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December Update from our Chair to the Advisory Panel
1 January 2024

December Update from our Chair to the Advisory Panel

As Christmas and New Year approaches, I would like to provide an end of year update upon behalf of the Investment Fraud All Party Parliamentary Group Advisory Board. It has been an honour and a privilege to co-found this APPG and to be appointed Chair of our esteemed panel of advisors.


Investment Fraud is far from victimless. It is an appalling crime that shatters lives and breaks families apart. Charging rates are shockingly low, there is very little specialist support or financial redress available to victims and many victims are struggling to deal with the financial and psychological consequences of HMRC action against them for tax liabilities emanating from crime.


Fraud is now the UK’s most prevalent crime and we need a system fully equipped to deal with it. Accordingly, we are calling on our Government and every part of the criminal justice system (including His Majesties Revenue and Customs) to come together with priority, conviction, empathy and determination to see justice done in these cases and to better support victims. Otherwise, we are simply letting fraud victims and their families as a society down.

2023 has been a pivotal year for our APPG and seen:


A New Secretariat


1.    Keller Postman Solicitors taking over our secretariat;


A New Panel of Advisors


2.    The formation of a new panel of expert advisors including Rick Muir, Director of the Police Foundation, Adam Richardson, Barrister of 1EB, Margaret Snowdon OBE of the Pensions Scams Industry Group, Andy Agathangelou, Co-founder of the Transparency Taskforce to our board. We also appointed campaigner Sue Flood as our victim representative. Having a strong, knowledgeable panel of expert advisors is vital to the success of our APPG;


Treasury Expertise


3.    The appointment of former Treasury Minister Sir Stephen Timms (Chair of the DWP Select Committee) and Lord John Mann (Former Treasury Select Committee Chair) to our panel. We also welcomed MP Toby Perkins to our APPG. We sought senior parliamentarians with direct experience of treasury matters to help formulate workable and pragmatic recommendations for reform to present to HMRC and The Treasury.


Our First APPG Inquiry


4.     We brought together experts, victims and parliamentarians to Parliament from across the political spectrum to inquire into the tax treatment of investment and pension fraud victims. The evidence provided has contributed to our first inquiry report. 


Recommendations


5.    We researched best practice overseas and held roundtable discussions at Parliament with lawyers, financial advisors, tax experts and investigators amongst others to formulate workable recommendations and a new framework to present to HMRC & The Treasury


Media Outreach & Engagement


6.    We launched new social media channels and hit the news channels. We filmed victim evidence sessions and participated in a fly on the wall documentary.


Letters & Briefings


7.    Our parliamentarians wrote many letters and also held numerous meetings with ministers to seek to highlight the plight of victims and call for reforms.


Submissions to Government Committees


8.     In recent months we have submitted evidence and recommendations to the Home Affairs Committee Inquiry into Fraud and The Public Accounts Committee in response to their call for evidence. Further details will be published in due course.



We are now seeking meetings with government ministers and HMRC to present our evidence and findings and to discuss our proposals for reform. We hope that these proposals will be welcomed and provide an alternative mechanism for dealing with tax liabilities arising from fraud. I fully appreciate this is an uphill battle. But our aim is not simply to criticise. We recognise that HMRC officers have a vital job to do in raising funds for our public services and do so in difficult conditions. Our aim is to help create a more efficient and effective as well as fairer system for both HMRC, the Treasury and for victims. We hope we’ve struck an appropriate balance and that our suggested reforms are a good starting point for government ministers and policy-makers to consider. 


Our calls for reform include :


-   Relief for historic victims;

-   An Independent Inquiry;

-   Legislative & Policy Change;

-   Reform at HMRC;

-   Greater support for Victims.


In 2024 we have an exciting programme of work.


Firstly, our campaign for fair tax treatment for investment and pension fraud victims will continue and we will be marching to Parliament and HMRC to formally present our inquiry findings and to call publicly for reform.


I am also delighted to share that we will be partnering with the Social Market Foundation (https://www.smf.co.uk ), Britain’s leading cross-party think-tank to conduct primary research and develop evidence based policies to present to government. Victims have reported to us that they are being denied justice and that our law enforcement agencies and regulators are failing them. Together with the SMF we will be considering access to justice and how our system compares to other jurisdictions with a particular emphasis on best practice in the US.


We will also be conducting focused inquiries and research into a number of highly targeted groups including sports professionals and music artists, pension savers and military veterans.


I would like to place on record our gratitude to all our cross-party parliamentarians for their continuous dedication to this cause and especially to Caroline Nokes MP and Alex Sobel MP. Caroline and Alex have put party politics aside to chair this APPG so diligently and have lent us the full support of their team, who have tirelessly worked behind the scenes organising correspondence, meetings and our events at Parliament. Thank you.


I would like to thank my fellow panel members who have provided such valuable pro bono expertise and support to our APPG including peer reviewing and helping to formulate our reports and recommendations. A special acknowledgement also to Sue Flood whose dedication and commitment to victims has been fearless and unwavering and to Sir Stephen Timms for his meticulous examination of our proposals and evidence.


I would finally like to thank sincerely the courageous victims who so bravely stepped forward to give evidence and also the numerous expert witnesses (tax advisors, lawyers, financial advisors and investigators amongst others) who participated in our round table discussions to debate our proposed reforms. I would also like to thank students at Oxford University’s Research Consultancy for their pro bono assistance in researching best practice overseas some time ago- which helped inform our recommendations.


I have a vested interest in this issue. I’ve lived through these systemic issues myself. My motivation however, in helping to co-found this APPG is to help safeguard future victims and their families and to support those families currently in crisis and struggling to deal with the aftermath of fraud. The scale of the change needed is significant. It will rely on long-term political will, strong leadership and appropriate scrutiny of our current practices and systems. We know only too well that lives depend on it.


Whilst we made good progress in 2023, it is not the end and we are exploring every avenue to tackle these issues and ensure that our system prevents and punishes this shattering crime, and that investment and pension fraud victims are treated fairly and appropriately and get the support and justice they deserve.


On behalf of everyone at the Investment Fraud APPG I want to end by wishing all our APPG supporters a happy, healthy and peaceful Christmas & New Year. Only together can we succeed and we have much to be proud of. Thank you for your support in 2023. 


Carly Barnes-Short


Click here to view the APPG on Investment Fraud’s First Inquiry Report.

Committee Co-Chair Carly Barnes-Short Contributes to TaxWatch Report on the Regulation of the Tax Advisory Market

31 March 2025
Westminster, April 2025– Carly Barnes-Short, co-chair of The Investment Fraud Committee, was recently interviewed by TaxWatch for their recent report, Regulation of the Tax Advisory Market: The Effect of Non-Regulation and the Case for Change. The report highlights the serious risks posed by the minimal regulation in the UK tax advisory market, revealing how this lack of oversight can lead to significant economic harm, including investment fraud and misleading advice to taxpayers. One of the key findings of the report is the alarming impact that unregulated or poorly regulated tax advisers can have on taxpayers. Specifically, fraudulent tax advisers have caused widespread financial damage to individuals and businesses, particularly in the realm of research and development (R&D) tax relief claims, where one-quarter of claims were found to be erroneous or fraudulent in 2020-21, costing the UK economy over £1 billion in lost tax revenue. In her interview with TaxWatch, Carly emphasised the need for stronger regulation to protect taxpayers from investment fraud Carly said:  "Investment fraud victims often face not only the financial burden of fraudulent advice but also the emotional and psychological toll of feeling betrayed by trusted professionals. In the current tax advisory market, individuals are exposed to substantial risks when tax advisers operate outside of a regulatory framework. This creates a situation where fraudsters and can exploit a lack of oversight to mislead and defraud taxpayers, resulting in devastating financial losses. A more regulated, transparent system would better protect investors and ensure the integrity of the market." The TaxWatch report calls for a new independent regulatory body for tax advisers in the UK, ensuring that all practitioners are properly qualified and monitored. This would address the gaps in consumer protection, prevent misleading tax claims, and reduce the significant economic harm caused by fraudulent or erroneous advice. Carly further explained:  "Without strong oversight, we leave the door open for unethical advisers to exploit vulnerable taxpayers. A new regulatory system would help prevent such exploitation by providing clear standards for tax advisers, better protecting investors, and enhancing consumer confidence. This is not just about protecting individual taxpayers; it's about safeguarding the UK’s economy from billions of pounds in lost tax revenues." The report highlights a tax advice market that operates like a regulatory Wild West, leaving individuals and businesses vulnerable to poor or exploitative advice.The TaxWatch report also draws on international models, including Australia’s robust regulatory approach, which combines mandatory registration, effective enforcement, and real-time data sharing, as a blueprint for potential reforms in the UK. Based on its findings, TaxWatch recommends the creation of an independent regulatory body with appropriate statutory powers that would: Require registration and minimum qualification standards for all tax advisers Implement robust monitoring of compliance with professional standards Enable effective data sharing with HMRC to identify emerging risks Include proportionate enforcement powers Enhance consumer protection through accessible complaints processes and improved safeguards The report concludes that these reforms would create a regulatory environment that better protects taxpayers while supporting qualified tax advisers in their practice. Effective regulation could help reduce economic impacts on individuals and businesses resulting from poor advice, while also addressing aspects of the tax gap related to non-compliance. TaxWatch urges the government to prioritise these reforms, noting that the billions lost to non-compliance facilitated by unregulated advisers represent a significant opportunity to strengthen public finances while protecting vulnerable taxpayers from exploitation and getting into ruinous tax debt with HMRC.

New All-Party Parliamentary Group Committee on Investment Fraud Launched to Support Victims and Drive Reform

20 March 2025
A new All-Party Parliamentary Group (APPG) Committee on Investment Fraud has been launched this week, spearheaded by a cross-party group of MPs and led by expert victim campaigner and lawyer Carly Barnes-Short. The rise of investment and pension fraud is rapidly becoming one of the most pressing issues facing UK investors and pension savers. Victims often find themselves fighting against powerful financial institutions and complex tax liabilities, with little recourse for justice or financial redress. This APPG Committee aims to put an end to this by amplifying the voices of victims and pushing for much-needed reforms. Carly Barnes-Short, a leading campaigner for victims of financial fraud and an experienced lawyer, has been at the forefront of driving the initiative. Speaking on the launch, she said: “I am very proud to be co-chairing this vital new APPG. For too long, victims of investment and pension fraud have been left in the shadows, struggling against a broken system. Our mission is to ensure these victims receive the support, recognition, and protections they deserve. We will challenge systemic failures in law enforcement, taxation, regulation, and government responses to fraud, while pushing for reforms that will better safeguard investors and pension savers.” The APPG Committee is made up of MPs, experts, and victim advocates committed to addressing the growing threat of investment fraud. Its primary goals include: Supporting victims of investment and pension fraud in their fight for justice. Challenging the role of law enforcement, HMRC, and financial institutions in failing to adequately protect victims. Advocating for stronger regulations to prevent fraudulent schemes and financial abuse. Investigating long-standing fraud issues and heavily targeted sectors to create lasting reforms. The group will also work closely with the wider Investment Fraud & Financial Services APPG to promote transparency and accountability in the financial services sector. Commenting on the launch, one of the founding MPs said: “We are witnessing an alarming increase in investment fraud cases, which devastate the lives of ordinary people. This APPG provides a platform for those affected to have their voices heard in Westminster and work towards a financial system that is both fair and secure. I’m proud to be part of a group that is focused on much needed reform.” The new APPG Committee will be operating with a focus on creating systemic change. It will provide a vital channel for expert briefings, parliamentary seminars, and campaigns, ensuring victims’ voices are central in shaping future policy.  This important initiative is expected to drive significant reforms in the UK’s approach to financial crime and fraud, delivering justice and better support and protection for thousands of victims across the country.
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