China hits tech firms with hefty fines as crackdown draws to close

BEIJING - Chinese regulators said they had fined fintech giant Ant Group almost $1-billion for "illegal acts" and handed an affiliate of rival Tencent a $415-million penalty, adding that a long-running crackdown on tech firms was drawing to a close.

Ant operates Alipay, the world's largest digital payments platform, which boasts hundreds of millions of monthly users in China and beyond.

It was one of the most prominent targets of a sweeping crackdown on the country's tech sector.

"In view of the illegal and irregular acts by Ant Group and its affiliates in previous years... (the companies) have been fined 7.123 billion yuan (US$984-million)," the China Securities Regulatory Commission (CSRC) said in a statement.

The penalty "included the confiscation of illegal income", added the statement, which was also carried by the country's central bank.

In its statement, the CSRC said that "at present, most of the outstanding problems in the financial business of platform enterprises have been rectified".

"The work focus of the financial management department has shifted from promoting the centralised rectification of the financial business of platform companies to normalised supervision," it said.

On Friday, Alibaba shares were up 3.44 percent in Hong Kong after reports the fine was coming, with analysts saying investors saw the punishment as a sign the crackdown was ending.

In a statement, Ant said it would "comply with the terms of the penalty in all earnestness and sincerity and continue to further enhance our compliance governance".

"Now the company has completed the related work on the rectification... In the future, Ant Group will uphold its mission and original aspiration," the company said.

"We will continue to pursue innovation with a firm commitment to integrity, and continue to enhance our R&D capabilities to better serve and create greater value for the physical economy, especially for consumers and small businesses," it added.The fine related to "corporate governance, financial consumer protection, participation in business activities of banking and insurance institutions, payment and settlement business, fulfilment of anti-money laundering obligations, and development of fund sales business", the CSRC statement said. China hits tech firms with hefty fines as crackdown draws to close

Read More........ → October 14, 2024

BT pledges £4m to help support UK apprentice schemes

A key focus of the fund will be on enhancing the digital skills of young people

UK incumbent BT has launched a £4 million Apprenticeship Fund to support small and medium-sized enterprises (SMEs), charities, and public sector organisations across England.

The funds will be delivered over the next four years, helping these organisations to recruit and train apprentices.

Since 2017, companies in the UK with an annual wage bill over £3 million have been required to pay an ‘apprenticeship levy’, with 0.5% of the company’s annual wage bill being paid to the government to support various apprenticeship programmes. Larger businesses such as BT can transfer up to 50% of their levy to other companies directly, which is what BT is doing here.

BT has partnered with Babington, a leading apprenticeship training provider, to manage the fund and guide applicants through the process.

Eligible organisations can apply for funding and, if successful, will be matched with appropriate training providers within 20 days. The fund could support up to 550 apprentices and is expected to generate a £21 million economic impact.

“SMEs make a significant contribution to our economy, but their uptake of apprenticeships is low,” said Chris Sims, Managing Director for Small and Medium Business at BT in a press release.

“By sharing up to £4 million from our apprenticeship levy funds, we’re giving these businesses the financial support they need to invest in talent. This not only helps create a more skilled, diverse, and competitive workforce, it also provides SMEs with additional resources to grow and scale their business,” he continued.

The fund is available to SMEs, charities, and public sector organisations across England, including the NHS. It focuses on apprentices aged 22 and older and seeks to support local economic growth, reduce the digital divide, and enhance social mobility. As one of the UK’s largest employers, BT is already a major player in the UK’s apprenticeship landscape, having recruited around 3,000 apprentices and graduates in the past five years. BT pledges £4m to help support UK apprentice schemes

Read More........ → October 11, 2024