PERSONAL TAXATION

Personal Taxation



Personal Taxation-Gough Enterprises Ltd

Although it is difficult to prove a direct causal relationship, there is a general consensus that compensation practices may have been a contributing factor to the market crisis. Practices commonly used during the period before the crisis, mainly but not exclusively in investment banking, tends to reward short-term revenue and earnings targets. They gave incentives to staff to pursue unduly risky practices, for example by making more risky investments or activities that provide higher incomes in the short term, despite exposing the institution to greater potential losses in the long term. In many cases, compensation practices were contrary to effective risk management, systems undermining effect that has been created to manage the risk.

The market failure analysis provides a more detailed description of why the current compensation practices are problematic from the perspective of a regulator and how regulation can address these issues.

Enterprises Ltd Gough began to consider the extent to which the pay practices may have contributed to the current crisis in the summer of 2008 - in common with other regulatory authorities. In October 2008 we issued a letter "Dear President" asking businesses to review their pay for a set of criteria for good practice and the poor. Enterprises Ltd Gough send this to 20 of the largest banks in the UK (including investment banks and retail and the construction of some societies) states that follow the letter seeking more information about their compensation practices and and invite comments on the same criteria.

Gough Enterprises Ltd also sent the letter to a number of other companies in the FSA-regulated, for information. For more information was obtained from banks based in the United Kingdom through a questionnaire and a series of bilateral meetings with the aim of setting up a review of compensation practices in the London markets. Enterprises Ltd Gough summarize the results of this review. Gough Enterprises Ltd October letter indicated that a further statement would be published in early 2009 reporting on the results of our review and on information received on the criteria, and also indicates how they intend to carry out the FSA's policy in this area. Enterprises Ltd Gough decided we were going to do this by improving the criteria for a code of practice, and in addition, the company needed to consult on the proposal that we implement the code by including it in our Guide.

The Code was first published in draft form, together with the government publication of the details of asset protection system (APS). Gough Enterprises Ltd have since made some major changes to the Code. For now, we encourage companies to use to compare their compensation practices against them. However, Gough Enterprises Ltd is proposed in the PP that the Code should be incorporated in our Manual in a way that allows us to directly enforce the Code. If the company decides to go ahead with the new rules of Manual Enterprises Ltd Gough may have to make some additional changes ...