Investigating the investigators
Article Abstract:
The Select Committee Report on the enforcement of the UK Companies Act was critical of the Department of Trade and Industry (DTI), which is charged with overseeing investigations of violations of the Act. Critics of the DTI believe that the DTI is hesitant to act on investigating violations of the Act, which the Report believes is rooted in a lack of consensus as to the purpose of DTI investigations within the DTI itself. The Report elucidates steps to improve the performance of DTI investigations of Company Act violations: investigations should be reported within 12 months, and investigations of insider dealing should be reported within three months; high caliber individuals should be hired to conduct investigations, assist other regulators, and oversee training and legal issues; and a cadre of qualified and skilled investigatory staff should be developed by improving the qualifications and training of staff.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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Barlow Clowes: who's to blame?
Article Abstract:
Two investigations were conducted of the UK Department of Trade and Industry's (DTI) role in the regulation of the failed investment manager Barlow Clowes Group (BC) by Secretary of State for Trade and Industry Sir Godfray LeQuesne, and the other by the Parliamentary Commissioner for Administration (Ombudsman). Godfray's report exonerated the DTI's handling of BC, claiming that the DTI's oversight did not contribute to BC's collapse, and found that there was no cause for taxpayers' money to compensate investors. The Ombudsman's report found the DTI's oversight negligent and recommended taxpayer compensation for investors. Both reports indicate that the DTI at the time was understaffed, underfunded, characterized by managerial incompetence, and unduly influenced by political considerations, and that there was a lack of effective coordination between the various agencies overseeing the financial community.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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The fall of the House of Fraser
Article Abstract:
The UK Department of Trade and Industry (DTI) as issued its report on its investigation of the dealings for the acquisition of the House of Fraser Holdings Plc. The bid of Tiny Rowland for the House of Fraser had been blocked by the Monopolies and Mergers Commission in 1981. One of the more important focuses of the DTI Report is highly critical of the role of the advisers to the Fayed brothers, who successfully acquired the House of Fraser. The advisers were relied upon by the DTI and the Monopolies and Mergers Commission, both of which lacked adequate resources. The report is highly critical of the advisors' conduct and makes recommendations on how advisers can improve their practice in six areas, including: demarcation of responsibility, knowledge of clients, and relationships with the media.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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