report on crf conference hong kong march 2006

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Report on CRF ConferenceHong Kong March 2006

Lynn Lynch

Companies House

UK

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CRF Delegates

Australia

Brunei

Canada

PR of China

Hong Kong

Malaysia

Mauritius

New Zealand

Samoa

Singapore

South Africa

Thailand

United Kingdom

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Observers of CRF 2006

Denmark

Ireland

Jersey

The Netherlands

Norway

Serbia & Montenegro

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Working across ECRF and CRF

Mutual recognition and co-operation

Observer status

Benchmarking / sharing information

Secondment

Study visits

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Themes of CRF Conference

IT Updates

Compliance

Company Law Reform

Business & Economic Promotion

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IT updates: general observations

Paperless environment?

Self-management of date

Greater use of electronic channels forfiling and searching

Financial incentives to use electronic

Increasing data quality

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IT updates: general observations

Integrity of register

Security of register

‘Unlocking value for public information’

Sending electronic reminders to clients

XBRL developments - Singapore and UK

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Compliance

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Compliance: general observations

Prevention v prosecution

Enforcement difficulties

Linking with other government departments to achieve compliance

Use of IT to achieve compliance

Discussions on Annual Return

Fraud and the register

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Compliance issues - the UK

• ‘Soft compliance’ - public target 92%, actual 91%

• ‘Hard compliance’ - 85% for accounts, 65% for annual returns

• Habitual offenders• Marketing campaigns• Company Law Reform Bill

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Fraud - UK

Facts and Figures:– Measured since 2002

– Approximately 50 cases a month

– Over 500,000 standard filings a month

(0.01%)

– 1 case could cost £1m.

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False Filing Cases - UK May 02 - Jan 06

0

20

40

60

80

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

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False Filing Cases - UK

33%

28%

12%

10%

8%

0 % 5 % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % 3 5 %

Officer appointedwithout consent

RO changed wthoutconsent

Address used withoutconsent

Warring directors

Officer resigned withoutconsent

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Fraud - UK

• Key Areas

• Company Hijacks

– False Appointments

– False Auditors

– False Financial Information

– Similar named companies

– Copying signatures on the CH record

– Non-regulation of company formation agents

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Fraud - press coverage

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Fraud - what are we doing to prevent it?

• Focus on Hijack• Operation Sterling• Police Liaison Officer on site• Home Office Identity Fraud Steering

Group• Work with others - OGD’s and credit

reference agencies

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Fraud - prevention cont….

• Crime analysis

• Evaluate electronic validation options

• Company Law Reform changes

• Marketing activity

• 3 Point plan

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our 3 point plan toprevent identity fraud

1.Electronic Filing

3.Monitor

2.PROOF

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safe and simple

a secure system for the quick and easy

online submission of company information

Electronic filing

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PROOFPROtected Online Filing

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Get the bigger picture

Monitor

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Company Law Reform Bill - helping prevent fraud in the UK?

• A company can agree to file documents electronically - PROOF will be on a statutory basis

• It will be an offence to deliver false, misleading or deceptive documents

• Registrar has the power to resolve inconsistencies on the register

• Unique identifiers for directors

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Business & EconomicPromotion: general observations

File once with government:New Zealand model

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Questions?