Sponsorship Agreement Novation- Dedicated Cheque and Plastic Card Unit

The Dedicated Cheque and Plastic Card Unit (DCPCU) is a joint police unit between City of London and MPS. It has an ongoing brief to investigate organised card and cheque fraud across the UK.

The unit is fully sponsored by the banking industry, providing funding as well as seconding specialist banking support staff and providing office space. Since 1st July 2017, a new trade body called UK Finance has been set up.

To ensure continued funding and resourcing to MOPAC, the MPS are requesting approval of the novation of contracts to the newly created trade body UK Finance.

The Deputy Mayor for Police and Crime approves the novation of the existing sponsorship agreement and secondment agreement from UK Payments Administration Ltd to the new trading body UK Finance.

1. Introduction and background

1.1 The Dedicated Cheque and Plastic Card Unit (DCPCU) is a specialist pro-active police unit, with a national remit, formed as a partnership between Financial Fraud Action UK, the City of London Police (CoLP) and the MPS together with the Home Office.

1.2 It is fully sponsored by the cards and banking industries, with an on-going brief to investigate, target and, where appropriate, arrest and seek successful prosecution of offenders responsible for card, cheque and payment fraud crimes.

1.3 DCPCU was sponsored by the Association of Payment Clearing Services (APACS (Administration) Ltd) which was the industry body for cheque and card processing for all UK financial organisations. In 2009 it became UK Payments Administration Ltd (UK Payments).

1.4 On 1st July 2017, a new trade body called UK Finance was set up, which now represents the financing and banking industry in the UK. UK Finance has taken on activities carried out by various organisations including UK Payments. The body still wishes to resource DCPCU.

2. Issues for consideration

2.1 The continuation of this sponsorship arrangement will maintain effectiveness of operations through the existence of a dedicated unit.

3. Financial Comments

3.1 The resourcing of the DCPCU comprises of cash funding split between the CoLP and the MPS and is determined by the number of police officers each force provides and the operational activities – over the last 3 years the monies to the MPS has averaged £890,000 per annum, which fully covers the costs incurred.

4. Legal Comments

4.1 As with the MPA, MOPAC have the power to accept sponsorship pursuant to section 93(2) of the Police Act 1996 and can do so on terms as appear to be appropriate. The contract signed on 28 July 2004 detailed the purpose of the agreement and contained terms that were reasonable and appropriate to the parties involved

4.2 The secondment agreement entered into on 03 June 2008, was linked to the sponsorship agreement and was entered into pursuant to the general functions of police authorities to secure the maintenance of an efficient and effective police force for its area.

4.3 The contracts made provision for novation with the written consent of each party. There are no legal implications of note arising from novating the agreements in their current form.

5. Equality Comments

5.1 UK Finance has been created as an amalgamation of all the major banking bodies, which is a highly regulated industry. The purpose and activities of the DCPCU will not change as it, along with the wider MPS and UK policing already work with all the bodies.

5.2 There are no known equality or diversity issues with this requested novation.

6. Background/supporting papers

6.1 No supporting papers attached.