MLR1PP11200 - Penalty Guidance: What to include in a penalty notice

A standard penalty notice letter must always be issued if a penalty is due, even if this has been reduced to nil.

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

All penalty notices issued by Compliance Officers must be accompanied by a revised penalty statement if one was issued with the pre-penalty notice. See MLR1PP11050 

This should have been modified to reflect any changes that have been made to the penalty as a result of comments or representations received in the 30 day pre-penalty period.

All penalty letters should include the same information as the pre-penalty letter.

The statement or the text must be in the same format as the pre-penalty letter and should include the same details that were included with the pre-penalty letter.

If exceptionally a pre-penalty letter was not issued, the penalty notice must as an absolute minimum explain:

• The Regulations that have been breached
• How we came to this conclusion.
• How we calculated the starting penalty
• What reductions we have allowed
• How we arrived at these
• Details of any suspended penalty

Penalty notices issued by the Registration Team must include details of the specific Regulation that has been breached, how we arrived at this conclusion and how the penalty has been calculated. All of these can normally be included in the text of the penalty notice.

If we can accept any reasons why the penalty we proposed in any pre-penalty letter was incorrect, the statement (when applicable) and the explanatory text should be changed to reflect what has been agreed and changed.

Details of any comments made by a business which cannot be agreed, must also be included in the penalty notice together with the reasons why we disagree.

In addition all penalty notices which include a financial penalty must explain:

• The fact that the penalty has been issued under Regulation 42 of MLR 2007 or Regulation 11 of the Transfer of Funds Regulations 2007.
• The amount of the penalty and the amount which is now payable. This is the penalty less any suspended penalty
• The right to request a Review, or appeal directly to an independent tribunal
• A copy of the remittance slip and pre-paid envelope

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