A body which speaks for 17,000 City lawyers has joined calls for radical change at the Serious Fraud Office. In a report published today, a committee of the City of London Law Society (CLLS) urges 'urgent, focused reform' of the crime-fighting agency. Proposed changes include a budget increase of at least 50%.

The CLLS’s report follows other critics in highlighting 'years of setbacks' in prosecuting alleged offences. It notes that last month the SFO prosecution of former executives of security company G4S 'collapsed in court after a decade of work, delays, and spiralling costs'.

Last month, the Institute of Economic Affairs thinktank concluded that the SFO ‘must be held to have failed’ and proposed 'radical institutional change'. It also called for legal changes: in the rules of disclosure; corporate liability, and the use of juries in complex fraud trials. 

The latest report, produced by the CLLS corporate crime and corruption committee, stresses the need for more resources and political support. A budget increase of 'at least 50%' would 'ensure adequate staff remuneration and the necessary investment in infrastructure'. In particular, the SFO director’s salary 'should be benchmarked against the highest salary-grades in public service'. 

The report also endorses a recommendation of the House of Commons Justice Committee’s for the creation of a minister for economic crime, based in the Home Office, to safeguard the independence and effectiveness of the relevant agencies. 

The report concludes that fixing the SFO’s shortcomings is essential to protect the effectiveness of the UK’s justice system and to maintain the UK’s reputation as a reliable hub for financial services and destination for investment.

Committee chair Eoin O’Shea said: 'Financial crime such as fraud is now an enormous social and economic problem. It cannot be investigated or prosecuted on the cheap. New laws are all very well but enforcement is key. It is vital for the UK to grasp the nettle of resourcing and reform of the SFO to protect public confidence in the justice system’s capacity to combat fraud, and the country’s international reputation.'

Law Society president Lubna Shuja said the report 'makes an important contribution to the debate about tackling economic crime'.

An SFO spokesperson said:  'In this financial year alone, we’ve successfully prosecuted eight company executives for crimes worth over £500m and affecting over 10,000 investors. We have also recovered over £100m worth of proceeds of crime on behalf of the taxpayer.'

 

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