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

Licence enforcementDiscretionary requirements under the ActWhere Monitor finds that a provider is breaching, or has breached, one or more of its licenceconditions, or has not met a requirement to hold a licence, or has failed to provide Monitor withinformation we require, Monitor may impose one or more of the ‘discretionary requirements’specified in section 105 of the Act. Monitor may also impose such requirements on others inbreach of a requirement to provide us with information.The discretionary requirements that Monitor may impose are:compliance requirements which require a provider to take such steps as we may specifyto ensure that the breach in question does not continue or recur;restoration requirements which require a provider to take such actions as we mayspecify to restore the situation to what it would have been, absent the breach; andvariable monetary penalties which require a provider to pay a penalty.The Act requires us to explain in guidance how we intend to exercise our powers to imposediscretionary requirements including: when we are likely to impose a discretionary requirement - see Chapter 3; when we may not impose a discretionary requirement - see Chapter 3;the matters we are likely to take into account in determining a variable monetary penalty,including any discounts for voluntary reporting - see Chapter 3; and a provider’s rights to make representations and rights of appeal - see Chapter 6.Enforcement undertakings under the ActIf Monitor has reasonable grounds to suspect that a provider is breaching, or has breached, oneor more of its licence conditions, or has not met a requirement to hold a licence, or has failed toprovide Monitor with information we required, we may also accept ‘enforcement undertakings’, asdescribed in section 106 of the Act. Monitor may also accept such undertakings from others inbreach of a requirement to provide us with information.Enforcement undertakings are actions that providers commit themselves to taking and whichMonitor may decide to accept. They would usually be used as an alternative to investigatingfurther with the attendant possibility of imposing discretionary requirements.An enforcement undertaking may include one or more of the following commitments:Page 9 of 50