'The question on everyone's lips is whether she will protect the organisation' - ex-SFO lawyers on new director Lisa Osofsky

The confirmation yesterday (4 June) that former FBI deputy general counsel Lisa Osofosky (pictured) will succeed David Green QC as the next director of the Serious Fraud Office (SFO) has put to bed more than a month's worth of speculation. Osofsky, who joins from regulatory compliance company Exiger, where she was EMEA head of investigations, had been widely tipped to take the role since late April, when multiple white collar partners told Legal Week that she was seen as the most likely candidate. Despite widespread expectations of her arrival in the post, the long-awaited confirmation has raised a number of questions, in particular over her position on Prime Minister Theresa May’s plan to fold the SFO into the National Crime Agency. "The question on everyone’s lips however is whether she will protect the organisation from political interference,” says Kingsley Napley criminal litigation head Louise Hodges. Osofsky, who has dual UK/US nationality and is qualified in law on both sides of the Atlantic, has previously raised eyebrows with her comments on May’s proposals, telling The Telegraph last year that the SFO has been on a “knife-edge for years”. However, her initial interviews have seen her come out strongly against such a move, stating that "she did not take this job to report to the NCA". Freshfields Bruckhaus Deringer disputes partner Ben Morgan, who joined the magic circle firm last year after five years at the SFO, said that white collar partners would have been awaiting Osofsky’s first remarks as director to set the tone for her tenure. "Most people following the SFO’s work would say that under David Green it has undergone a largely positive journey, with some pretty clear messages about its role, ambition and way of operating," says Morgan. "The question is whether that journey is set to continue, and develop, or whether there is to be a change of course. In my view, this appointment leaves both options on the table in a way that others would not have done.” Osofsky, a former deputy GC at the FBI, prosecuted more than 100 cases on behalf of the US Government before joining the private sector. Before joining Exiger in 2013, she was also a regulatory adviser at global risk consultancy Control Risks and executive director of the business intelligence group at Goldman Sachs. Ex-SFO senior prosecutor and Keystone Law consultant solicitor Claire Shaw said that Osofsky’s anti-money laundering experience garnered during her time at Goldman and elsewhere could be a pointer as to how the SFO and NCA will work together in future. “I find it interesting that the SFO has been attracted by Osofsky’s anti-money laundering experience," said Shaw. "Money laundering has always been the prerogative of the NCA in the past, so perhaps this is a hint that the SFO will be working very closely with that organisation.” While Hodges said the hire of Osofsky would "bring new insight and fresh thinking", given that she is "not one of the usual establishment faces", others have questions about how the appointment process was handled. The SFO revealed that a replacement had been found in April, but also announced the appointment of COO Mark Thompson as interim director at the same time. “I’m surprised that the process has taken so long, and I don’t think it’s been handled well. I hope Osofsky is able to make some prompt and much needed statements in order to establish her authority and support her new staff,” said Shaw. Kingsley Napley's Hodges added that one question raised by the appointment would be whether, owing to her US background, Osofsky would be likely to pursue closer working relationships with her regulatory counterparts in the States, rather than those in the EU. "Her success is important to the future prosecution of business crime in this country and for the message we send internationally about the UK’s attitude to corporate crime,” she explains. White & Case London white-collar head Jonathan Pickworth, who acts for companies being investigated by the SFO, echoed this, saying that her US connections "may well help to enhance relations with the US authorities". "Lisa is very experienced - she will bring a fresh perspective and her time spent at the FBI together with her other US connections will help to enhance relations with the US authorities," he said. Osborne Clarke business crime head Jeremy Summers suggested that Osofsky's experience in US law enforcement may see a change of approach at the SFO. Under Green, the agency embraced the use of deferred prosecution agreements (DPAs), which allow companies to self-report and cooperate with the SFO to avoid the risk of costly trials and the potential damage of a conviction. "The US tends not to prosecute corporates and more routinely looks for deals. The SFO still has not got the greatest track record when it comes to successfully prosecuting big companies, and it will be interesting to see if the new director adopts the more US approach of going for corporate DPAs alongside the prosecution of senior individuals," said Summers.