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Date
12 November 2015

Mishcon Thinks: E-Commerce and Regulation - Part 2

Partner and Head of the Betting & Gaming Group Susan Breen talks to Michael Hayman of Seven Hills about how regulation is affecting global e-commerce businesses.

Transcript

Mishcon Thinks

E-Commerce and Regulation

Michael Hayman MBE
Seven Hills

Let’s turn to the consumer a little more detail, I mean betting and gaming have a particularly sensitive relationship with the consumer I guess in terms of actually being responsible.  Are there issues here that companies are considering.

Susan Breen
Partner

I will give you an example, the UK Gambling Commission recently stated that the whole industry was not taking money laundering and terrorist financing seriously enough and there were some recent review cases who for one reason or another had some issues with their compliance functions.  They are not alone.  Many of these big businesses have, I won’t say relegated but certainly devolved anti money laundering to more junior staff and I think what you have now is a movement from the Regulators to say governance compliance has to come to the fore, it has to come to the boardroom.  It can’t be put in an area of admin, function, treasure, finance in the way it has done.

Michael Hayman MBE
Seven Hills

Are e-commerce firms having to grow up quickly?

Susan Breen
Partner

Well it’s sort of bipolar isn’t it because there are complete freedom of movement and services and they are not.  So if you look at VAT for example, it’s supposed to be neutral in terms of a tax.  It’s not supposed to distort competition and yet it’s exactly what it has done.  I don’t think it is going to be long before somebody takes the case to Europe to say that it is unclear, it is disproportionate and it’s unworkable.  There are already movements within industry associations to look at saying Commission, do something about this and make it clearer or we will do something.

Mishcon de Reya