Tag Archives: FCA

Greed driven goblins

It is nice to see that places like PwC are avoiding prison time whilst other people without an accountancy degree do not. This all started when I saw the article (at https://www.bbc.co.uk/news/business-66016270) called ‘PwC Australia sells division for 50p after tax leak scandal’ here we are told “The accounting giant has also announced the appointment of a new chief executive in the country. The move will allow the firm “to move forward with predictability and focus,” PwC Australia said in a statement.” Which reads like a little party line. We aren’t given the more realistic “In this day and age, we tried different approaches to cater to our overly rich clients and corporations to cater to their need for greed so that we can enjoy slices of Greed filled Lasagna as well. As we need our ground forces, we have decided on switching out our Chief Executive whose bonus will sustain him for the next decade.” So is my view flawed? Consider The Financial Times (at https://www.ft.com/content/97dcb050-49df-11e7-919a-1e14ce4af89b) alas behind a paywall, which gives us ‘PwC escapes censure over Tesco accounting scandal’, other sources gives us “Tesco has been found to have overstated it profits by £263m after revenue recognition irregularities were spotted in its half-year results, with regulators including the Financial Conduct Authority (FCA) set to decide on a suitable punishment.” The reason for this is that the Tesco Scandal (the accounting one) was in 2014, in almost 10 years they (and the courts) never learned and never achieved (nearly) anything. That conclusion comes from the fact that you do not become Chief Executive overnight and Tesco was 8 years ago. This is not some case of being creative, this is bending black letter law to the maximum effect. It is about what a company can get away with and that is a failure on a few levels. 

So when we see “The ex-partner, who was advising the Australian government, had shared drafts of corporate tax avoidance laws with colleagues, who used it to pitch to potential clients. The leaks occurred between 2014 and 2017.” We will be given a new stage. You see, for three years PwC enjoyed a stage where they could go beyond simple advantage for THEIR customers all whilst courting the government for having a ground zero in corporation tax avoidance laws. This is not a small problem. With “Earlier this month, PwC Australia said it had identified 76 current and former partners linked to the scandal and handed their names to Australian lawmakers.” As I personally see it this is not small small group, it is a large cluster of people connected to the PwC and I am willing to bet the house that the size of this group allowed certain people to remain insulated from the fallout. I agree it is speculative, but in light of of the activities by PwC since 2008 I feel that I might be spot on. We see a whole barrage of articles by Accountancy firms making accusations, but we see an amazing lack of action. As such the ‘punishment’ of “sell its government business for A$1 (50p) after a scandal over the misuse of confidential government tax plans” reads like a bloody joke. It leaves the orchestrators free form prosecution, it leaves them with their income, their bonus and a rich life to come. It is perhaps the clearest piece of evidence that in this day and age Crime Pays, even more than an honest day work.

Enjoy paying most of your coin to afford a cup of coffee today.

Leave a comment

Filed under Finance, Law

Influenced by license holder

Yup, this could be a setting according to the BBC. It started on March 19th 2022 when I wrote ‘57 seconds until the next sucker’ (at https://lawlordtobe.com/2022/03/19/57-seconds-until-the-next-sucker/), there I discussed two types that go for your budget. The deceptors and the influencers. Now we see (at https://www.bbc.com/news/technology-60787296) that gives us ‘Influencers in Australia risk jail for breaking finance tips rules’. In this article we get to see “The Australian Securities and Investments Commission (ASIC) says they may need a licence to give such advice. A 2021 ASIC survey suggested 33% of 18 to 21-year-olds follow financial influencers. And it also found that 64% of young people in Australia changed a financial behaviour because of an influencer.” And here the issue starts. You see, the difference between a flaccid proclamator and the gung-ho prosecutor are mere results. So If “A 2021 ASIC survey suggested 33% of 18 to 21-year-olds follow financial influencers” means that 1-4 people are now facing prosecutions, we could say OK, thats nice, but 1-4 out of? It implies that the female influencers are about meeting a man who can skin a gator so that they can get a really cheap handbag and the male influencers would be about how to best poach a gator and turn that into a handbag to score the sheila in the wild (a subtle Crocodile Dundee reference). But if this implies that you are reporting on 50-100 influencers the message becomes “So, WTF are you waiting for?” Influencers have been on the radar for years, as such reporting on this NOW implies that you need to find your viagra stash, that stash has tablets that looks like (see below)

So as we see “In February, the UK Financial Conduct Authority (FCA) urged caution over the use of influencers in the marketing of financial products. “Retail investments’ use of social media influencers on various platforms to market investments is becoming a concern for us,” the financial watchdog said. “Firms should ensure they have taken appropriate legal advice to understand their responsibilities prior to using influencers.” And there has been particular concern about the use of influencers in cryptocurrency marketing.” I personally wonder why this news is not 2+ years old. Because as I personally see it at present influencers will now react to the degree of “I did not know it was illegal, I only saw the news last Tuesday”, impeding prosecutions. Yes, that a really bright idea. We would like results, not excuses and according to one source an influencer “is someone with a loyal and larger than average social media following. Some influencers have as few as 3,000 followers! Influencers are paid by brands to create and post promotional content.” So we get two settings now, the influencer and the brand who engages the influencer. I would state that the brands warrant investigations as well. And lastly we get “In the same month, Spain’s National Securities Market Commission also revealed plans for new rules for advertising crypto-assets, including promotions by social media influencers.” As such Spain might be 2 years late, but Australia? How up to date were they, how many influencers were confronted, how many brands were confronted? We see nothing of that here and that beckons questions. How behind are the lawmakers and their governmental watchdogs exactly? A simple question and train of thought that the article raised, are you not curious how protected you actually really are?

 

Leave a comment

Filed under Finance, Media, Politics

Medici decided to do Shakespear

All the world’s a stage, and all the men and women merely players; they have their exits and their entrances. This is what went through my mind when I saw ‘Phone hacking: CPS may bring corporate charges against Murdoch publisher‘ (at http://www.theguardian.com/uk-news/2015/aug/28/phone-hacking-cps-may-bring-corporate-charges-rupert-murdoch-publisher) this morning. You see, the phone hacking scandal is not new, this started in 2011, and now, 4 years later the CPS decides to get a clue (or was that gives a toss?).  It matters not where they are at, the news as given seems to be the aftermath to the party someone seemed to have missed. The question becomes, who is the mad hatter? Is it the one giving the party? Perhaps that label is attached to a notion, a gimmick or even an organisation. It does not seem to be an individual. Let’s take a look at the story, you see, this is the fact of writing on the mad hatter “The Hatter explains to Alice that he and the March Hare are trapped in a never-ending tea party because, when he tried to sing for the Queen of Hearts at a celebration, she sentenced him to death for ‘murdering the time’. He escaped this fate, but Time, out of anger at his attempted to ‘murder’, has halted himself for the Hatter, keeping him and the March Hare at 6:00 pm forever“. If we paraphrase ‘murdering time’, we could get ‘wasting time’. But whose time was wasted? Is one of the players really a mad hatter? We no longer use Mercury in the fabrication of hats, but the issue remains, this article reads like it is something else entirely. I could go on with the March hare, but I think I am already getting through to you. The question becomes, who is Alice and why is she at this party?

There are two quotes, one following the other that gives way to my thoughts “The Metropolitan police handed over a file of evidence on News International – now renamed News UK – to the CPS for consideration after an investigation stretching back to 2011, when the News of the World was closed at the height of the scandal“, which gives us, why is the CPS only now taking a ‘better’ look? 4 years later, is that not odd? Then we get “We have received a full file of evidence for consideration of corporate liability charges relating to the Operation Weeting phone-hacking investigation”, which implies that the CPS and other players never looked at corporate liability charges the way it should have been looked at. This now gives us loads of questions and it should leave you with the question ‘What exactly was behind the looking glass?’ Who was looking, or better stated, who was NOT looking.

The quote “The CPS decision comes six months after the US department of justice told Murdoch’s company it would not face charges in the US” leaves the impression that the actions of the CPS have been in very bad taste, the rights of the people had been violated with impunity and only after the press at large felt the impending dangers that their time of abuse was over (due to the Levison report) did they dress up like debutantes, eager to take whatever was ‘thrusted’ into them to avoid losing ‘their’ power base. All the efforts in how they claimed that they would be worthy of self-administration, worthy to remain ‘unaccountable’. The ink had not even dried on the verdict when we got to read about the ‘suicide mission’ of Malaysia Airlines Flight 370.

Only now do we see that Murdoch’s company ‘could’ be prosecuted (that does not mean it will be successful) regarding corporate liability. I am not buying it. When we consider the subtitle ‘The Serious Fraud Office (SFO) is set to interview former Tesco chief executive Philip Clarke as part of its criminal investigation into the supermarket chain‘ (at http://economia.icaew.com/news/august-2015/sfo-questions-former-tesco-ceo), whilst the news remains massively silence regarding linked party Pricewaterhouse Coopers, we have to start asking a few very serious questions. Yet, the article also tells us: “the Financial Reporting Council launched a probe into the roles of PwC and various members of the accountancy profession involved in the preparation, approval and audit of its accounts“, we should worry if any of this will go anywhere. The entire Tesco matter was a six billion plus pound drop on the economy. Not the smallest of events, yet no serious investigations, or if there is, the press is steering clear of all this, which is another oddity entirely.

Yet 10 days ago, we see “The FCA has dropped its probe into Quindell after the Serious Fraud Office launched a criminal investigation into the business and accounting practices at the insurance technology firm” with the added “In May Quindell announced that PricewaterhouseCoopers had completed an independent review of a number of its accounting policies”, as well as “PwC also identified that some policies were not appropriate. Quindell’s own review confirmed PwC’s findings“. Are the involved players playing footsie (the use of involved is intentional, this game had more than two players), or are we seeing the start of a new dance, one where in the end, no one goes to jail and no one loses anything, other than a few slapping of the wrists.

So how does this all links? Well, it doesn’t link, they are separate entities, but the given is that we are watching several plays where pretty much all the actors will get away with murder and as the cadavers on stage are real, the people go home reflecting on how realistic it all looked, not realising that we watched games with actual casualties.

Are we facing the beginning of a new Machiavellian play here?

The quote “A source familiar with the original investigation said there could be an element of politics in the transfer of the file. “My best guess is because nobody in the police has the bottle to draw the line under this, they have just passed the buck on the CPS” gives us something to ponder. The CPS website gives us this: “The statutory role of the Crown Prosecution Service is to advise the police in certain circumstances, and to conduct criminal prosecutions. The police provide evidence and information to enable the CPS to carry out these statutory functions“, which gives us the thought ‘if it is statutory, why was this not done sooner?‘ So why did this happen after such a long time, why was the CPS not chomping at the bits on day one that there was a clear issue with the news of the world? In my view, we need to consider that there are more elements in play. Political elements. It is merely a speculation from my side. I would think that cases like Rolf Harris and Jimmy Savile prosecution elements would have learned their lesson, but that does not seem to be the case and face it, this is about money, nothing sexual sexy about it, so the press does not seem to care.

The only question becomes is this truly about going after Murdoch, or is this about tying down resources so that they do not have to go after PricewaterhouseCoopers? My side on this is purely speculative, but consider the fact that the CPS has 8000 man and the fact that the SFO would be (read should be) looking at PwC, the fact that the press steers clear of it is weird to say the least. The Tesco mess will take a long time to unravel, the fact that it is kept away from everywhere is a matter of concern to all.

That is where we are at. So there was no typo at the start, we are watching certain people wield a spear, it is thrust at certain players who will most likely survive and it seems to be for the benefit of theatrics and ‘non-convictions’. Even now, as we see PwC named in linking to Quindell, the press steers clear form PwC regarding Tesco. So in all this, what is wrong with the picture we see, moreover, why is there ‘suddenly’ (implied it is sudden, it is not a given) an investigation 4 years later, one that seems to have been activated as the Americans pull away, which beckons the question why the CPS waited for the American parts in the first place.

 

Leave a comment

Filed under Finance, Law, Media, Politics