Serious Fraud Office introduces new self-reporting guidance, offering deferred prosecution agreements
The Serious Fraud Office (SFO) has released groundbreaking guidance for corporations regarding the self-reporting of fraud or corruption. This new framework provides businesses with a clearer path to negotiate a deferred prosecution agreement (DPA) by demonstrating full cooperation during investigations.
Under the new guidelines, corporations that voluntarily self-report suspected wrongdoing and fully cooperate with SFO investigators can expect to be invited to negotiate a DPA rather than face prosecution—unless exceptional circumstances arise. Notably, businesses that have not self-reported but show exemplary cooperation with the SFO can also enter DPA negotiations.
The guidance further specifies that if a business decides to self-report, the SFO will contact them within 48 hours, determine whether an investigation is warranted within six months, and aim to conclude DPA negotiations within six months of issuing an invitation. The SFO promises to conclude investigations within a “reasonably prompt time frame.”
Nick Ephgrave, Director of the SFO, stated: “Our new guidance sets out how corporates can report suspected criminality to us and what we expect from cooperating corporates. If you have knowledge of wrongdoing, the gamble of keeping this to yourself has never been riskier.”
Embed from Getty ImagesThe document outlines the SFO’s expectations for “genuine cooperation,” which includes actions like preserving digital and physical evidence and early engagement with the SFO. Cooperation that goes “above and beyond” the legal requirements can significantly accelerate the process. However, uncooperative actions, such as delaying or overloading the investigation with unnecessary information, will be viewed negatively.
The guidance also touches on legal professional privilege (LPP), stating that businesses are not penalised for maintaining a valid claim of privilege. However, waiving LPP can expedite the process and demonstrate greater cooperation with investigators.
Neil Swift, a partner at international law firm Peters & Peters, noted that this guidance is part of the SFO’s broader push to enforce the failure to prevent fraud offence. However, he cautioned that being invited to DPA negotiations does not guarantee an agreement, and companies must carefully assess the factors laid out in the DPA Code of Practice.
The SFO’s new guidance aims to encourage corporate transparency and accountability, offering companies a route to avoid prosecution while addressing any wrongdoing swiftly and effectively.
