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.

Treasury Commissioned Report on British Offshore Financial Centres published

The final report of Michael Foot’s Review of the opportunities and challenges facing the British Crown Dependencies (Guernsey, Isle of Man, Jersey) and six Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos Islands) was published on 29 October. The full text of the report is available online. Also published at the same time was Deloitte's report on tax avoidance by UK companies using these centres and the amount not being paid in tax. A combined report is also available.

New ASB report on annual reports

The Accounting Standards Board, part of the Financial Reporting Council, has published a report on the state of narrative reporting in annual reports. It focused on: how companies are complying with the enhanced business review content requirements from the Companies Act 2006 (CA); effective communication and presentation of the required content; and areas that are leading to clutter in narrative reporting. The full text of "Rising to the challenge" is available on the FRC website.

UK private businesses call for tax certainty

Private businesses want to see a more stable tax regime that will support and encourage growth according to The Enterprising UK 2009 survey published by PricewaterhouseCoopers.
Head of UK private business at PwC, Mary Monfries, states " Private business is calling for a stable, certain tax environment in which to conduct their business successfully".

SFO settles Amec 'irregular receipts' case for £5m

The Serious Fraud Squad has agreed a civil court settlement of £4.9m with the engineering group Amec concerning $9m of 'irregular receipts' that the company took in relation to the construction of the Incheon Bridge in Korea.

Herald article on plan fo larger state role in bankruptcy cases

There was an article in the Herald newspaper on 26 October on reactions to the Scottish Government's proposals to part-nationalise the management of personal bankruptcy. ICAS is one of the organisations giving a response.

Report calls for new green taxes

A report published by the Green Fiscal Commisson on 26 October 2009 is calling for a green tax shift which would allow government to deliver economic as well as environmental benefits. Among the things that it calls for are a levy on new cars and an increase in fuel duties.

NAO report on the perception of red tape by business

A survey of businesses the National Audit Office (NAO) has been published which found that "almost no businesses think that complying with regulation has become easier or less time consuming in the last year. The majority think that things have remained the same and over a third think that the burden of regulation has got worse. On the other hand, 42 per cent of businesses think that government is getting the right balance of regulation to protect people and the environment." The full text of the report is available on the NAO website.

Reform public finance report published

Think tank Reform has published a report "The end of entitlement" looking at how the British middle class needs to decide between giving up welfare benefits or having tax increase by 8%. The full text of the report is available on Reform's website.