MLR1PP10060 - Penalties Guidance: Using the penalty reduction matrix

The matrix consists of 5 separate tables:

• Table 1: Reductions for compliance history and behaviours. See MLR1PP10100 
• Table 2: Reductions for unprompted full disclosure. See MLR1PP10110 
• Table 3: Reductions for prompted full disclosure. See MLR1PP10120
• Table 4: Reductions for prompted partial disclosure. See MLR1PP10130 
• Table 5: Reductions for less serious deliberate non-compliance. See MLR1PP10140 

The percentage reduction we are prepared to allow will always be determined by the penalty reduction matrix. There is also a simplified matrix for Registration penalties in MLR1PP10150 of this guidance.

For all penalties the reductions will range from 100% to 0% but the majority of penalties will fall into a range between 20% and 60% of the starting penalty.

The matrix provides a framework to ensure consistency in the way we reduce the starting penalty and this will ensure that penalties are appropriate. Although the matrix is prescriptive in the reductions that are given, the individual circumstances of the breach must be taken into account when evaluating the specific behaviours demonstrated by the business.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)