MLR1PP9060 - Penalties Guidance: Step 7(2): Determinations of the additional starting penalty: Continued

If this figure can not be obtained a determination should be made following the guidance in MLR1PP8550 which explains how to make a determination of culpable turnover for MSBs and HVDs. The main difference is that it will not be possible to allow a deduction for any part of the relevant turnover which was deemed not subject to the breaches for the following reason.

If it is possible to identify which fees were from clients who were subject to the Regulations, it would be possible to determine the number of relevant clients, and a determination based on the scale charges could be used. This means when a determination is based on turnover, all the relevant turnover in the relevant period will be culpable for the purpose of the determination. A deduction should be allowed however for non-relevant turnover, generated by non-regulated activities, if this can be established.

When a determination has been made Compliance Officers should ensure that the basis for this is recorded.

It is important to remember that a determination can be replaced with the accurate figures, if these are subsequently provided, in a form that can be verified. Businesses should normally submit these within 30 days of the pre-penalty notice being issued.