2. Annual General Meeting

3. 2009/10 Year End Accounts 2010/11 Budget Bill Alexander

4. Membership 2010 Membership 64 Members –35 Issuer Members –29 Service Members –13 members who have yet to pay 2009 Membership 66 Members –35 Issuer Members –31 Service Members

5. 2009/10 End of Year Accounts RevenueExpenditure Membership Subscriptions Annual Fee Ernst & Young £132,000 £28,000£37,000 Social Events£3,000 Conference£91,000£84,000 Market Research£35,000£39,000 Secretariat Fees£62,000 PR£24,000 Member Meetings£17,000 Other£31,000 TOTAL£289,000£297,000 PROFIT- £8,000

6. 2010/11 Budget RevenueExpenditure Membership Subscriptions Annual Fee Ernst & Young £138,000 £32,000£35,000 Social Events£1,000 Secretariat Fees£64,000 PR£26,000 Member Meetings£17,000 Other£32,000 TOTAL£171,000£175,000 DEFICIT / SURPLUS- £4,000

7. 2010/11 Budget RevenueExpenditure Membership Subscriptions Annual Fee Ernst & Young £138,000 £32,000£35,000 Social Events£1,000 Secretariat Fees£64,000 PR£26,000 Member Meetings£17,000 Other£32,000 TOTAL£171,000£175,000 DEFICIT / SURPLUS- £4,000 Potential Additional Expenditure not included in Budget Bribery Act£3,400 Ernst & Young Fee for VAT Representation £22,500 PR for Market Research£3,000 Response to E-Money Directive£tbc

8. Constitution Changes Proposal received to amend the constitution regarding the length of service for executive members Currently Constitution States: An EC member cannot remain on the EC for more than 24 months, and must resign after this period. They may however stand for re- election. Proposal is: An EC member cannot remain on the EC for more than 24 months, and must resign after this period. They may however stand for re- election for a further 24 months, at the end of this term (i.e. A total period of 48 months) an EC member may not stand for re-election until a period of 12 months has lapsed.

10. Wendy Andrews Ernst & Young

11. 8 November 2010 UK Gift Card and Voucher Association VAT update INSTRUCTIONS This template is designed for onscreen presentations and printed handouts only. The template provides the option of either a grey or white background. How to change colour palette: Format menu > Slide Design… > Color Schemes Choose the desired colour scheme and use the dropdown option to select Apply to All Slides. Guidance on formatting the beam is available in the notes pages of this document.

12. VAT update  LMUK/Baxi  TNT and postal services  European Harmonisation  2015 EU changes 9 October 2015Presentation titlePage 12

13. LMUK/Baxi  VAT and loyalty schemes  Recovery of VAT on reward goods and services  Provided to customer or to organiser of scheme?  Potential for some VAT recovery – referred back to UK Supreme Court 9 October 2015Presentation titlePage 13

14. TNT and postal services  VAT liability of postage supplied by Royal Mail  Pre-agreed contracts should have been subject to VAT  Potential for retrospective claims  Change in liability for the future 9 October 2015Presentation titlePage 14

15. EU harmonisation  UK position:  Face value vouchers  Retailer/credit vouchers  Treatment in supply chain  EU position:  Single/multi purpose vouchers  Different market 9 October 2015Presentation titlePage 15

16. EU harmonisation Next Steps:  EU Commission – proposal document  Liaison with HM Treasury and HMRC regarding UK position in discussions  Make sure that views of UK business are represented in all discussions  Timescale? 9 October 2015Presentation titlePage 16

17. EU Harmonisation - 2015  Place of supply of services to consumers  From 2015 will be where the consumer belongs  Cross border supplies to private customers subject to local VAT  Unharmonised voucher treatment will be complex and difficult 9 October 2015Presentation titlePage 17

19. Andrew Johnson Director General

20. Bribery Act Changes to current act come into force April 2011 Wording in the act suggests that third party incentives/dealer incentives could be deemed a bribe Awaiting he outcome of consultation for final wording of the act Been assured that the act is not intended to stop genuine third party incentives

22. Andrew Johnson Director General Self Regulation & Emoney

23. Emoney Directive UKGCVA working with HM Treasury & Financial Services Authority Changes come in April 2011 Implementation consultation papers issued by both Treasury & FSA – deadline for response is 30 th November UKGCVA will respond, encourage members to respond

24. Emoney Directive The consultation papers refer to implementation The EMD has been ‘written’ into EU law and cannot be changed, this is about how the UK implement the regulation Treasury ‘set’ the rules, FSA ‘police’ the rules, hence the two consultations UKGCVA needs to engage more with FSA as they will determine the limited network guidelines, i.e. What is in scope for Emoney and what gift card programmes fall out of scope

25. 2EMD UKGCVA Members Meeting

26. 26 A Review of Key Issues  Limited Network  Redemption of e-Money  Agents and Distributors  Transitional Issues

27. 27 Limited Network Definition Grey Areas Possible Solutions

28. 28 Redemption of e-Money at any time at par value safeguarding

29. 29 Agents and Distributors Key differences Registration

30. 30 Transitional Issues PSD 2 months notice to charge (reloadable / non-reloadable) Re-carding if now outside e-money Timing for Grandfathering

31. 31 Contact Global Head – Cards and Payments Tel.: +44 20 7429 6074 Fax: +44 20 7429 6374 Email : rcourtneidge@salans.com Salans Millennium Bridge House 2 Lambeth Hill London EC4V 4AJ www.salans.com Robert Courtneidge

32. Key Questions in Treasury Consultat ion Is FSA guidance, and case by case consideration, the right approach to determining what constitutes limited network? Are there any cases where the law determining what constitutes a limited network may be unclear? How should these cases be resolved? Are voluntary codes of conduct, supported by safeguarding arrangements for customer funds, the right way to protect consumers in the unregulated sector? Is there a better alternative?

33. Self Regulation Treasury recognise (as a result of EMD) significant proportion of industry remains unregulated i.e. Gift vouchers and closed loop cards Treasury engaged with Office of Fair Trading UKGCVA approached by Treasury and OFT to discuss ‘self regulation’ Expected to discuss Q1 2011 Treasury make statement in EMD consultation so we need to ‘show intent’ by 30 th November Results of consultation, including self regulation published by Treasury, FSA and OFT second week December 2010

34. Self Regulation UKGCVA invited to meet with Treasury and OFT on Monday 15 th November – speak to Andrew if you would like to attend British Retail Consortium meeting with OFT today Objective of the meeting: – for OFT/Treasury to scope out the potential ‘liability’ to consumers –Understand how the industry feels about self regulation –Understand if self regulation is feasible

35. Best Practice OFT have tentatively indicated the UKGCVA current ‘Best Practice’ statement in the constitution may be sufficient OFT may give this Best Practice the ‘rubber stamp’ This addresses –‘Treating the Customer Fairly’ & –‘Prudent Financial Protections of Consumer Funds’

36. Best Practice Treating the customer fairly Issue clear, uncomplicated terms and conditions, that include guidance on key issues such as Expiry dates and what this means. Any card or voucher fees Any restrictions on when and how the gift card or voucher can be spent Legal responsibilities of the card or voucher holder and issuer. Ensure that the staffs (both direct and indirect) of the issuing party are trained in all procedures relating to the gift card so that they can provide a fair and understanding service to the gift card or voucher customers. These procedure should include – What to do in the event of a lost or stolen card Refund policy How to check a card balance How to spend the funds on the card or voucher For cards, any minimum or maximum load values

37. Best Practice Prudent financial protection of consumer funds All gift card and voucher issuers should ensure adequate provision is made on their balance sheet for unredeemed gift cards and vouchers which should also include a prudent policy on writing off unredeemed vouchers. Where issuer’s cash ratios are considered to be less than strong consideration should be given to ring fencing the unredeemed funds to ensure long term protection against liquidity problems. If an issuer faces financial difficulties, the sale of prepaid gift cards and vouchers should cease immediately unless the funds are guaranteed by a third party (which could include an independent trust fund where the funds are directly paid into).

38. Best Practice Do/can members adhere to these Best Practice guidelines? Timing is not great, second week of December ‘made public’ Implications across the industry if OFT take a firm stance Action from UKGCVA

39. Any Other Business?