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  • Step 4: Adjustment for deterrence

    • RPP 6-5-9

      If the DFSA considers the figure arrived at after Step 3 is insufficient to deter the firm who committed the contravention, or others, from committing further or similar contraventions then the DFSA may increase the financial penalty. Circumstances where the DFSA may do this include:

      (a) where the DFSA considers the absolute value of the financial penalty too small in relation to the contravention to meet its objective of credible deterrence;
      (b) where previous DFSA action in respect of similar contraventions has failed to improve industry standards. This may include similar contraventions relating to different products (for example, action for mis-selling or claims handling failures in respect of 'x' product may be relevant to a case for mis-selling or claims handling failures in respect of 'y' product);
      (c) where the DFSA considers it is likely that similar contraventions will be committed by the firm or by other firms in the future in the absence of such an increase to the financial penalty; and
      (d) where the DFSA considers that the likelihood of the detection of such a contravention is low.
      Derived from Notice of Updates (Made 20th December 2012). December 2012 Edition
      Amended (Made 21st August 2014). August 2014 Edition