BUSINESS WITH CONFIDENCE icaew.com Anne Davis Head of Charity
and Voluntary Sector Law and Ethics: key developments
Slide 2
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Charities Act
2011 Will be effective 14 March 2012 Consolidates existing
legislation from the Recreational Charities Act 1958, the Charities
Act 1993 and much of the Charities Act 2006. The Act does not
include part 3 of the 2006 Act which would make the Charity
Commission the lead regulator of public charitable collections
(this is part of the Charities Act 2006 review)
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BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Charities Act
2011: considerations reference in letters of engagement and audit
reports will have to change: any letters of engagement and reports
after 14 March 2012 should refer to Charities Act 2011 and anything
before that date will make reference to current legislation. No
need to revised a document which is finalised before 14 March 2012,
even if it relates to work and reports that will refer to the new
legislation APB likely to make necessary amendments to PN 11 late
February/early March 2012.
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BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Charities Act
2006 Review Led by Lord Hodgson: report to Parliament by 17 July
2012 Terms of Reference will look at: operation and effectiveness
of the provisions of the 2006 Act consider whether further changes
could be made to improve the legal and regulatory framework for
charities.
Slide 5
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Charities Act
2006 Review The review will aim to answer the following 3 key
questions: what is a charity and what are the roles of charities?
what do charities need to have/be able to do in order to be able to
deliver those roles? what should the legal framework for charities
look like in order to meet those needs (as far as possible)?
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BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Charities Act
2006 Review Key areas being looked at: current accounting,
reporting and audit procedures, including cross-border requirements
and reporting. licensing regime for public charitable collections
self-regulation of fundraising activities thresholds for
registration of charities effectiveness of organisational forms
available to charities, including the Charitable Incorporated
Organisation Methods of supporting and encouraging individuals to
volunteer as trustees, including concerns about trustee
responsibilities, obligations and liability
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BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Question
Feedback/comments please?
Slide 8
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 Came into force 1 July 2011 Ministry of Justice guidance:
clarifies interpretation of the Act anti-bribery procedures
Slide 9
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 Offering, promising or giving a bribe Requesting, agreeing to
accept, or accepting a bribe Bribing a foreign public official
Failure of a commercial organisation to prevent bribery (the
commercial organisation offence)
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BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 The Core Offences The core offences relate to the giving or
receipt of inducements to improperly perform a function expected to
be carried out: in good faith; impartially; or where the person
involved is in a position of trust
Slide 11
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 The Core Offences Improperly perform defined re expectations
of persons performing those functions in the UK even if the
functions are carried out abroad UK citizens held to UK standards
of behaviour, wherever located unless local written law provides
for different standards
Slide 12
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 The Core Offences Offences apply whenever: Any part of the
offence takes place in the UK; or All parts of the offence take
place outside the UK, but the offender is: A UK citizen, or
overseas citizen, Ordinarily resident on the UK, A UK incorporated
body
Slide 13
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Facilitation
Payments Not allowed
Slide 14
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Duress This
defence will be available where payment is needed to protect life,
limb or liberty It does not extend to protection of goods or
business
Slide 15
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Hospitality and
Promotional Expenditure Proportionate expenditure is fine As
recognised as an established and important part of doing business
Review of corporate policies to prevent use as a cover for bribe
paying would be sound practice
Slide 16
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Bribery Act
2010 - The Corporate Offence Commercial organisations commit
offence if any person associated with them bribes another person
intending to obtain or retain business or a business advantage for
them. Offence can be committed not just by UK companies, but by any
other body corporate (wherever incorporated) which carries on a
business, or part of a business, in the UK Associated persons
includes anyone who performs services on behalf of the organisation
employees, agents
Slide 17
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Corporate
Offence Adequate Procedures Defence to the corporate offence to
have adequate anti- bribery procedures, covering all associated
persons Statutory guidance on adequate procedures specifically
required by Bribery Act and now in place
Slide 18
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 The Corporate
Offence Adequate Procedures Six principles for bribery prevention:
1.Proportionate procedures 2.Top level commitment 3.Risk assessment
4.Due diligence 5.Communication (including training) 6.Monitoring
and review
Slide 19
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 What does this
mean in practice? Carry on doing business but take action review
adequate procedures think about integrity and codes of conduct
Slide 20
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Instilling
Integrity in Organisations a magic button?
Slide 21
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Reporting with
Integrity
Slide 22
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Instilling
Integrity
Slide 23
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Achievements
Qualities Commitments Motives Moral values Definition of
integrity
Slide 24
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Promote community
interests Achievements Qualities Commitments Motives Moral values
Be honest and truthful Be fair Comply with laws Be open and
adaptable Take corrective action Behavioural characteristics of
integrity Show consistency Promote community interests
Slide 25
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Commitments
Leadership Strategy Policies Information Culture Drivers of
organisational integrity Show consistency Be honest and truthful Be
fair Comply with laws Promote community Interests Be open and
adaptable Take corrective action Achievements Qualities Commitments
Motives Moral values
Slide 26
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 What should the
code say? Integrity Objectivity Confidentiality Competence and due
care Respect for others Appropriate use of resources
Slide 27
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Who you are and
your values
Slide 28
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Gifts and
hospitality policy
Slide 29
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Seeking advice -
whistleblowing policy
Slide 30
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 Why should you
follow the code of conduct? tone from the top
Slide 31
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 What if you dont
follow your code? Insert suitable picture (coming from brand
team)
Slide 32
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012
Slide 33
BUSINESS WITH CONFIDENCE icaew.com ICAEW 2012 References
Icaew.com/charity icaew.com/bribery icaew.com/lawandregulation
icaew.com/ethics justice.gov.uk/guidance/making-and-reviewing-the-
law/bribery.htm
sfo.gov.uk/press-room/latest-press-releases/press-releases-
2011/bribery-act-prosecution-guidance-published.aspx
Slide 34
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