Newbury Business Today

Regulation, regulation, regulation

26th January 2013

Email: richard.maynard@newburynews.co.uk

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The UK has the dubious distinction of spending more on compliance issues than comparable industrial countries. Rupert Wright, a corporate lawyer with Charles Lucas & Marshall, explains how to minimise the risks

IN certain business sectors such as insurance, even small companies are now having to employ full-time compliance managers.

Compliance issues, particularly relating to environmental law and health and safety law, have become increasingly important with the potential risk of personal liability for directors.
Environmental compliance issues are now part of everyday life for most businesses, whether they engage in evidently hazardous activities or not. Likewise, developments in the climate change arena are raising new challenges for the business community and the regulatory demands continue to widen.
On the positive side, environmental concerns raise opportunities for businesses.
In spite of the element of cynicism with some businesses, most scientists now accept climate change is happening and most businesses now tend to prefer to deal with eco friendly or environmentally conscious businesses.
Fines for breaches of environmental law and health and safety regulations can be very substantial and there is also the potential risk of personal liability
for directors.

Directors can minimise these risks in three ways:
1. Insurance.
This can certainly help but is of limited use for a number of reasons, namely there is a tendency for policies to exclude environmental risks. Insurance cannot cover criminal liability and policies are unlikely to indemnify officers where there is any wrongdoing on their part.

2. Understanding risk.
Appreciating the risk is probably the first step to minimising liabilities. There is a large volume of environmental and health and safety legislation and monitoring these developments gives directors more of a chance of ensuring their systems are adequate.

3. Compliance systems.
It is important that companies have proper compliance systems. These help to prevent accidents occurring. If an accident does occur, having a compliance system that measures up well against good practice would help the director avoid personal liability.
Charles Lucas & Marshall has a strong team who can advise on various aspects of environmental and health and safety law including advice on property matters, health and safety matters and general corporate matters.

Our approach is practical and commercial.
We help our clients assess risk and avoid problems.
Where they do have problems we help solve them.
Where damage is inevitable we strive to limit it.
We also do our best to advise our clients to avoid litigation.

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