MLR1PP6050 - Penalties guidance: warning letters: introduction

Warning letters are a very important part of the penalty regime. A warning letter is not a penalty. A warning letter is however the first step on an escalator that will lead to penalties if the business fails to become compliant. The number of warning letters and the business's response to these will therefore determine when a civil penalty becomes the most appropriate sanction. A warning letter tells a business what steps they must put in place to become compliant.

The impact and severity of any failings or weaknesses which have been identified will be assessed by our Compliance Officers within the context of the specific requirement of the Regulations and the structure, practices and procedures adopted by the specific business. Compliance Officers should adopt a risk based approach in deciding if a warning is appropriate.