Treasure Islands, Crown Colonies, Empire Tax Havens

[vanlose kid]

City of London Corporation: a lesson in lobbying

The years go by but for the corporation retaining London's status as a premier-league financial centre remains key

Nick Mathiason and Melanie Newman
guardian.co.uk, Monday 9 July 2012 22.00 BST


Bank of England governor Mervyn King speaks at the Lord Mayor's dinner to bankers and merchants of the City of London at Mansion House, London. Photograph: Suzanne Plunkett/Reuters

For almost 1,000 years, the City of London Corporation has resisted virtually every attempt by monarchs, governments or the people to rein in its vast wealth and influence. From the murder of peasant revolt leader Wat Tyler by the lord mayor of London and his men in 1381, to the dispatching from the City to Northern Ireland of rural refugees forced off their land in 17th-century land reforms, the corporation has long been a guiding hand in British history.

Today, the corporation's main weapon is sophisticated, well-resourced and hospitable diplomacy. But its main aim, charitable endeavours and duties such as the Square Mile's local authority notwithstanding, is the same as it ever was: retaining London's status as a premier-league financial centre.

The human bridgehead in this task is its new "lobbyist-in-chief", Mark Boleat, appointed in May as chairman of the pivotal corporation policy and resources committee. Behind Boleat sit parliamentary lawyers, public affairs staff, 43 media staff, a 50-strong economic development unit sifting through international regulations, researchers and legions of hospitality workers. This public affairs machine costs over £10m, according to the Bureau of Investigative Journalism's calculations, although the corporation disputes this figure.

Boleat is the corporation's de facto prime minister, and will, if he is anything like Stuart Fraser – his recent predecessor – be like a moth to the flame of power.

Until his departure, Fraser was probably the City's most energetic lobbyist. Freedom of information documents show Fraser had contact with George Osborne, Treasury ministers and senior Treasury officials 22 times in the 14 months up to March, augmented by regular letters.

Updating Osborne by letter about a recent trip to China, Fraser complained to the chancellor that the City watchdog, the Financial Services Authority (FSA), was taking too long authorising Chinese and Indian banks to operate in the UK. "The FSA's rules are perceived to run counter to the message that the UK welcomes FDI [foreign direct investment]."

Feeding back his meetings with senior US politicians, regulators and financiers, Fraser said: "One leading global insurance brokerage … explained that their current cost of compliance in the UK is higher than the combined cost of compliance in the other 99 countries in which they operate."

Last November Fraser wrote to Mark Hoban, the Treasury minister responsible for the City, suggesting a migration clampdown "has had a negative impact on the UK's attractiveness for international firms", leading to businesses postponing expansion plans. Fraser suggested to Hoban, whose wife, Fiona, works for the corporation's legislative scrutiny department, that "intra-company transfers" should remain outside government migration rules.

The influence of the corporation is underlined by speeches by the prime minister, the chancellor, and the mayor of London who outline their plans at sumptuous banquets in the Guildhall or Mansion House. These events' importance is confirmed in a leaked document from the Corporation's so-called City's Cash fund, one of a number of corporation accounts.

The fund's annual report is restricted to City councillors, aldermen and officials. In the notes section, the report says the aim of major national set-piece occasions and small receptions – where politicians and City figures meet in private – is "to increase the emphasis on complementing hospitality with business meetings consistent with the City corporation's role in supporting the City as a financial centre".

For this, City's Cash spent £4.66m in 2007 on "ceremony", according to the accounts, and another £7.16m servicing the lord mayor's banqueting and "shrievalty" duties.

Not all the ceremony and lord mayor's £11.82m budget is spent on "banquet lobbying", but a large slice is. The effect these events have on those who run the UK is mesmerising, according to Father William Taylor, who between 2001 and 2008 was a City of London corporation common councillor.

"You are getting in a room all the powerful people you want to influence," he said. "You are getting them handsomely drunk. You are applauding them. It's literally intoxicating. It's how power operates. It's probably underestimated as a tool for cementing consensus and support for the corporation."

What may also be underestimated is the influence wielded by the City in parliament. Sitting literally behind the speaker's chair is Paul Double, a City of London official known as the remembrancer. The remembrancer scours every piece of parliamentary legislation to ensure the corporation's interests remain unaffected.

The department enjoys a budget of £6m. Most is spent on "ceremony". But the remembrancer also employs six in-house lawyers and has submitted evidence to 16 separate select committees in the past 18 months, including the Treasury's Tax Principles report published last year. Subsequent events indicate it was well received.

The corporation's evidence to the Treasury's Tax Principles agenda stated: "Several insurance companies … have already changed their domicile and there is speculation that some major UK-based banks are assessing the benefits or otherwise of being domiciled in the UK. Furthermore, some other institutions, including US investment banks, have already moved away from their previous settled view that London is the best placed centre for their operations in Europe, the Middle East, Africa and in some cases Asia as well."

The City suggested the government communicate the UK is "open for business" with "a phased reduction in rates of taxation". George Osborne in his March budget made sharp cuts in corporation tax as well as introducing a £500m tax break for insurance firms.

The City of London makes no apology for "promoting the competitiveness of [finance] as a whole so that this industry will thrive globally – and underpin jobs, prosperity and tax revenue".

"Crucially," it adds, "we do not 'lobby' for individual firms, deals or people. We are in contact with all political parties – both in and out of office and act rather like a trade body but across a broader range."

http://www.guardian.co.uk/business/2012 ... n-lobbying

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[Pele'sDaughter]

http://www.cftc.gov/PressRoom/PressReleases/pr7508-17

Washington - The U.S. Commodity Futures Trading Commission (CFTC) has obtained a federal court Consent Order against Defendant Jon S. Corzine (Corzine Order), former CEO of MF Global Inc. (MF Global), requiring him to pay a $5 million civil monetary penalty for his role in MF Global’s unlawful use of customer funds totaling nearly one billion dollars and for his failure to diligently supervise the handling of customer funds. Per the Corzine Order, Corzine cannot seek or accept, directly or indirectly, reimbursement or indemnification from any insurance policy with regard to the penalty amount. The Corzine Order also requires Corzine to undertake that he will never act as a principal, agent, officer, director, or employee of a Futures Commission Merchant (FCM) and that he will never register with the CFTC in any capacity. As to Defendant Edith O’Brien, the former Assistant Treasurer of MF Global, the Court entered an Order (O’Brien Order) requiring her to pay a $500,000 civil monetary penalty for aiding and abetting MF Global’s violations and prevents her from associating with an FCM or registering with the CFTC in any capacity for a period of eighteen (18) months.

Previously, the CFTC ‎obtained Orders against MF Global and its parent company MF Global Holdings Ltd. (Holdings), which Orders required restitution in amounts sufficient to pay all customer claims.

The Orders against Corzine and O’Brien were entered on January 5, 2017, by Judge Victor Marrero of the U.S. District Court for the Southern District of New York.

Aitan Goelman, the CFTC’s Enforcement Director, stated: “This resolution demonstrates the importance that the Commission attaches to customer protection, which has long been a hallmark of our mission.”

The Orders arise out of the CFTC’s amended Complaint, filed on December 6, 2013. The Corzine Order finds that Corzine was the CEO of MF Global from September 1, 2010 through the commencement of its liquidation proceedings on October 31, 2011 as well as the CEO and Chairman of the Board of Directors of its parent company Holdings. The O’Brien Order finds that she supervised MF Global’s Treasury Department, which handled the cash management of MF Global, and was responsible for directing, approving, and/or causing certain wire transfers and other payments into and out of MF Global’s customer accounts. Both Orders find that, during the last week of October 2011, in violation of U.S. commodity laws, MF Global unlawfully used nearly one billion dollars of customer segregated funds to support its own proprietary operations and the operations of its affiliates and to pay broker-dealer securities customers and pay FCM customers for withdrawals of secured customer funds.

The Orders find that MF Global violated the Commodity Exchange Act (CEA) and CFTC Regulations by failing to treat, deal with, and account for its FCM customers’ segregated funds as belonging to such customers; failing to account separately for, properly segregate, and treat its FCM customers’ segregated funds as belonging to such customers; commingling its FCM customers’ segregated funds with the funds of any other person; using its FCM customers’ segregated funds to fund the operations of MF Global and its affiliates, thereby using or permitting the use of the funds of one futures customer for the benefit of a person other than such futures customer; and withdrawing from its FCM customer segregated funds beyond MF Global’s actual interest therein.

When the transfers occurred, Corzine controlled MF Global, which was experiencing a worsening liquidity crisis. Because of this control and by his conduct, Corzine is liable for MF Global’s violations as its controlling person. Furthermore, from at least August 2011 through October 31, 2011, Corzine failed to supervise diligently the activities of the officers, employees, and agents of MF Global in their handling of customer funds. By this conduct, Corzine violated CFTC Regulation 166.3, 17 C.F.R. § 166.3.

The O’Brien Order finds that O’Brien, knowing that certain funds would be transferred from customer segregated accounts to MF Global’s proprietary accounts, on Thursday, October 27, 2011 and Friday, October 28, 2011, directed, approved, and/or caused seven transfers of funds from customer segregated accounts to MF Global’s proprietary accounts totaling hundreds of millions of dollars – more than MF Global had in excess segregated funds as last reported to O’Brien – that caused and/or contributed to a deficiency in the customer segregated accounts. By this conduct, O’Brien aided and abetted MF Global’s segregation violations.

The CFTC previously settled charges against MF Global and its parent Holdings for their violations of the CEA and CFTC Regulations (see CFTC Press Releases 6776-13 [November 18, 2013] and 7095-14 [December 24, 2014]). On November 8, 2013, the CFTC obtained a federal Consent Order against MF Global for misuse of customer funds and related supervisory failures in violation of the CEA and CFTC Regulations (see CFTC Press Release 6776-13, November 18, 2013). MF Global was required to pay $1.212 billion in restitution to its customers, as well as a $100 million civil monetary penalty. On December 23, 2014, the CFTC obtained a federal court Consent Order against Holdings also requiring it to pay $1.212 billion in restitution, joint and several with MF Global, and imposed a $100 million penalty (see CFTC Order and Press Release 7095-14, December 24, 2014).

Pursuant to these Orders against MF Global and Holdings, restitution has been paid to satisfy all customer claims (see CFTC Press Prelease 6904-14, April 3, 2014).

The CFTC thanks and acknowledges the assistance of the U.K. Financial Conduct Authority.

CFTC Division of Enforcement staff members responsible for this matter are David W. Oakland, Katie Rasor, Janine Gargiulo, Alejandra de Urioste, Karin Roth, Christopher Giglio, K. Brent Tomer, Steven Ringer, Lenel Hickson, and Manal Sultan.