The UK’s Serious Fraud Office (SFO) is seeking a new director after the post has remained vacant for six months, amid ongoing scrutiny of its handling of high-profile prosecutions. Applications for the position opened last week, with the deadline set for October 30, following the January announcement of then-director Nick Ephgrave’s intention to step down.
Attorney-General Ellie Reeves KC emphasized the importance of the role in the government’s efforts to tackle serious financial crime and ensure accountability. Reeves’ statement appeared aimed at quelling speculation that the SFO might be dissolved and absorbed into the National Crime Agency after a series of setbacks.
The agency faces renewed criticism following the Court of Appeal’s decision last week to quash the convictions of six former traders involved in manipulating global interbank interest rates. The final conviction overturned was that of Christian Bittar, a former Deutsche Bank trader, who had been jailed for over five years in 2018. Jonathan Mathew, one of five former Barclays traders whose convictions were also annulled, called on former SFO head Sir David Green to return the knighthood he received in 2018. Mathew criticized the agency’s handling of the LIBOR investigation, which cost approximately £36 million, labeling it a “public disaster” unfit for purpose.
Defending the decisions made during his tenure, Sir David Green attributed the overturned convictions to judicial misdirection, noting that the quashing resulted logically from a Supreme Court ruling in the 2023 appeal of trader Tom Hayes.
The SFO’s difficulties extend further back. Reports published four years ago by Sir David Calvert-Smith, a former director of public prosecutions, and Brian Altman KC identified procedural failings, including poor disclosure of evidence to defense teams, alongside resource constraints and inadequate supervision. These flaws have repeatedly cast doubt on the agency’s effectiveness.
Coinciding with the recent quashed convictions, a report from Her Majesty’s Crown Prosecution Service Inspectorate offered a cautiously optimistic view, acknowledging “good progress” but underscoring ongoing risks related to the management of evidence disclosure and privileged material. The inspectorate noted that although the SFO had introduced an improved disclosure management system embedded in operational guidelines, it had not implemented an independent review process of disclosure status immediately before formal charges were filed.
Matthew Wagstaff, a legal director at the SFO, welcomed the inspectorate’s findings, highlighting steps taken such as appointing a senior disclosure lead and launching a disclosure improvement plan. Wagstaff affirmed that enhancing disclosure practices remains a top organizational priority.
Amid efforts to rebuild, the Department for Business, Energy and Industrial Strategy recently launched a consultation on introducing US-style whistleblower reward schemes to incentivize reporting of corporate fraud and corruption. This proposal, supported by Ephgrave in early 2024, has generated debate. Ian Hargreaves, a partner at Quillon Law, described the consultation as positive but acknowledged its divisiveness. Critics argue that incentivizing whistleblowing with financial rewards raises moral concerns, suggesting that exposure of wrongdoing should stem from civic responsibility rather than monetary gain. Hargreaves also emphasized the need for robust protections against retaliation, noting that current employment law safeguards may be insufficient.
The incoming SFO director will face the challenge of restoring confidence in the agency’s case handling while navigating broader policy shifts aimed at strengthening the UK’s anti-corruption framework.