On April 24, 2025, the UK Serious Fraud Office (SFO) released new guidance to encourage companies to self-report suspected corporate wrongdoing. The guidance emphasises that prompt self-reporting combined with full cooperation will generally lead to Deferred Prosecution Agreement (DPA) negotiations rather than prosecution, barring exceptional circumstances. This approach aims to provide companies with greater certainty and incentivise self-reporting. However, the guidance maintains significant prosecutorial discretion, meaning that while self-reporting is heavily favoured, it does not guarantee a DPA. The SFO also outlined examples of cooperative and uncooperative conduct, stressing the importance of full cooperation in the investigative process.
The new guidance must be viewed within the broader context of the Economic Crime and Corporate Transparency Act (ECCTA) 2023, which introduces significant changes to corporate criminal liability in the UK. This includes the new offence of failure to prevent fraud, effective from September 1, 2025, and expanded SFO powers to compel information at the pre-investigation stage. Additionally, the SFO is advocating for US-style financial rewards for whistleblowers to encourage more individuals to come forward with evidence. Despite these developments, companies must still navigate complex strategic decisions regarding self-reporting and cooperation, as the new guidance does not fundamentally alter the existing balancing act.
