MLR1PP14700 - Penalties Guidance: Range of failure to notify penalties

A first penalty after a warning which is the result of a misunderstanding

• £0.00 when this is the first breach and the result of a genuine misunderstanding of the advice we have given

The first penalty where there is a failure to take reasonable steps

• £0.00 for unprompted full disclosure of a first breach (100% reduction)
• £500 for prompted full disclosure of a first breach (90% reduction)
• £1,000 for prompted partial disclosure of first breach (80% reduction)
• £1,500 for undisclosed first breach (70% reduction)

The second penalty where there is a failure to take reasonable steps

• £1,500 for prompted disclosure of a second breach (70% reduction)
• £1,000 for unprompted disclosure of a second breach (80% reduction)
• £2,500 for undisclosed second breach (50% reduction)

The third penalty where there is a failure to take reasonable steps 

• £2,000 for unprompted disclosure of a third breach (60% reduction)
• £2,500 for prompted disclosure of a third breach (50% reduction)
• £3,500 for undisclosed third breach (30% reduction)

The standard reductions matrix should be used if the breach is deliberate. See MLR1PP10060 

An unprompted disclosure is one that is made to us before we issue a warning, start an Intervention (including a telephone Intervention) or before we make contact with you to arrange a Compliance Visit. See MLR1PP10450 for more information about disclosure.