Post on 16-Jan-2016
Annual General Meeting
2009/10 Year End Accounts2010/11 Budget
Bill Alexander
Membership2010 Membership• 64 Members
– 35 Issuer Members– 29 Service Members
– 13 members who have yet to pay
2009 Membership• 66 Members
– 35 Issuer Members
– 31 Service Members
2009/10 End of Year AccountsRevenue Expenditure
Membership Subscriptions•Annual Fee•Ernst & Young
£132,000
£28,000 £37,000
Social Events £3,000 £3,000
Conference £91,000 £84,000
Market Research £35,000 £39,000
Secretariat Fees £62,000
PR £24,000
Member Meetings £17,000
Other £31,000
TOTAL £289,000 £297,000
PROFIT - £8,000
2010/11 BudgetRevenue Expenditure
Membership Subscriptions•Annual Fee•Ernst & Young
£138,000
£32,000 £35,000
Social Events £1,000 £1,000
Secretariat Fees £64,000
PR £26,000
Member Meetings £17,000
Other £32,000
TOTAL £171,000 £175,000
DEFICIT / SURPLUS - £4,000
2010/11 BudgetRevenue Expenditure
Membership Subscriptions•Annual Fee•Ernst & Young
£138,000
£32,000 £35,000
Social Events £1,000 £1,000
Secretariat Fees £64,000
PR £26,000
Member Meetings £17,000
Other £32,000
TOTAL £171,000 £175,000
DEFICIT / SURPLUS - £4,000
Potential Additional Expenditure not included in Budget
Bribery Act £3,400
Ernst & Young Fee for VAT Representation £22,500
PR for Market Research £3,000
Response to E-Money Directive £tbc
Constitution Changes• Proposal received to amend the constitution
regarding the length of service for executive members
• Currently Constitution States:• An EC member cannot remain on the EC for more than 24 months, and
must resign after this period. They may however stand for re-election.
• Proposal is:• An EC member cannot remain on the EC for more than 24 months, and
must resign after this period. They may however stand for re-election for a further 24 months, at the end of this term (i.e. A total period of 48 months) an EC member may not stand for re-election until a period of 12 months has lapsed.
Wendy AndrewsErnst & Young
8 November 2010
UK Gift Card and Voucher Association
VAT update
VAT update
LMUK/Baxi
TNT and postal services
European Harmonisation
2015 EU changesApril 21, 2023 Presentation title Page 12
LMUK/Baxi
VAT and loyalty schemes
Recovery of VAT on reward goods and services
Provided to customer or to organiser of scheme?
Potential for some VAT recovery – referred back to UK Supreme Court
April 21, 2023 Presentation title Page 13
TNT and postal servicesVAT liability of postage supplied by Royal Mail
Pre-agreed contracts should have been subject to VAT
Potential for retrospective claims
Change in liability for the future
April 21, 2023 Presentation title Page 14
EU harmonisation
UK position:Face value vouchersRetailer/credit vouchersTreatment in supply chain
EU position:Single/multi purpose vouchersDifferent market
April 21, 2023 Presentation title Page 15
EU harmonisation
• Next Steps:
EU Commission – proposal documentLiaison with HM Treasury and HMRC
regarding UK position in discussionsMake sure that views of UK business are
represented in all discussionsTimescale?April 21, 2023 Presentation title Page 16
EU Harmonisation - 2015
Place of supply of services to consumers
From 2015 will be where the consumer belongs
Cross border supplies to private customers subject to local VAT
Unharmonised voucher treatment will be complex and difficult
April 21, 2023 Presentation title Page 17
Andrew JohnsonDirector General
Bribery Act
• Changes to current act come into force April 2011
• Wording in the act suggests that third party incentives/dealer incentives could be deemed a bribe
• Awaiting he outcome of consultation for final wording of the act
• Been assured that the act is not intended to stop genuine third party incentives
Andrew JohnsonDirector General
Self Regulation & Emoney
Emoney Directive
• UKGCVA working with HM Treasury & Financial Services Authority
• Changes come in April 2011
• Implementation consultation papers issued by both Treasury & FSA – deadline for response is 30th November
• UKGCVA will respond, encourage members to respond
Emoney Directive
• The consultation papers refer to implementation• The EMD has been ‘written’ into EU law and cannot
be changed, this is about how the UK implement the regulation
• Treasury ‘set’ the rules, FSA ‘police’ the rules, hence the two consultations
• UKGCVA needs to engage more with FSA as they will determine the limited network guidelines, i.e. What is in scope for Emoney and what gift card programmes fall out of scope
2EMD
UKGCVA Members Meeting
26
A Review of Key Issues
Limited Network
Redemption of e-Money
Agents and Distributors
Transitional Issues
27
Limited Network
• Definition
• Grey Areas
• Possible Solutions
28
Redemption of e-Money
• at any time
• at par value
• safeguarding
29
Agents and Distributors
• Key differences
• Registration
30
Transitional Issues
• PSD 2 months notice to charge (reloadable / non-reloadable)
• Re-carding if now outside e-money
• Timing for Grandfathering
31
Contact
Global Head – Cards and Payments
Tel.: +44 20 7429 6074
Fax: +44 20 7429 6374
Email : rcourtneidge@salans.com
Salans
Millennium Bridge House
2 Lambeth Hill
London
EC4V 4AJ
www.salans.com
Robert Courtneidge
Key Questions in Treasury Consultation• Is FSA guidance, and case by case consideration, the
right approach to determining what constitutes limited network?
• Are there any cases where the law determining what constitutes a limited network may be unclear? How should these cases be resolved?
• Are voluntary codes of conduct, supported by safeguarding arrangements for customer funds, the right way to protect consumers in the unregulated sector?
• Is there a better alternative?
Self Regulation• Treasury recognise (as a result of EMD) significant
proportion of industry remains unregulated i.e. Gift vouchers and closed loop cards
• Treasury engaged with Office of Fair Trading• UKGCVA approached by Treasury and OFT to discuss
‘self regulation’• Expected to discuss Q1 2011• Treasury make statement in EMD consultation so we need
to ‘show intent’ by 30th November• Results of consultation, including self regulation published
by Treasury, FSA and OFT second week December 2010
Self Regulation
• UKGCVA invited to meet with Treasury and OFT on Monday 15th November – speak to Andrew if you would like to attend
• British Retail Consortium meeting with OFT today
• Objective of the meeting:– for OFT/Treasury to scope out the potential ‘liability’ to consumers
– Understand how the industry feels about self regulation
– Understand if self regulation is feasible
Best Practice
• OFT have tentatively indicated the UKGCVA current ‘Best Practice’ statement in the constitution may be sufficient
• OFT may give this Best Practice the ‘rubber stamp’
• This addresses– ‘Treating the Customer Fairly’ &
– ‘Prudent Financial Protections of Consumer Funds’
Best PracticeTreating the customer fairly Issue clear, uncomplicated terms and conditions, that include guidance on key issues such as
Expiry dates and what this means.Any card or voucher feesAny restrictions on when and how the gift card or voucher can be spentLegal responsibilities of the card or voucher holder and issuer.
Ensure that the staffs (both direct and indirect) of the issuing party are trained in all procedures relating to the gift card so that they can provide a fair and understanding service to the gift card or voucher customers. These procedure should include –
What to do in the event of a lost or stolen cardRefund policyHow to check a card balanceHow to spend the funds on the card or voucherFor cards, any minimum or maximum load values
Best PracticePrudent financial protection of consumer funds All gift card and voucher issuers should ensure adequate provision is made on their balance sheet for unredeemed gift cards and vouchers which should also include a prudent policy on writing off unredeemed vouchers. Where issuer’s cash ratios are considered to be less than strong consideration should be given to ring fencing the unredeemed funds to ensure long term protection against liquidity problems. If an issuer faces financial difficulties, the sale of prepaid gift cards and vouchers should cease immediately unless the funds are guaranteed by a third party (which could include an independent trust fund where the funds are directly paid into).
Best Practice
• Do/can members adhere to these Best Practice guidelines?
• Timing is not great, second week of December ‘made public’
• Implications across the industry if OFT take a firm stance
• Action from UKGCVA
Any
Other Business?