Bribery Act delay or Government rethink? Asks JLT

3rd February 2011, London: JLT Specialty Limited's (JLT) Directors and Officers liability team welcomed the delay to implementation of the Bribery Act due to the level of debate and uncertainty that surrounded aspects of the Act. 

According to Kurt Rothmann, Partner, JLT, "the Act consolidates the existing common and statute law and the draft guiding principles issued by the Ministry of Justice are in essence good business practice. However, clear concerns have been voiced around several aspects, including particularly the new offence of failing to prevent bribery and the extra-territorial effect of the Act.

"Not only are companies concerned about the effect of the Act on their competitiveness in emerging markets, UK companies with US exposure may now find themselves having to comply with competing sets of anti-bribery legislation. There is cross-jurisdictional co-operation between US and UK regulatory authorities in relation to US driven investigations for breaches of the FCPA (Foreign and Corrupt Practices Act). Once the Bribery Act is operational, will the UK authorities be seeking to be the lead investigator in relation to UK companies with the aim of levying their own fines and penalties or will they still act in conjunction with the US authorities?"

Kurt Rothmann, concludes, "There is speculation as to whether this just a delay in implementation in order to allow the Ministry of Justice to provide comprehensive and clear guidance or the beginning of a substantial re-think of the extent of the Act's application. Despite the level of media interest in the government review and the delay in the Act's implementation, there is currently no indication that the Act itself is likely to be amended, but rather that there will be more detailed guidance for businesses on how to comply with the Act and perhaps of more relevance - how a Prosecutor will react to certain levels of gifts/entertainment and facilitation payments." 

--ENDS--

Enquiries:

JLT Specialty Limited
Isabella Young
Tel: 020 7558 3387/07920586032
EMAIL

Editor's Notes:

About JLT Specialty Limited

JLT Specialty Limited (JLT) is a specialist insurance broker and risk consultant providing market leading industry knowledge and expertise in specialist fields to some of the world's largest companies.

Clients of our Directors' & Officers' Liability team include some of the world's leading companies.  They rely on our knowledge and significant market influence to obtain bespoke and comprehensive insurance solutions.

JLT is part of the Jardine Lloyd Thompson Group of companies, a leading risk management adviser, insurance and reinsurance broker and a major provider of employee benefits administration services and related consultancy advice.

Jardine Lloyd Thompson Group plc is quoted on the London Stock Exchange and employs over 6,200 people worldwide and through the JLT International Network provides services in more than 130 countries.



Contact Details

Isabella Young

Head of Communications & Marketing

JLT Re
The St Botolph Building
London, EC3A 7AW
[T]: 020 7558 3387