MLR1PP9400 - Penalties Guidance: Method 1: The single or standard penalty method

Unless the criteria in MLR1PP9450 are met, this should be the default method of calculating a penalty. It should always be used where there are several breaches of equal seriousness which took place during the same relevant period.

The single penalty method will also be the most appropriate where there are related breaches. Related breaches are explained in MLR1PP7300 

When this is the most appropriate method of calculating the penalty, in all but the most complex cases the steps in the smart guidance in MLR1PP14350 will take Officers through the process of calculating the penalty. This should be used together with the calculation sheet in MLR1PP14450 

Alternatively, both businesses and Officers can follow the steps listed below:

Step 1 - Calculate the penalty cap. This will be the maximum penalty and it may not be necessary to calculate an additional starting penalty. See MLR1PP9150 

Step 2 - Calculate the culpable turnover for MSBs and HVDs following the guidance in Section MLR1PP8500 

Or, calculate the scale charges for TCSPs or ASPs following the guidance in Sections MLR1PP8800 to MLR1PP9010 

Care must be taken to ensure that when there are multiple breaches, specific clients are only counted for once, even if they were exposed by separate breaches.

Step 3 - If the total of minimum starting penalty, and the culpable turnover or scale charges for all the breaches, are less than the penalty cap, this is the starting penalty.

Step 4 - Apply any penalty reductions or any suspended penalty to the total starting penalty. See MLR1PP10000