Sunday, January 26, 2020

The Banker-Customer Relationship

The Banker-Customer Relationship Banker Customer Relationship In the light of a massive erosion of the principle of confidentiality. In the Banker/ Customer Relationship Review Committee on Banking Services Law (1989) recommended that the government should not further extend the statutory exceptions to the duty of confidentiality, without taking full account of the consequences for the banker/ customer relationship Critically discuss how the principles of confidentiality has developed the potential aspect on banker/customer relationship. The banking service plays a major role in within modern society. It is estimated that over 90% of all adults in the UK hold a bank or building society account. Therefore the proper deliver of services by banks is of significance to the majority of UK consumers. The issue of confidentiality is an essential feature of the service. In 1989, the Treasury and the Bank of England set up the first independent review on banking services law and practice within the UK. That report is known as the Jack Report. The objectives of the report were to achieve four main objectives: i) achieve fairness and transparency of dealings ii) maintain confidence iii) promote efficiency iv) preserve the bankers duty of confidentiality. Amongst its 83 recommendations, the Report recommended that the government should not further extend the statutory exceptions to the duty of confidentiality, without taking full account of the consequences for the bank/customer relationship. This paper seeks to analyze how the principles of confidentiality have developed since 1989 in relation to the banker and consumer. History The obligations of confidentiality in relation to banking law within the UK stem from the common law. The leading case in this area was Tournier v National Provincial and Union Bank of England. The bank had released information related to the plaintiffs debt to the bank to his employers, and this subsequently led to his dismissal. The Court of Appeal confirmed that it is an implied term of the banker/customer contract that the banker has a duty of secrecy. In the circumstances of the case, it was found that the bank had breached its duty, and the court found for the plaintiff. Bankes LJ stated that confidentiality may be breached: i) Where disclosure is made under compulsion of law; ii) Where there is a duty to the public to disclose iii) Where the interests of the bank requires disclosure iv) Where the disclosure is made by the express or implied consent of the customer. The decision was more recently affirmed by the Court of Appeal in 1989 in Lipkin Gorman v Karpnale. Therefore, the primary rule in UK banking law is that all information relating to the state of a customers account, or any of his transactions with the bank, or any information relating to the customer acquired through the keeping of his account is confidential, subject to the four Tournier exceptions. Statutory Law The first exception in Tournier permits the bank to disclose confidential information under compulsion of law. This may be either at common law or statute. The Committee took the view that too many inroads had been made by legislation into banking confidentiality. At the time of the Jack Report, the following legislative exceptions existed:- Banking Acts The Banking Act 1979 was the first formal legal framework to banking regulation within the UK. Part V of the Banking Act 1987 sets out restrictions on the disclosure of information without consent. It does not extend to any information within the public domain. Exceptions are set out at Sections 83 and 84. These permit, inter alia, restricted information may be released to an auditor if that information would assist the FSA in discharging its functions. Section 7 The Bankers Books and Evidence Act 1879 This permits any party to legal proceedings to apply to the court for an order granting him permission to inspect and take copies of any entries in a bankers books, for the purposes of such proceedings. This power is discretionary, and will only be exercised with great caution. An order is only usually made against the account of the party who is involved in the litigation or, if it is in the name of some other person, the account which is really the account of the party. It will only be made against non parties in very exceptional circumstances. Further, there is an implied undertaking on discovery only to use the documents for the purposes of the action in which discovery is given. The Taxes Management Act 1970 S1 2 Various provisions under this act permit the Commissioners to decide whether or not in their opinion tax has been unlawfully evaded. Therefore, the ambit of this exception is wide. However, it is only the office holder, such as the Administrator or liquidator that may make an application to the court for an order under this provision. Police and Criminal Evidence Act 1984 The police are entitled to obtain access to special procedure material for the purposes of criminal investigation. If an order is made relating to bank confidential information, the bank is under no obligation to resist the order, nor to inform the customer that an order is being sought. Financial Services Act 1986 S177 allows the Secretary of State to appoint inspectors to carry out investigations to establish whether or not an offence of insider dealing has been committed. The Inspectors may order any person whom they consider may be able to give information to produce any documents in his possession or control. Insolvency Act 1986 s.236(1) The court may summon any person known or suspected to be in possession of any property of the company or supposed to be indebted to the company; or any person whom the court thinks capable of giving information concerning the promotion, formation, dealings, affairs or property of the company. It can require production of any records in his possession or control relating to these issues. The provision is not limited to documents required to reconstitute the state of the companys knowledge. Criminal Justice Act 1987 By Section 2, in cases of serious or complex fraud, the Director of the Serious Fraud Office may require any person to produce specified documents that appear to the Director to relate to any matter relevant to the investigation. The Jack Report The report examined the bankers duty of confidentiality and, in particular, the exception at iii) above in the Tournier case that disclosure may be permitted where the interest of the bank requires disclosure. The committee recommended that legislation should be enacted to state that damages for breach of confidentiality should include compensation for distress, embarrassment or inconvenience, regardless of whether financial loss could be proved. The report expressed concern in particular in relation to the growing perception within some banks that they are permitted to release confidential information to other members of their group without any express consent. An additional concern related to the disclosure of confidential information to credit reference agencies. These issues were considered in Turner v Royal Bank of Scotland PLC. In that case, the bank had responded to a number of status enquiries in its standard coded terms appears to be fully committed at present). The court heard evidence that it was the standard practice of all banks not to seek customers consents. The Court of Appeal held that customers were entitled, under Tournier, to have their affairs kept confidential, and it was not for banks to privately agree otherwise. The banking code now makes clear the banks obligations in these regards. The Committee was concerned that the balance between public interest and private rights had moved too far in the direction of disclosure. It is therefore clear, in light of the Jack Report, that the third exception within Tournier should not be used other than within the narrowest of situations. The government responded cautiously to the Report, but supported the idea of a voluntary code of practice. A voluntary code was developed by the banks. Although the code is voluntary, Almost all banks subscribe to it. The March 2003 edition of the Banking Code sets out the banks obligations of confidentiality, which reflect the four exceptions within Tournier. The Code also makes clear that the third exception within Tournier is designed to protect the institutions legitimate interests, and does not extend to the transfer of information for marketing purposes unless the customer has provided specific consent to such disclosure. Developments since the Jack Report Since 1989, arguments in favour of disclosure have increased. This arises out of growing concerns related to drug trafficking and other forms of organized crimes. Concerns have escalated in the wake of 9/11 and the war on terrorism. Therefore, since the Report, the government has enacted further legislation, which create much tighter obligations on banks to disclose information relating to drug trafficking, money laundering, and terrorism, as follow. Drug Trafficking Act 1994 This provides that where a person discloses to a constable a suspicion that funds are used in connection with drug trafficking, that disclosure will not be a breach of any statutory or other legal restriction. The police are also permitted to apply to the court for an order for disclosure in appropriate circumstances. Money Laundering Regulations 2001 The new regulations add a power to the commissioners to enter and inspect money service operators premises. It also empowers the commissioners to seek a court order requiring any person in possession of specified information to allow them access to it, where there are reasonable grounds for believe that a money laundering offence has been committed. Part 3 Anti-Terrorism Crime and Security Act 2001 This act was passed extremely quickly in response to the terrorist attacks on 11th September 2001. The Act was intended to ensure that government departments and agencies can collect and share information required for countering the terrorist threat. The disclosure powers within Part 3 have proved controversial, particularly since those powers are not limited to anti-terrorist investigations. There is naturally a perceived danger of citizens privacy rights being breached if hitherto confidential information is disclosed to the police or intelligence agencies under this new legislation. The Proceeds of Crime Act 2002 Under this Act, a crown court judge may make a disclosure order requiring any person to give tot he Director of the Assets Recovery Agency any relevant information. Under Sections 370-375, the court may also make a customer information order, which requires a bank to provide information relating to the affairs of the customer. Civil Procedure Rules Part 31 The requirements for disclosure are extended beyond the pre 1999 court rules. The court has developed powers to order discovery of information at the earliest stages of an action to assist a claimant to trace and recover property to which he claims he is wrongfully deprived. Conclusion The Jack Committee felt that too many inroads had been made by legislation into banking confidentiality, and recommended that consolidating legislation be enacted. It requested that any future exemptions should be made by reference to the new provision, and any not so made would not override the central duty of confidentiality. No such legislation was introduced. The government did not accept that there had been a massive erosion of the duty. It is submitted however that the exceptions in 1989 were extremely wide, as set out above. Exceptions existed if there was suspicion of tax evasion, any crime (under PACE), insider dealing, or fraud. Further, documents were even then disclosable without any criminal activity, in the case of an insolvent company or where civil proceedings were commenced. The government has since enacted extensive additional legislation which further undermines the obligation of confidentiality, creating a new suspicion based reporting regime. The government will argue that the further inroads are justified in the fight against terrorism, drug trafficking and other serious crime. The government must be seen to strike an appropriate balance in confidentiality laws vis a vis civil rights and public interest. The important question is whether todays consumers accept that there is justification for the diminished duty. Consumers would normally view all information within the banks possession as entirely confidential, not to be released without their explicit consent. It is submitted however that, in light of todays atmosphere of abhorrence to terrorism and crimes that may fund terrorism, such as drug trafficking and money laundering, the inroads to the duty seem palatable. Of course, the exemptions are far wider than most consumers would expect. For example, under the Bankers Books and Evidence Act, or under Part 31 of the Civil Procedure Rules, the court can require disclosure from a bank in connection with any civil court proceedings. This will not necessarily involve cases where there is any suspicion of criminal activity, and may simply relate to an alleged, ill founded claim for breach of contract. It is essential in todays society that consumers are able to maintain trust in their bank, and rely on the implicit confidentiality of the relationship. The right to privacy is of fundamental importance to most consumers This is essential particularly in commerce. It is not conducive to commercial efficiency to have information relating to trading made open to competitors. A breach of confidence to a competitor can cause immediate, irreparable and incalculable loss to a company. The courts have emphasized that there is a strong public interest in maintaining confidentiality based on the moral principles of loyalty and fair dealing. Consumers disclose information to banks on the understanding that it will remain confidential. Of course, disclosure is justified in exceptional circumstances, for example control of banking fraud, or where an individual is involved in money laundering profits from terrorism or drug trafficking. However, it is submitted that the current extent of the statutory exceptions go far beyond this. Bibliography Banking Litigation Warne Elliot, Sweet Maxwell 1999 Encyclopedia of Banking Law, Cresswell and others Butterworths 2004 Halsburys Laws of England, volume 3(1), 4th Edition Halsburys Laws of England 2001 Annual Abridgement (Paragraph 278) Modern Banking law Ellinger, Limnicka Hooley, 3rd Edition Oxford 2002 The Law Relating to Domestic Banking Pen Shea, 2nd Edition Sweet Maxwell Anti-Terrorism Crime and Security Act 2001 Banking Code March 2003 Data Protection Act 1988 Drug Trafficking Act 1994 Evidence (Proceedings in other jurisdictions) Act 1975 Insolvency Act 1986 Money Laundering Regulations 2001 SI 2001/3641 Police and Criminal Evidence Act 1988 Taxes Management Act 1970 Bhinji v Chatwani (No 3) [1992] 4 All ER 913 British Commonwealth Holdings plc (joint administrators) v Spicer Oppenheim (a firm) [1993] AC 426 Lipkin Gorman v Karpnale [1989] 1 WLR 1341 Peterson v Idaho First National Bank 83 Idaho 578 Tournier v National Provincial and Union Bank of England [1924] 1 KB 461 CA Turner v Royal Bank of Scotland PLC (1999) CA (Civ Div) 24.3.99) Banking Services: Law and Practice Report by the Review Committee Professor Robert Jack CM 622 1989 Cracking the codes for bank customers Banking services Consumer code review group, May 2001. Court Rules on Duty of Confidentiality Lovells International Law Office

Saturday, January 18, 2020

Project Shakti Case Questions

Project Shakti case questions With the advantages and benefits HLL attained from the market strategy in competing with the other FMCG companies in urban area while facing the intense situations of shrinking market shares brought by its rivals emulating the market strategy, HLL experienced a hard time of scaling up its attractiveness in products. After gaining the temporary increased sales, the competitors in rural marketing aggregate again. Increasing numbers of companies, heating up competition force HLL to struggle a way to explore a new less competitive market and extend its sales.Project Shakti initiates under such sharp condition. It weighs the special situation in rural India. Scattered villages and poor transportation stumbling HLL products being reached by its customers; low accessibility and educational level are the results of less consciousness of products and brands. The demands in rural area are limited. Project Shakti is generated to justify the disadvantages. It has tw o objectives when it was born. One relates to business that is to extend HLL’s reach into the untapped markets and improve its brands and products awareness among customers in that area.The other involves social factors, which is aiming at creating a sustainable livelihood opportunities for underprivileged rural women. That means women will be involved in operating their own enterprises by themselves. Moreover, this project builds up a bridge of communications among women and entrepreneurship, brands and customers, technology from urban to rural, backward lifestyle and modern lifestyle, short-term economic growth and long-term sustainable strategy.For the sake of business growth, forming small groups (Self-helped Group) and select one to invest in business is easy to manage, organize and operate, which is also profitable and no need to take too much risks. It targets the segment of rural women because it can easily access to potential customers since women are the mainstream of household purchasing. By directly selling the products, customers know about the brand including the attributes, reputations of consuming, service; seller (female operator) will be able to attain more profits aside from cheaper supply.Besides, female customers also have the opportunities to understand how does the project work, which might encourage them to join in. HLL decides to introduce the RSP system to coach women how to create and grow viable business is a creative action of sustaining both the business and women’s belief and confidence. This approach actually provides a platform of specifically doing a marketing research, knowing about customers’ preferences, purchasing ability, potential sales, market size, helping to explore new market and segment.Utilizing the project as a communication program. This move no longer need to hired anyone to coach entrepreneur, instead, the entrepreneur itself initiates the communications with customers within a supported br and among rural communities. They present products through many means, passing the products information to customers at different educational levels. It is the easiest and most direct way to generate contacts between consumers and products.This strategy modifies their living styles and improves the quality of life, spreading awareness of health and hygiene practices in rural India. It also energizes the products growth in category and enlarges its market. Introducing technology brings the increasing numbers in accessibility of their products. iShakti is another efficient communication between entrepreneur and distribution, entrepreneur and outlets, entrepreneur and company, entrepreneur and customers, entrepreneur and stockiest, entrepreneurs, customers and brands, customers and products, etc.It is a window to look outside and inside due to the poor conditions of transportations in rural India. It is convenient for entrepreneur to manage products information. This creative action im proves the operating efficiency. However, the costs are too expensive and would drag iShakti away from being scalable and sustainable. Though the project Shakti has negative impact on temporary shortage of money, such in the brand supported communication programs, more costs in setting up additional technological portals, the way its social image builds and brands pread indicating that the project has a very huge potentials in gaining more market share, and grows sustainably in the long run. It is no longer a simple products they sell, but products deliver a belief, a conception and an idea that women are not a group of people who only concentrate on dealing with house chores and taking care of husband and children. The products also build an image for all rural women that they could also fulfill their dreams and completely have the ability to operate their own business.It brings confidence and belief that make them realize their value of living. The project Shakti successfully incr eases sales and enlarges its market, both financially and socially impacts lives in rural India. The profits it brings not only on the behalf of its own, but also benefits women who responsible for the entrepreneur, and customers living in rural India. It changes the way of viewing themselves and values in life.

Friday, January 10, 2020

What You Dont Know About Essay Response Samples Could Be Costing to More Than You Think

What You Don't Know About Essay Response Samples Could Be Costing to More Than You Think The second portion of the paper is the point where the actual work begins. When it's challenging to compose an essay in 45 minutes, start with taking more time. The statement also assumes that in the event the state cleans up the river, using the river for water sports will certainly increase. For some of them you will require help, while others it is possible to write by yourself. Response essay writing is about how you opt to develop a perspective towards a specific thing and assess the scopes for more argumentative improvement. If you're thinking that you will need a person to compose my essay at the moment, you can merely rely on our honest reviews. This kind of essay must be written from the very first person perspective. A response essay is your opportunity to communicate your private viewpoint and extensive comprehension of writing. Things You Won't Like About Essay Response Sam ples and Things You Will Developing a summary and response essay can be a difficult job. Giving definitions is among the most well-known methods of writing an essay and would hence, prove to be boring. You'll have 45 minutes to finish the essay. You have 45 minutes to make your essay. You'll have 45 minutes to finish your essay. Taking a couple of minutes at the start to structure your essay can help save you valuable writing time later. Learn more about the way the essay is scored. It gives you an opportunity to show how effectively you can read and comprehend a passage and write an essay analyzing the passage. Now you are aware of how to compose a response essay! Response essays do not need to be a sheer statement of view on a particular topic. Jazz still plays a fantastic part in the audio industry amidst the many interesting spurring out in the industry. The response must still supply the reader with a very clear and beneficial comprehension of the message in the original, while responding to it. Thoreau claims there is a false impression about the improvements in today's world. To create an output isn't that easy. There are many ways how to compose a response paper. Writing a reaction paper can be a really challenging undertaking, so many students use examples to find out more about its structure and key capabilities. By downloading a sample, you are going to learn how to write reaction paper and prevent common mistakes. There's no ideal solution about how to compose an effective essay. An excellent prep book can be absolutely the most important study tool you use, and we've got information on all the very best TOEFL prep books you should think about. When an essay question is vague, it's going to be a whole lot more difficult for the students to answer and a whole lot more difficult for the instructor to score. The Secret to Essay Response Samples The following two sections will explain the format and requirements of every one of the writing tasks along with how th ey'll be scored. Below are a couple of the very best. Have a look at their promos page to see whether there are any present offers. Response papers enable you to do something which other assignments don't. Add a few middle paragraphs, where you speak about specific points in your primary idea. To sum up, the statement isn't logical since there are a few errors in it. Therefore, the response is adequately developed and satisfactorily organized to demonstrate the method by which the argument is dependent on questionable assumptions. Your paragraphs do not connect one another's meaning along with the whole thought of your essay might be incomprehensible. The next basic approaches are going to be a guide on the best way to structure your body paragraphs. Usually, an effective response is going to be 150 to 225 words. Within the analysis, your reaction to the text also needs to be presented. If you want, highlight the critical words and phrases in the stimulus to have the ability to look at it from time to time to make sure you adhere to the topic. Lastly, the detail of real speech makes the scene pop. As a result of complex and abstract nature of the idea of belonging, an authentic sense of belonging can be seen in various circumstances for various folks. Your response needs to be organized, with a start, middle, and end.

Wednesday, January 1, 2020

Capitalism And The Great Depression - 1725 Words

In 2008, following the housing bubble crash, mortgages foreclosed across the country and the New York Stock Exchange saw catastrophic losses; several economists began to question the strength of an unregulated capitalist system. The debate sparked the question: Is crisis an inevitable aspect of capitalism? With nearly 80 years past since the beginning of the Great Depression, memories of high unemployment rates and sluggish economic growth during the Depression-era had mostly been erased by a long period of relative prosperity. The recession of the late 2000s served as a reminder of the danger that capitalism can pose to society. The Marxian critique of capitalism provides a framework for analyzing the pitfalls and conditions of existence of capitalism that led to the Great Depression of the 20th century and the recession of the 21st century. Additionally, discussion of Marx’s crisis theories has been reinvigorated by the increasing amount of income inequality in the USA, whic h many people blame on the greed inherent in a profit-driven capitalist society. When evaluating the dilemmas surrounding capitalism, it is essential to draw comparisons between the Great Depression and the recession of 2008. The similarities between these economic crises demonstrate the tendency of the capitalist system to send us down a similar path towards economic turmoil and declines in overall living standards. The relevance of Marxian theory is amplified by the similarities between the economicShow MoreRelatedCapitalism : The Great Depression848 Words   |  4 PagesCapitalism is when the rich gets richer and the poor gets poorer. Capitalism has mercy on no one. 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