Governance & Regulation Archives - Emile Woolf writes

Government knows what it is doing? Dream on

SEPTEMBER 2012 King Canute was neither vain nor foolish. He ordered the tide to recede only to demonstrate to his court that even his awesome powers had limits. Vain and foolish politicians, however, aspire to preserve the myth of Euroland and still believe that, by hook or (especially) by crook, they might actually make it […]

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BANKING SCANDALS: CAN THE RBS SAGA TELL US ANYTHING NEW?

It’s not as if each successive banking scandal throws up new insights. The proverbial “innocent bystander” might reasonably suppose that, by now, something would have been learnt from the cyclical repetition of egregious behaviour and the crises it generates. Much of this behaviour is just plain foolish: unbridled credit expansion; lending practices landing banks with […]

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Economic Perspectives 19: Does Labour respect sanctity of private property?

ECONOMIC PERSPECTIVES 19 Does Labour respect sanctity of private property? Lessons to be discerned from the tragic Grenfell Towers fire transcend the immediate questions on cladding, stairwells, sprinklers, alarm systems, escape routes, incandescent materials and faulty appliances. Far more has been revealed than a recital of fire regulations in need of modernisation. The political exploitation […]

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Why revised Ethical Standard will not restore public trust

‘ACCOUNTANCY’ – AUGUST 2017 Why the FRC’s ethical standard fails to restore public trust Ethics is far more than an incidental feature of the auditing framework. It is actually its very essence. In virtually every instance of audit failure that finds its way into the public domain, whether it concerns undetected management fraud, money laundering, […]

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Accounting clarity – or regulatory clutter?

APRIL 2017 – ‘ACCOUNTANCY’ MAGAZINE The impediment of accounting clutter Management accounts have never been subjected to the rigorous straightjacket of regulatory standards because people running businesses base their internal accounting systems on utility, or relevance to their needs. In an ideal world, users of published financial statements would be consulted on utility before involving […]

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Useless Sanctions against Banks

‘ACCOUNTANCY’ – JANUARY 2017 MONETARY SANCTIONS? USELESS ON THEIR OWN Unfortunately for our profession, the ‘Big 4’ label may equally be taken to refer to HSBC, RBS, Lloyds and Barclays, which between them have incurred an eye-watering £50 billion in fines and lawsuits since the financial crisis began ten years ago. Their misdemeanours relate mainly […]

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Boardroom mega bucks – ludicrous pay deals

Explaining boardroom mega-bucks The basic pay of most employees is governed by industrial and professional norms, and is relatively stable over time when so-called “inflation” adjustments are factored in. Almost unbelievably, today’s average hourly wage has the same buying power as it did 45 years ago! By contrast, executive remuneration in the largest companies is […]

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Legitimising corrupt practices

February 2017 “ACCOUNTANCY” Legitimising corrupt practices In last month’s column I commented on the huge fines levied on financial institutions guilty of violating securities laws, noting that natural justice would be better served if these vast penalties were applied to compensate victims, rather than enriching culprits’ lawyers – while leaving the transgressors’ obscene levels of […]

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Economic Perspectives 9 – Regulatory extortion and legitimising corruption

News media gloat over the eye-watering levels of retribution (in the form of fines and penalties) finally being meted out to aberrant banks found guilty of having violated securities laws leading up to the last financial crash. I find it astonishing, firstly, that it has taken close to 10 years to identify, formulate and punish […]

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