Written evidence submitted by Roger Lawson, Director, Roliscon Ltd (FRA0014)

I am submitting these comments as an active investor in the shares of public companies and my wide knowledge of the financial sector from many years experience in it.

It is very clear to me that the current excessive level of financial fraud arises from these causes:

1. The poor and ineffective regulation of the financial sector by the Financial Conduct Authority where they have failed to stop new abuses and even when problems are brought to their attention they have failed to act. This seems to be a management and culture problem.

2. The lack of interest in prosecuting minor frauds and the lack of expertise to do so. Very few frauds meet the requirements of the Serious Fraud Office to justify investigation. There needs to be a specialist office to deal with minor frauds. No local police force has the expertise to handle such cases.

3. The burden of proof on frauds, particularly in complex large cases, makes it very difficult to secure convictions, particularly when the defendants can afford to hire better lawyers than the SFO. There are basically too many excuses that can be used to escape justice.

4. The law has not kept up to date with the new types of fraud that are now perpetrated.

5. The penalties on conviction for fraud are generally much too low and should be increased as they are not a sufficient deterrent at present.

I suggest a wholesale review of law of fraud is required with a new Act of Parliament to follow on from that should be introduced.

January 2022