1. BUSINESS WITH CONFIDENCE icaew.com Anne Davis Head of Charity and Voluntary Sector Law and Ethics: key developments

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)

3. 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.

4. 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.

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)?

6. 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

7. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Question Feedback/comments please?

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

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”)

10. 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

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

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

13. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Facilitation Payments Not allowed

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

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

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

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

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

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

20. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Instilling Integrity in Organisations – a magic button?

21. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Reporting with Integrity

22. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Instilling Integrity

23. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Achievements Qualities Commitments Motives Moral values Definition of integrity

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

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

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

27. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Who you are and your values

28. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Gifts and hospitality policy

29. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Seeking advice - whistleblowing policy

30. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 Why should you follow the code of conduct? – tone from the top

31. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012 What if you don’t follow your code? Insert suitable picture (coming from brand team)

32. BUSINESS WITH CONFIDENCE icaew.com © ICAEW 2012

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

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