New legislation that puts companies on the hook for employees committing fraud could lead to a significant increase in plea-bargain-style deals with the prosecutor, according to the head of the UK Serious Fraud Office.

SFO director Nick Ephgrave said deferred prosecution agreements — or DPAs — could come back with “a vengeance” once a new offence that puts the onus on businesses to prevent fraud comes into force, which is expected to be next year.

Under a DPA, first introduced in the UK a decade ago, a criminal prosecution against a company is suspended if the business approaches the SFO and agrees to terms — approved by a judge — such as co-operating with investigations against individuals, paying a fine and abiding by certain conditions. This allows companies to avoid criminal convictions and long trials.