These presentations were delivered at the Inspirations event on 18 January 2011, focused on the new Bribery Act and the implications for UK organisations. Hosted by REDTRAY and Grant Thornton, we were joined by expert guest speakers from both Grant Thornton and Duane Morris.
REDTRAY Inspirations Event: Compliance and croissants the bribery act 2010 final
1. Inspirations EventCompliance and Croissants: The Bribery Act 2010 and what it really means for your organisation REDTRAY and Grant Thornton 18 January 2010
2. Agenda 08:15-08:45 Registration, tea, coffee and pastries 08:45-09:00 Welcome and introductionTracy Capaldi-Drewett, Director, REDTRAY Ltd 09.00-09:30 A legal perspective on the Bribery Act 2010 Jonathan P. Armstrong, Partner, Duane Morris LLP 09:30-10:00 The Bribery Act 2010 and ensuring adequate proceduresBen Luddington, Grant Thornton UK LLP 10:00 -10:15 Harnessing learning technology to ensure compliance Tracy Capaldi-Drewett, Director, REDTRAY 10:15-10:30 Q&A sessionChaired by Tracy Capaldi-Drewett, Director, REDTRAY 10:30-11:00 Networking and a chance to try ALTO 11:00 Close
25. AON UK FSA fine of £5.25m (after 30% discount) Failure to establish and maintain systems Countries include: Bahrain Bangladesh Bulgaria Burma Indonesia Vietnam
40. Hospitality & promotional expenditure “Hospitality and promotional expenditure can be employed improperly and illegally as a bribe” Draft guidance Professional education often a cover ‘lavish’ MoJ want to trigger a review of hospitality standards SFO say “used.. to groom employees.. into a position of obligation and thereby prepare the way for major bribery”
49. Practical issues Stretch of in-house resources Death of privilege Consent to collect data Valid employee consent? Legal obligation in which country? Document/laptop seizures Helpline issues Especially sensitive data Need enhanced data security
50. Practical Steps Education, education, education Culture Zero tolerance of bribes - whether public officials or not? Systems no post-it notes tie in with other measures e.g. revenue recognition; export control pay
51. Practical Steps Code of conduct insufficient proper training and monitoring essential must be refreshed and not one hit e.g. webcasts, tweets not US centric Third parties e.g. agents; joint ventures; distributors proper due diligence contractual obligation to obey your policies (including records) right to audit no sub-agents without consent
52. Practical Steps Get to know audit committee Keep country focused for investigations & be sensitive to culture Work out a plan to get to regulators quickly Have the response team worked out External counsel PR/public affairs Plan, rehearse & revise response
57. Guidance on adequate procedures Draft MoJ guidance October 2010 Transparency International guidance July 2010 GC 100 paper December 2009 Woolf report on ethical business conduct May 2008
58. An adequate procedures cycle Culture Top levelcommitment Policies and procedures Duediligence Effectiveimplementation Knowledge Riskassessment Action Monitoringand review
59. Knowledge Risk assessment Regular assessments New products and/or markets Due diligence Business relationships Responsibility for undertaking due diligence Repeat due diligence – how often?
60. Culture Top level commitment Senior management involvement Demonstrate zero tolerance Policies and procedures Policies should be clear and practicable Policies for gifts, hospitality and expenses Policy on facilitation payments Procedures applied consistently internal and externally
61. Action Effective implementation Detailed record of implementation Senior management understanding and involvement on implementation Approach – on the ground, through different layers of management Monitoring and review Individual(s) appointed with responsibility Confirmation of compliance/external audit? Regular review of effectiveness and compliance
62. A suggested approach Step 1 - Appoint a steering group with a chairman Step 2 - Conduct a corruption risk assessment Step 3 - Design mitigating procedures and controls Step 4 - Develop an implementation programme Step 5 - Develop a monitoring and review programme
70. What can ALTO do for you? Scalable, robust SaaS solution No need to invest in hardware or IT resources Reduce financial and regulatory compliance risk Comprehensive tracking and reporting Identify and manage staff competency Reduce training administration costs
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78. Bribery Act Compliance (Bac) e-learning REDTRAY and Routes2Training bring you: A complete customisable compliance solution, based on Ministry of Justice draft Guidance. The elearning addresses the direct and indirect obligations on UK business The Course covers: The Law and also case examples illustrating offences Internal and External Controls that enable compliance An Anti-Corruption Statement For full details email marketing@redtray.co.uk.
81. Thank you! For further information, please contactmarketing@redtray.co.uk www.redtray.co.uk
Notes de l'éditeur
Contrast 10 years jail with 5 under FCPAFailure to prevent bribery (includes non-UK businesses operating in the UK cf AON FSA fine) – note now strict liability not negligence as earlier draft
The draft guidance makes it clear that hospitality is fully within the ambit of the new law saying “Hospitality and promotional expenditure can be employed improperly and illegally as a bribe” although it does give some comfort for those hosting “reasonable and proportionate hospitality…to improve the image of a commercial organisation, better to present products and services, or establish cordial relations”.