May 2000 on National Criminal Records Act of 4 March 1994 on the Company Social Fund Act of 29 August 1997 on Personal Data Protection Regulation of Work and Social Policy Minister dated 28 May 1996 United Kingdom The employer has to treat the personal information from the applicant as confidential. The applicant has to receive a copy of the background to check or update the information that appears on the background check. The employer can not retain the information more than it is necessary. The employer has to give any one who comes in contact with the information of the applicant a code of conduct. The company has to go through an audit to make sure they are complying and protecting the data. Restrictions and Laws on Background Checks Criminal records checks: Protection of Freedoms Act 2012, Rehabilitation of Offenders Act 1974, Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 Ability to work in the UK: Immigration, Asylum and Nationality Act 2006 The Equality Act 2010 Data Protection Act 1998 Article 8 of the European Convention on Human Rights (and Human Rights Act 1998) Since the onset of the financial crisis of 2007–2010, the level of fraud has almost doubled and some experts have predicted that it will escalate further. Background-checking firm Powerchex has claimed the number of applicants lying on their applications has been increasing since the summer of 2007 when the financial crisis began. In 2009, Powerchex claimed that nearly one in 5 applicants has a major lie or discrepancy on his or her application. Almost half (48%) of organizations with fewer than 100 staff experienced problems with vetted employees. The research shows how many failures occurred in the relationship between employer and employee over the years and what dangers it brings. Applicants usually lie about additional skills (85%), dates of employment (58%), responsibilities (53%) or positions (28%). Regulation The Financial Services Authority states in their Training & Competence guidance that regulated firms should have: Adequacy of procedures for taking into account knowledge and skills of potential recruits for the role Adequacy of procedures for obtaining sufficient information about previous activities and training Adequacy of procedures for ensuring that individuals have passed appropriate exams or have appropriate exemptions Adequacy of procedures for assessing competence of individuals for sales roles The Financial Services Authority's statutory objectives: Protecting consumers Maintaining market confidence Promoting public awareness Reducing financial crime United