The Insolvency Service Legal Services Directorate (LSD) is the lead criminal enforcement agency for insolvency related fraud and corporate misconduct. It is the prosecuting authority for breaches of insolvency and company law referred to them by other teams within the Insolvency Service, the Official Receiver, by Companies House and other agencies. The LSD also deals with miscellaneous criminal matters arising within the Department for Business and Trade. The Insolvency Service has oversight of the full range of investigation and enforcement action that is being pursued.

The LSD may refer cases to other enforcement bodies, such as the Crown Prosecution Service (CPS), HMRC or the Serious Fraud Office (SFO), dependant upon the nature or scale of the criminal offences being investigated. Practitioners must consider the role of LSD when thinking about the potential liability for their clients.

As a prosecuting authority, when taking the decision whether to prosecute, LSD is bound by the CPS Code for Crown Prosecutors, applying the requisite evidential test and public interest test. See Practice Note: The decision to prosecute and selection of charges.

Note