• EN-2.1 EN-2.1 BMA policy

    • EN-2.1.1

      Formal Warnings are clearly identified as such and represent the Agency's first level formal enforcement measure. They are intended to clearly set out the Agency's concerns to a licensee or an individual regarding an issue, and should be viewed by the recipient with the appropriate degree of seriousness.

    • EN-2.1.2

      As indicated in section EN-1.1, the Agency 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.

    • EN-2.1.3

      Where such discussions fail to resolve matters to the Agency's satisfaction, then it may issue a Formal Warning. Failure to respond adequately to a Formal Warning will lead the Agency to consider more severe enforcement measures. However, more severe measures do not require the prior issuance of a Formal Warning — depending on its assessment of the circumstances, Agency may decide to have immediate recourse to other measures. Similarly, there may be circumstances where Agency 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.

    • EN-2.1.4

      When considering whether to issue a Formal Warning, the criteria taken into consideration by the Agency 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 actual 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 Agency's supervisory objectives would be better served by issuance of a Formal Notice as opposed to another type of regulatory action.