A G E N D A 1. APOLOGIES FOR ABSENCE Ian Metcalfe 2 ...

An important objective of imposing a penalty is deterring similar conduct in future. The amount ofany penalty must be sufficient to ensure that it will act as an effective incentive to compliance,having regard to the seriousness of the breach. The factors Monitor will take into account,therefore, include amongst other relevant considerations:the seriousness of the breach;ensuring provider compliance;deterring similar breaches by other providers; andthe proportionality of a variable monetary penalty to the nature of the breach.The factors relevant to each of these considerations are described in section 3.3 above.As well as these matters, Monitor will consider any relevant aggravating and mitigating factors.Penalties are likely to be higher when we identify one or more aggravating factors. Aggravatingfactors could be, but are not limited to, where:Monitor has previously imposed a discretionary requirement on, or accepted anenforcement undertaking from, the relevant provider concerning similar or related matters;there is a positive intent to contravene, in that the provider must have been aware, orcould not reasonably have been unaware, that its conduct would lead to a breach; ora provider has not cooperated with Monitor’s investigation.Penalties are likely to be lower when we identify relevant mitigating factors. Mitigating factorscould be, but are not limited to, where:a provider takes timely and effective action to remedy the effects of a breach, includingaction to restore any actual or potential harm caused;a provider self-reports a breach; ora provider has cooperated fully with Monitor’s investigation and requirements.Page 23 of 50