MLR1PP10460 - Penalty Guidance: Full or partial disclosure

A disclosure will be treated as unprompted even if at the time it is made the full extent of the disclosure is not known.

We will only accept that a disclosure is a full disclosure, if we are told in advance, or at the very start of a Compliance Visit, that a business intends to make a full disclosure, and all the Regulatory failures are than disclosed at the visit. Full co-operation by the business will be essential to enable us to confirm the disclosure is full.

If the disclosure is about trading without being registered, the date when the business first conducted regulated business without being regulated, must be correctly disclosed. If you are a business who has traded without being registered, and has failed to comply with other Regulations, you must disclose both.

If a full but prompted disclosure is made we will allow a penalty reduction of 20%.

Disclosure and co-operation are closely linked because we are not able to check the level of disclosure without full co-operation. If we do not receive full co-operation we will not be able to give the full 20% reduction for a full disclosure.

We will still consider allowing a reduction of 10% for a partial prompted disclosure under some circumstances. The decision will depend on what is disclosed, when it is disclosed, and the level of co-operation shown by the business.