn employment bill risks job creation and recovery, argues British Chamber of Commerce

New research from the British Chambers of Commerce (BCC) reveals that upcoming employment regulations and taxes will cost UK businesses a staggering £25.6 billion over the next four years, which could adversely impact on future job creation.