UK authorities have disposed of the first corporate offence of “failing to prevent bribery”, four years after the offence became available.

• Brand-Rex Limited self-reported its acceptance of responsibility for contravention of section 7 of the Bribery Act 2010 (“the Act”).
• The company paid £212,800 by way of a civil recovery order, thereby avoiding criminal sanctions.
• A civil settlement was agreed following a self-report to the authorities, thorough investigation by independent advisers and proactive steps to avoid further offences.
• The “adequate procedures” defence was not argued.
• The case highlights the importance of implementing adequate procedures to prevent bribery and the benefits of being proactive in investigating and reporting breaches.

On 25 September 2015, the Civil Recovery Unit in Scotland recovered £212,800 from Brand-Rex Limited (“Brand-Rex”) under an agreed civil settlement, after Brand-Rex self-reported the fact that it had benefited from unlawful conduct by a third party.

Brand-Rex develops cabling solutions for network infrastructure and industrial applications. Between 2008 and 2012, it operated an incentive scheme which offered UK distributors and installers rewards,  including foreign holidays, for achieving varying levels of sales targets.

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