ECSH83825 - Sanctions for non-compliance: suspension and cancellation: duration of suspension

The duration of the suspension will be determined by the facts and circumstances of the case. The period of suspension should normally be for the period of time to enable the business to address the contraventions/risks for which the suspension was imposed and for us to be satisfied that the contraventions/risks have been satisfactorily mitigated.

Ideally, the duration should be for as short a time as reasonably practicable. If suspensions are to be in excess of six months, serious consideration should be given as to whether suspension is still appropriate; cancellation may be more appropriate if suspension needs to be for such a long period of time. The conditions for lifting the suspension and the duration must be proportionate to the contraventions/risks they are addressing. We should make the business aware of the likelihood of further sanctions, particularly if the conditions for lifting the suspension are not met. These further sanctions may include suspending the registration again, cancellation of registration and the publishing of a Censure statement.

It may be that a business’s registration is suspended at first and later cancelled, permanently removing them from the register. For example, at the end of the suspension period, if the reasons for imposing the suspension have not been remedied, the business’s registration may be cancelled. Alternatively, a business may have its registration suspended and then reinstated once the grounds for the suspension are no longer present or have been satisfactorily addressed. If the decision-maker is satisfied that the business has addressed the grounds for suspension before the end date, the suspension should be lifted immediately as the grounds for it remaining suspended are no longer present, regardless of the duration of the suspension originally communicated to the business.

Suspensions can be particularly effective if utilised as an immediate or prompt provisional measure, whilst a business addresses a significant breach and/or risks of money laundering and terrorist financing.