Bribery Act 2010 – Guidance notes published

After a period of considerable gestation Kenneth Clarke published yesterday his guidance on adequate procedures under the Bribery Act 2010.  http://www.scribd.com/full/51896226?access_key=key-1chebs9kxwiqs2ica63m.

With this publication came the announcement that the Act will formally come into force on the 1st July 2011, giving companies three months to get those procedures in place.

The guidance should be considered in conjunction with the joint guidance issued by the Director of Public Prosecutions and the Serious Fraud office, and appears to reinforce the message that prosecutions under the Act will take a largely common sense approach. When speaking at a seminar given in IBB’s offices earlier this year, Vivien Robinson QC assured us that the Serious Fraud Office, whilst committed to stamping out corruption, understood the nature of corporate affairs and would only be pursuing prosecutions where there was genuine evidence of corruption.

The guidance will no doubt draw a sigh of relief from companies who were concerned that, through some tenuous corporate link with the UK they might find themselves susceptible to prosecution. It would now appear that it will be necessary for the Prosecution to establish a ‘demonstrable business presence’ in the UK before the provisions catch you. Ultimately, the guidance says, it will be for the courts to decide whether or not an organisation carries on a business in the United Kingdom, but it is hoped in light of this guidance that the courts, in line with the Government and the prosecuting authorities, will be taking a common sense approach as well.

The publication also contains guidance on applying the 6 principles of prevention, placing particular onus on the principle of proportionality, further indication that the Government does not want this legislation to restrain corporate growth.

If you have any questions or would like a further comment on the guidance and the implications it may have for you and your company, please do not hesitate to contact Anil Rajani or Paul Mason of our Business Investigations and Governance team at IBB Solicitors.