 |
|
|
Risk
Management &
Compliance |
|
> A study has revealed that half the
companies in the ASX100 do not have policies
prohibiting giving and receiving bribes and only 25% have
rules regarding "facilitation payments" or "speed money" in
other countries, especially when local units operate
independently from parent management. By contrast, 92%
of top British companies have rules that ban bribes. In
Europe, it is 90% and in the US 80%.
> ASIC's enforcement arm is suing
Citigroup, alleging
insider trading and breaches of conflict-of-interest rules
coming from the investment bank's role of advising transport
giant Toll Holdings in its $5.5 billion bid for stevedoring
company Patrick Corporation.
> The stockbroking industry is
considering introducing a tough, new, four page code of
conduct aimed at lifting professional standards, as firms feel
the pressure of increasing client litigation and a blow-out in
insurance
costs. |
| Audit |
|
> Aided by British regulators, the SEC has
settled a case against U.K. accounting firm PKF and two of its
former partners for its "highly unreasonable" audit of
AremisSoft, a Nasdaq-traded company that went bankrupt in
2002.
> Reportedly the subject of a PCAOB
investigation, Navistar International Corp. said it will
restate its results for 2002 through first nine months of
fiscal year 2005 as a result of an ongoing review of
accounting matters. It has also fired its
long-time auditor, Deloitte & Touche, replacing it with
KPMG LLP. Deloitte had served as Navistar's auditor for 98
years.
> SEC has reached a settlement with three
former KPMG auditors on charges that they improperly completed
the audit and made “after-the-fact modifications” to the
audit working papers “which created the false impression
that the audit had been adequately performed. The SEC
asserted, the audit team logged more than 500 hours in
altering more than 350 working papers in its audit of Tenet
Healthcare. |
| Information
Technology |
|
> According to an IBM survey, employees are
now regarded as a greater danger to workplace cyber
security than the gangs of hackers and virus writers
launching targeted attacks from outside the firewall. |
| Insurance, Banking and Finance
|
|
> The Insurance Council of Australia (ICA)
says that excessive regulation is now costing its
member companies more than $100 million a year. Larger
insurers with more than 500 employees were hit with the
largest ongoing compliance costs, ranging from $18 million to
$20 million a year, while smaller insurers reported compliance
costs of about $5 million a year.
> According to experts, Hurricane
Katrina is the costliest natural disaster in history,
racking up $US40 billion to $US55 billion in insured losses,
$US25 billion in US federal flood insurance and $US60 billion
in approved US federal
aid. |
| Local
Government |
|
> A Daily Telegraph investigation into
corporate credit card use by 10 Sydney local councils
shows they swiped up to $40,000 each over the past 18
months. The newspaper argues that ratepayers 'should be
furious' because council bosses are going swipe crazy, ringing
up $1400 dinners, sister city junkets and motivational
speakers on to corporate credit cards. The Local Government
and Shires Associations of NSW has endorsed accountability,
transparency and caps on expenses for elected councillors and
senior staff.
> A champion triathlete has been awarded
$1.75 million in damages after being crippled when he
hit stormwater pipes while bodysurfing at a Sydney
beach.
> ICAC has released a discussion paper
entitled Corruption risks in NSW development approval
processes for comment. Its purpose is to generate discussion
on how the state planning system can be reformed to minimise
the risk of corruption. |
| Australian
Update |
|
> ASIC has sent a strong signal that it sees
the Citigroup conflict-of-interest controversy as a
test case for the industry because it raises very important
issues (1) having adequate arrangements for managing inside
information; and (2) dealing with conflicts of
interest.
|
|
| |
|
Positions Vacant
Head
of Risk Management, Insurance, Sydney CBD - $150k.
New position with
a large growth organisation considered the best in its
field. Provide leadership to a small team (good to see
this one has resources!)
Responsibilities
include develop review framework, manage and report on
compliance and risk management to ensure requirements of
various statutory bodies/jurisdictions are met. Ref.
295100053
National
Portfolio Manager, Insurance, Sydney or Melbourne - $150k
neg.
Responsible for a
national team - emphasis on leadership, negotiations (internal
and external), strong analyticals, strategic/policy
formulation, strong personal impact. As a guide $150k
plus generous performance bonus. Ref.
295100051
Risk
and Audit Analyst, Specialist Insurer, Sydney CBD -
$90k.
New position
supporting the Head of Risk Management. Risk framework
has been developed and needs to implemented. In addition
internal audit program needs development and implementation.
Risk and/or audit background essential. Would suit audit
professional looking to move to the client side. Ref.
295100048 |
| |
| International
Update |
|
> A study found that companies with
internal control deficiencies have a significantly
harder time raising capital than companies that pass Sarbanes
Oxley s.404 requirements.
> The Sarbanes Oxley burden
could be sending smaller companies overseas. An
alternative Investment Market on the London Stock Exchange has
aimed a significant marketing effort at small companies in the
United States and that competition for their listings is on
the rise from the Dubai, Luxembourg and other markets.
> Although initial SEC estimates
indicated Sarbanes Oxley could cost each company
around US$91,000, research reveals that smaller companies
spent an average of US$3 million on compliance with section
404, and larger ones an average of US$8 million.
> Last year, Financial Executives
International said that 94% of companies it surveyed relating
to Sarbanes Oxley felt costs were outweighing the
benefits. In February 2006, Korn/Ferry found that 58% of
corporate board directors felt Sarbanes Oxley "should be
repealed or
overhauled." |
| Tell it to the
judge
|
|
> Former CFO of oil driller Patterson-UTI
Energy Inc., was charged for violating U.S. securities laws by
signing off on financial reports that he knew were false as
part of an alleged $69 million embezzlement
scheme.
> Former CFO for Ben & Jerry's Homemade
was sentenced to 27 months in prison and two years of
supervised release for embezzling nearly
$300,000.
> Tyco International agreed to pay $50
million to settle civil charges with the Securities and
Exchange Commission for engaging in a series of illegal
accounting practices that enabled it to overstate profits
by at least $1 billion.
> Amcor is facing more issues over
price-fixing allegations after a $300 million class
action was launched in the Federal Court by law firm Maurice
Blackburn Cashman.
> Samsung Group Chairman and fourteen former
and incumbent board members of the group's apparel unit have
been sued by minority shareholders over their alleged
mismanagement.
> Former Swissair CFO will face charges
of mismanagement, unfaithful business conduct, and
favoring creditors that contributed to the national airline's
bankruptcy.
> Bank of America has been granted permission
by a US judge to sue the Italian company Parmalat for $1
billion, claiming that the Parmalat's former managers lied
about its finances before filing for insolvency in 2003.
Parmalat has itself filed a $10 billion suit against Bank of
America for its suspected role in the company's
collapse.
> Maurice Blackburn Cashman has been
instructed to commence a class action against Multiplex
Limited on behalf of security holders relating to the dispute
between Multiplex and Cleveland Bridge UK Ltd regarding the
steel works on the Wembley Stadium.
> According to Slater and Gordon ordinary
investors were lining up in to take part in the law
suit against Westpoint. More Australian mum and dad
investors have been hit by the failure of Westpoint Corp than
any other corporate collapse with 4,000 people losing more
than $300 million in the
collapse. | |
|
|
|
Copyright
© InConsult Pty Ltd 2012