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Step 4: Adjustment for deterrence
Step 4: Adjustment for deterrence
If the Authority considers the figure arrived at after Step 3 is insufficient to deter the firm who committed the breach, or others, from committing further or similar breaches then the Authority may increase the penalty. Circumstances where the FCA may do this include:
where the FCA considers the absolute value of the penalty too small in relation to the breach to meet its objective of credible deterrence;
where previous FCA action in respect of similar breaches has failed to improve industry standards;
where the FCA considers it is likely that similar breaches will be committed by the firm or by other firms in the future in the absence of such an increase to the penalty; and
where the FCA considers that the likelihood of the detection of such a breach is low.
- Heading
- Introduction
- Applicable law and regulatory provisions
- Step 1: Disgorgement
- Step 2: The seriousness of the breach
- Step 3: Mitigating and aggravating factors
- Step 4: Adjustment for deterrence
- Step 5: Settlement Discount
- Evidence
- Findings of Fact
- Background
- The Solo Business
- Onboarding of the Solo Clients
- Client Categorisation
- Transaction monitoring
- Regulatory Failings
- Assessment of the financial penalty
- Step 1 – disgorgement
- Steps 2 to 5 - General
- Step 2 - The seriousness of the breach
- Step 3 - Mitigating and aggravating factors
- Step 4 - Adjustment for deterrence
- Step 5
- Conclusions