The director of the Serious Fraud Office and the director of Public Prosecutions published a joint code of practice on the use of deferred prosecution agreements, a new enforcement tool that will become available to prosecutors on Feb. 24.

The U.K. announced plans to introduce DPAs in October 2012. They later were introduced in the Crime and Courts Act, which received royal assent in April 2013. DPAs will only apply to organizations in cases of economic crime; they do not apply to individuals

The publication of the joint code of practice on DPAs follows an extensive consultation exercise carried out over the summer. Historically, when a company was convicted of a criminal offense, a court could impose a fine or put it out of business—outcomes that can result in collateral damage to employees and shareholders.

“Deferred prosecution agreements avoid that collateral damage and provide a welcome addition to the prosecutor's tool kit for use in appropriate circumstances," said SFO Director David Green. "But DPAs are not a panacea, nor are they a mechanism for a corporate offender to buy itself out of trouble."

Green added that the “most important features” of the DPA outlined in the code are judicial oversight, and cooperation from the company. “Prosecution remains the preferred option for corporate criminality,” he said.

Conditions attached to a DPA may include disgorgement of profits; payment of a fine, compensation for victims and costs; cooperation in any prosecution of individuals; and implementation of a compliance program, if necessary with a monitor appointed.

A DPA is an agreement reached under judicial supervision between the prosecutor and an organization. It allows a prosecution to be suspended for a defined period provided the organization meets certain specified conditions. 

A DPA may be appropriate where the public interest is not best served by mounting a prosecution, according to the SFO. Entering into the agreement will be a fully transparent public event and the process will be approved and supervised by a judge.

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