How the Bribery Act is going to affect accountancy firms

The Bribery Act 2010 was passed on 9 April 2010 and is expected to become fully effective in law in April 2011.

The Act applies to all companies, partnerships and individuals based in England, Scotland, Wales and Northern Ireland, as well as foreign companies and individuals doing business in the UK. The Act has a global reach, applying to acts or omissions taking place anywhere in the world. Those prosecuted could face 10 year sentences whilst companies could face unlimited fines.

All organisations - including companies, charities and professional firms - will need to put anti-corruption policies and procedures in place. Organisations that do not do so could be liable for any bribery carried out by employees, even if those organisations did not order the activity or the offending party is an outsourced employee.

A recent survey by www.financialdirector.co.uk, discovered only 20 percent of finance directors felt they were properly prepared if any employee was found to have committed bribery. In fact, almost half said that they were not ready at all and would need to take steps to undertake a risk analysis throughout the company.

According to guidance from CIMA, "Accountants are key to the development of both risk reviews and of processes which can be held to be 'adequate' [under the Act]".

Martin Pollins, Managing Director of Bizezia says:"The impact and opportunity for accountants in practice is manifold:

  • Risk reviews can be offered to clients to help them assess whether processes and procedures are adequate or to assist them in putting new procedures in place.
  • New business opportunities are possible by offering a risk review as a means of opening dialogue with prospects.
  • Firms offering an outsourced FD service need to be aware of the implications and responsibilities associated with the Act and ensure they comply.
  • Practices need to ensure they put in place anti-bribery processes of their own".

Accountants will be asked to advise clients on the Bribery Act and, as with all services, they will need to have an engagement letter in place to cover the work they do.

Top 30 law firm Shoosmiths has produced a useful 12-point action plan which accountants should review with their clients at the earliest possible date.

Bizezia's online business library includes publication 777-The Bribery Act 2010, designed for accountants to use when advising clients on this new legislation. Also, Bizezia's Contract Engine engagement letter system has a specific work schedule covering the advice accountants may be expected to provide.

Bizezia's work manual now has a new work policy covering anti-corruption and bribery.

Notes

  • There is help out there for firms who don't have a huge in-house budget or time to create website content themselves. They can use a website content provider like Bizezia.
  • Bizezia provide high quality, unique website marketing apps and practice management tools. Bizezia's products are designed to make business easier, encourage people to to visit your website and to keep them coming back.
  • The Bizezia Work Manual is a service that accountants can use to create office policies and procedures manuals for their own firm as well as an additional fee-generating service to clients.
  • Bizezia's EziaNews is an ideal example of how to keep your website current and informative. It's a daily round-up of business news that can be placed on to your website with no effort on your part and gives your clients, prospects and staff instant access to the latest business news.
  • Bizezia can trace its roots back to 1986, at a time when accountants were beginning to develop innovative marketing strategies for the first time. Then, with the launch of the Internet, Martin Pollins, founder of Bizezia, saw a new business opportunity to provide marketing and administrative products specifically for professionals serving SMEs, which would be available on their own websites with the aim of attracting potential clients and improving the level of service to existing clients.
  • Martin Pollins, chairman and founder of Bizezia, is a Chartered Accountant with wide experience in corporate finance and business management. He ran his own accountancy firm in Sussex and was the first accountancy firm in the UK to advertise on television. Martin went on to create and launch the CharterGroup Partnership (the UK's first accountancy network) and then LawGroup UK, one of the largest networks of lawyers in the country. He also served on the ICAEW Council for several years. 
  •  Operations director, Iman Rouane, is an honours journalism graduate, who has worked on a number of magazines, including Marie Claire and BBC Eve and was also a freelance newsreader for several radio stations across the south east. She joined Bizezia in 2005.