MLR1PP7150 - Penalties Guidance: The framework for penalties

The penalty framework is intended to ensure that we meet the objectives for civil penalties under the Regulations. The penalty framework will be used for the vast majority of regulatory breaches.

• There is however no obligation on us to use this framework and consequently it can be suspended if exceptionally any of the following circumstance applies:
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
• The business has failed to co-operate with us and has not provided sufficient information to enable the use of the penalty framework or it has not been possible to make a determination of any relevant details
• The regulatory breaches are deliberate and we have reason to believe that the level of the penalty calculated using the penalty framework will not be dissuasive. Under these circumstances consideration should first be given as to whether a criminal investigation or withdrawal of fit and proper status is the appropriate course of action
• The business has a turnover of less than £50,000 so the penalty has been capped at the £5,000 starting penalty but penalties set at this level have failed to improve compliance and a more severe penalty is appropriate. Under these circumstances consideration should first be given as to whether a criminal investigation or withdrawal of fit and proper status is the appropriate course of action
• The business has deliberately not registered to avoid paying the fees and the registration starting penalty of £5,000 is not dissuasive because it is less than the total of the fees they avoided paying.
• There may be special circumstances when due to the complexity of a specific process or events we recognise that a standard fixed penalty of less than would be set by the penalty framework will be more appropriate
• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)