Accountancy giant Ernst & Young's Investigations Index analysed fines and criminal prosecutions against businesses and individuals. It showed that the average fine has increased from £10.8 million to £42.3 million over the last two years, an increase of 291 per cent. The total amount in fines has similarly increased by 271 per cent over the same period, totalling £2.45 billion.  

Tougher on financial crime

John Smart, head of EY’s UK Fraud Investigation & Dispute Services team, said UK regulators were getting tougher on financial crime: 'In the wake of recent corporate scandals and growing political pressure, there seems to be a greater focus by the regulators to pursue cases that may once have been considered ‘too difficult’, to ensure those responsible for wrongdoing are held to account. He added that the findings should serve as a warning to companies to review their processes on a regular basis as the reasons for fines identified in the research were 'namely systems failings, business misconduct and misleading information', all factors that could potentially have been avoided.

Shorter spells behind bars, but more prison sentences

The study found that the average prison sentence - issued following an investigation by one of the four regulatory bodies - has decreased by 40 per cent over the past two years, from 87 months to 52 months. However, this is still three times longer than the one year and four month average sentence issued in the UK as a whole in 2014. The study also showed that the UK’s regulatory bodies are handing out more prison sentences, with the amount of all prison time increasing by 124 per cent over the same period. 

More complex organisations targeted

Sanjay Bhandari, partner in EY’s UK Fraud Investigation & Dispute Services team, added: 'Historically, the management of owner-operated companies have tended to be more likely to be the subject of individual prosecutions for white collar crime as they may be less complex cases. However, increasingly, regulators and law enforcement agencies seem to be demonstrating a greater willingness to take on individuals in more complex organisations.'