This consultation closed on 27 April 2023, and we have published our response.
Why are we publishing this document?
Our enforcement work is important in making sure firms are following the rules and that people and businesses are protected. If firms do break the rules, we have the power to impose penalties, which could include issuing fines.
The proposed changes to our penalty statements will help firms more easily understand how we determine the amount of any penalty we impose.
What does this document contain?
Our penalty statements set out the principles which are applied in determining whether to impose a penalty and the amount of that penalty. They are a key tool in incentivising firms to comply with the rules we enforce, so it’s crucial that the right framework is in place for imposing penalties.
We currently have three penalty statements in place. We are proposing the following five main changes to our statements:
- To combine our three penalty statements into one.
- To change the way in which we consider the duration of a compliance failure and how we take account of revenue when calculating penalties.
- To clarify what we mean by senior management.
- To add further clarity when we consider a compliance failure is deliberate or reckless.
- To reinforce the principle that penalties should disincentivise compliance failures.
Who should read this document?
This document is relevant to the payments industry, particularly those firms subject to the regulations and obligations we enforce.