A task force has been set up by the British Venture Capital Association to create new guidelines for member firms for sources of funding. It will be headed by BVCA executive director Jennifer English. Draft guidelines and proposed recommendations will be reported to the council by the end of November.
The decision to set up the task force comes following Gordon Brown’s speech at the Labour Party conference in Brighton on October 1, said a BVCA spokesperson. In his speech, Brown stated: “No institution, no bank, no finance house anywhere in the world should be harbouring or processing funds for terrorists.” He called upon “all nations to implement financial sanctions to ensure that just as there is no safe haven for terrorists there is no safe hiding place for terrorist funds.”
BVCA chairman, Edmund Truell said the initiative was appropriate in view of the current situation. “It is a matter of immediate and urgent concern to me that this industry is not just free of dubious sources of financing, but is seen to be so,” he said.
The work of the taskforce will begin immediately and will report to Truell in a month’s time. Truell will then make recommendations to the BVCA Council for a new set of guidelines for members to take into account when they are raising funds and sourcing financing.
The BVCA spokesperson commented: “The BVCA is taking action ahead of any eventual issues that may arise. We are not responding to any crisis or scandal, but are just being mindful that care and propriety are observed regarding sources of funding.” The spokesperson added that most industry associations would probably be issuing similar statements in the light of recent occurences.