Would you agree to have all your PIN numbers and all the other information required to get a multitude of services from various banks, financial institutions, libraries and commercial firms on one smart card? For some readers, your bus pass and pension entitlements could also be included. In a News Release from the Cabinet Office entitled Digital economy calls for smart thinking it is suggested that digital signatures could "be used to provide authentication, integrity, confidentiality and non-repudiation of electronic transfers". Fine words, but is it really likely to be safe? Public consultation papers will be produced in November and December. We can only wait and see what these propose, and what a digital signature implies, but it is essential that the Federation responds. Let the Legislation Committee have your views.
In a reply to the Financial Services Authority consultation on Treating Customers Fairly After the Point of Sale, the Federation drew attention to the content of post sales material received by customers once they have undertaken a financial purchase. Much of the reporting in areas where customers could move their custom easily, such as savings accounts or unit trusts, is not only in obscure language but is actively designed to discourage customers from moving their current business elsewhere. For example, explanations of poor returns never blame managers' performance, while comparisons with rates of interest offered by others are highly selective. We should call for a modest programme of independent unbiased post sales material with anonymous examples of good and poor practice. Firms should also provide their customers with an explanation of why mistakes have been made.
The number of firms seeking our money by post or other indirect means continues to grow. In the Bank Cheque Cashers Association newsletter they draw attention to an EU Council Framework Decision of May this year to combat fraud and counterfeiting of noncash items of payment. This ranges from cheques to the latest electronic instruments. All member states will have to have comprehensive legislation in place by 2nd June 2003. Serious gaps in present legislation will have to be closed. The newsletter states that while UK legislation is better than most, it will probably require some tweaking. The Association also draws attention to the booklet You and Your Money, available from Post Offices, though it queries its usefulness.
The Copyright, Designs and Patents Act can at first sight appear somewhat draconian. But how is it affected by the European Convention on Human Rights which gives the right to freedom of expression? In a Court of Appeal case before the Master of the Rolls it was emphasised that it is only the form of a literary work that is protected by copyright. It does not normally prevent the publication of information conveyed by the litera work. A defence can be mounted of it
being in the public interest or it being used for the purposes of criticism or review. No doubt this is all of great benefit to the media, which incestuously scans its rivals' output for subjects to use in its own news reports.
Link asked the Office of Fair Trading whether the fees agreed with most banks and building societies infringed the Competition Act 1998. Though members are able to negotiate their own charges with Link, few of them do so. The OFT agreed that the benefits outweighed the disadvantages. If you use the hole-in-the-wall machine of a different organisation, then your own bank is charged a cost-based fee of 28p for branch ATMs and 40p for those located in other locations such as supermarkets and shopping centres. You may yourself still be charged a fee of around £1 if you use one of those cash machines set up by independent firms in shops and some other places.
The powers and duties of Trustees acting in charities set up as trusts or unincorporated associations, but not those set up as companies, have been changed by the Trustee Act 2000 which came into force in February this year. They may now invest in any type of security with no restrictions on what proportion can be put into any one particular type. They should, however, take professional advice and consider the need for diversification of investments and review them periodically. They may now acquire land. They may also appoint nominees or custodians of the charity's assets but must keep their actions under review. More detailed information can be obtained from the Charity Support Division of the Charity Commission on 0870 333 0123. But should a Commission such as this be using a national rate number now so many charities use cheaper call firms?
Consumer Codes of Practice seemed a good idea when they were first introduced many years ago. In practice they too often proved ineffective as the trade associations responsible either failed to monitor them or had no sanctions, except for expulsion, over those failing to keep up the standards, and that meant loss of paying members. The Director of Fair Trading, John Vickers, says "Our new regime for codes of practice is deliberately challenging. We aim to put the self back into self-regulation". The backing for this comes from the new ‘Stop Now Orders'. Priority will be given to the Codes for used cars, car servicing and repair, credit, funerals, travel, estate agents and direct marketing. Eventually code sponsors will have to prove that their codes are working, at which stage the OFT will endorse them.
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