Neofin Advisory Ltd Fraud Response Plan

1. Introduction

This plan deals mainly with the responsibilities of all staff in deterring losses to funds. There are additional responsibilities borne by managers. The document deals mainly with the internal response and actions that we need to take to both deter fraud, and to respond to any suspicion of it that comes to our attention.

Any suspicion of fraud will be investigated as set out in this plan. Any proven instance of fraud will result in disciplinary action being taken against any member of staff involved. The policy of the company is to notify the police in circumstances where there is evidence that a crime may have been committed.

The policy sets out standards which staff are expected to meet at all times, particularly with regard to the safeguarding of funds.

2. What is fraud?

For practical purposes, so far as this document is concerned, fraud may be taken to mean the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to another party.

The essential elements of fraud are dishonesty, which can include non-disclosure of important facts, and deprivation or risk of deprivation.

The term is used to describe such acts as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, concealment of material facts and collusion.

3. Responsibilities

Individual members of staff are responsible for:

  • Acting with propriety in the use of official resources and in the handling and use of public funds, whether they are involved with cash or payments systems, receipts or dealing with contractors or suppliers.
  • Reporting immediately to their line manager or next most senior manager if they suspect that a fraud has been committed or see any suspicious acts or events.

In addition to those individual responsibilities, managers are responsible for:

  • Identifying the risks to which systems and procedures are exposed.
  • Developing and maintaining effective controls to prevent and detect fraud.
  • Ensuring that controls are complied with.

4. Objectives of this plan

The objectives of having a widely circulated and understood response plan are:

  • To deter fraud by publicising steps that will be taken if any is discovered.
  • To set out managers’ responsibilities in this area.
  • To set out clear guidance on the appropriate steps to be taken if managers become aware of, or suspect that, fraud may be taking place.

The steps set out in the plan have been devised with the aims of:

  • Minimising delay in taking any appropriate action:
  • Reducing the impact of any fraud which takes place.
  • Ensuring that any possible frauds are investigated.
  • Preventing or minimising losses of funds.
  • Maximising the possibility and amounts of recovery.
  • Identifying perpetrators of fraud and increasing the likelihood of successful disciplinary or legal action.
  • Minimising the possibility of adverse publicity.
  • Ensuring that lessons learned from any instances of suspected fraud are acted upon.

5. Reporting

Immediately that fraud is discovered or suspected, the matter should be reported to the Chief Executive Officer, or a person nominated by them, who will decide what further action is appropriate.

6. Immediate considerations and actions

The primary objective should be to ensure that funds are protected. So, the initial investigation should attempt to determine whether there is any possibility of further offences taking place. If there is thought to be any possibility of recurrence, then actions which should be considered include:

  • Freezing bank accounts.
  • Suspending BACS or cheque payments.
  • Suspending individuals.

7. Enquiries

Enquiries into the possibility of fraud taking place should be begun without delay. Facts need to be established, steps taken to protect any individual who may have been unwittingly involved and to ensure that any evidence that is discovered can be used in any subsequent action that might be necessary. To assist in this, it may be appropriate to involve the police where there is evidence that a criminal offence may have taken place.

8. Recovery action

Prompt action is likely to be important in maximising recovery of any funds which have been lost or are thought to be vulnerable as a result of the fraud.

Consideration should be given to involving other parties such as:

  • The Bank Manager to discuss the desirability or possibility of recalling BACS/CHAPS payments, cancelling cheque payments or withdrawing and replacing pre-printed payment stationery.
  • A legal adviser for advice on recovery of other assets.

9. Disciplinary/legal action

Where evidence of fraud is discovered and those responsible can be identified:

  • Appropriate disciplinary action will be taken in line with the disciplinary procedure.
  • When legal action is considered appropriate, full co-operation will be given to investigating and prosecuting authorities.

10. Further action

A full report on the circumstances and outcome of any fraud or suspected fraud will be produced. The report will cover the identification of any shortfall in current procedures which contributed to the commission, recommendations on actions which could be taken to prevent or reduce the effect of any future occurrence and who will be responsible for considering these.

Updated: 30/09/2024.