MLR1PP10600 - Penalties Guidance: The suspended penalty: Introduction

Once a breach which is subject to a penalty has been disclosed or identified it is important that the business corrects this at the earliest opportunity. Prompt action to correct the breach will also be rewarded. This additional reduction will take form of a suspended penalty. An additional 5% of the starting penalty will be suspended for 12 months from the date the penalty notice is issued if the business is prepared to agree a plan of action with the Regional Compliance officer to correct the breach. If the business then fully corrects the breach within the next 12 months the suspended penalty will be cancelled as a reward for prompt action. If however, the business has failed to correct the breach the suspended penalty will be collected. This will be in addition to any new penalty that is raised for the continued breach of the Regulations.