[2025] UKUT 00185 (TCC)

The Authority applied the framework set out above to both Mr Donaldson and Mr Arden. In relation to Step 1, disgorgement, the Authority accepted that neither had obtained any financial benefit from the breach.

In relation to Step 2, the breach lasted less than twelve months. Mr Donaldson had been employed by the Bank throughout the previous twelve months, so his “relevant income” was his earnings for that period of £1,115,904. Mr Arden had been employed by the Bank since March 2018, so his “relevant income” was £673,191, a pro-rata share of his annual earnings.

In relation to seriousness, the Authority had accepted that the breach was neither deliberate nor reckless; we have already set out its view in relation to both “the impact of the breach”, and the nature of the breach,

In relation to the “level 1 factors”, “level 2 factors” and “level 3 factors”, the Authority held that the following factors were relevant:

Taking all the above into account, the Authority decided that the seriousness of the breach was Level 3. The penalties before considering mitigating or aggravating factors were thus£223,180 for Mr Donaldson (£1,115,904 x 20%) and £134,638 (£673,191 x 20%) for Mr Arden.

The Authority went on to decide that there were no mitigating or aggravating factors (Step 3); that the figure at Step 3 was sufficient to act as a deterrent to the Applicants and others (Step 4) and there was no settlement, so Step 5 did not apply.