Officers involved in financial crime investigations (NCA, FCA and CPS)
Freedom of information request reference no: 01.FOI.21.022917
I note you seek access to the following information:
1. Do officers under the control of Metropolitan Police involved in financial crime investigations receive training (internally or through the NCA training courses) in financial services rules and regulations, including the fact that the Financial Services and Markets Act 2000 legislation, authorisation and rules impact on every aspect of financial services regulation and protection for customers?
2. Do officers receive training to meet the CPS Fraud Act 2006 criteria regarding the borderline between criminal and civil liability, which refers to ‘caveat emptor’ and what that means? (I have not been able establish whether the NCA training refers to any investigation of ‘caveat emptor’ ie the role of brokers and lenders and their statutory duty to comply with FSA/FCA Rules, as referred to in the CPS Fraud Act 2006 Charging Practice).
3. A key point in the Financial Services and Markets Act 2000 is authorisation. Under FSMA 2000 S19 Financial Services and Markets Act 2000 (legislation.gov.uk) this refers to the ‘general prohibition’ which means only authorised firms can carry out regulated activities. Only an authorised firm can make a criminal complaint. Under FSMA 2000 S23 Financial Services and Markets Act 2000 (legislation.gov.uk) contravention of S19 is stated to be a criminal offence. Do officers receive training to understand that contravention of FSMA 2000 S19 General Prohibition Financial Services and Markets Act 2000 (legislation.gov.uk) is a criminal offence under S23 Financial Services and Markets Act 2000 (legislation.gov.uk)?
4. Do police officers receive training in commercial reality, to cover information in the public domain at the time an alleged offence was committed, consideration of civil contracts, action taken by the lender, and their FCA Disciplinary and Regulatory record in the public domain Financial Services Register | FCA ?
5. Are Metropolitan Police officers made aware through training that Final Decisions of the Financial Ombudsman are legally binding on the lender, should the customer accept the decision?
6. Do Metropolitan Police Financial Investigators obtain Court Production Orders regarding records of brokers and lenders, or do they use an alternative method to obtain records taking into account The Bankers Books Evidence Act 1879 Bankers' Books Evidence Act 1879 (legislation.gov.uk) ?
7. Are Metropolitan Police officers investigating mortgage fraud aware of the FSA/FCA Handbook FCA Handbook - FCA Handbook and how would an officer generally go about establishing whether a fraud had occurred taking into accounts FCA definition of Mortgage Fraud Mortgage fraud | FCA ‘when individuals defraud a lender through the mortgage process.
8. Do Metropolitan Police officers use the Financial Investigators Support System to check the correct legal entity or some other use?
Decision
I have today decided to disclose the located information to you in full.
Please find below information pursuant to your request above.
Q1 - Do officers under the control of Metropolitan Police involved in financial crime investigations receive training (internally or through the NCA training courses) in financial services rules and regulations, including the fact that the Financial Services and Markets Act 2000 legislation, authorisation and rules impact on every aspect of financial services regulation and protection for customers?
Specialist MPS financial crime investigators receive training in criminal fraud and money laundering investigations and criminal asset recovery. National fraud training is devised and delivered by the Lead force for fraud, the City of London Police. Any enquiries about the current course content should be directed to them and I have included a link to their website below for your reference. Criminal offences related to the regulated sector will be investigated and prosecuted when appropriate, however, the MPS is not a regulator.
Q2 - Do officers receive training to meet the CPS Fraud Act 2006 criteria regarding the borderline between criminal and civil liability, which refers to ‘caveat emptor’ and what that means? (I have not been able establish whether the NCA training refers to any investigation of ‘caveat emptor’ ie the role of brokers and lenders and their statutory duty to comply with FSA/FCA Rules, as referred to in the CPS Fraud Act 2006 Charging Practice).
Please see 1 above.
Q3 - A key point in the Financial Services and Markets Act 2000 is authorisation. Under FSMA 2000 S19 Financial Services and Markets Act 2000 (legislation.gov.uk) this refers to the ‘general prohibition’ which means only authorised firms can carry out regulated activities. Only an authorised firm can make a criminal complaint. Under FSMA 2000 S23 Financial Services and Markets Act 2000 (legislation.gov.uk) contravention of S19 is stated to be a criminal offence. Do officers receive training to understand that contravention of FSMA 2000 S19 General Prohibition Financial Services and Markets Act 2000 (legislation.gov.uk) is a criminal offence under S23 Financial Services and Markets Act 2000 (legislation.gov.uk)?
Please see 1 above.
Q4 - Do police officers receive training in commercial reality, to cover information in the public domain at the time an alleged offence was committed, consideration of civil contracts, action taken by the lender, and their FCA Disciplinary and Regulatory record in the public domain Financial Services Register | FCA ?
Please see 1 above.
5. Are Metropolitan Police officers made aware through training that Final Decisions of the Financial Ombudsman are legally binding on the lender, should the customer accept the decision?
Please see 1 above.
Q6 - Do Metropolitan Police Financial Investigators obtain Court Production Orders regarding records of brokers and lenders, or do they use an alternative method to obtain records taking into account The Bankers Books Evidence Act 1879 Bankers' Books Evidence Act 1879 (legislation.gov.uk) ?
Metropolitan Police financial investigators obtain Court production orders when necessary as part of criminal investigations. There is no MPS central record of what legal power is used in each case.
Q7 - Are Metropolitan Police officers investigating mortgage fraud aware of the FSA/FCA Handbook FCA Handbook - FCA Handbook and how would an officer generally go about establishing whether a fraud had occurred taking into accounts FCA definition of Mortgage Fraud Mortgage fraud | FCA ‘when individuals defraud a lender through the mortgage process.
The Metropolitan Police present evidence to the Crown Prosecution Service (CPS). The decision on whether this meets the necessary threshold to charge, and which legal offences are charged, rests with the CPS. The Metropolitan Police will work with other Law Enforcement bodies and regulators when it is required.
Q8 - Do Metropolitan Police officers use the Financial Investigators Support System to check the correct legal entity or some other use?
The Financial Investigators Support System is owned and run by the National Crime Agency. Any questions about its use should be directed to them and I have included their website address below for your reference.
City of London Police - Accessing Information
National Crime Agency