Policy in practice: failure to prevent fraud offence

In the latest episode of the policy in practice podcast, David Gauke, Brian Spiro, and Helen Harvey discuss the introduction of the new corporate offence for failing to prevent fraud, its legislative framework, potential enforcement challenges, and the proactive measures businesses must implement to ensure compliance.

They cover:

• the purpose and legal background of the new offence and how it builds on existing laws;
• what kind of organisations are affected and how liability is determined;
• how businesses can protect themselves by implementing reasonable prevention procedures and cultural change; and
• enforcement implications, including potential prosecutions and wider compliance considerations.

If you would like more information or want to discuss any of the topics in this podcast, please get in touch with David, Brian or Helen. 

Summary

In this latest policy in practice podcast episode, David Gauke, head of public policy at Macfarlanes, is joined by senior advisor Brian Spiro and senior associate Helen Harvey to discuss the introduction of a corporate offence for failing to prevent fraud, its legal framework, and its implications for businesses.

The conversation begins by exploring the purpose and background of the new offence, including how it builds on existing “failure to prevent” laws and why it has been introduced to address corporate fraud liability.

They then move on to discuss what kind of organisations the offence applies to and how liability is determined, outlining the definition of a “large organisation,” the role of associated persons, and the jurisdictional scope. They also touch on how businesses can protect themselves, focusing on the defence of reasonable prevention procedures and the Government’s compliance guidance.

Lastly, they examine enforcement risks and broader compliance implications, considering potential prosecutions, regulatory approaches, and the offence’s role in driving corporate culture change.