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21 Sep 2021

David Corker is quoted in inCOMPLIANCE on FCA investigations

Partner David Corker has been quoted in an article which considers how compliance practitioners can prepare for the experience of being involved in a criminal or regulatory investigation.

“Whilst it is true that the FCA is a reluctant criminal prosecutor it is mistaken to attribute this to timidity,” suggests David Corker, Partner at Corker Binning. “The FCA believes for very good reasons that it should not emulate the SFO or become another general fraud prosecutor analogous to the CPS’ Fraud Division. This is why It only prosecutes offences relating to misconduct in financial markets such as insider dealing, boiler rooms and similar scams and breach of the money laundering regulations.”

“The investigation and successful prosecution of complex financial crime is a formidable challenge and normally requires enormous resources,” he continues.

“Recent humiliating courtroom defeats suffered by the SFO demonstrate this. If it became known that the FCA was willing to become another fraud prosecutor it’s enforcement division would quickly be overwhelmed and so its ability to deter or sanction misconduct by other regulatory methods would be gravely weakened. It is naïve to expect that public funding would be made available to enable that division to double or treble its staff. CPS and regional police force petitions for more money to fund fraud investigations and prosecutions are routinely ignored by government in favour of fighting crime initiatives which the public appear more concerned about. The FCA is prudent to regard invitations for it to resemble the SFO or CPS as akin to being encouraged to drink from a poisoned chalice.”

The full article can be accessed online by ICA members.