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

Summary of responses and our position

Contents

1. Proposal 1: Principles for determining financial penalties This section sets out our position in relation to principles for determining financial penalties.
2. Proposal 2: The framework of policies and procedures This section sets out our position in relation to the framework of policies and procedures.
3. Proposal 3: The legal framework This section sets out our position in relation to the legal framework.
4. Proposal 4: The scope of this document This section sets out our position in relation to the scope of this document.
5. Proposal 5: Key considerations This section sets out our position in relation to key considerations.
6. Proposal 6: The purpose of imposing a financial penalty This section sets out our position in relation to the purpose of imposing a financial penalty.
7. Proposal 7: Criteria for the imposition of a financial penalty This section sets out our position in relation to principles for the criteria for the imposition of a financial penalty.
8. Proposal 8: Criteria for determining the quantum of a financial penalty This section sets out our position in relation to the criteria for determining the quantum of a financial penalty.
9. Proposal 9: Step 1 - Detriment to consumers and/or financial gain to the licensee This section sets out our position in relation to step 1: Detriment to consumers and/or financial gain to the licensee.
10. Proposal 10: Step 2 (a) - The seriousness of the breach to determine the starting point of the penal element This section sets out our position in relation to Step 2(a): The seriousness of the breach to determine the starting point of the penal element and step 2(a).
11. Proposal 11: Step 2 (b) - Determining the starting point of the penal element of the fine This section sets out our position in relation to Step 2(b): Determining the starting point of the penal element of the fine.
12. Proposal 12: Step 3 - Mitigating and aggravating factors This section sets out our position in relation to step 3: Mitigating and aggravating factors.
13. Proposal 13: Step 4 - Adjustment for deterrence This section sets out our position in relation to Step 4: Adjustment for deterrence.
14. Proposal 14: Step 5 - Discount for early resolution This section sets out our position in relation to Step 5: Discount for early resolution.
15. Proposal 15: Step 6 - Affordability This section sets out our position in relation to Step 6: Affordability.
16. Proposal 16: Step 7 - Proportionality This section sets out our position in relation to Step 7: Proportionality.
17. Proposal 17: Procedural matters, payment plans, time limits and payments in lieu of financial penalties This section sets out our position in relation to Procedural matters including payment plans, time limits and payments in lieu of financial penalties.
18. Proposal 18: Indicative sanctions guidance This section sets out our position in relation to indicative sanctions guidance.
19. Proposal 19: Impact of the proposals on protected characteristics stated in the Equality Act 2010 This section sets out our position in relation to the impact of the proposals on protected characteristics stated in the Equality Act 2010.

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Annex - Changes related to financial penalties consultation response

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Last updated: 10 July 2025

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