MONEY. CORPORATIONS

Financial regulators have repeated a warning that members of criminal gangs are getting jobs in financial services firms so they can carry out frauds. The warning was given by Sir Callum McCarthy, chairman of the Financial Services Authority, at a conference in London on financial crime. He said the criminals were using the knowledge they gained to circumvent their employers' systems and controls. He also said data protection laws made it harder to investigate staff frauds. Sir Callum said: "There is increasing evidence that organized criminal groups are placing their own people in financial services firms." "They can increase their knowledge of firms' systems and controls and thus learn how to circumvent them to commit their frauds." His warning was backed up by the British Bankers Association.  Ian Mullen, said: "Organized crime is recognized by the authorities as serious and growing. "Because of the internationalism of business and banking it is becoming more prevalent that these initiatives are crossing borders," he said.

UK bank customers could pay up to £250m to withdraw their own money from cash machines in 2006, the Nationwide building society has predicted. In 2004 the private companies who install and operate charging ATMs made £140m in withdrawal fees. In total, nearly 22,000 of the UK's 54,000 ATMs levy a cash withdrawal fee and increasing numbers are being put in newsagents and convenience stores. Operators argue customers can choose whether or not to use their machines. The spread of fee-charging ATMs has been rapid. Last year alone the number of machines rose 16%. At the same time, the number of free-to-use ATMs has remained static.

This is partly due to some banks selling off their non-branch-based ATM sites to fee-charging providers. "If this pattern continues, there is a real possibility that free access to cash will not survive other than at bank and building society branches and a few other locations such as main post offices," said Stuart Bernau, Nationwide executive director.

Government all-clear: There has been a long-running controversy over the spread of fee-charging ATMs. Opponents, including Which? and Citizens Advice, argue that charges hit people on low incomes hardest, as these people are more likely to make smaller, more frequent withdrawals and are therefore bearing a disproportionately large share of the charges. Claire Whyley, of the National Consumer Council, said: " It is essential that people have easy and cost-free access to their money. "ATM charges are simply another example of the poor paying more - in this case they are paying a high price just to access their own money." But fee-charging ATM firms have argued that they are providing a service and that consumers have a choice to use their machines or not. Last March, the parliamentary Treasury Select Committee issued a report calling for clearer warnings on fee-charging cash machines. But in its response to the committee's report, the government gave charging ATMs the all-clear, pointing out that the vast majority of fee-charging ATMs were in locations where there had never been a free cash machine.
 

Many consumers have trouble understanding how mortgages work and are baffled by lenders' jargon, a survey has suggested. Nearly six out of 10 consumers said they did not know what APR (annual percentage rate) stood for. In addition, 52% of 800 mortgage holders interviewed were unaware what APR they were paying, according to the Financial Services Authority (FSA). To educate consumers about mortgages the FSA has launched a new website. The FSA, which assumed regulatory responsibility for mortgages last year, says it wants to help explain mortgages to consumers. To this end the regulator is spending £1.5m publicizing it's new website called www.mortgageslaidbare.info.

Mortgage choice is a good thing but consumers need to arm themselves with more knowledge.

The website offers users tips on shopping around for a mortgage deal, information on different types of mortgages and interactive tools allowing them to work out what level of repayment they can afford. People will also be able to use the website to check to see if a firm is authorized to offer mortgage advice. "It use to be the case that consumers would be offered one type of mortgage by their bank or building society... these days there are so many different types of mortgages available, all with their own jargon," David Whiteley, FSA spokesman, said "Mortgage choice is a good thing but consumers need to arm themselves with more knowledge, this is where the website comes in," Mr. Whiteley added.
 

Fast food giant McDonald's is to begin printing nutritional facts on the packaging of its burgers and fries. McDonald's said the labeling would include the fat, salt, calorie and carbohydrate content of its foods. Critics have accused the company of contributing towards rising levels of obesity and other health problems. Nutritional information on items such as the Big Mac, which contains 30g of fat, are currently only available in leaflets or on the company's website. McDonald's said it hoped to have the new packaging in 20,000 of its 30,000 fast food restaurants worldwide by the end of 2006.

'Take responsibility': McDonald's chief executive Jim Skinner said printing nutritional facts on the packaging of its foods would put the information directly in the hands of the company's customers. "We think this the absolutely easiest way to communicate it," Mr Skinner said. "We've given them what they asked for and then people take responsibility about whether they add it up or not add it up." McDonald's has been introducing items such as salads and fruit to its menus, alongside the company's more traditional fare of burgers, fries and milkshakes. Earlier this year, the US company announced that it was giving its iconic mascot clown Ronald McDonald a sporty new makerover in a bid to encourage children to take up more active lifestyles. But critics have maintained that many of the foods on offer at McDonald's are unhealthy and fattening, at a time when obesity levels in many countries are soaring. The world's biggest restaurant company said it hoped to introduce the new packaging by February next year in time for the Winter Olympics in Italy.