Report on CRF Conference Hong Kong March 2006

Report on CRF Conference Hong Kong March 2006 Lynn Lynch Companies House UK 1

CRF Delegates Australia Brunei Canada PR of China Hong Kong Malaysia Mauritius New Zealand Samoa Singapore South Africa Thailand United Kingdom 2

Observers of CRF 2006 Denmark Ireland Jersey The Netherlands Norway Serbia & Montenegro 3

Working across ECRF and CRF Mutual recognition and co-operation Observer status Benchmarking / sharing information Secondment Study visits 4

Themes of CRF Conference IT Updates Compliance Company Law Reform Business & Economic Promotion 5

IT updates: general observations Paperless environment? Self-management of date Greater use of electronic channels for filing and searching Financial incentives to use electronic Increasing data quality 6

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 7

Compliance 8

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 9

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 10

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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 £ 1 m. 15

False Filing Cases - UK May 02 - Jan 06 16

False Filing Cases - UK 17

Fraud - UK • Key Areas • Company Hijacks – False Appointments – False Auditors – False Financial Information – Similar named companies – Copying signatures on the CH record 18 – Non-regulation of company formation agents

Fraud - press coverage 19

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 20

Fraud - prevention cont…. • Crime analysis • Evaluate electronic validation options • Company Law Reform changes • Marketing activity • 3 Point plan 21

our 3 point plan to prevent identity fraud 1. Electronic Filing 2. PROOF 3. Monitor 22

Electronic filing safe and simple a secure system for the quick and easy online submission of company information 23

PROOF PROtected Online Filing 24

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Monitor Get the bigger picture 27

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 28

Business & Economic Promotion: general observations File once with government: New Zealand model 29

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Questions? 36