We will impose a fine on an awarding organisation when this represents a suitable response to non-compliance with one or more conditions of recognition. A fine may be an appropriate response in a range of circumstances, for example a deliberate, negligent or persistent breach of condition(s) of recognition, or where the awarding organisation appears to have derived an advantage (such as a competitive advantage or a cost saving) from the breach. We expect that no awarding organisation should benefit financially from non-compliance, and a fine may help secure this. A fine may be imposed together with other regulatory sanctions.

We will follow a three-stage approach in imposing any fine:

• we must be satisfied, on the basis of the evidence available, that the awarding organisation has failed to comply with a condition of recognition (which may be a general condition or a special condition),
• the available sanctions will be considered, and a fine may be selected as suitable in response to the breach in the light of the principles outlined in this policy and our statutory objectives and duties,
• once a decision has been made to impose a fine, we will determine the appropriate amount of the fine for this breach, again considering the relevant factors set out in this policy and our statutory objectives and duties.

We do not expect awarding organisations to pass the costs of fines onto their customers. In a competitive market, there should be an incentive for awarding organisations not to pass the cost of a significant fine back to purchasers as this would make them less competitive. After imposing a fine on an awarding organisation, we will, if appropriate, monitor the fees that they charge for qualifications to see if they represent value for money.