SRA Handbook

Appendix 1

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Appendix 1

Financial Penalty Criteria (Rule 3.2)

1

In this appendix, the term "misconduct" shall mean conduct or behaviour resulting in an SRA finding.

2

In deciding the amount of a financial penalty, the SRA will take into account all relevant circumstances, including that any financial penalty should, so far as practicable:

(a)

be proportionate to the misconduct;

(b)

be proportionate to any harm done;

(c)

be of an amount that is likely to deter repetition of the misconduct by the person directed to pay the penalty and to deter misconduct by others;

(d)

eliminate any financial gain or other benefit obtained as a direct or indirect consequence of the misconduct;

(e)

be proportionate to the means of the person directed to pay it;

(f)

take into account the intent, recklessness or neglect that led to the misconduct;

(g)

take into account any mitigating or aggravating circumstances; and

(h)

take into account indicative guidance published by the SRA from time to time.

3

Aggravating circumstances include:

(a)

failure to correct, or delay in correcting, any harm caused as a result of the misconduct;

(b)

failure to co-operate with the SRA investigation or the investigation of any other regulator or ombudsman;

(c)

failure to admit, or delay in admitting, any misconduct;

(d)

that the regulated person has been the subject of other findings by the SRA, the Tribunal, or any other approved regulator or the appellate body.

4

Mitigating circumstances include:

(a)

prompt correction of any harm caused as a result of the misconduct;

(b)

prompt admission of any misconduct;

(c)

taking steps to prevent future misconduct.

5

When considering a regulated person's means the SRA shall take into account:

(a)

all relevant information of which the SRA is aware; and

(b)

any statement of means, verified by a statement of truth, which has been provided by the regulated person.

6

The SRA may take into account in considering a regulated person's means any failure to provide a statement of means following a reasonable request by the SRA to do so under rule 8(1).