Corporate fraud lawyers could do with 'more co-ordinated system'

Published on 1 Jun 2010 under category: legal

Corporate fraud lawyers could benefit from more co-ordination from industry watchdogs, claims one expert.

The new coalition government announced last week that it would merge the Financial Services Authority with the Serious Fraud Office.

Enforcement powers will be passed to the SFO, despite a recent spate of high-profile successful prosecutions from the FSA.

In an interview with the Financial Times, one lawyer said that the current system did not work, because there were too many agencies involved.

Michael O'Kane told the newspaper: "I have always thought it would be much better to have a more co-ordinated system."

The proposal to merge the two bodies and the Office of Fair Trading has sparked mixed responses from the legal industry.

Many believe that the move could come at the wrong time, as the FSA finally salvages its reputation after being accused of failing to crack down on wrongdoing in the financial crisis.

Hector Sants, the head of the FSA, stepped down earlier this year despite publicly restating the watchdog's mission to root out corporate fraud in the face of scepticism from senior Conservative figures.

On resignation, he said: "I believe the FSA has made great strides in ensuring that such individuals are in place in the UK and I am sure that after I leave they will continue to do invaluable work to ensure financial stability and protect the interests of consumers."

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