Presentation for Better Business with Britain www danskebank
Presentation for Better Business with Britain www. danskebank. co. uk 2 nd February 2006 by Claus Wagenblast-Franck Head of Scandinavian Corporates London Branch
Agenda Overview of the UK banking environment Market dominant banks Legal and regulatory issues Danske Bank London
Overview of the UK Banking environment City of London is one of the largest financial centres in the world. In March 2005, 163 banks were incorporated and 287 foreign banks have branches in UK. This makes London THE financial centre in the world with the highest concentration of banks. More then 25, 000 firms with Personal Investment, Investment Management, Securities and Futures and other firms with authorisation from the Financial Services Authority (FSA) to offer financial services.
Overview of the UK Banking environment The Bank of England: Central bank founded in 1694. In May 1997 Bo. E was given full operational autonomy. Main aims are: 1. to achieve stability in the UK economy trough an independent monetary policy – e. g. decides the level of short-term interest rates necessary to meet the inflation target of the Government; currently 2. 00% 2. to maintain stability in the financial system Further, Bo. E has monopoly on the issue of Pound Sterling banknotes in England Wales.
Overview of the UK Banking environment Financial Service Authority (FSA): Independent non-governmental organisation which supervises and authorises individual banks and other financial organisations. Deals also with protection and investigation of financial crime including money laundering.
Market dominant banks The commercial banking market is dominated by 5 large clearing banks: 1. Royal Bank of Scotland incl. Nat. West and Ulster Bank 2. Barclays Bank 3. HSBC Bank 4. Lloyds TSB 5. HBOS (Bank of Scotland Halifax Building Society) And one big Scandinavian bank: Danske Bank, London
Legal and regulatory issues Introduction: The UK has a liberal legal environment. No special purpose legislation applies. Reporting requirements are very limited. However, UK compliance regulations are demanding compared to Scandinavian.
Legal and regulatory issues Cash pooling regulations: Cash concentration and notional pooling are allowed domestically as well as cross-border The accounts of the cash pool must be held by companies within the same group Under UK legislation multicurrency cash pooling is permitted (but not widely offered, though)
Legal and regulatory issues Compliance and money laundering: Banks are required to have efficient systems in place to Know Your Customer also called KYC. This includes a comprehensive understanding of : R E C I IF T A N IO 1. Customers ownership “who is the ultimate owner” 2. Line of business 3. Types of payments, e. g. number/volumes, domestic and international payments V . . . and the big word is;
Legal and regulatory issues Verification: 1. Company’s most recent report & accounts or opening balance sheet 2. List of all shareholders and directors 3. All principal shareholders (>10%), Managing Director and all sole signatories shall be verified If a principal shareholder is a “corporate body” the above will also apply for the shareholder.
Legal and regulatory issues Verification: Evidence identity by certified copy of: 1. passport 2. EU member state photo identity card 3. EU or UK photo-card driving licence Evidence of personal address by originals or certified copies of: 1. Utilisation bill e. g. electricity, water, gas or land-line telephone bill 2. Tax statement
Danske Bank London Branch Operating in the UK since 1983 Ø Institutional Clients Ø Scandinavian Corporates Ø Client Solutions Ø Loan Syndications Ø Danske Markets 75 King William Street London ECN 7 DT Phone +44 (0) 20 7410 8000
Banking services • Overdrafts & Loans • Bonds & Guarantees • Letters of Credit Import & Export • Foreign Exchange • Medium Term Financing
Your contacts at London Branch Head of Scandinavian Corporates Claus Wagenblast-Franck: +44 (0) 20 7410 8090 clw@uk. danskebank. com Head of Cash Management Steve Pike: +44 (0) 20 7410 8085 spik@uk. danskebank. com +44 (0) 20 7410 8091 andla@uk. danskebank. com Senior Relationship Manager Anders Wulff Larsen: Senior Relationship Manager Morten Olufsen: +44 (0) 20 7410 8053 molu@uk. danskebank. com +44 (0) 20 7410 8094 fer@uk. danskebank. com Senior Relationship Manager Bob Fereday:
Danske Bank London Branch is authorised by the Danish Supervisory Authority (Finanstilsynet) and regulated by the Financial Services Authority for UK business.
- Slides: 15