Bribery law threat to business hospitality
By Bob Sherwood Financial Times
Businesses are reviewing their corporate hospitality plans as they are worried that forms of hospitality could be illegal under new UK bribery laws. Lawyers say they have been asked by companies who fear that they may have to cancel bigger hospitality events after the Bribery Act comes into force. Many City institutions regard luxury entertaining, which can include international flights and free tickets to sporting events, as a normal part of business. But lawyers warn that the legislation aiming to end corrupt payments makes no exceptions for hospitality, unlike in the US.
Stephen Morrall, corporate partner at Dawsons Solicitors, said: “We have talked to a lot of people about this. They are very concerned and they should be concerned. People are asking whether they should be holding corporate entertainment events.”
Two UK banks said they were looking at how entertaining would be affected by the legislation. Some lawyers are advising that breaking the law could depend on the type of hospitality. So, for example, offering lunch at a Twickenham rugby match may be fine, but flying clients to Australia to watch crickets could be risky.
“Until clear guidelines are published, people should be very careful about any lavish form of entertainment because there’s clearly a risk that an offence could be committed,” added Mr Morrall.
Gary Miller, fraud specialist at Mishcon de Reya, believed many companies’ fears were overblown and executives needed only to take a “commonsense” approach to hospitality. If they had always offered hospitality as routine then it was unlikely to attract attention, he suggested, whereas entertaining clients at a sensitive time, such as when a contract was due for renewal, would be riskier.
The article, headlined Bribery law threat to business hospitality, is written by Bob Sherwood for Financial Time.
ОтветитьУдалитьThe author touches upon the problem of UK hospitality and influence of the new bribery laws on it.
The UK hospitality can include international flights and free tickets to sporting events, as a normal part of business, but but now this can be considered a crime.
The author considers the opinions of two experts, one of which believes that people should be worried and careful, and the other that the problem is overblown and executives just need to be sane in matters of hospitality.
From my point of views, the UK hospitality is really too much and they should be more rational.
The article headlined “Bribery law threat to business hospitality”. Is written by Bob Sherwood for financial time.
ОтветитьУдалитьThe author touches upon the problem of hospitality in the UK and the impact on it of the new adopted law on bribery. Such luxuries forms of hospitality are considered normal for many British firms, but now this can be considered a crime.
The author considers the opinions of two experts, the first expert believes that people should be careful with this form of entertainment, and the other that managers need to have «commonsense» with respect to hospitality.
From my point of views, the UK hospitality is very luxurious, they should replace such forms of hospitality with something less cheap.