FRC—different types of sanction
Produced in partnership with Thomas Daniel of 2 Bedford Row
FRC—different types of sanction

The following Corporate Crime guidance note Produced in partnership with Thomas Daniel of 2 Bedford Row provides comprehensive and up to date legal information covering:

  • FRC—different types of sanction
  • Reprimands and Severe Reprimands
  • Direction
  • Fines
  • Waiver or repayment of client fees
  • Preclusion
  • Exclusion

FORTHCOMING CHANGE ALERT: The UK government has announced that the Financial Reporting Council (FRC) will be replaced with a new regulator called the Audit, Reporting and Governance Authority. This new enhanced regulator will transform the audit and accounting sector in response to the comprehensive Independent Review led by Sir John Kingman. See: LNB News 11/03/2019 120.

Reprimands and Severe Reprimands

A Reprimand or Severe Reprimand is a signal of a Tribunal's disapproval of the Member or Member Firm's conduct to that Member or Member Firm. The Tribunal may also publish its decision in order to highlight its disapproval to the public and the profession.

The Reprimand or Severe Reprimand will show on the Member or Member Firm's disciplinary record and if there is any repetition of the particular Misconduct then the FRC will take this into account when deciding upon any further action or sanction.

Ordering a Reprimand or a Severe Reprimand

A Reprimand or Severe Reprimand can either be given alone or in conjunction with any other sanction, eg a fine. Ordinarily, if the seriousness of the Misconduct is such as to merit a Severe Reprimand, it will be appropriate for it to be ordered in conjunction with another sanction.

This type of sanction would be appropriate where:

  1. the Misconduct was unintended or where the Misconduct does not cast doubt on

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