SFO Pushes Deferred Prosecution Agreements in New Corporate Fraud Guidance

The UK’s Serious Fraud Office (SFO) has unveiled new guidance that actively encourages the use of Deferred Prosecution Agreements (DPAs), signalling a significant policy shift aimed at incentivising companies to self-report corporate crime. Under this updated framework, businesses that voluntarily disclose misconduct and fully cooperate with authorities may be able to avoid prosecution altogether by entering into a negotiated DPA.

This fresh stance, first reported earlier this week, marks a clearer and more direct position from the agency. For the first time, the SFO has explicitly stated that companies which come forward and demonstrate meaningful cooperation will, in most circumstances, be invited to discuss a potential DPA. Those that choose not to self-report might still qualify—provided they engage in what the SFO defines as “exemplary cooperation.”

The guidance also introduces new timelines that are meant to streamline the process. Once a company submits a self-report, the SFO commits to responding within 48 hours. A decision on whether to open a formal investigation is expected within six months, followed by the conclusion of DPA negotiations within a further six-month period.

“We consider self-reporting suspected corporate criminal conduct to be a mark of a responsible organisation,” the SFO said. “We do not expect a corporate to fully investigate the matter before self-reporting. If there is direct evidence of corporate offending, we would expect a corporate to self-report soon after learning of that evidence.”

The five-page document outlining the guidance also clarifies what constitutes genuine cooperation. This includes actions such as preserving relevant evidence, engaging with investigators at an early stage, and providing assistance that goes beyond basic legal obligations. Notably, the SFO has emphasised that while it will not penalise companies for invoking valid legal professional privilege (LPP), choosing to waive that privilege is regarded as “a significant cooperative act” which may expedite the process.

On the flip side, the SFO warns against tactics it deems obstructive. These include “‘tactically delaying providing information’, or by contrast, ‘overloading’ SFO investigations with excessive documentation.” It also criticises attempts to hide or obscure the roles individuals played in the alleged misconduct.

SFO Director Nick Ephgrave reinforced the message, asserting that the new approach is part of a broader effort to deliver quicker and more transparent resolutions. “If you have knowledge of wrongdoing, the gamble of keeping this to yourself has never been riskier,” Ephgrave said.

By fLEXI tEAM