Deferred Prosecution Agreements - New SFO Guidance
Legal 500 UK 2020
Deferred Prosecution Agreements (DPAs) were introduced in the UK in 2014 to encourage self-reporting by corporates of criminal wrongdoing and their numbers are steadily increasing.
Simply put, they allow a company facing prosecution to avoid a trial on condition that it complies with certain conditions. DPAs can be used for certain economic crimes including fraud and bribery. In October 2020 the SFO published a chapter from its handbook which offers comprehensive guidance on how it approaches DPAs, and how it engages with companies where a DPA is a prospective outcome.
No company wishes to be prosecuted, given the expense and reputational damage involved as well as the risk of being barred from tendering for public sector contracts if it is convicted. However, only those companies that offer full co-operation with the authorities will be invited to enter into a DPA. These agreements are not a soft option, however, and the conditions of any DPA offered need to be considered very carefully.
Typically, such conditions will include payments (financial penalty, compensation, costs), continuing duties of co-operation and the satisfactory completion of a corporate reform programme – possibly involving a monitor. If, within the time period agreed, the company in question complies with those conditions then the prosecutor will discontinue criminal proceedings and the company will avoid the risk of a conviction. However, if it does not satisfy those conditions, then the prosecutor will reactivate proceedings and continue the prosecution of the company.
Only the Director of the Serious Fraud Office (SFO) or the Director of Public Prosecutions can authorise a DPA and, unlike in the US, a UK DPA is subject to significant judicial oversight. To have any legal effect a DPA must be approved by a judge as being in the interests of justice and having terms that are fair, reasonable and proportionate.
We have been involved in many of the cases in which DPAs have been entered into by corporates with the SFO, and so are well placed to advise on the merits or otherwise of such agreements and to guide companies through the process of negotiating one.
We understand the range of factors that need to be considered when entering into a DPA - legal, practical and financial - and the pressures on corporate management teams in weighing whether to go down the DPA route.
We marry this with our experience of how the SFO works and the law underpinning corporate criminal offences to help navigate a path which is in the best interests of the company.
If you have any questions about DPAs, please contact a member of our team.
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Well-known name in the market, with deep expertise in all aspects of serious corporate crime including regulatory breaches and complex fraud. Adept at handling international corruption, fraudulent trading and false accounting matters. Well versed in bribery and money laundering investigations. Notable experience in advising on internal investigations and compliance, as well as in handling proceedings by government enforcement agencies."
Chambers UK 2020 – A Client’s Guide to the UK Legal Profession
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