New Code Of Practice For Prosecutors

A joint code of practice on the deferred prosecution agreements (DPAs) has been published by the Director of the Serious Fraud Office (SFO) and the Director of Public Prosecutions.

Brought into force in February, the concept of a DPA related to an agreement which allows prosecution to be suspended for a defined period providing the organisation meets specified conditions.

It will apply to organisations involved in cases of economic crime and the code for prosecutors has been published following an extensive consultation exercise.

David Green CB QC, director of the SFO, said that the introduction of the DPA would avoid the “collateral damage” which can be caused to blameless employees or shareholders when a company is convicted of a criminal offence.

He added: “The most important features of the DPA regime outlined in the code are judicial oversight, and unequivocal cooperation from the corporate. Prosecution remains the preferred option for corporate criminality.”

Alison Saunders, director of Public Prosecutions, added that the guidelines provided the “approach to this new legislative function in an open and transparent way”.

Expert Opinion

Whilst the guidance clarifies the position for organisations in a number of key areas, there inevitably remains uncertainty as to how the agreements will work in practice and how the negotiations between a corporate and the regulator will proceed in reality. <br/> <br/>"Early self-reporting remains a crucial factor in favour of a DPA being offered, but this must be countered by the need for the organisation to carry out a thorough investigation and produce an accurate and complete report. <br/> <br/>"This is undoubtedly a powerful new tool for the regulators but the fact that any agreement remains subject to judicial oversight and approval is likely to mean that organisations will approach this new regime with extreme caution. Legal advice should be sought at the earliest opportunity."