FRC—factors considered when determining a sanction
Produced in partnership with Thomas Daniel of 2 Bedford Row
FRC—factors considered when determining a 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—factors considered when determining a sanction
  • Intentional or reckless breaches
  • Aggravating and mitigating factors
  • Adjustment for deterrence
  • Discount for admissions and or a settlement
  • Costs

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.

Intentional or reckless breaches

Other factors which a Tribunal will consider when determining a sanction include whether the Misconduct was intentional. Factors tending to show that is was intentional include:

  1. the Member involved or the Member Firm's senior management or a responsible individual intended or foresaw that the likely or actual consequences of their actions or inaction would amount to a falling short of professional standards of conduct

  2. the Member involved or the Member Firm's senior management or a responsible individual permitted the Misconduct to continue notwithstanding that they knew that their actions breached the relevant rules, standards or procedures of the Member Firm's management or internal control systems

  3. the Member involved or the Member Firm's senior management or a responsible individual was influenced to commit the Misconduct by the belief that it would be difficult to detect

  4. the Member deliberately took decisions relating to the Misconduct knowing that he was acting outside their field of competence

  5. the Member or Member Firm intended

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