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Item 5 Credit Card default charges
The Board was advised that the OFT will be publishing a statement on default
charges by the end of March, proposing a threshold. Although this approach is
not seen as a permanent or ideal solution (expected to last around 3 years), it
should improve the working of the market.
The team is already in discussions with key stakeholders, and meetings have
been set up with APACS and others. The team will also need to talk to the
banks again at some point. The team noted that the incentives staff got for
selling products also needed to be considered. It was confirmed that this work
is consistent with that already undertaken on MasterCard interchange fees.
The Board commended Steven Wood for all his work on this issue, and thanked
Ray Hall for stepping in and taking forward work from now on.
The Board was advised that the OFT will be publishing a statement on default
charges by the end of March, proposing a threshold. Although this approach is
not seen as a permanent or ideal solution (expected to last around 3 years), it
should improve the working of the market.
The team is already in discussions with key stakeholders, and meetings have
been set up with APACS and others. The team will also need to talk to the
banks again at some point. The team noted that the incentives staff got for
selling products also needed to be considered. It was confirmed that this work
is consistent with that already undertaken on MasterCard interchange fees.
The Board commended Steven Wood for all his work on this issue, and thanked
Ray Hall for stepping in and taking forward work from now on.
Credit Card default charges demonstration
The Board was advised that a demonstration was due to take place on 3 March
in Salisbury Square. Where possible, staff are advised to stay in the building or
use the alternative exits.
The Board was advised that a demonstration was due to take place on 3 March
in Salisbury Square. Where possible, staff are advised to stay in the building or
use the alternative exits.
1
OFT(06)3rd minutes
Minutes of the Office of Fair Trading Board Meeting
Thursday 2 March 2006
Present
Philip Collins (Chairman);John Fingleton (CEO);Allan Asher;Lord Blackwell;Richard Whish;Rosalind Wright;
Apologies
Christine Farnish;
OFT Staff
Nick Beresford;Colin Brown;Sue Cook;Cavendish Elithorn;Daniel Gordon;Paul Gurowich;Amelia Fletcher;Ray Hall;Chris Jenkins;Brian McHenry
Jonathan May;Simon Priddis;Hannah Priest;Bart Smith;Vincent Smith;Simeon Thornton;;Jody Whitehorn;Graham Winton;Board Secretariat
Erik Wilson;Francesca Seymour (Board Secretary)
Item 1 Minutes from the last Board meeting (9 February)
(OFT(06)2nd minutes)
The minutes of the last meeting were accepted as a true record.
2
Item 2: Divisional Directors Reports
The CEO and Divisional Directors provided the Board with key updates on theirrespective areas:
CEO
Staff appointments
The CEO advised that Ann Pope has been appointed as Head of the Preliminary
Investigations Unit.
Forthcoming meetings
The CEO is due to attend a quadrilateral meeting with DTI, HM Treasury and the
Competition Commission (CC).
Corporate Services
Comprehensive Spending Review (CSR)
Draft terms of reference in relation to the “zero-based” review of back office
functions have been sent to HM Treasury. This does not include anything on
consumer issues.
Fleetbank House
The COO reported on the landlord’s intended application for planning permission.
Communications
Media coverage
There has been good coverage on Scams throughout the month, and this
message needs to be sustained. Rosalind Wright advised that she and Mike
Haley had been interviewed by Turn on TV on scams issues, which may
encourage further coverage.
Good coverage had also been received on the Boots/Unichem and credit card
cheques announcements.
Business and Consumer Research
Results of the business and consumer research exercise will be circulated in the
next few days.
3
CRE
Scams
The forthcoming ICPEN meeting in Korea will pull together the initial outcomes
of the international input to fraud awareness month.
Credit Card default charges demonstration
The Board was advised that a demonstration was due to take place on 3 March
in Salisbury Square. Where possible, staff are advised to stay in the building or
use the alternative exits.
CRE Legal
Jessica Farry has returned from sick leave. Harsha Shewaram is returning to the
office on Monday and will replace Paul Gurowich who will be continuing his
work on OFT Plus.
CE
Mergers guidance
A meeting with CBI and City lawyers took place last week. The situations in
which some type of informal advice may be required by business may have to be
extended. An interim notice will be going out by the end of March.
ANL
Commitments were accepted this morning.
Private Enforcement
The submission on the Commission’s paper is due mid April.
MPI
Stakeholder review
The review by Phil Evans is due on 3 March, and will be fed into the change
programme.
Working with the FSA
An agreed joint press notice from the CEO and John Tiner at the FSA explaining
how the OFT and FSA can work more closely together is being prepared. HM
Treasury is keen for both organisations to enjoy a closer working relationship.
4
Item 3 Market Study
The Board was updated on an ongoing market study.
Item 4 Update on Consumer Direct (including governance)
Colleagues are in the process of being interviewed as part of the OGC Gateway
Review to ascertain the OFT’s readiness for the transfer of Consumer Direct on
1 April. The Board was updated on the following key areas:
Finance
It has been agreed with DTI that the £19m annual budget to the OFT on 1 April.
The DTI guarantee remains in place, but will only be called upon in an
emergency. The OFT will lead on the bid for Consumer Direct funds in the
Comprehensive Spending Review.
Recruitment and location
The team are all in place with the exception of the communications manager
who will join in mid-April. A head hunter will begin the search for the Consumer
Direct Director; the CEO will want to sign off the advertisement before it is
published.
Branding, marketing and communications
This has been discussed by the Transitional Advisory Group, and a good level of
co-operation is underway.
Governance
Agreement has been reached with the interested parties on the structure, role
and general membership of the National Strategy Group.
Item 5 Credit Card default charges
The Board was advised that the OFT will be publishing a statement on default
charges by the end of March, proposing a threshold. Although this approach is
not seen as a permanent or ideal solution (expected to last around 3 years), it
should improve the working of the market.
The team is already in discussions with key stakeholders, and meetings have
been set up with APACS and others. The team will also need to talk to the
banks again at some point. The team noted that the incentives staff got for
selling products also needed to be considered. It was confirmed that this work
is consistent with that already undertaken on MasterCard interchange fees.
The Board commended Steven Wood for all his work on this issue, and thanked
Ray Hall for stepping in and taking forward work from now on.
5
Item 6 Market Study
The Board was updated on an ongoing study.
Item 7 Approval of the Annual Plan and OFT vision
Annual Plan
The Board agreed to adopt the final version of the Annual Plan. It noted that
this may be produced in a different format next year.
OFT Vision
An updated version, reflecting comments by the Board and Directors was
circulated at table. The themes in the Vision can be drawn upon for speeches
and media briefings.
Item 8 Senior Executive Team (SET) report
The CEO introduced Cavendish Elithorn, who will be leading work on the
implementation of the new structure. The CEO’s presentation to Branch
Directors had gone well and a Branch Directors group is being set up to assist
with the implementation.
Staff Event
The Board was advised on the format for the forthcoming staff event.
Following the event the CEO will be holding two away days for Branch Directors
(BDs) (in two teams), and a series of staff workshops in April and May. The
CEO will also cover the new structure in an interview he is giving to Whitehall
and Westminster World on 17 March.
Item 9 Any other business
There were no issues that NEDs wished to discuss.
Papers below the line:
Item 10 Management Accounting Information
The Board noted the information provided for the 11 months ended 28 February.
Francesca Seymour
Secretary to the OFT Board
3 March 2006
6
OFT(06)3rd minutes
Minutes of the Office of Fair Trading Board Meeting
Thursday 2 March 2006
Present
Philip Collins (Chairman);John Fingleton (CEO);Allan Asher;Lord Blackwell;Richard Whish;Rosalind Wright;
Apologies
Christine Farnish;
OFT Staff
Nick Beresford;Colin Brown;Sue Cook;Cavendish Elithorn;Daniel Gordon;Paul Gurowich;Amelia Fletcher;Ray Hall;Chris Jenkins;Brian McHenry
Jonathan May;Simon Priddis;Hannah Priest;Bart Smith;Vincent Smith;Simeon Thornton;;Jody Whitehorn;Graham Winton;Board Secretariat
Erik Wilson;Francesca Seymour (Board Secretary)
Item 1 Minutes from the last Board meeting (9 February)
(OFT(06)2nd minutes)
The minutes of the last meeting were accepted as a true record.
2
Item 2: Divisional Directors Reports
The CEO and Divisional Directors provided the Board with key updates on theirrespective areas:
CEO
Staff appointments
The CEO advised that Ann Pope has been appointed as Head of the Preliminary
Investigations Unit.
Forthcoming meetings
The CEO is due to attend a quadrilateral meeting with DTI, HM Treasury and the
Competition Commission (CC).
Corporate Services
Comprehensive Spending Review (CSR)
Draft terms of reference in relation to the “zero-based” review of back office
functions have been sent to HM Treasury. This does not include anything on
consumer issues.
Fleetbank House
The COO reported on the landlord’s intended application for planning permission.
Communications
Media coverage
There has been good coverage on Scams throughout the month, and this
message needs to be sustained. Rosalind Wright advised that she and Mike
Haley had been interviewed by Turn on TV on scams issues, which may
encourage further coverage.
Good coverage had also been received on the Boots/Unichem and credit card
cheques announcements.
Business and Consumer Research
Results of the business and consumer research exercise will be circulated in the
next few days.
3
CRE
Scams
The forthcoming ICPEN meeting in Korea will pull together the initial outcomes
of the international input to fraud awareness month.
Credit Card default charges demonstration
The Board was advised that a demonstration was due to take place on 3 March
in Salisbury Square. Where possible, staff are advised to stay in the building or
use the alternative exits.
CRE Legal
Jessica Farry has returned from sick leave. Harsha Shewaram is returning to the
office on Monday and will replace Paul Gurowich who will be continuing his
work on OFT Plus.
CE
Mergers guidance
A meeting with CBI and City lawyers took place last week. The situations in
which some type of informal advice may be required by business may have to be
extended. An interim notice will be going out by the end of March.
ANL
Commitments were accepted this morning.
Private Enforcement
The submission on the Commission’s paper is due mid April.
MPI
Stakeholder review
The review by Phil Evans is due on 3 March, and will be fed into the change
programme.
Working with the FSA
An agreed joint press notice from the CEO and John Tiner at the FSA explaining
how the OFT and FSA can work more closely together is being prepared. HM
Treasury is keen for both organisations to enjoy a closer working relationship.
4
Item 3 Market Study
The Board was updated on an ongoing market study.
Item 4 Update on Consumer Direct (including governance)
Colleagues are in the process of being interviewed as part of the OGC Gateway
Review to ascertain the OFT’s readiness for the transfer of Consumer Direct on
1 April. The Board was updated on the following key areas:
Finance
It has been agreed with DTI that the £19m annual budget to the OFT on 1 April.
The DTI guarantee remains in place, but will only be called upon in an
emergency. The OFT will lead on the bid for Consumer Direct funds in the
Comprehensive Spending Review.
Recruitment and location
The team are all in place with the exception of the communications manager
who will join in mid-April. A head hunter will begin the search for the Consumer
Direct Director; the CEO will want to sign off the advertisement before it is
published.
Branding, marketing and communications
This has been discussed by the Transitional Advisory Group, and a good level of
co-operation is underway.
Governance
Agreement has been reached with the interested parties on the structure, role
and general membership of the National Strategy Group.
Item 5 Credit Card default charges
The Board was advised that the OFT will be publishing a statement on default
charges by the end of March, proposing a threshold. Although this approach is
not seen as a permanent or ideal solution (expected to last around 3 years), it
should improve the working of the market.
The team is already in discussions with key stakeholders, and meetings have
been set up with APACS and others. The team will also need to talk to the
banks again at some point. The team noted that the incentives staff got for
selling products also needed to be considered. It was confirmed that this work
is consistent with that already undertaken on MasterCard interchange fees.
The Board commended Steven Wood for all his work on this issue, and thanked
Ray Hall for stepping in and taking forward work from now on.
5
Item 6 Market Study
The Board was updated on an ongoing study.
Item 7 Approval of the Annual Plan and OFT vision
Annual Plan
The Board agreed to adopt the final version of the Annual Plan. It noted that
this may be produced in a different format next year.
OFT Vision
An updated version, reflecting comments by the Board and Directors was
circulated at table. The themes in the Vision can be drawn upon for speeches
and media briefings.
Item 8 Senior Executive Team (SET) report
The CEO introduced Cavendish Elithorn, who will be leading work on the
implementation of the new structure. The CEO’s presentation to Branch
Directors had gone well and a Branch Directors group is being set up to assist
with the implementation.
Staff Event
The Board was advised on the format for the forthcoming staff event.
Following the event the CEO will be holding two away days for Branch Directors
(BDs) (in two teams), and a series of staff workshops in April and May. The
CEO will also cover the new structure in an interview he is giving to Whitehall
and Westminster World on 17 March.
Item 9 Any other business
There were no issues that NEDs wished to discuss.
Papers below the line:
Item 10 Management Accounting Information
The Board noted the information provided for the 11 months ended 28 February.
Francesca Seymour
Secretary to the OFT Board
3 March 2006
6
