How do they work it out?

Without any sarcasm I would be genuinely interested if anyone could explain how the level of fine is assessed. From where I stand it just seems as the Regulator picks a number out of the air – which appears to be further adjusted depending on ability to pay – the richer you are the higher the fine. This is then subject to a ‘discount’ – which to me seems judged on how good the lunch was that the accused provided for the Regulatory Team. The whole process seems to be a mystery cloaked in an enigma. I would hope that there is some robust formula that can be calculated by anyone. Something along the lines of: Calculated detriment in monetary terms to the market or to customers X y% multiplied by √of the average of the last 4 years taxable profits – less a prompt payment settlement of 5% per week up to 6 weeks. (i.e. 30% discount in week 1 reducing). I know this is a banal example but is made to illustrate that a robust and open formula is probably what the regulator would expect of us if the boot was on the other foot.

Posted by: Harry Katz