FT Adviser features Abigail Rushton and Richard Burger on the SFO's refreshed compliance guidance

The UK's Serious Fraud Office has refreshed its guidance on how it evaluates corporate compliance, following wider reforms intended to assist with the prevention, detection and prosecution of economic crime. This includes the new failure to prevent fraud offence, and Companies House reforms designed to bring increased transparency over UK companies, within the remit of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). 

Central to the SFO's refreshed guidance is the importance of robust systems and controls – if a corporate can demonstrate it had a robust programme in place, prosecutors may consider this as a factor when assessing the 'public interest' and deciding whether or not to prosecute. Deferred prosecution agreements can also arise, should corporates agree to certain conditions such as monitorship or compliance undertakings, which if met mean that the firm is not prosecuted. Compliance programmes also form the foundation of statutory defences, should a company need to demonstrate it has 'adequate procedures' under the Bribery Act 2010 or 'reasonable procedures' under ECCTA 2023. 

As part of a broader regulatory shift in engagement with corporates, the SFO is seeking to encourage anti-corruption cultures, build co-operation, and encourage best practice. Corporates and boards can take several practical steps – all building on the foundations of a thorough risk assessment process.  

Richard Burger and Abigail Rushton from our Dispute Resolution team write for FT Adviser on important takeaways for companies, boards and directors. 

Compliance programmes must not be treated as a box-ticking exercise. The key question is whether the programme works in practice. A compliance programme that works (for the company, in the real world, and in law) can provide opportunities for that company.

A robust compliance programme cannot only reduce exposure for criminal corporate liability, but it can also build trust, reliability, and confidence in the company for investors, business partners, customers and employees. The effect can trickle down and lead to improved overall culture throughout the organisation and in turn a strong reputation can give corporates competitive advantages. 

Read the full article in FT Adviser here.