Tag: Treasury

The press release issued by HM Treasury on 25 October 2000.

At today’s Montreal meeting of the G20 group of countries, Chancellor of the Exchequer Gordon Brown has offered UK participation in the IMF/World Bank Financial Sector Assessment Programme (FSAP).

The Financial Sector Assessment Programme is an important innovation. An IMF/World Bank team takes an independent look at a country’s financial sector and its regulation. It assesses the sensitivity of the financial sector to macro-economic shocks and compare the country’s financial regulation with international best practice. This process will underpin and improve global financial stability, so it is important that all kinds of countries – emerging markets and world financial centres – take part in the process.

Gordon Brown said :

“With Sir Howard Davies, Chairman of the UK Financial Services Authority, I am offering UK participation in the Programme. The FSA is working towards implementation of a new regulatory framework under the Financial Services and Markets Act 2000. This will create a fully-integrated cross-sector framework for financial regulation.

I am confident that UK financial regulation is amongst the best in the world. Nevertheless, the UK financial sector is also amongst the most important in the global financial system. We will therefore welcome the opportunity of participation in the Program”.

The press release issued by HM Treasury on 27 October 2000.

The UK and the Caribbean Overseas Territories and Bermuda commissioned an independent review of financial regulation in those territories.  This independent review, carried out by KPMG toassess the extent to which the Overseas Territories comply with international standards and good practice in the way they regulate their international financial sectors, is published today.

The review analysed the position of each Overseas Territory individually in terms of the extent and range of financial business conducted and the strength and effectiveness of their regulatory regimes. The KPMG report is exception-based and largely concentrates on those areas of financial regulation where action is considered necessary to comply fully with international standards.

Welcoming the publication of the review, Melanie Johnson, the Economic Secretary to the Treasury said:

The review provides a rigorous and comprehensive evaluation of how far the Overseas Territories already match international standards and good practice, and makes recommendations for action to improve and strengthen financial services regulation in the Overseas Territories.

I look forward to seeing their plans for implementation linked to a specific timetable which each Overseas Territory has committed to publish by 15 January 2001.

It is evident that some Overseas Territories have more to do than others before they can deliver fully what is necessary.  It is equally clear that not everything can be done immediately. It has been mutually agreed that the Overseas Territories, where applicable, will give priority to three particular recommendations made in the KPMG report.  The three priorities for action are legislation for the establishment of independent regulatory authorities; any necessary enhancements to their laws and systems to combat money laundering; and introducing legal powers that would allow regulatory authorities to obtain key information, and share this with overseas regulators in order to assist their investigations. We will be working with each Overseas Territory to put in place suitable measures; and we expect to see the necessary steps substantively in place by 30 September 2001. Prompt and firm action in this regard will demonstrate to the global financial community the strength of the Overseas Territories’ commitment to international standards.”

Baroness Scotland, Parliamentary Under Secretary of State in the Foreign and Commonwealth Office responsible for the Overseas Territories, added her appreciation for the efforts made by all concerned with the delivery and publication of the review:

The Overseas Territories White Paper – ‘Partnership and Prosperity’ – noted that the Overseas Territories’ success in attracting financial services has been built upon, amongst other things, their reputation for sound administration, effective legal systems, and political stability. In an increasingly competitive global economy, maintaining a reputation for seeking to attract only clean and well-regulated business is vital.

I welcome the Overseas Territories’ full participation in the review exercise. It has been a complex process, but one which we believe will deliver real benefits to the Overseas Territories financial sectors. The review has underlined the Overseas Territories commitment to adhering to international standards of financial regulation, and their willingness to co-operate internationally to help ensure a sound international financial system.

In response to the publication of the KPMG report, Hon Victor Banks, Minister of  Finance in Anguilla, said:

The Government of Anguilla welcomes the KPMG Report and recognises the hard work that has gone into its completion. The Report highlights the extent to which Anguilla already meets international standards and practices and serves as an excellent springboard for the continuing solid development of Anguilla’s financial services sector. The comments in the Report on the sound regulatory aspects of Anguilla’s electronic Companies Registry, ACORN, are particularly welcome.  The Report should also assist the Government of Anguilla in dealing with a number of international initiatives currently underway.

The Government of Bermuda issued the following statement:

The Government of Bermuda welcomes the report on Bermuda’s regulatory system. Speaking on behalf of the Government, the Minister of Finance the Hon. C. Eugene Cox said that Bermuda is pleased that in the vast majority of areas, the report confirms that Bermuda’s regulation of financial services conforms to international standards and good practice.

He noted, We are particularly pleased that in areas such as company formation the report recognizes that Bermuda substantially exceeds minimum requirements. We also recognize, as the report does, that some enhancements are always possible. Bermuda remains firmly wedded to meeting and maintaining international standards. As such we generally support and welcome the recommendations for improvement of certain of the present provisions that have been made by KPMG.”

The Chief Minister of the British Virgin Islands, Hon Ralph O’Neal said:

“The Government of the British Virgin Islands welcomes this comprehensive report, which we view most positively. KPMG must be commended on producing such a thorough and useful review. We also commend the approach taken by the British Government in producing the report, which offers an ideal example of how Britain and her Overseas Territories can work together constructively to resolve issues affecting us all.

The report has a double value to the BVI in highlighting the strengths of our existing regulatory regime while helping us prioritise the weaknesses that still exist. Implementing the recommendations is integral to the BVI’s commitment to being in the top echelon of offshore financial service centres. I am tabling it today before the BVI legislature and will circulate it widely within the BVI for public comment. We look forward to continuing to work closely with the British Government as we take the report forward.”

The Government of the Cayman Islands said:

We welcome the independent report of KPMG, which confirms the commitment of the Cayman Islands to operating a well-regulated financial centre which meets international standards. The report identifies a number of areas that we will be addressing to ensure that Cayman’s regulatory framework is further strengthened. The Cayman Islands will continue to play its part in ensuring that its international financial sector is able to meet new international standards as they evolve.”

The Government of Montserrat said:

“Montserrat understands its responsibilities as a provider of Financial Services in the international market.  We therefore welcome the KPMG report since its recommendations provide a basis for action geared to achieving internationally agreed standards of financial regulation.”

The Chief Minister of the Turks and Caicos Islands, Derek Taylor said:

“We welcome publication of the report.  The next step is for us all to consult  within our respective jurisdictions.  We look forward to giving careful and constructive scrutiny to the report”

These comments follow a recent meeting in London attended by Ministers, senior officials and regulators from the Overseas Territories and the UK. This meeting agreed the following conclusions:

• Each Overseas Territory would publish by 15 January 2001 a response to the recommendations addressed to it, together with a timetable for implementation.
• Following appropriate consultation and parliamentary approval within each Overseas Territory, the core recommendations relating to independent regulatory authorities, anti-money laundering regimes and exchange of information would be substantially implemented by 30 September 2001.
• The UK is willing to provide appropriate assistance to Overseas Territories in their bilateral and/or multilateral negotiations with other entities in matters relating to regulation and exchange of information.

Finally, the UK and Overseas Territories expressed their thanks to KPMG for producing a professional report on a short timescale.

The press release issued by HM Treasury on 7 November 2000.

The Government is today publishing a paper on Ultra-Low Sulphur Diesel (ULSD), copies of which have been placed in the libraries of both Houses of Parliament. The paper outlines the environmental objectives behind the switch to ULSD and explains how the ULSD experience has worked.

In his foreword to the paper, Using the tax system to encourage cleaner fuels: the experience with ULSD, Treasury Minister Stephen Timms says:

“Many people and businesses rely on road transport as a vital part of their everyday lives and activity, particularly in rural areas. But road transport is also one of the main causes of local air pollution, particularly in urban areas.

“Since the Chancellor announced his Statement of Intent on Environmental Taxation in Budget 97, we have successfully used the tax system to achieve environmental objectives. Improving local air quality has been at the heart of our policy-making on transport taxation.

“Between 1997 and 1999, the rate of fuel duty for Ultra-Low Sulphur Diesel was steadily cut relative to conventional diesel. In the space of two years, these duty differentials succeeded in converting the entire diesel market to the cleaner fuel, cutting emissions of the most damaging local air pollutants and enabling the introduction of new, pollution-reducing technology.”

The press release issued by HM Treasury on 8 November 2000.

Better consumer services in banking and other financial services are the target of a review of industry codes of practice, Economic Secretary Melanie Johnson said today.

Announcing that the review, to be chaired by DeAnne Julius of the Bank of England Monetary Policy Committee, will begin work shortly, Miss Johnson said :

“The review is an important step forward in getting an improved deal for financial service consumers. I am pleased that the review will be carried out by a group from a broad range of backgrounds, including consumer bodies, the financial services industries and others familiar with customer concerns”.

“This will help the review to develop recommendations with a clear focus on consumer interests, so that codes of practice are easily accessible and easily understood. We want effective tools to ensure that consumers are treated fairly and in accordance with clearly set out standards.”

The codes to be reviewed include the Banking Code, Mortgage Code, the proposed Banking Code for Small Businesses, and the Statement of Principles of Business Banking.

The remaining members of the review group, who will serve in a personal capacity, will be named shortly. The review is part of the package of measures to improve competition announced in the Government response to the Cruickshank Report on Competition in UK Banking. The review group will welcome evidence from all interested parties. It has been asked to publish its findings by April 2001.

The press release issued by HM Treasury on 21 November 2000.

£1 million to launch a new charity sector-led campaign to boost charitable giving was announced today by Treasury Minister Stephen Timms. The campaign, led jointly by the National Council for Voluntary Organisations (NCVO) and the Charities Aid Foundation (CAF) and chaired by Lord Joel Joffe, aims to raise awareness of the Getting Britain Giving package through the development of an overarching brand for charitable giving.

In line with the Government’s commitment to increase the giving of both time and money, the £1 million investment will be backed up by the secondment of Government staff to the campaign team.

Speaking at the annual NCVO Lobby Conference, Financial Secretary Stephen Timms said:

“This £1 million investment, together with the secondment of civil servants to the charitable sector, shows once again the Government’s commitment to promoting charitable giving.

“NCVO, CAF and others from the voluntary sector are working very hard to put together a campaign team to boost the giving of both time and money. The team, which will be run by charity sector professionals, will focus on such diverse groups as businesses, high net worth individuals, young people and volunteers.

“The Getting Britain Giving package offers the best ever opportunity for the charitable sector to increase donations, but it needs to be widely publicised if it is to reach its full potential. Our new investment, both of time and money, will help the charitable sector fully tap this opportunity.”

Stuart Etherington, head of NCVO, welcomed today’s announcement:

“This is an excellent boost and will be a major step forward in helping spread the word that tax effective giving really works. We look forward to working with charities, the Government and business on developing the campaign.”

Michael Brophy, Chief Executive of CAF, also welcomed the news:

“This is great news for charitable giving in this country. Not only do we have the most liberal tax environment in the world as a result of changes introduced this year, we now have more money with which to start spreading the message.” Notes for editors:

Getting Britain Giving, a package of tax reliefs designed to increase charitable giving, was announced by the Chancellor in Budget 2000.

These measures were introduced following a review of charity taxation and extensive consultation, and include:

Gift Aid – abolition of the £250 minimum limit for donations; allowing donors to join the scheme by telephone or via the internet with a minimum of formality

Payroll Giving – abolition of the maximum limit of £1,200 a year, launch of a three year publicity campaign and a 10% supplement on all donations for the duration of the campaign

A new tax relief for gifts of shares and securities

Extension of the tax exemption for fundraising events

The measures are estimated to be worth about £400 million a year in tax relief.

The Government expects to contribute several experienced civil servants to the voluntary sector-led campaign team, including an expert on charity taxation from the Inland Revenue and a Senior Civil Servant from the Treasury.

The press release issued by HM Treasury on 21 November 2000.

The Chancellor of the Exchequer has this day appointed Dennis Andrew CANAVAN to be Steward and Bailiff of the Manor of  Northstead.

The press release issued by HM Treasury on 23 November 2000.

The members of the Review Group that will assess whether banking services codes are delivering sufficiently strong benefits to consumers were announced today by Economic Secretary Melanie Johnson as :

• Michelle Childs Head of Policy Department, Consumers? Association
• Adrian Coles Director General, Building Societies? Association
• Janet Connor Director of Savings, Banking, and Consumer Credit, Abbey National plc
• Gerard Lemos Independent Director, Banking Code Standards Board; Director, Mortgage Code Compliance Board
• Stan Mendham Executive Chair, Forum for Private Business
• Brian Morris Director of Consumer and Retail, British Bankers Association
• Teresa Perchard Head of Social Policy, National Association of Citizens Advice Bureaux
• Neil Simpson Deputy personal finance editor, Financial Mail on Sunday; thisismoney.com

Miss Johnson announced previously that the Review Group will be chaired by DeAnne Julius, an external member of the Bank of England Monetary Policy Committee. All members will serve in a personal capacity.

Miss Johnson said:

” I am pleased that DeAnne Julius will be joined in conducting this valuable review by a high calibre team with such wide experience of consumer related issues. This ranges from the boardroom to direct consumer service at branch level; dealing with and commenting on specific consumer concerns and complaints; and representing the interests of small businesses.

“Their expertise and experience will help to ensure that the review produces a fully rounded analysis of how industry codes can be developed to deliver the improvements for consumers essential to meeting public concerns, and to taking forward issues raised recently by Don Cruickshank in his report on banking in the UK.”

The press release issued by HM Treasury on 28 November 2000.

Better use of modern payment systems will increase value for money, Andrew Smith, Chief Secretary to the Treasury said today.

His comments accompanied the publication of the third annual report of the operation of the Government Procurement Card run by Visa International EU.

The systems would include increased use of purchase cards, automatic credit transfer and consolidated billing in the move to make Government more effective in its business dealings.

Andrew Smith said:

The need for the public sector to adapt to modern and efficient methods of payment especially for low value transactions has never been greater. Not only would they provide efficiency savings and make government easier to do business with but above all demonstrates that government is truly modernising.

Making more effective use of the Government Procurement card will make it easier for Departments to meet their targets for purchasing low value items electronically. The opening up of these purchasing routes is a major step forward for Departments to increase efficiency in line with best practice techniques.

Brian Rigby, Deputy Chief Executive of the Office of Government Commerce (OGC), an Office of HM Treasury set up to improve best practice procurement in the public sector, said:

The analysis tool we are unveiling today will help Departments measure their effectiveness in reaching the Prime Minister’s targets for electronic business in the UK that 90% of low value transactions are to be conducted electronically by 2001.

It will also help them identify where effort needs to be concentrated in the purchase to payment process in order to meet their targets. The new tool represents a further piece of best practice guidance to assist them to meet those objectives.

Andrew Watson, Manager for GPC, Visa International EU, said:

The third year of the GPC scheme has shown considerable growth in the number of departments implementing programmes and also in terms of the number of cardholders and the volume of transactions. To help facilitate this growth, the OGC, Visa and KPMG are all working together to ensure best practice is promoted across government departments and agencies to improve efficiencies.

The OGC is at the forefront of assisting departments in providing a new drive to improve performance in this emerging electronic era for departments to deliver best value for money in their commercial activities.

By making greater use of the Government Procurement Card (GPC) the public sector can derive further savings in this area of electronic spend.  The card targets efficiencies in the area of low value ordering making up 80% of the purchasing transactions conducted by Government and is therefore a rich seam of potential efficiency gains.

Transactions conducted using the card are a major component in the calculation model issued by the OGC that has been made available to departments to measure progress against the target of 90% of low value transactions being delivered electronically by 2001.  Use of the GPC is entirely consistent with the government’s E agenda and needs to be taken into the calculation.

The extensive take up of GPC as a payment mechanism to date in over 100 departments demonstrates its viability as a payment method for government.  Given the availability of this and other similar systems such as Automatic Credit Transfer and consolidated billing shows that Government has proven solutions readily available that increase efficiency.

The press release issued by HM Treasury on 2 December 2000.

The press release issued by HM Treasury on 21 December 2000.

Welcoming continuing progress towards implementation of the Financial Services and Markets Act 2000 (FSMA), Economic Secretary Melanie Johnson today said:

“There has been good progress on implementation of the Financial Services and Markets Act since Royal Assent in June. The Treasury has issued thirteen pieces of draft secondary legislation, and the FSA has published large parts of the FSA Handbook in draft. Consultation on the major draft orders published by the Treasury in October has now closed.

“We will now move to incorporate helpful suggestions as quickly as possible. We are grateful for the comments we have received and will be studying them closely.

“It is important that firms and consumers enjoy the full benefits of the new system of financial services regulation as soon as practicable. I want to see all parties involved in the complex and detailed process of implementation working to that end.

“The target I set last July of N2 in about one year remains. It is still too early to be more precise on when the Act will come into force. As soon as I can give a firm date, I will do so. I plan to do so during the Spring. There will be a reasonable time for industry preparations between announcing a firm date and N2.”

Sir Howard Davies, Chairman of the FSA, said:

“We welcome the progress that has been made to date, the Government’s plan to announce a firm date in the Spring, and to provide a reasonable time for industry preparations between announcing a firm date and N2. We look forward to full implementation of the new legislation as soon as the necessary preparations, including industry preparations, have been made.”