Development in Serious Fraud Office enquiry

Rolls-Royce announced on December 6, 2012 that it had passed information to the SFO relating to concerns about bribery and corruption involving intermediaries in overseas markets. At that time it added: "This follows a request for information from the SFO about allegations of malpractice in Indonesia and China. Investigations by Rolls-Royce have identified matters of concern in these, and in other overseas markets. "The consequence of these disclosures will be decided by the regulatory authorities. It is too early to predict the outcomes, but these could include the prosecution of individuals and of the company. We will co-operate fully." The company said it had "significantly strengthened" its compliance procedures in recent years, including a new Global Ethics Code and a new Intermediaries Policy, and it had also expanded the Compliance function. It added: "As a further measure, Rolls-Royce will appoint an independent senior figure who will lead a review of current procedures and report to the Ethics Committee of the Board." Rolls-Royce chief executive John Rishton said in last year's statement: "I want to make it crystal clear that neither I nor the Board will tolerate improper business conduct of any sort and will take all necessary action to ensure compliance. This is a company with exceptional prospects and I will not accept any behaviour that undermines its future success."