Companies Act 2014 section 934G

Limitations on imposing monetary sanctions on specified person

Section 934G sets out the restrictions that apply when the Supervisory Authority decides to impose a monetary sanction on a specified person, ensuring that penalties remain proportionate and do not result in financial ruin or duplicate punishment.

• A monetary sanction must not be set at a level likely to force the specified person to cease carrying on business.
• Where the specified person is an individual, the sanction must not be of an amount likely to cause them to be adjudicated bankrupt.
• Where the same conduct gives rise to two or more relevant contraventions, only one monetary sanction may be imposed in respect of that conduct.
• These safeguards ensure that sanctions remain proportionate while still holding auditors and audit firms accountable for regulatory breaches.