The SFO Criteria
Cases are typically accepted where the financial loss is exceptionally large, the case undermines the reputation of the City of London or UK's integrity as an international financial centre, or the complexity of the fraud requires the SFO's specialist multi-disciplinary Roskill Model approach — in which lawyers, forensic accountants, and investigators work as a single unified team.
Compulsory Powers — Section 2 Notices
A Section 2 Notice can require any person or company to produce specified documents or attend a compulsory interview under oath. The ECCTA 2023 expanded these powers to the pre-investigation stage — the SFO can now issue Section 2 Notices before it has formally opened a case. Failure to comply with a Section 2 Notice is a criminal offence. Legal advice should be sought before responding, to ensure that Legal Professional Privilege is maintained.
The SOCPA Cooperation Strategy
Under sections 71 to 74 of the Serious Organised Crime and Police Act 2005, individuals can enter into formal agreements providing for immunity from prosecution, restricted use undertakings (where information provided cannot be used against them in court), or substantially reduced sentences in recognition of assistance provided. The decision to cooperate under SOCPA is significant and carries long-term consequences — any agreement should be carefully negotiated.
Corporate Defence and Deferred Prosecution Agreements
For companies under SFO investigation, a Deferred Prosecution Agreement is the most favourable outcome available short of the investigation being closed. A DPA is a court-supervised agreement under which the SFO suspends a criminal prosecution for a set period, provided the company pays a substantial financial penalty, compensates victims, and submits to a compliance monitor. DPAs are only available to companies that demonstrate genuine cooperation — including early self-reporting and prompt provision of internal investigation results.
What to Do if You Are Under Investigation
If you or your company have been contacted by the SFO, received a Section 2 Notice, or been made aware that you are under investigation, seek specialist legal advice immediately. Do not respond to a Section 2 Notice, attend any interview, or take any steps to cooperate or disclose without first consulting a solicitor. The early stages of an SFO investigation are often determinative of the outcome.