How is everyone managing / preparing to manage the enforcement of Mifid II (Bribery Act)?

london
venues

(Jade Farhangi) #1

We are noticing more and more that large corporate companies are now less inclined to hire out venues to put on events for their clients due to the Bribary Act that is soon coming into effect!

Are there any Venue managers who are noticing the same? and how have you prepared for this? any new strategies?


(Nick Lawson) #2

Hey Jade can you link to the Bribery Act? Interested to learn more


(Belinda Booker) #3

Do you mean they don’t want to hire “luxury” venues that could be perceived as trying to win influence? I know that pharmaceutical companies haven’t been able to host doctors at 5* hotel for a long time.


(Gwen Rhys) #4

Jade - I’m not a venue, but I host events that large corporates attend, often taking corporate table(s) and bringing either employees and/or clients, customers, etc. I’ve been noticing less and less “corporate hospitality” all round for the last 12 months.

I don’t know if this is the Bribery Act (and yes PharmaCos have been used to this for some time). Last year I thought it was Brexit. Now I’m not sure what it is and it’s making me nervous of hosting events and taking the financial risk.

I had expected a dip post 2008 “crash” that didn’t in fact happen - except Champagne Receptions became Sparking Receptions (!).


(Jade Farhangi) #5

@nick_lawson here’s what I am looking at right now:

https://www.ftfnews.com/event/navigating-the-maze-of-mifid-ii?section=about
https://en.wikipedia.org/wiki/Bribery_Act_2010

So basically, one of our contacts with loads of HNW and UHNW contacts in the major companies explained to us that because of the Bribery Act, companies have to now be careful and rein in their spending as “Client Hospitality” can now be seen as a form of bribery! He also said that business meetings and conferences are okay and are now being held in the more traditional spots like hotels, but when it comes to buying food, drink and entertainment for clients it gets a bit sticky!
And its not the first time it has been mentioned to us - apparently those useful client lunches that the corporates love are also being clamped down on :speak_no_evil:
So yes @Belinda_Booker I think it must be the same kind of thing!

What confuses me though is that people are referring to the Bribery Act and MIFID II as one and the same. From doing some research on both, and reading a whole bunch of jargon that I don’t quite understand - I am not quite sure how it is one and the same which is why I think my colleague and I may actually attend the event in the first link to learn more about it.

There are a whole lot of articles on the web about how it affects other business sectors, but none so far on how it will affect the events industry come 2018!

@womeninthecity I think it must be a combination of a few things and also possibly the fact that its end of year and budgets are tight! So for luxury venues it sucks even more! lots of restrictions it seems at the moment so trying to find a way around that or somehow discover an untapped market (too ambitious?) :scream:


(Belinda Booker) #6

The difference is that the Bribery Act applies to all companies and MIFID is just for financial firms. The former states that hospitality is fine as long as it is “reasonable and proportionate”.

You could consider introducing a basic hospitality package targeted at financial companies, which demonstrates your awareness of compliance and might help to allay fears? The ‘Daily Mail’ test is the key thing when it comes to avoiding accusations of bribery (i.e. would the organisers/participants be embarrassed if the story appeared in the paper?)!


(Belinda Booker) #7

Hi @Jade_F, I was just wondering if you’ve seen any development in this trend over the last six months? Have you deployed any strategies to encourage clients back/help them comply?


(Jade Farhangi) #8

Hi @Belinda_Booker!

Apologies for such silence, I have been absent from the forum for quite some time!

We now have a front of house Sales / Venue Management team that take care of all of this.
However we haven’t really experienced much resistance related to this though, luckily!

Nice to be back on here, taking some time to catch up on all the useful bits I’ve missed!


(Belinda Booker) #9

Good to have you back Jade!