Tough rules herald new Bribery Act

A SET of guidelines to help companies understand tough rules they will have to abide by under the new Bribery Act have been published.

The set of guidelines clarify what is and is not permitted in connection with things like gifts, payments and hospitality.

Justice secretary Kenneth Clarke has published the information on the legislation, which is designed to safeguard businesses from the threat of corruption.

The Bribery Act was originally set to come into force next week but has been postponed to July because companies were concerned about the rules for corporate entertaining.

Jonathan Middup, Birmingham-based partner of fraud investigation and dispute services at Ernst and Young, said: “The revised guidance now sets the right tone and provides clarifications and examples which will be welcomed by the business community.

“The guidance has been extensively reworked and more detail provided on many of the areas of sensitivity and ambiguity that gave rise to so much critical comment.”

Samantha Haines, solicitor and compliance officer at Stratford law firm Lodders, said: “The Act does not say you can’t entertain people or provide hospitality. It says you must be able to justify the reason you are doing it.

“So long as you make sure it cannot be seen as a bribe to get or retain business, this should comply on the basis of what we have seen so far.

“There is a school of thought, and I am one, which thinks that the guidance won’t be that helpful anyway. My advice to business is not to sit on your hands.”