LONDON (Within The Law) - The Serious Fraud Office and Financial Services Compensation Scheme have signed a memorandum of understanding to stamp out serious or complex fraud, according to FT Adviser.
The FSCS says it has collected a huge amount of data in its work compensating customers who have fallen victim to various pension and investment scams. They will be sharing this data to help the SFO do its work.
The two bodies will use the data to facilitate cooperation and coordination and to improve the investigation and prosecution of fraud.
James Darbyshire, FSCS chief counsel and fraud officer, said: “Fraud undermines FSCS's remit to protect consumers and promote confidence in financial services. The FSCS has a unique position in the financial services sector, both in terms of our statutory function and our insight into fraud.
“We see many examples of cases where victims have invested their life savings into fraudulent schemes or products. We are proud to be working more closely with the SFO to meet the major challenge fraud poses to individuals, industry, and society."
The agreement comes against a background of rising fraud and financial crime. The pandemic has created a host of new opportunities for scammers and made it more difficult for bodies committed to fighting them. The regulators hope this agreement will allow them to pool resources to fight crime.
It also follows another joint agreement to fight scams between the Financial Conduct Agency, the Pensions Regulator and the Money and Pensions Service to encourage savers not to make rash decisions about their pensions in response to the pandemic.
As the financial crime landscape evolves rapidly, pooling resources is one of the main tools regulators have to fight back against fraud and protect customers.
(Written by Tom Cropper, Edited by Klaudia Fior)