The MGA has published a guidance note to help explain how it exercises its discretion in the selection of the nature and scope of enforcement measures taken when breaches of law take place.
The contents are especially noteworthy to licensees as they lay out the circumstances and actions which the Authority gives particular importance to in its decision-making processes, including the interaction between a licensee in breach and the Authority.
The MGA’s enforcement measures commence initially with a warning, given when “the breach in question does not directly undermine the achievement of one of the regulatory objectives set out at law” and the licensee’s behaviour includes one or more mitigating circumstances.
An administrative penalty is imposed when the breach committed undermines one or more regulatory objectives; and, or the breach committed does not undermine one or more regulatory objectives, but the licensee’s behaviour includes one or more aggravating circumstances; and, or the recent compliance track record of the licensee, in general, is not sufficiently good.
A licence is suspended where there are issues that undermine the authorised person’s ability to conduct its operations in a manner compliant with applicable legislation, though such issues may be remedied with appropriate action which the licensee commits to undertake.
A licence is cancelled when the licensee’s operation is affected by systemic issues that in the Authority’s determination cannot be remedied in a manner that would be satisfactory in order that the licensee recommence operations.
Finally, in relation to breaches of a criminal nature, the considerations envisaged above, as well as aggravating and mitigating circumstances, guide the decision of the Authority as to whether to offer a regulatory settlement to the offender or to opt for the commencement of criminal proceedings.
Pertinently, the Authority is also empowered to publish any sanction it imposes.
