Tag: Press Release

The press release issued by HM Treasury on 9 May 1998.

Chancellor of the Exchequer Gordon Brown today welcomed agreement with G7 Finance Ministers to conduct national studies on ways to improve cooperation between regulators and law enforcement authorities to tackle international financial crime.

Commenting on the announcement, he said:

“Financial crime exists world wide and affects all economies. It is one of the major challenges of our time.

“We can only tackle it successfully if Governments work together to combat it as effectively as increasingly sophisticated criminals work together to commit it.

“G7 Ministers today discussed how to achieve better international cooperation between financial regulators and law enforcement authorities to beat the criminals. We are aware that systems for the exchange of information are not as quick and efficient as they need to be.

“We agreed to review our national laws and procedures to see where concrete improvements can be made.”

G7 members will report back on their findings by October and come forward with recommendations at next year’s Cologne Summit. Ministers also welcomed the Financial Action Task Force’s decision to extend its mandate for a further five years, and fully support its intention to develop a world-wide anti-money laundering network.

The press release issued by HM Treasury on 9 May 1998.

Ten Key Principles for information exchange to improve financial stability through greater international cooperation were announced by G7 Finance Ministers meeting in London today.

Commenting on the meeting, Chancellor of the Exchequer Gordon Brown said :

“Given the UK’s past experiences with BCCI and Barings, the UK has been a longstanding advocate of improving co-operation between supervisors of internationally active financial institutions.

“Today’s report by financial experts from all G7 countries – in a group chaired by the UK – marks a significant step towards improving financial stability. The Ten Key Principles which they have developed establishes a clear framework for international cooperation and sets standards to which G7 Ministers believe all countries should aspire and which we shall promote throughout the world.

“Recent events in Asia have highlighted the need for such cooperation and emphasised its urgency. So we are especially pleased that the G7 has made so much progress on this issue since we met in Denver a year ago.”

The Ten Key Principles set out in the report from G7 Ministers to heads of government cover :

authorisation to share supervisory information with foreign supervisors
the sharing of information by supervisors from different sectors of financial services
cooperation in identifying and monitoring the use of management and information systems, and controls, by internationally active firms
the sharing of objective information of supervisory interest about individuals such as owners, shareholders, directors, managers or employees of supervised firms
information sharing between exchanges
confidentiality of shared information
the use of formal agreements and written requests for information exchange
reciprocity requirements
the use of information for law enforcement in cases which further supervisory purposes
the removal of laws preventing supervisory information exchange.

The press release issued by HM Treasury on 9 May 1998.

A major new initiative to tackle harmful tax competition was agreed by G7 Finance Ministers today at a meeting in London chaired by Chancellor of the Exchequer Gordon Brown.

The G7 agreement paves the way for more international exchange of tax information to curb international tax evasion and avoidance through tax havens and preferential tax regimes. It reinforces the recommendations of the OECD Report for curbing harmful tax competition and the complementary EU Code of Conduct on business taxation.

It also commits the G7 to leading international action on tax related crime by gathering more intelligence through money laundering systems and providing for it to be shared internationally by tax authorities.

Announcing the UK inspired initiative, Mr Brown said;

“Our agreement today represents a major breakthrough in tackling the growing problems caused by harmful tax competition, and the tax evasion and avoidance it generates. This reinforces the OECD’s vital work to curb the damaging effects of tax havens and preferential tax regimes.

“We are determined to put in place strong and practical measures to tackle the growing threat of international tax crime and evasion through tax havens and preferential tax regimes. The globalisation of business and finance makes this an increasingly pressing issue.

“This initiative paves the way for co-ordinated international action to allow information to be passed to tax authorities, so that honest citizens and business do not have to pay the price of the activities of tax fraudsters. We in the G7 are committed to building practical co- operation at every level to counter these threats.”

The G7 agreement;

i) reinforces the OECD’s Report which provides a platform for tackling harmful tax competition, and for obtaining more information about transactions in tax havens and preferential tax regimes. This complements and mutually reinforces the EU Code of Conduct on Business Taxation;

ii) addresses a potential weakness in international anti-money laundering systems by ensuring that financial institutions report suspicions about the movement of criminal assets regardless of whether they believe that the criminality involved is tax related. This is partly motivated by growing evidence that criminals can evade anti money laundering systems by presenting their affairs as tax related to reassure their bankers, brokers and professional advisors;

iii) provides an important new source of intelligence to tax authorities by making it possible for suspicious transaction reports received by law enforcement agencies to be made accessible to those investigating tax related crimes domestically or overseas.

To advance this agenda the UK will attach an officer of the Inland Revenue’s Special Compliance Office to the Economic Crimes Unit of the National Criminal Intelligence Service (NCIS), which is responsible for analysing and allocating reports of suspected money laundering. These arrangements will allow domestic and international money laundering intelligence to flow to the Inland Revenue for the first time.

The press release issued by HM Treasury on 8 May 1998.

Financial Secretary Dawn Primarolo was today appointed the first chairman of the new EU Code of Conduct Group.

Speaking after the first meeting of the Group in Brussels, Ms Primarolo said:

“I am delighted that the Member States have appointed me to this important role. Together we have a great opportunity to strengthen the single market and improve the working of the European economy.”

Chancellor Gordon Brown, welcoming the appointment, said:

“Dawn Primarolo’s appointment will put the UK at the heart of an important Community debate.”

The Group will assess the business taxation regimes of Member States and examine the extent to which they contain elements that represent harmful tax competition. The objectives are to reduce distortions in the single market, prevent damage to the tax base
and excessive losses of tax revenues and to develop more employment-friendly tax structures. The Group will meet regularly and report back to Ecofin council meetings.

The press release issued by HM Treasury on 6 May 1998.

Chief Secretary announces package of measures to tackle market abuse Tough new powers to help the new Financial Services Authority (FSA) tackle market abuse and financial crime were announced today by the Chief Secretary, Alistair Darling.

The measures, including steps to tackle insider dealing more effectively, will be included in the bill to modernise the financial services system.

This will further enhance the reputation of the UK financial markets as clean and fair places to do business by giving the FSA more effective powers to deal with the few bad apples, including the power to fine rogue traders.

The proposed package includes:

• giving the FSA the power to prosecute cases of insider dealing, other areas of market manipulation and breaches of the Money Laundering Regulations;
• the power to levy fines;
• a new civil regime for combatting market abuse;
• a Code of Market Conduct, produced by the FSA, setting out behaviour which would be unacceptable in the markets;
• giving the FSA rule making powers concerning anti-money laundering systems; and
• the creation of a single tribunal to consider appeals against the FSA’s use of its powers.

The Competent Authority for listing (presently with the London Stock Exchange) will also be given the power to fine issuers and directors for breaches of the listing rules.

These powers will be contained within the draft legislation that the Government will be publishing for consultation in the summer.

Announcing the measures the Chief Secretary said:

“We are determined to ensure that the financial markets are open and clean places to do business. London’s reputation depends upon that. That’s why we promised to crack down on insider dealing. Now we are delivering on that promise to make sure that insider dealers, and others who abuse the markets, do not get away with it.

“The FSA’s job is to sustain confidence in the market and to assist in the detection and prevention of financial crime. The FSA will now have the powers it needs to do that job.

“Its powers of intervention and discipline will be tough and effective. In some areas we are significantly extending the options available to the FSA.

“These proposals will further enhance the UK’s position as one of the best regulated and attractive financial markets in the world. We are determined to maintain London’s position as one of the foremost financial markets.”

On the FSA’s power to levy fines, Mr Darling said:

“Putting the powerful regulatory sanction of fining on a statutory basis will greatly enhance the FSA’s authority.”

The introduction of a new civil regime for combatting market abuse, including market manipulation and misuse of inside information, will mean that the FSA will be able to impose a fine on any person or firm, regulated or not, who engages in this type of abuse. The Chief Secretary made clear, however, that these powers are to complement and not replace the existing criminal offences in this area.

The Chief Secretary also announced that the FSA would, for the first time, be given powers to prosecute the criminal offences of insider dealing, market manipulation and breaches of the Money Laundering Regulations. He said:

“As the FSA will have the relevant knowledge and expertise it makes good sense to give them prosecution powers in this area.”

On the civil fines regime, Mr Darling said:

“It is essential that the financial markets are protected from abuse. Damage to the markets damages the economy as a whole. For the first time, the regulator will have a set of coherent and comprehensive civil powers in this area.”

The proposed legislation will also give the Treasury the power to prescribe the markets, and the products traded on those markets, which would be covered by the new regime. Mr Darling said that the initial coverage was likely to cover abuse, on or off-markets, which affects investments traded on recognised investment exchanges.

The new regime would be underpinned by a Code of Market Conduct, produced by the FSA following consultation, which would give greater certainty to the markets as to what kinds of behaviour were acceptable or not. The Chief Secretary said:

“It is not our intention that the new regime should stop generally acceptable market behaviour – far from it. Nor do we want to deter proper innovation in the financial markets. The aim of the Code is to provide market participants with a clearer understanding of the types of practices that will be tolerated and those that will not.”

The Chief Secretary also announced the creation of a single tribunal to consider appeals against the FSA’s use of its regulatory powers. The tribunal will be independent of the FSA and managed as part of the Court Service. He said:

“It is right to arm the regulator with an effective array of sanctions but these must be balanced by a satisfactory appeals mechanism. The new arrangements will be at least equal to, and in many cases better than, those available under the present system.”

Mr Darling also announced new powers for the Competent Authority for listing (presently with the London Stock Exchange), giving them the power to fine issuers for breaches of the listing rules, as well as directors and ex-directors where they had been directly responsible for such breaches. He said:

“The Stock Exchange currently does a good job in setting and policing the listing rules but it lacks the full range of powers. I am determined to remedy that. Effective regulators must have effective powers.”

The Chief Secretary also made clear that the current recognition and exemption regime for investment exchanges and clearing houses would be carried forward into the new legislation. He said:

“The UK’s recognised investment exchanges and clearing houses enjoy a substantial reputation throughout the world. This is due in part to their special place within the regulatory framework.

“This is the right regime to be taken forward in the new bill given the expertise of such bodies in the operation of their own markets, and their strong incentives to deliver well regulated markets.

“However, the new legislation will give the FSA greater powers of intervention to make sure that, in the rare event that something does go wrong, swift corrective action can be taken.”

The announcements were made in response to a Parliamentary Question from Ivor Caplin [Hove].

The press release issued by HM Treasury on 24 June 1998.

The Diana, Princess of Wales Memorial Committee today published its preliminary advice to HM Government as to how the life and work of Diana, Princess of Wales can best be commemorated.

The proposals are for:

• developing community children’s nursing teams  to support children with life-threatening and life- limiting illnesses and their families in their own homes;
• an award in secondary schools to celebrate and support the achievements of young people who make an outstanding contribution to the community;
• subject to public consultation, a memorial garden in Kensington Gardens.

There will also be a commemorative crown coin, which will be issued next year.

More detail of these proposals are set out in the Diana, Princess of Wales Memorial Committee Preliminary Advice to H M Government, published today.

Announcing the proposals, Chancellor Gordon Brown, who chairs the Diana, Princess of Wales Memorial Committee, said :

“The Memorial Committee received over 10,000 suggestions for memorials to Diana, Princess of Wales. We were impressed by the range and quality of these, and by how many people from all walks of life put so much time and effort into developing and presenting them. That in itself is a tribute to the regard and depth of feeling for Diana, Princess of Wales across the community.

“The proposals which we have announced today were amongst the most popular and appropriate we received, and we expect them to be widely acknowledged as a fitting tribute to her life and work.

“They recognise her concern for children and their families in times of sickness, when practical support and advice can often be as important as medical treatment.  They also encourage children and young people, whatever their own circumstances, to take an active and exemplary part in the life of their local communities, particularly in helping the more vulnerable.

“Members of the public wanting to remember Diana,Princess of Wales will continue to visit Kensington Gardens and the Memorial Committee feels that, in response to this, the gardens should be enhanced, in a sympathetic way, as a place of remembrance. A memorial walking route linking Kensington Gardens and St James’s through the Royal Parks  will provide a popular and healthy option for those wishing to visit the places closely associated with the Princess.

“It is essential and right that residents, the relevant authorities and the wider public should have an early opportunity to put forward their views on the proposal for Kensington Gardens, before any final decisions are taken. That is why Chris Smith, the Secretary of State for Culture, Media and Sport has agreed to take forward a preliminary consultation exercise starting the week beginning 6 July 1998.

“I am pleased that Her Majesty the Queen has approved my recommendation for a commemorative crown coin with a value of £5, which will be widely available in time for the anniversary of Diana, Princess of Wales’ birthday on 1 July 1999.

” The Diana, Princess of Wales Memorial Committee wish to thank everyone who has contributed to helping us in this task, both the many individuals and organisations that sent us their ideas for suitable memorials, and those bodies we have consulted and which have given us valuable practical advice on how to develop our proposals effectively and appropriately.”

The Departments for Health, Education and Employment and Culture, Media and Sport will make detailed recommendations to the Memorial Committee on how the respective proposals should be developed and implemented.

The press release issued by HM Treasury on 17 June 1998.

Independent Financial Advisers (IFAs) are still making poor progress in completing the first phase of the personal pensions misselling review, Economic Secretary Helen Liddell said today.

The Minister was speaking on the day the latest series of figures showing the progress of 41 firms were published. The monthly figures show:

• 78 per cent of cases put forward for review have now been completed;
• 3 firms have yet to complete half their caseloads;
• 18 firms have completed between 50 and 75 per cent of their cases; and
• 20 firms have completed over 75 per cent of their cases.

Commenting on the figures Mrs Liddell said:

“I am still disappointed by the poor progress being made by many IFAs. I expect them to deal with their priority cases as a matter of utmost urgency and hope the industry will continue to pursue the Association of British Insurer’s lifeboat initiative to help IFAs finance their reviews and process cases. Misselling damages the reputation of the entire industry. It is in everyone’s interests to work together to complete the review.”

The Minister also rounded on those IFAs critical of theFinancial Services Authority/Personal Investment Authorityproposals for phase 2 of the review. She said:

“I am aware of criticisms by a number of IFAs of the FSA/PIA proposals for phase 2 of the review. Some even deny that there is a problem while others try to pass the buck. Their poor attitude tarnishes those IFAs with integrity who are making a concerted effort to complete their case reviews.”

The press release issued by HM Treasury on 11 June 1998.

The Chancellor of the Exchequer at the Lord Mayor’s banquet at the Mansion House on June 11th 1998.

I am delighted to be here at the Mansion House, to thank you Lord Mayor for your kind introduction to me and to thank you also for your toast to the prosperity of the public purse and to my health.

The Chancellor of the Exchequer, Gordon Brown, speaking to the British Retail consortium annual dinner said:

“just as we must work with our international partners to secure global stability and growth, so we have been taking action at home to set in place a long-term and credible  platform to achieve the stability that is an essential  pre condition for long-term investment, growth and jobs.

It is in pursuit of our long-term goals – high and stable levels of growth and employment- and the rejection of the short-termism and stop-go polices that have undermined the UK economy in the past- that we have taken tough decisions.

In the face of rising inflationary pressure and the large structural deficit we inherited, we made the bank of England independent, the MPC raised interest rates and we tightened fiscal policy by 20 billion pounds last year, amounting to 3.5 per cent of GDP from financial year 1996-97 to financial year 1999-2000.

There must be no return to the boom-bust we saw in the late 1980s and early 90s, when interest rates reached 15 per cent, 1 million manufacturing jobs were lost, nearly 170,000 businesses went under and thousands who faced mortgage misery and negative equity are even now not yet recovered from it.

We are committed to steering a path of stability based on a stable monetary framework and sound public finances.

And it is because of the reduction in borrowing and tough action on inflation, which has today seen us meet our inflation target for the second month in succession, that Britain is now better placed to steer a path of stability in these troubled times for the global economy.

We have consistently taken a prudent and cautious approach to managing the public finances and we will continue to do so. Our projections have been based on cautious   assumptions   which have been audited by the independent national audit office and our plans have built in margins to cover uncertainties, including the risk of slower growth.  We have worked within the previous government’s spending plans for the first two years and our careful plans mean that current spending is now set to grow in real terms by less over this parliament than the last.

As I have said, slower world growth makes it inevitable that growth in Britain next year will be more moderate than previously expected.

But because of the prudent approach we have followed, even with more moderate growth next year we remain on track to meet our strict fiscal rules over the economic cycle while maintaining our commitment to an additional 40 billion pounds for improvements in health and education.”

The press release issued by HM Treasury on 11 June 1998.

A new format for the public finances was unveiled today by the Chancellor, Gordon Brown in the first Economic and Fiscal Strategy Report.

The new format:

• emphasises the importance of distinguishing between current and capital spending;
• corresponds more closely to the Government’s two fiscal rules; and is more in line with best international practice and national accounts.

The main changes are to separate the current and capital accounts and to focus on an  internationally-accepted accruals-based measure of budget balance.  The three principal measures are:

•  surplus on current budget – the difference between current receipts and current spending – will be used to judge the golden rule;
• public sector net borrowing – measuring the extent to which net investment is not financed by the surplus on current budget – will be the principal measure of the Government’s budget deficit; and
•  net public sector debt ratio – total debt of the public sector (net of certain liquid assets) as a proportion of GDP – will be used to judge whether the Government is meeting its sustainable investment rule.

The public finance tables will continue to show the public sector net cash requirement  (previously called PSBR, but being renamed because it does not exactly match what  the government has to borrow).  However, public sector net borrowing will be given  greater prominence because it is a better indicator of the underlying budgetary position.

This presentation links the current and capital budgets to other key fiscal concepts:

•  the current budget is linked to achieving the golden rule over the economic cycle and to the change in public sector net wealth;
•  the sum of the current and capital budgets is linked to the net cash requirement and the change in net public sector debt.

There will be no change to the financing rule.

The press release issued by HM Treasury on 11 June 1998.

Major changes to tighten the control and to improve the long term planning of public spending were announced today by the Chancellor, Gordon Brown, in the Economic and Fiscal Strategy Report. The Chancellor announced that:

Departments will be given distinct current and capital budgets and will be expected to manage them separately. This means that investment plans will no longer be squeezed out by pressure of current spending; spending plans in total will now be based on all spending across the public sector, to be known as Total Managed Expenditure (TME); the Government will end the practice of the annual Public Expenditure round; instead departments will be set firm multi-year spending limits for 1999-2000, 2000-01 and 2001-02 when the outcome of the Comprehensive Spending Review (CSR) is announced;

these departmental limits will be drawn together into a new total, the Departmental Expenditure Limits (DEL); and
departments will have much extended powers to carry budgets over from year to year; resources will be allocated and monitored on the basis of agreed outcomes and departments will be set new quality standards; firm multi-year limits are not appropriate for the large demand-led programmes, which will be brought together in Annually Managed Expenditure (AME);

AME will be subject to annual scrutiny as part of the Budget process and taken into account when the Government sets its plans for TME and DEL.