EN-2 EN-2 Formal Warnings
EN-2.1 EN-2.1 CBB Policy
EN-2.1.1
Formal warnings are clearly identified as such and represent the CBB's first level formal enforcement measure. They are intended to clearly set out the CBB's concerns to a licensee or an individual regarding an issue, and should be viewed by the recipient with the appropriate degree of seriousness.
Amended: October 2010
Added: October 2007EN-2.1.2
As indicated in Section EN-1.1, the CBB will usually discuss concerns prior to resorting to a formal enforcement measure, especially where a significant element of judgment is required in assessing compliance with a regulatory requirement.
Amended: October 2010
Added: October 2007EN-2.1.3
Where such discussions fail to resolve matters to the CBB's satisfaction, then it may issue a formal warning. Failure to respond adequately to a formal warning will lead the CBB to consider more severe enforcement measures. However, more severe measures may not require the prior issuance of a formal warning – depending on its assessment of the circumstances, the CBB may decide to have immediate recourse to other measures. Similarly, there may be circumstances where the CBB issues a formal warning without prior discussion with the licensee or person concerned: this would usually be the case where a clear-cut compliance failing has occurred.
Amended: October 2010
Added: October 2007EN-2.1.4
When considering whether to issue a formal warning, the criteria taken into consideration by the CBB therefore include the following:
(a) The seriousness of the actual or potential contravention, in relation to the requirement(s) concerned and the risks posed to the licensee's customers, market participants and other stakeholders;(b) In the case of an autual contravention, its duration and/or frequency of the contravention; the extent to which it reflects more widespread weaknesses in controls and/or management; and the extent to which it was attributable to deliberate or reckless behaviour; and(c) The extent to which the CBB's supervisory objectives would be better served by issuance of a formal warning as opposed to another type of regulatory action.Amended: October 2010
Added: October 2007EN-2.2 EN-2.2 Procedure for Issuing Formal Warnings
EN-2.2.1
Proposals to issue formal warnings are carefully considered against the criteria listed in Section EN-2.1. They require the approval of a Director or more senior CBB official, and include the statement "This is a formal warning as defined in Chapter EN-2 of the CBB Rulebook".
Amended: October 2010
Added: October 2007EN-2.2.2
Depending on the issue in question, recipients of a formal warning may be required to respond to the contents of the warning. In any case, recipients have the right to object to or challenge a formal warning as specified under Articles 125(c) and 126 of the CBB Law.
Amended: October 2010
Added: October 2007
