Powerchex - Pre-employment screening newsletter

ISSUE 43 MARCH 2009	www.powerchex.co.uk

Welcome to this month's Powerchex update:


	Also in this issue • Articles of interest • FSA News • Conferences & Events

This winter has been harsh both in terms of weather and for the economy. Jonathan Ledwidge, author of The Human Asset Manifesto has written an excellent article dissecting what went wrong within firms and offering an explanation as to why corporate governance and corporate codes of ethics did not help in mitigating the current outcome. Jonathan’s article is very thoughtful and I have no doubt that you will enjoy his analysis.

Extreme Makeover: Why The Banking Industry Needs A Wholesale Change In Values
By Jonathan Ledwidge, THAPartners

The crisis in the financial markets has made economic sustainability a principal objective of organisations and investors. What is equally true is something that we have all known for years; financial reporting and financial risk management are insufficient measures of economic sustainability – even when they are supported by an array of internal auditors, external auditors, controllers, risk managers, regulators and central banks.

Many organisations have recognised this and attempted to augment their risk reporting and risk management practices by a number of ethics, corporate governance and CSR related initiatives. The financial crisis has now exposed these as also being insufficient.

In this article we will explore why these approaches failed and why there is a need to look at organisations as ecosystems of human assets in which values play a central role. The analysis will show that the failure of the banking industry is due to a failure in its ecosystem of values, and that changing said values are the best path to rehabilitation.

We will then examine the particular importance of human values and how, with reference to such entities as Merrill Lynch, Citigroup, HBOS and UBS, both the economic sustainability and competitive advantage of an organisation is best defined by its ability to instil human values into every aspect of its activities.

Finally, we will examine a strategic and operating model, The Human Asset Business Model, which allows an organisation to link its values to its economic sustainability and competitive advantage, thereby facilitating effective management of all three.

Read this article in full

		About Jonathan Ledwidge Jonathan Ledwidge studied Physics and Chemistry at the University of West Indies in Jamaica before joining Price Waterhouse, later qualifying as a Chartered Accountant. He then worked for J Wray & Nephew the sugar and rum manufacturer, before migrating to the UK in 1986. For the next 20 years he worked in the City of London for a number of global investment banks, including, CIBC and ABN AMRO. Much of this time was spent on developing and implementing global business strategies for capital markets products and services. read full biography

Articles of interest

Upturn in financial IT contractor jobs Contractor UK, 26 February 2009 Financial services firms gear up for recovery in 2009 Press release, 24 February 2009 A flood of fake CVs for IT jobs The Times of India, 14 February 2009 Data Protection: the impact on employers Whitepaper, Steeles Law LLP Docklands company defies the crunch Docklands24, 11 February 2009 Monster: One in four workers lie in interviews Recruiter, 05 February 2009 SII Integrity Position Paper Securities & Investment Institute, February 2009 Recruitment: Welcome to the new rules Money Management, 05 February 2009 Recruitment: Welcome to the new rules Money Management, 05 February 2009 Best Place To Work 2009 Results - The Top 100 Firms HERE IS THE CITY, 23 January 2009

FSA News

HOT OFF THE PRESS FSA publishes code of practice on remuneration policies At the end of last week, the Financial Services Authority (FSA) published a draft code of practice on remuneration. The aim of the code is to ensure that firms have remuneration policies which are consistent with sound risk management, and which do not expose them to excessive risk. It is not concerned with setting levels of remuneration, which are a matter for the boards of companies and their shareholders. FSA chief executive Hector Sants said: “We have already outlined the work we have been doing on remuneration during the last 12 months. The code of practice we have published today is the next stage in that work and clearly lays out the framework we expect firms to adopt.” The FSA will consult on the code and further proposals for remuneration policy in March. February 2009 FSA publishes its 2009/10 Business Plan The Financial Services Authority (FSA) published its Business Plan for 2009/10. The plan sets out the FSA's programme of work for the year ahead to address the risks highlighted by the Financial Risk Outlook, published on 9 February. 12 February 2009 FSA publishes Financial Risk Outlook The Financial Services Authority (FSA) published its Financial Risk Outlook (FRO) outlining the main risks facing firms, consumers and the regulatory system in the economic downturn, in particular the challenges created by banking sector and real economy deleveraging. 09 February 2009

Conferences & Events

The FSA has said, "Once an employee has attained competence, a firm must ensure that the employee remains competent ... It is important that training to maintain competence is effective and purposeful".

Conference and events from CIFAS:

CIFAS Two-Day Conference and Exhibition: Raising Performance in a Changing Fraud Landscape
The Belfry, West Midlands, 18-19 March 2009

For more information for the above events, please contact: dean.bove@cifas.org.uk

Investment business that works: building a foundation of integrity
Securities & Investment Institute, London, 10 March 2009

Working with Organisational Values
JSB Training and Development, London, 11 March 2009

Fraud Womens Network Annual Event (FWN)
More information: www.fraudwomensnetwork.com
London, 12 March 2009

Training Competence and Managing Expertise in a Regulated Environment
Securities & Investment Institute, London, 12 March 2009

Procurement and contract fraud
A half-day seminar considering the issues of procurement and contract with particular reference to local authorities and other public sector bodies.
Speakers: TBA.
Time: 10.00 until 15.00
Costs: £80 + VAT (£92.00) FAP members, £130 + VAT (£149.50) Non members
More information: www.fraudadvisorypanel.org
Fraud Advisory Panel, Newcastle, 17 March 2009

Navigating choppy waters: managing employee issues in the regulated sector
Securities & Investment Institute, London, 26 March 2009

Employing overseas nationals
Croner Training, The Hatton etc Venues (London), 18 March 2009

Conducting investigations, disciplinaries and grievances
Field Fisher Waterhouse, London, 25 March 2009

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