Consultation response

2023 Consultation on proposed changes related to financial penalties: Consultation Response

This response sets out our position in relation to the consultation on the proposed changes to the Statement of Principles for Determining Financial Penalties.

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Published
10 July 2025

Last updated
10 July 2025 - Changes

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Contents

• 2023 Consultation on proposed changes related to financial penalties: Consultation Response

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• Executive summary
• Introduction
• Summary of responses and our position
• • Proposal 1: Principles for determining financial penalties
  • Proposal 2: The framework of policies and procedures
  • Proposal 3: The legal framework
  • Proposal 4: The scope of this document
  • Proposal 5: Key considerations
  • Proposal 6: The purpose of imposing a financial penalty
  • Proposal 7: Criteria for the imposition of a financial penalty
  • Proposal 8: Criteria for determining the quantum of a financial penalty
  • Proposal 9: Step 1 - Detriment to consumers and/or financial gain to the licensee
  • Proposal 10: Step 2 (a) - The seriousness of the breach to determine the starting point of the penal element
  • Proposal 11: Step 2 (b) - Determining the starting point of the penal element of the fine
  • Proposal 12: Step 3 - Mitigating and aggravating factors
  • Proposal 13: Step 4 - Adjustment for deterrence
  • Proposal 14: Step 5 - Discount for early resolution
  • Proposal 15: Step 6 - Affordability
  • Proposal 16: Step 7 - Proportionality
  • Proposal 17: Procedural matters, payment plans, time limits and payments in lieu of financial penalties
  • Proposal 18: Indicative sanctions guidance
  • Proposal 19: Impact of the proposals on protected characteristics stated in the Equality Act 2010
• Annex
• • Annex 1 - List of organisations that responded and consented to the publication of their name
  • Annex 2 - Questions asked in the Winter 2023 consultation on proposed changes to the Statement of Principles for Determining Financial Penalties

Proposal 5: Key considerations

We removed paragraph 1.5 from the proposed version of the Statement of Principles for Determining Financial Penalties (SoPfDFP) as stated in the consultation document, on the basis that the “key considerations” are captured in subsequent sections of the amended version of the SoPfDFP. We sought views on the proposed removal of this paragraph.

Consultation questions

Questions 15 and 16¹, as detailed in Annex 2 relate to this section.

Respondents’ views

There was no disagreement, and no substantive comments were made.

Our position

The paragraph is deleted from the amended version of the SoPfDFP.

References

¹ Question 16 allowed for respondents to make general comments and suggestions on Section 1 of the SoPfDFP. Comments and feedback received in response to Question 16 have been incorporated into the relevant sub-sections, where appropriate.

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Proposal 6: The purpose of imposing a financial penalty

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Last updated: 10 July 2025

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