[2025] UKUT 00185 (TCC)

We determine that the penalties are to be mitigated by 25%. Mr Donaldson’s penalty is thus reduced from £223,100 to £167,325 and that of Mr Arden from £134,600 to £100,950. Setting the penalties at that level is, in our judgement, proportionate to the seriousness of the breach, as mitigated by the factors which we accepted should be taken into account.

For the reasons set out above, we agree with the Authority that the Bank breached LR 1.3.3R and that Mr Donaldson and Mr Arden were knowingly concerned in that breach.

However, we determine that the appropriate action for the Authority to take in relation to the References is to mitigate the penalty charged on Mr Donaldson from £223,100 to £167,325 and to mitigate the penalty charged on Mr Arden from £134,600 to £100,950. Our decision was unanimous.

The Decision Notices are remitted back to the Authority for it to give effect to our determination.