UK: Technical updates – News in brief - Insurance Market Update – June 2005

Last Updated: 21 June 2005
Most Read Contributor in UK, August 2017

Article by Mike Brien, Peter Wintersgil, Peter Wright, Geoff Chivers and Tony Crook

FSA CONSULTATION AND DISCUSSION PAPERS

Financial risk outlook 2005

In January 2005, the FSA published its annual Financial Risk Outlook highlighting economic, financial and social developments that could affect the FSA’s ability to meet its statutory objectives. Issues noted for the general insurance sector include:

  • weakening rates are to be anticipated;
  • direct distribution has become more popular;
  • climate change is a key long term risk;
  • threat of terrorism is complicating the pricing of insurance;
  • a range of potential long tail liabilities can be identified;
  • claimant fraud is estimated to cost the industry £1 billion a year;
  • outlook for reinsurance sector has stabilised;
  • contract certainty is an area of particular concern.

Policy Statement 05/02 Insurance Regulatory reporting:

changes to the publicly available annual return for insurers In February 2005, the FSA published feedback on its consultation on the annual return and included the proposed text of rules and guidance to be effective for years ending on or after 31 December 2005. The main impact upon general insurers will be to have:

  • a standardised set of reporting categories with certain materiality criteria;
  • a new Form 20A intended to be a simple high level summary together with extensive supplementary notes.

Insurers should review the proposed rules and consider the system changes that will be required to enable them to complete the appropriate forms under the new reporting categories.

VAT AND IPT DEVELOPMENTS

VAT on outsourced services – a potentially dangerous Development

Introduction

On 1 June 1997 a special business unit of the Accenture group, known as Accenture Insurance Services (Accenture), entered into a ten year agreement with Universal Leven N.V (Universal Leven), a Dutch life assurance company. Under the agreement, Universal Leven performs the development and sales of special life insurance products and Accenture concentrates on carrying out the "back office" administrative functions.

Background

Under the agreement, Accenture is engaged in the back office activities consisting of the following: acceptance (underwriting) of new applications; handling policy and commercial changes; issue of policies; termination of policies; handling of claims; management of policies; determining and the paying out of commissions to intermediaries; building and managing the necessary information technology function; supplying information to Universal Leven and the intermediaries; and, either in the name of Universal Leven or not, supplying reports to policy holders and any other third parties. Almost all contact for carrying out its activities is with intermediaries but some direct contact with policy holders will also occur in relation to claims. Accenture staff will state their own organisation’s name when dealing with queries rather than that of Universal Leven. Generally, Accenture will make binding decisions on behalf of Universal Leven, for example regarding the conclusion of a life insurance policy or a claim.

Issue

The Dutch tax authorities consider that the services supplied by Accenture to Universal Leven did not fall within the VAT exemption permitted under Article 13 B (a) of the Sixth Directive and therefore VAT was due on the value of the supplies made. Following a hearing in the Dutch Supreme Court the following question was referred to the European Court of Justice (ECJ).

‘Where a taxable person has concluded an agreement with a (life) assurance company, such as the agreement at issue between Accenture and Universal Leven, under which that taxable person undertakes, for a certain remuneration and with the aid of qualified personnel who are expert in the insurance field, most of the actual activities relating to insurance – including, as a rule, the taking of decisions that bind the insurance company to enter into insurance contracts and maintaining contact with the agents and, as the occasion arises, with the insured – while the insurance contracts are concluded in the name of the insurance company and the insurance risk is borne by the latter, are the activities undertaken by that taxable person in execution of the agreement "related services performed by insurance brokers and insurance agents" within the meaning of Article 13 B (a) of the Sixth Directive?’

At the ECJ hearing on 11 November 2004, in addition to the plea notes presented, the judges inquired about whether or not Accenture has the authority to bind Universal Leven in case of entering into insurance contracts as well as in case of settling claims. The answer to this question is affirmative. The only party to make a submission to the ECJ other than the two parties was the European Commission who were fully supportive of the Dutch Government’s position. It is fair to say that based on the UK interpretation of the Sixth Directive, it is extremely unlikely that the UK Government would consider that the services supplied by Accenture were anything other than VAT exempt.

Advocate General’s opinion

On 12 January 2005, the Advocate-General (A-G), Poiares Maduro, presented his Opinion to the ECJ.

The A-G started his analysis by stating that there is no legal definition of insurance broker/agent and therefore to determine the VAT liability of "related services performed by insurance brokers and insurance agents", as stated in Article 13 B (a) of the Sixth Directive, it is important to consider VAT case law and not the insurance mediation directives. The A-G states that these directives merely provide guidance on freedom of establishment for such services and they have no relevance for determining the VAT liability of any supplies.

The case law the A-G refers to in his opinion consisted of Forsakringsaktiebolaget Skandia C-240/99 (Skandia), Card Protection Plan Ltd C-349/96 (CPP), Taksatorringen C-8/01 and CSC Financial Services Ltd C-235/00 (CSC). With reference to Taksatorringen in particular, the A-G confirms that an insurance broker/agent must have "direct contact" with the (potential) insured party.

The A-G states that Accenture does not have any direct contact with the policy holders, as such contact is made by the independent brokers who sold the policies. We believe this is factually incorrect as Accenture has some contact with the policy holders in relation to claims.

However, the A-G goes on to state that even if there was direct contact with the policy holder in this case the services would still not qualify for VAT exemption under Article 13 B (a). This is because the services provided by Accenture are not those normally performed by an insurance broker or agent. He regards an insurance broker or agent as someone who acts in a professional capacity in bringing together the two parties to an insurance contract with an element of mediation required in order to conclude the contract, as detailed in the CSC case. This consideration is not affected by the fact that Accenture has the authority to bind the insurer to insurance contracts with the insured. In his view the authority to bind the insurer cannot be the decisive factor to qualify a person as an insurance agent.

In the A-G’s view, Accenture have been engaged to perform some of the services that would normally be carried out by the employees of Universal Leven, and have been acting in a form of sub-contractor relationship. As these services are therefore something normally performed by the insurer, they cannot be considered to be services performed by insurance brokers and agents. This posed the question as to whether such a strict interpretation would exclude VAT exemption for "chains" of brokers to all but the broker that has direct contact with the policy holder.

The Opinion also leads one to the conclusion that only "related services" performed by brokers and agents will qualify for VAT exemption. But how far does "related services" extend? For example, if an insurance broker also provides claims handling services to a third party insurer, does the exemption apply to all their services or simply to the broking services?

Finally, the A-G gave his view on whether the charging of VAT on this type of outsource contract is against the principle of fiscal neutrality, as argued by Accenture. His opinion was that such an argument is "devoid of relevance" as the exemptions allowed under Article 13 must be construed narrowly and therefore would not apply simply because a business chose to outsource part of its business to a third party.

The ECJ judgement

The Court issued its judgement on 3 March 2005 with the conclusion that the services supplied by Accenture to Universal Leven did not qualify for VAT exemption. Although the ECJ’s judgement is less detailed than the A-G’s opinion, the basis of its ruling fundamentally follows the general logic expressed by the A-G.

In common with the A-G the ECJ judgement considers that even if Accenture possessed the necessary relationships with either or both of the insurer and the insured, the services provided are not those of an insurance broker or agent. Again the ECJ decided that an insurance agent is essentially involved in the selling process whilst Accenture are clearly not and are simply providing supportive back office services that are normally provided by the insurer through its own workforce.

The ECJ rules that a broker would not have any exclusivity with the insurance company it is involved in, i.e. they have freedom of choice of insurer when advising its customers, the potential policy holders. Accenture on the other hand only supplies its services to Universal Leven.

It also concludes that an agent would be involved in some form of mediation between the two parties before the contract is concluded. As with the A-G the Court is of the opinion that the power to commit the insurer is insufficient to qualify the provider’s services as being those of an insurance agent and therefore falling within the exemption allowed under Article 13 B(a).

The Court’s final conclusion was that the provision of out-sourced services does not qualify for VAT exemption, regardless of any relationships and that VAT exemption should only be restricted to the services of brokers and agents involved in bringing the two parties to an insurance transaction together.

Future developments

Customs have announced that they will enter into a period of consultation with interested parties before announcing any changes to existing policy or even legislation. It may therefore be a number of months before the full impact of the ECJ’s judgment for UK insurers and service providers is known. In the meantime, both insurers and service providers should review the VAT clauses contained within existing contracts with a view to estimating potential costs that may arise as a result of the judgment and establishing to whom the responsibility for any VAT cost will fall. The need to take into account the potential changing VAT position for any new contracts being entered into will also be important during the period of uncertainty.

There should also be scope available to ensure arrangements can be structured in a way that VAT costs can be kept to a minimum if, as expected, all back office support services provided to insurance companies become subject to VAT. Advice on the measures that could be considered should be sought before contracts are finalised.

BBL Case – ECJ judgment received.

The ECJ released its judgment on the Banques Bruxelles Lambert (BBL) case. As a result, UK established fund managers can continue to supply services VAT free to foreign investment funds and recover input VAT on the related costs.

The decision of the Court was very narrow: it has confirmed the UK treatment for UK fund managers and UK funds, called into question the VAT treatment in some EU member states and failed to answer a number of key issues in the fund management industry.

For the time being UK fund managers that are providing management services to Luxembourg SICAVs and other off-shore funds should be able to continue to effectively zero rate their services and obtain VAT recovery on related costs.

The judgment does not comment on the availability of VAT exemption for management services to local funds. Consequently, the UK VAT exemption will continue to apply only to the management of UK Authorised Unit Trusts and Open Ended Investment Companies. This treatment is currently the subject of a joint challenge by the AITC/JP Morgan Claverhouse and so we will have to wait for confirmation from this case.

The Court has confirmed, following the Advocate General’s Opinion, that SICAVs are taxable persons for VAT purposes. This is based on the fact that their activities go beyond the mere acquisition and sale of securities and so constitute economic activities.

The decision confirms only the taxable status of SICAVs and does not address the VAT status of other non-UK funds. However, it does raise a wider concern in respect of non-UCITS funds that purchase services that do not qualify for VAT exemption. The risk being that as a result of becoming a taxable person the reverse charge provisions apply and VAT would be chargeable on certain overseas services that were previously acquired tax free.

The judgment also confirms that as management services are effectively financial transactions the place of supply would be deemed to be where the SICAV is established (i.e. management services are deemed to be Article 9(2)(e) services within the EC Sixth Directive): the treatment broadly adopted by most member states. The Court did not provide any clarification on the services that fall within the definition of "management". As neither the EU Sixth Directive nor the UK legislation defines the term "management", we will have to await the Court’s decision in another case, before the position will become clearer.

Issue of bonds – not a supply for VAT purposes?

We understand that an appeal has been lodged to the VAT Tribunal to challenge Customs’ position on the treatment of costs associated with the issue of bonds. The taxpayer is arguing that bond issues are not a supply for VAT purposes. Thus the VAT incurred in issuing the bond represents a general overhead of the business, and is recoverable accordingly. There may therefore be an opportunity to recover input VAT that Customs has previously restricted.

H.M. Customs & Excise – merger with Inland Revenue.

A bill allowing the merger of the Inland Revenue and Customs has been included in the Government’s legislative programme. The bill proposes a new single integrated department to be known as H.M. Revenue & Customs (HMRC). A new office to prosecute HMRC cases in England & Wales will also be created.

IRAP – potential tax refund opportunity in Italy

The ECJ is currently considering its verdict in the case of Banca Popolare di Cremona, which will determine whether the levying of Italian Regional Tax is contrary to EU law. If the ECJ rules in favour of the taxpayer, then any company that has paid IRAP will be entitled to submit a refund claim. Significantly, the European Commission has submitted its opinion to the court, and has strengthened the taxpayer’s claim by supporting its argument that the levy of IRAP contravenes EU law.

Under EU legislation, member states are able to impose "any taxes, duties or charges which cannot be characterised as turnover taxes". This restriction exists to prevent any member state from introducing its own tax that is judged to be "sufficiently similar" to VAT, a judgment based on several factors such as whether the tax is levied at each stage of the production of goods and services, and whether it is proportional to their price.

Although the ECJ has yet to return its verdict, it is possible that the ECJ or the Italian government could impose a limitation period for claims if the taxpayer is successful. Accordingly, a business with Italian branches or subsidiaries that have paid IRAP should submit protective claims prior to the ECJ’s decision.

Changes in Italian IPT legislation – pre-payment now required

A further development in Italy has been the introduction of the requirement to make a pre-payment of 12.5% of the IPT paid in the previous year. Consequently, for 2004, this up-front payment, which would be 12.5% of the calendar year 2003’s IPT liability, had to be paid by 15 December 2004. This is despite this change only being announced on 29 November 2004.

CORPORATION TAX

Double tax relief on trade receipts

As announced in the Pre-Budget Report on 2 December 2004, the Government has introduced legislation in Finance Act 2005 to restrict double tax relief for foreign tax suffered on trading income. The intention of the new rules is to ensure relief is only available against UK tax on the net profit produced by that specific item of income. Previously, practice in certain industries was to restrict relief only by reference to total UK tax on the trade the income forms part of. This practice had recently been upheld by the Special Commissioners in the Legal & General case.

Where it is impossible or impracticable to do the calculations in respect of every single item of income, calculations on an aggregated basis will be acceptable. It will be necessary to demonstrate that such aggregate or approximate calculations use all information that is available or can be made available, and produce a result that is not likely to be materially different from the result that would be produced by a more resource-intensive method. Equity traders will benefit from a transitional safety net ensuring that the new rules will not deny credit for more than half of the foreign tax suffered on dividends received between the effective date of the new rules for companies (Budget Day, 16 March 2005) and 31 December 2005.

Double taxation relief anti-avoidance

Three anti-avoidance measures have been introduced by Finance Act 2005 as follows:

1) From 16 March 2005 (and in one scenario 10 February 2005) companies, individuals or partnerships, entering into a scheme or arrangement to claim double tax relief where tax avoidance is one of their main purposes, may be affected if the arrangement falls within one of five prescribed circumstances. The double tax relief claim will be limited so as to cancel the effect of the scheme or arrangement on a just and reasonable basis. The legislation will only apply where the double tax relief claim is not minimal.

The prescribed circumstances will apply where one or more of the following are true:

  • the foreign tax is not properly attributable to the source from which the income is derived;
  • the payer of the foreign tax and any person associated with the transactions have not together suffered the full economic cost of the foreign tax;
  • a claim or election that could have been made and which would have reduced the foreign tax credit eligible for relief was not made, or a claim or an election that was made increased the amount of relief;
  • the foreign tax credit reduces the tax payable to less than would have been due if the transaction had not occurred (with effect from 10 February 2005);
  • the income subject to foreign tax was acquired as consideration for a tax deductible payment.

Furthermore, the legislation will only apply where the Revenue issue a notice directing that it does. The taxpayer will then need to consider how the legislation applies and self-assess in the normal way. Penalties will not arise if a notice has not been issued before a return has been made since the return can not then have been incorrect.

Notices may be issued before or after a tax return is made and on a discovery basis after the enquiry window has closed. The legislation will only apply to underlying tax credits in circumstances where a foreign company is being interposed to avoid the application of the legislation to a UK company. Guidance published on Budget Day includes reference to the availability of advice under Code of Practice 10 on whether the rule will apply as well as ‘general clearances’ where the legislation will not apply.

2) Certain payments may be characterised as interest for tax purposes in another jurisdiction but as dividend under UK law. In these circumstances, the payer obtains a tax deduction in another jurisdiction for the payment, but credit for the underlying tax is given in the UK against the receipt. No underlying tax relief will be given in these circumstances with effect from 16 March 2005.

3) Changes made limit the scope of Section 803A ICTA 1988, which treats all group companies in a foreign jurisdiction as a single entity for the purposes of calculating underlying tax credits, so that it does not apply from 16 March 2005 to a controlled foreign company for which exemption is available under the Acceptable Distribution Policy test.

Intangible property legislation relating to the treatment of Lloyd’s syndicate capacity under international financial reporting standards

The Pre-Budget Report on 2 December 2004 indicated that some minor amendments to Schedule 29 to Finance Act 2002 were proposed, to remove some perverse effects which could have arisen in relation to the taxation of Lloyd’s syndicate capacity upon the adoption of international financial reporting standards ("IFRS") by a corporate member.

Following the Budget on 16 March 2005, paragraph 116A of Schedule 29 has been amended by Finance Act 2005 to ensure that any taxable credit which arises as a result of the write up in value of capacity upon the move to IFRS is capped at the level of net debits previously given; that is, the amortisation charged in the corporate member’s accounts claimed as tax deductible since 1 April 2002. Finance Act 2005 also removes a potential problem with paragraphs 5 and 6 of Schedule 29. As previously drafted, the Inland Revenue could seek to impose the indefinite life treatment of capacity where the consolidated accounts are prepared under IFRS, even though the member’s accounts are prepared under UK GAAP. This would allow them to argue that there should be no deduction for the amortisation. This provision has now been amended to ensure that the Revenue may not challenge the deduction of the amortisation in situations where capacity is amortised in the member level accounts prepared under UK GAAP, but not amortised in the consolidated accounts which are prepared under IFRS.

Lloyd’s Market Bulletin Y3530 dated 29 March provides further information; note however that it includes references to the clauses in Finance Bill 2005, issued on 24 March, not to the Finance Act which received Royal Assent on 7 April.

Tax administration machinery provisions applicable to individual and corporate members at Lloyd’s

The Budget Report of 16 March 2005 referred to a proposal to repeal Schedule 19 of Finance Act 1993 and replace it with Regulations made by Statutory Instrument. Schedule 19 contains provisions relating to the administrative rules under which Lloyd’s managing agents make returns of syndicate profits and losses, computed for tax purposes.

The Inland Revenue considers that the administrative procedure for the assessment and collection of tax should be modernised and made more efficient. For instance, changes could be introduced to allow for electronic filing of syndicate tax returns and to apply self-assessment principles to the calculation of syndicate profits rather than the current determination system. Revisions to the current obsolete penalties regime are also possible.

Due to the General Election on 5 May, this was not included in Finance Act 2005 (given Royal Assent on 7 April). It is expected that this legislative change will be made in Finance (No. 2) Act 2005 later this year. Draft regulations have not yet been made available. Lloyd’s was consulted on this proposed change to the legislation as part of the wider review of the basis of taxation of Lloyd’s members. The Government’s decision to leave the basis upon which Lloyd’s members are taxed as it is for the time being (ie, the declarations basis), and the above proposed legislative change does not in any way affect the current system of taxing Lloyd’s members on their syndicate results or give the Inland Revenue any power to change the basis unilaterally.

The Revenue has confirmed that Lloyd’s will be consulted on any proposed changes to the administration under the Regulations. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.