ECCTA failure to prevent fraud for professional-services firms
Advisory, accountancy, and consulting firms act through partners, associates, and referral networks — relationships where fraud committed for the firm's benefit can engage the ECCTA offence. DefenceFile organises the evidence that fraud-prevention procedures existed and operated across those relationships.
Not sure if you are in scope? Most professional services and consultancies that meet the large-organisation size test are in scope — check the size test or the scope Q&A.
The sample board pack opens in your browser — no email, no form. 90-day pilots are £950/month; the setup fee is waived if the first working session does not produce the agreed artifacts.
Why professional services and consultancies tend to be in scope
Larger partnerships and consultancies often meet the size thresholds across the group. Associate networks, sub-contracted specialists, and referral arrangements broaden the associated-person population beyond the partnership itself.
Scope is a legal assessment that turns on your group size and facts. See the UK-nexus and scope Q&A and reserve the conclusion for qualified reviewers.
Associated persons to map in professional services
An associated person is wider than payroll. These are the relationships worth organising evidence around for this sector.
- Associate consultants and sub-contracted specialists
- Referral and introducer partners
- Outsourced delivery and offshore support providers
- Agents acting for the firm in client engagements
- Joint-venture and alliance partners
Fraud scenarios and the evidence to capture
Illustrative scenarios where a listed base fraud offence could be committed to benefit the organisation. They are prompts for human review, not findings.
Inflated timesheets, expenses, or deliverable claims by associates to increase recoverable fees.
Evidence focus: Capture the time-recording, billing-review, and engagement-quality controls applied to associates.
Misrepresentation in proposals or reports by a partner to win or retain a mandate.
Evidence focus: Organise the engagement-acceptance, review, and sign-off evidence over client deliverables.
Undisclosed referral arrangements structured to benefit the firm at a client's expense.
Evidence focus: Record the conflicts, referral-disclosure, and independence evidence that governs partner conduct.
What the defence file should prioritise
- A register of associates, referral partners, and sub-contractors with onboarding controls
- Attestations that fraud-prevention expectations reached associates and partners
- Engagement-acceptance and deliverable-review records linked to firm policies
- Partnership-board oversight of the fraud risk assessment
Professional services ECCTA fraud questions
- Are associates and referral partners associated persons?
- They can be, where they perform services for or on behalf of the firm. Classification is fact-specific; DefenceFile organises the evidence by relationship so the firm's reviewers can assess it.
- Our partners are self-employed — does the offence still apply?
- Employment status is one factor, not the test. A self-employed partner or associate may still be an associated person. The platform helps you evidence the procedures that apply regardless of status.
- Does this replace our legal advice on ECCTA?
- No. DefenceFile does not provide legal advice and does not decide whether you comply. It organises the operating record so your advisers and counsel can reach their own conclusions.
Related sectors
- Financial servicesBanks, asset managers, and fintechs face ECCTA failure-to-prevent-fraud risk via introducers and agents. Organise scope, risks, and a defence file.
- Legal servicesLaw firms face ECCTA failure-to-prevent-fraud exposure via referrers and agents. Organise scope, risks, and a reviewable defence file.
- RecruitmentStaffing and recruitment agencies rely on contractors and umbrellas that can create ECCTA fraud exposure. Organise scope, risks, and a reviewable defence file.
Keep going
- Failure to prevent fraud: the offence explainedThe statutory offence, the size test, and what a defence file is for.
- Reasonable proceduresHow the six principles map to evidence you can organise and review.
- Failure to prevent fraud: straight answersDirect, sourced answers on scope, penalties, the deadline, and the defence.
- Pricing and pilotsHow a structured pilot review of your evidence works.
DefenceFile organises evidence for legal and compliance review. It does not provide legal advice, create privilege, certify scope, certify reasonable procedures, or guarantee that a statutory defence will succeed.