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Snouts in The Trough - The Lessons of MG Rover
September 11, 2009
UK government seeks to bar directors over MG Rover demise | www.reuters.com
It would seem that it is not just bankers and politicians who can't resist putting their snouts into the trough, seemingly the ex directors of MG Rover could not resist taking a dip either. Rewards should only be commensurate with abilities and results.
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The Basel Group Plays a Reactive Game
September 8, 2009
Basel Group Agrees on Bank Standards to Avoid Repeat of Crisis | www.bloomberg.com
There is no perfect solution, at best the regulatory authorities will only ever be able to play a reactive game to economic shocks such as the banking crises.
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September 6, 2009
Lehman Brothers, the bank that bust the boom | www.telegraph.co.uk
It is self evident that Lehman Brothers would still be in existence today had they rewarded Fuld and his cronies for not changing the risk structure of the bank, and not leveraging it into oblivion. The lesson here is one that all professional business people know full well, but some seem to have forgotten, bonuses should be aligned to key performance indicators (KPI's) that genuinely add value to the company's bottom line.
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Advice To Google Re Its Gmail Outage Fiasco
September 2, 2009
Google apologises for Gmail outage | www.guardian.co.uk
There are several lessons to be learned here: 1 Have a second email account that is with another company, and ensure that your email contacts know of it. 2 Ensure that there are other means of communicating urgent messages, other than via email. 3 Ensure that there is a robust and well tested disaster recovery/contingency plan in place. 4 When you are explaining to your customers why the system failed, don't lie
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The Consequences of The UBS Tax Evasion Cases
September 1, 2009
IRS Corporate Audit Division Will Examine UBS Tax Evasion Cases | www.bloomberg.com
As the IRS examines the 4,450 UBS AG Swiss bank accounts it would do to remember that companies offshore as well as individuals. If you do not understand the structure of the company, or the role/purpose of its offshore holdings then treat it with extreme caution. The international regulatory environment (wrt offshore companies and tax treaties) will tighten over the next few years, thus making it increasingly difficult for companies to use these dubious structures.
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The Financial Services Authority Plays To The Gallery
August 28, 2009
FSA Chairman Suggests a Tax on Banks, Drawing a Lot of Fire | online.wsj.com
The Financial Services Authority (FSA), fearful of being shut down by the incoming Tory government, has indulged in popular politics and made some suggestions that play to the gallery wrt taxing bankers' bonuses. This suggestion is a non starter, as Britain (like it or not) needs a robust financial services industry, given that it has no manufacturing base to speak of.
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August 26, 2009
Closing the Havens | www.ft.com
HMRC scored something of an embarrassing own goal, when it signed up with Mapeley.
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The Reality of UBS and Liechtenstein Tax Settlements
August 25, 2009
Swiss Don't See Defeat in Deal to Give Names to U.S. | online.wsj.com
The settlement between the Internal Revenue Service and UBS AG has been hailed around the world as a victory for U.S. tax authorities. In the UK similar moves against offshore tax evaders have been made by Her Majesty's Customs and Revenue (HMRC). As HMRC resorts to increasingly desperate measures, it should consider the cost benefits of such "fishing trips". Will the extra tax raised cover the administration costs incurred by both HMRC and the banks?
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An Idiot's Guide To Assessing Organisational Performance
August 24, 2009
Buffett Payouts Climb on Credit Swaps After Defaults | www.bloomberg.com
The biggest surge in corporate failures (and near failures) since at least 1970 (some high profile eg; Royal Bank of Scotland (RBS), Northern Rock, Lehman Brothers etc), lead me to conclude that effective corporate governance is merely a phrase to be trotted out to the media by management. I have put together a basic checklist of questions that one should ask, when making a judgement as to the effectiveness of an organisation’s management. How does your own organisation measure up?
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Hands Off Government - Non Intervention in Pay Deals and Diversionary Tactics
August 22, 2009
Obama Taking Hands-Off Stance on Citi, AIG Pay | www.bloomberg.com
The financial services industry in the UK does not care one jot what the Financial Services Authority (FSA) does, or says. The FSA truly is a creation of the politicians!
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Royal Bank of Scotland To be Spot Checked - Who Cares?
August 21, 2009
City regulator 'spot-checking' bankers' pay deals | business.timesonline.co.uk
As and when the FSA is abolished by the next Conservative government, who are likely to win the next election, the only people who will mourn its passing will be those in the financial services industry whose interests it has protected since its creation.
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The “Road to Nowhere”- The Delusion of the Burgeoning Public Sector
August 20, 2009
Government debt soars as tax receipts fall | www.citywire.co.uk
The resolution to the problem of the state sector, and Britain's burgeoning public sector debt will not be painless. Whichever party wins the next general election they will need to implement: - cuts in jobs, public sector salary freezes and an ending of defined benefit pension schemes in the state sector - tax rises The outlook for the UK is far from rosy.
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Contingency Planning - The Basics
August 19, 2009
In case of emergency: Business contingency plan needed | www.nydailynews.com
Given the current global risks wrt terrorism, swine flu, and general "sod's law", it is appropriate to address the much overlooked issue of contingency (disaster) planning. Do you know what to do in the event of a disaster? Should you work for an organisation where there are gaps in the contingency plans, then draw their attention to this checklist.
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Ongoing HMRC Data Security Issues
August 18, 2009
ICO: HMRC breach - where were the tech safeguards? | www.silicon.com
It seems that there are still security issues wrt HMRC. It is regrettable but HMRC still don't seem to "get" data security.
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De Beers Finances - The Dangers of EBITDA
August 17, 2009
De Beers Finances, Contd. | www.jckonline.com
To rely on EBITA and highlight it to one's shareholders/bankers is at best misguided, at worst misleading.
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Royal Bank of Scotland Under Investigation
August 17, 2009
Taxpayers take 70% of Royal Bank of Scotland | business.timesonline.co.uk
The timing of the FSA investigation into the Royal Bank of Scotland is "interesting", to say the least, coming as it does hot on the heels of a class action by local government pension funds who are trying to sue RBS. Could it be that the FSA investigation is a whitewash?
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Characteristics of an Effective Audit Committee
August 14, 2009
Internal Auditors: Mission Unaccomplished? | www.cfo.com
The effectiveness of the internal audit function is derived from the effectiveness of the audit committee. Where that committee is ineffective the internal audit function will wither and die. Here I summarise what, in my opinion constitutes, the top ten characteristics of an effective audit committee. This list is not intended to be exhaustive. However, it can be used as a starting point to establish an effective and respected audit committee that adds value to the business.
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August 13, 2009
In House Fraud Cases Surge | www.ft.com
Scandals, frauds and mismanagement are occurring in organisations ranging in size from the small to the multi national. The solution to the global economic and ethical meltdown, in my opinion, is common sense and are listed in my article below. Why not stop delaying and just let’s get on and implement these changes now!
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Attributes of a World Class Internal Audit Department
August 12, 2009
The Added Value of Internal Audit, a Brief Overview | news.glgroup.com
How does your internal audit department measure up to my top ten list?
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The Added Value of Internal Audit, a Brief Overview
August 11, 2009
Risk Management and The Value Added by Internal Audit | www.icaew.com
The internal audit department should tell the Board: - when the company is being poorly managed, - where risks are not being identified or mitigated and - when the business objectives are not likely to be met.
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