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High street banks shut over 140,000 accounts held by small businesses last year. The closures accounted for 2.7% of the 5.3m business accounts provided by the lenders to SMEs. Eight banks - Barclays, HSBC, Lloyds Banking Group, NatWest, Santander, Metro Bank, TSB, and Handelsbanken - disclosed account closure data to the Commons Treasury Committee after requests for information from MPs. Reasons for closure included failure to provide regulatory information and dormant accounts. UK Finance has noted that a small proportion of accounts are closed due to financial crime, fraud concerns, customer due diligence, or account dormancy. A recent report by the All-Party Parliamentary Group on Fair Business Banking found that thousands of customers were being debanked or having facilities refused every month. A Treasury spokesperson said: “We are taking action on debanking and remain committed to legislation – forcing banks to explain and delay any decision to close an account under new rules, protecting freedom of expression." It is noted that the Financial Conduct Authority is reviewing the issue of account access.

 

Financial Times

The Times

City A.M.

The code of good practice for asset managers in Britain will undergo a comprehensive review to support economic growth and international competitiveness. The review, which could result in increased pay for top executives, will assess whether the code has led to unintended consequences such as "short-termism" in targets. The Financial Reporting Council (FRC) will make concrete proposals in the summer for public consultation, with the revised code expected to be published in early 2025. The review comes as Britain seeks to enhance London's appeal as a global financial sector through listing and other reforms. The Capital Markets Industry Taskforce (CMIT) has called for the code to be "recalibrated" to allow companies to set pay at globally competitive levels, preventing UK executives from being paid less than their global peers. The FRC's review aims to ensure that the principles of the code continue to drive the right stewardship outcomes for investors without adding unnecessary reporting burdens.

 

Daily Mail

Media outlets follow up on news first reported in the FT yesterday that the Financial Conduct Authority (FCA) has outlined plans that would see the City watchdog name firms under investigation at an earlier stage, saying that this would increase transparency about its enforcement work and deter wrongdoing. Under the proposals, the FCA will publish updates on investigations “as appropriate.” It would also offer details when cases have been closed with no enforcement outcome. At present, it only publishes information on its enforcement action when it leads to an outcome, such as a sanction or a notice to pay redress. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said greater transparency will “drive greater accountability for us as an enforcement agency.” The changes would mainly apply to firms rather than individuals due to rules around privacy. The financial services regulator is not allowed to publish the name of an individual it is investigating unless it is necessary to do so for the purposes of its investigation.

 

The Daily Telegraph

Daily Mail

The Competition and Markets Authority has launched an investigation into Qualcomm's planned purchase of Israeli auto-chip maker Autotalks. The antitrust watchdog will look to determine whether the acquisition would result in a substantial lessening of competition in the market.

 

Reuters

Steve Hare, the CEO of software company Sage, predicts that artificial intelligence (AI) will revolutionise the accountancy industry, leading to fewer but more productive jobs. Mr Hare believes that generative AI will soon be relied on by small businesses for basic accounting work, such as tax returns, which will eliminate the need for paper receipts and manual data entry. While AI will reduce the number of mundane accounting jobs, Mr Hare believes it will create more jobs focused on advisory, forecasting, and strategy. He also said that AI will not replace accountants but rather assist them in tasks and problem-solving. His comments came as Sage unveiled its new AI-powered software, Sage Copilot, which aims to automate administrative tasks, provide insights for business improvements, and enhance productivity.

 

Daily Mail

The Independent

Amazon and Samsung have warned their employees against using third-party AI chatbots for work. Last year, Samsung banned the use of generative AI tools on its internal networks, citing concerns about potential data leaks. Now, Amazon has sent an email to its employees, cautioning them against using third-party AI models for confidential work. Both companies are cautious about the privacy of their data and have policies in place regarding the use of third-party generative AI. These policies state that companies offering generative AI services may have ownership over the data input by employees. The companies also fear that sensitive information may be at risk if put on these platforms.

 

The Times of India

Delays in bringing new power generation online will result in an energy security "crunch point" in Britain by 2028, according to a study commissioned by Drax. The analysis by Public First for Drax reveals that by 2028, the UK's power demand will exceed dispatchable and baseload capacity by 7.5 GW during peak times. This is double the gap seen in 2022 and is due to an increase in demand, the retirement of existing assets, and delays in the delivery of the Hinkley Point C nuclear power plant. The study suggests that the next British government must extend the life of existing assets and manage energy demand to address the shortfall. The report coincides with an auction seeking to procure 44 GW of available power generating capacity for 2027-28. Drax, which operates biomass and hydropower assets, warns that the margin between targeted capacity and generation in the auction is the tightest in a decade. "The two most viable options are to extend the life of existing assets, for example, nuclear or biomass, and simultaneously manage energy demand," the study states.

 

Reuters

British firms say they are facing higher shipping costs and delays of up to four weeks due to attacks in the Red Sea. A survey of more than 1,000 firms by the British Chambers of Commerce (BCC) found that more than a third said they had been affected, with the rate rising to more than half among exporters. William Bain, the BCC’s head of trade policy, told the BBC's Today programme: "The pressures are getting higher and higher and there's only so long that costs can be absorbed.” He added the scale of price rises is not as high as the pandemic, “but these cannot be kept away from prices for long." The BCC, which represents more than 50,000 businesses, has called for extra government support for exporters, including the formation of an exports council to promote trade.

 

BBC News

The Post Office has confirmed that chief executive Nick Read, is under investigation, saying that there had been complaints against Mr Read and other staff. This came after former chairman Henry Staunton told MPs about the investigation during a hearing to discuss compensation payments to sub-postmasters at the centre of the Horizon scandal. Mr Staunton also claimed that Mr Read wanted to resign from the Post Office because he was unhappy with his pay. MPs earlier heard from witnesses who said an internal investigation was looking into Mr Staunton’s behaviour while he chaired the company.

 

BBC News

City AM

Prosecutors in Germany have confirmed they are investigating Riad Salameh, the former governor of Lebanon’s central bank, for money laundering and other crimes, saying they have issued an arrest warrant. Mr Salameh and other suspects are being investigated on charges including forgery, money laundering and embezzlement. Mr Salameh is also being investigated in Lebanon and at least five European countries.

 

Al Jazeera

Pav Gill, the Wirecard insider who exposed fraud that led to the payments firm's collapse, has criticised Germany's whistleblower protection law, voicing concern over a failure to provide anonymous reporting channels.

 

Financial Times

An expert panel reviewing Boeing's safety management processes has found a "disconnect" between the planemaker's senior management and employees on safety culture. The panel report, directed by Congress after two fatal Boeing 737 MAX crashes, criticised Boeing's safety culture and highlighted a lack of awareness of safety-related metrics at all levels of the organisation. The expert panel was named by the US Federal Aviation Administration early last year.

 

Reuters

Currys has rejected a second takeover approach from US investment management firm Elliott, saying the offer "significantly undervalued" the business. Elliott valued the electronics retailer at around £757m, up from its initial valuation of £700m. Under UK takeover rules, Elliott has until 16 March to make a final offer. Danni Hewson, head of financial analysis at AJ Bell, said Elliott had made its intentions towards Currys "crystal clear,” adding: "It's put more skin in the game, though nowhere near as much as the company's board will need to see if it's to properly engage with its suitor.” It is noted that Chinese e-commerce group JD.com has also expressed an interest in buying the British retailer.

 

Sky News

BBC News

The Policy Exchange think-tank says firms should play a greater role in supporting the nation's health, reducing long-term sick leave, and cutting the benefits bill. The report has received cross-party backing and highlights the need for incentives and clear information to encourage employers to choose high-quality and cost-effective services. Sickness absence and ill-health among working-age people cost the UK an estimated £150bn per year. Last year, 186m working days were lost due to sickness or injury. 

 

Daily Mail

A new analysis of PwC's annual UK CEO Survey reveals that 28% of UK bosses believe they are at risk from climate change in the next year. The survey also found that 24% expect climate change to impact how they do business over the next three years. The study highlights that climate change is a major concern for UK CEOs, with 43% of business changes driven by net zero goals. However, 26% of CEOs have no plans to make their businesses net zero. Challenges to becoming greener include a lack of demand from outside the company, a lack of green technology in their sector, complicated rules, and less money made from green investments. The study also reveals that 85% of UK bosses have made efforts to reduce their energy use.

 

Daily Mirror

The Hong Kong Monetary Authority (HKMA) is developing a cloud-based platform for banks to analyse the risk to their property assets in different climate scenarios. The HKMA is also collaborating with the Hong Kong Institute of Bankers to develop talent in green and sustainable finance. The authority aims to address the pain points faced by the banking industry in managing climate risk. It is expanding its role as a banking supervisor by setting up an online risk assessment platform and providing training to the workforce. The HKMA has developed a physical risk assessment engine that will be rolled out soon. Additionally, it is partnering with the International Finance Corp to start the Asia chapter of the Alliance for Green Commercial Banks. The authority believes that banks in Hong Kong generally have sound risk management practices.

 

South China Morning Post