FSCS and Serious Fraud Office to work together against fraud
The Financial Services Compensation Scheme (FSCS) and the Serious Fraud Office (SFO) launch Memorandum of Understanding (MoU) during International Fraud Awareness Week
Two key UK statutory bodies have agreed to co-operate more closely in the growing fight against fraud.
The Financial Services Compensation Scheme (FSCS) and the Serious Fraud Office (SFO) have signed a Memorandum of Understanding (MoU) and launched it during this week’s International Fraud Awareness Week.
James Darbyshire, FSCS Chief Counsel and Fraud Officer, said:
“Fraud undermines FSCS’s remit to protect consumers and promote confidence in financial services. FSCS has a unique position in the financial services sector, both in terms of our statutory function and our insight into fraud. We see many examples of cases where victims have invested their life savings into fraudulent schemes or products. We are proud to be working more closely with the SFO to meet the major challenge fraud poses to individuals, industry, and society.”
FSCS exists to protect customers of regulated financial services firms in the UK when they fail. Set up by Parliament and funded by the financial services industry, it provides a completely free service to consumers.
Sara Lawson QC, SFO General Counsel, said:
“Fraud and corruption subvert fair business and erode confidence in UK plc. It is crucial that we co-ordinate effectively with our domestic partners in the fight against these offences, and this memorandum sets out a clear commitment to work in the public interest with FSCS to do just that.”
FSCS and SFO have agreed the MoU to assist co-operation and co-ordination between the organisations to facilitate the effective investigation and prosecution of serious or complex fraud. Both parties are committed to work more closely together and to share intelligence and information that assists each other as they carry out their respective statutory functions.
FSCS has collected a vast amount of invaluable data, insights and intelligence, including into pension liberation scams, fraudulent investment schemes and the independent financial advisers who are promoting them.
FSCS compensation is subject to a cap, which means some customers may be left with uncompensated losses. If FSCS is able to make a recovery through an SFO prosecution, it may be able to pass on the proceeds to customers who have not been fully compensated.
FSCS has chosen to announce the MoU with SFO during International Fraud Awareness Week (15th to 21st November), run by the Association of Certified Fraud Examiners (AFCE) based in the US. FSCS and other UK statutory bodies are among the week’s Official Supporters.
Max Kelly, Hanover Communications
Anthony Ozimic, FSCS
Notes for editors
Read more about the remit of FSCS on our Notes for editors page.