The top ten items for your regulatory inbox

Despite the ongoing pandemic, compliance departments can still enter the new year with a sense, if not an outline, of what should be on their agenda in 2022. Preparing for rapid, sudden changes in 2022, from new Covid-19 variants to supply chain problems or catastrophic climate events, should still be high on every compliance officer’s agenda. But that doesn’t mean planning for the expected should take a back seat.

In this new guide, we discuss the top ten items you should look out for in your regulatory inbox next year. The topics to watch out for are:

  1. Shortages in the supply chain
  2. ESG reporting hits its stride
  3. Health and safety working practices
  4. Vaccine mandates grow
  5. Mental health at home and at work
  6. UK GDPR and a new privacy shield?
  7. Online harms and cyber security
  8. Sarbanes-Oxley is coming to the UK
  9. DAC6 and mandatory disclosure rules
  10. More cryptocurrency regulation

Join us for our webinar on 12 January 2022 where we’ll discuss these compliance issues in more detail. You can register for that webinar here.

Free registration

For more on our top ten compliance issues for 2022, download our free guide and make sure you are prepared for whatever the next year throws at us.

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Here at EssentialSkillz, we maintain a strong commitment towards sustainability and good ethical practises. We are very proud to announce that our efforts were recently recognised by the Ecovadis program, who gave us a silver award and placed us within the top 25% of companies that participated.

We undertook the program to better understand our ethical and climate impact, as well as help our clients meet their commitments and goals. Participating organisations answered a questionnaire covering four categories: the environment, labour and human rights, ethics, and sustainable procurement.

Once completed, the questionnaire and supporting evidence was reviewed and assessed by an EcoVadis expert. The methodology used by EcoVadis “is built on international sustainability standards, including the Global Reporting Initiative, the United Nations Global Compact, and the ISO 26000”.

We are very proud of this achievement and look to improve our score in the future as we do our part to mitigate our impact on the environment.

What is the history of the EU’s list of non-cooperative jurisdictions?

In January 2016, the EU Commission presented its Anti-Tax Avoidance Package, in which it committed to a  “clear, coherent and objective” approach to tackle tax governance in relation to non-EU jurisdictions. 

In November 2016, the Council mandated the Code of Conduct group (business taxation), a Council working party, to carry out the preparatory work to establish a list of non-cooperative jurisdictions.

The Code of Conduct group screened 92 jurisdictions, selected on the basis of:

  1. their economic ties with the EU
  2. their institutional stability
  3. the importance of the country’s financial sector

In December 2017 the EU launched its initial list of non-cooperative jurisdictions for tax purposes. The list included non-EU countries that encourage abusive tax practices, which erode member states’ corporate tax revenues.

The EU list of non-cooperative jurisdictions for tax purposes is a tool to tackle:

  1. tax fraud or evasion: illegal non-payment or underpayment of tax
  2. tax avoidance: use of legal means to minimise tax liability
  3. money laundering: concealment of origins of illegally obtained money

The first list included 17 non-EU countries or territories. A state of play document was also released that set out the jurisdictions which had responded with sufficient commitments. They needed to take effective action by the end of 2018, or in some cases 2019, to avoid being listed in the future.

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On 30 November 2021, HMRC published its draft UK Mandatory Disclosure Rules (MDR) and released its consultation which seeks views on the design of the draft regulations. The consultation will be open until 8 February 2022. The UK MDR is expected to come into force in summer 2022, replacing UK DAC6.

MDR requires advisers (and sometimes taxpayers) to report information to the tax authorities on certain prescribed arrangements and structures, including those that could circumvent existing tax transparency reporting rules known as the Common Reporting Standard or hide ownership of assets.

For this webinar, we were joined by John Sandeman, HMRC’s policy official for Mandatory Disclosure Rules, who helped attendees get to grips with the UK MDR and how it applies to your organisation. John also answered attendee questions.

The webinar covered:

  • Who does UK MDR apply to?
  • Top challenges firms are facing
  • Best practice for submitting reports under MDR
  • Approaches to legal professional privilege
  • What guidance HMRC are planning to release

Watch now

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What is an Environmental, Social, Governance (ESG) Committee?

An ESG committee has overall responsibility for the effective operation of a company’s ESG policy, and has delegated responsibility for overseeing its implementation. The committee reviews data from across the business and then filters and summarises it for the board. The ESG committee is responsible for writing the ESG content in the company’s annual report and producing all information relating to ESG disclosures.

How Do You Know if Your Business is Ready to form an ESG Committee?

Forming an ESG committee is a crucial step to get started on your ESG journey. It can be informal and ad hoc, but bringing in more than one person or department will help to deliver on your ESG goals.

Before you decide to form an ESG committee, you should think about your ESG maturity. Understanding where your business sits on the ESG maturity framework will help ensure that you are doing things in the right order and at the right time. There’s no point in forming an ESG committee for example if your business is not planning any investment whatsoever in ESG efforts.

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A pronoun is used to replace a proper noun, such as someone’s name, and is often used to refer to a person without mentioning their name. For example, She is running a little late.

In English, the pronouns we have been taught to use follow a gender binary – she/her for girls and he/him for boys. For example, Igor’s presentation was excellent. He really put a lot of time and effort into it. In this example, ‘he’ is the pronoun which refers to ‘Igor’, and assumes that Igor identifies his gender as a man. While this might be true for Igor, it might not be true or respectful to use for people whose gender identity sits outside of the gender binary.

As our understanding of gender identity and expression has evolved, so has the language around pronouns and their use. No longer are people restricted to the binary gender pronouns he/she – people are free to choose their own pronouns (or lack of pronouns) that better represent their gender identity.

Terminology

The terms sex and gender are often used interchangeably, but they are not the same.

  • A person’s sex is the label given to them at birth based on biological and physiological characteristics at that time. This is either male or female, or in some countries, intersex. A person’s sex is sometimes referred to as sex assigned at birth.
  • A person’s gender is a social, psychological and cultural construct and relates to behaviours and attributes that a society associates with being male and female; gender identity is the gender that someone perceives themselves as internally. This can be female, male, neither, a blend of both or another gender(s).

A person might identify as:

  • Cisgender if their gender identity is the same as their sex assigned at birth.
  • Transgender if their gender identity is different to their sex assigned at birth.
  • Non-binary if their gender identity sits outside the gender binary – they might feel their gender is a blend of both male and female, undefined or neutral, multiple genders or another gender(s). Other identities under the non-binary umbrella include genderqueer, gender non-conforming, genderfluid and third gender people.

 

Pronouns

For cisgender people, he/she pronouns might be comfortable and appropriate. However, for people whose gender identity does not neatly align with their sex assigned at birth, using he/she pronouns might not accurately reflect how they feel about themselves and could leave the person feeling uncomfortable, disrespected or dismissed.

People whose gender identity sits outside of the gender binary most often use gender-neutral pronouns, such as they/them used in the singular, in place of she/her or he/him. There are also other gender-neutral pronouns they could use or they might choose to forgo pronouns all together. The following chart outlines some common pronouns, what they sound like and how to use them correctly in a sentence.

Pronoun Example sentence
They/them
*use in the singular
Taylor is joining the team on Monday – let’s all give them a warm welcome. We expect they will be a great addition to our organisation.
Ze/zir
Sounds like: Zee/Zeer
Taylor is joining the team on Monday – let’s all give zir a warm welcome. We expect ze will be a great addition to our organisation.
Xe/xyr
Sounds like:
Sh-ay/Sh-air
Taylor is joining the team on Monday – let’s all give xyr a warm welcome. We expect xe will be a great addition to our organisation.
No pronoun
*use the person’s name
Taylor is joining the team on Monday – let’s all give Taylor a warm welcome. We expect Taylor will be a great addition to our organisation.

*This is not an exhaustive list of all of the pronouns.

Sharing, asking about and using pronouns

You cannot determine by looking at someone what pronoun they prefer. Use gender-neutral pronouns or the person’s name until you have the opportunity to ask them or you can confirm which pronouns they want you to use.

It might feel strange to ask someone about their preferred pronouns, but it is important that we begin to normalise sharing and asking about them so that we can use and hear the language that best represents our true selves. Doing so builds a culture of respect and inclusion for everyone.

An easy way to share pronouns throughout your organisation is to add it to various communication channels. For example, on your instant messaging service profile or email signature

When you find out a person’s preferred pronoun, make sure to use it. If you are ever unsure how to use it in a sentence, look it up online or ask the person politely to give you some examples. Using their pronouns shows that you respect them.

Making mistakes

Even if you know someone’s preferred pronoun, you might sometimes make a mistake. These things happen. If you do slip up, apologise and correct yourself. Even if you didn’t intend to cause harm, you are still responsible for the impact.

If you didn’t realise you made a mistake and someone tells you that you hurt their feelings, don’t dismiss it or make up excuses. Be willing to listen to how they are feeling and empathise with them. When we listen, we get a better understanding of the other person’s perspective and show them that we acknowledge their feelings.

You can also help build an inclusive work environment by encouraging others to use a person’s correct pronouns. If a colleague or manager uses the person’s pronouns incorrectly, politely correct them.

 

Want to learn more about pronouns and how to promote respect in the workplace?

Try our new Gender & Sexuality Awareness Online Training Course for Free. Click the link below for a Free Trial.

Get a Free Trial

Branch safes literally overflowed with ill-gotten gains

In the first criminal prosecution of a financial institution by the Financial Conduct Authority (FCA), a litany of failings took place at NatWest which enabled black bin liners stuffed with cash to be deposited, literally bursting out of floor-to-ceiling branch safes.

The trial centred on a textbook case of money laundering by a supposed jeweller, Fowler Oldfield. Their predicted turnover was around £15m when the bank took them on as a client, but they ended up depositing over £365m over a five year period, with the vast majority being in hard cash.

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2021 saw another successful year for VinciWorks. We haven’t simply done more of what we already do so well, we have also added all-new features to our training, such as the ability to build out every aspect of each course in minutes. Our research and development team have built out multiple new Omnitrack use cases and we are constantly adding new features, the most recent being our DocuSign integration. All our hard work was recognised in October when we were acquired by Marlowe PLC.

Here are some of the highlights from 2021.

755,000 courses delivered

Whether or not your business has reverted to in-office working, has continued with a remote-working policy, or somewhere in between, the pandemic taught us the importance of flexibility. Over the past 2 years, e-learning has supplanted nearly all classroom training. Companies that traditionally ran in-person compliance training have moved over to online learning for good.

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New rules come into force across the EU on Friday, 17 December 2021

Whistleblowers are a vital part of society, working to expose wrongdoing at the highest levels and often at great personal risk to themselves. That’s why the European Union passed legislation in 2019 to give whistleblowers more protection against retaliation. Every country in the 27-member bloc is expected to implement this directive into their national laws by Friday, 17 December 2021.

While some countries do lag behind, there are a minimum set of whistleblowing standards that should be adhered to. Companies doing business anywhere in the EU should ensure that their internal policies and procedures comply with the Whistleblowing Directive, regardless of upcoming changes to national laws. Some countries like the UK, France and Luxembourg have had whistleblower protections in place for some time.

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It depends on how committed your business is to ESG

ESG consultants help companies determine what actions they should take to improve and build on their ESG efforts. They can undertake risk assessments, due diligence and impact assessments, as well as help to prepare reports and measure impacts.

They can also help to develop the right structures and processes inside the organisation if you are preparing for ESG disclosures. If you’re just getting started with ESG, you should also read our explanatory guide: ESG: What Businesses Need to Know. That guide provides a summary of the key terms and concepts you should be aware of before diving into ESG in more depth.

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