MLR1PP10110 - Penalties Guidance: The penalty reduction matrix: Table 2

ANDSECTION2

Table 2

A mistake or misinterpretation.

A failure to take reasonable steps

A deliberate failure to comply with the regulations.

A deliberate failure to comply with the regulations with concealment.

Reduction for unprompted full disclosure and revised maximum civil penalty

No further reduction.

A further reduction of 30%.

A reduction of 30%.

A reduction of 30%.

The financial penalty has already been reduced to nil.

If this is your first penalty the financial penalty will be reduced to nil. You will be sent a notice advising you that a breach has occurred and a letter telling you what steps you must take to correct this.

If this is your second penalty the penalty will be reduced to 20% of the starting penalty.

If this is your third penalty the penalty will be reduced to 40% of the starting penalty.

The maximum penalty will be reduced to 70% of the starting penalty.

The maximum penalty will be reduced to 70% of the starting penalty.