News, Policies and Procedures

UK Regulatory Bodies

What is a Regulatory Body?

A regulatory body is a government agency that exercises independent control by using or imposing conditions, restrictions, and requirements on many areas of activity in the UK. Regulatory bodies enforce standards and aim to achieve regulatory compliance within businesses and organisations to ensure awareness of laws, practices, policies, and regulations laid out in UK law to protect the public. Regulatory bodies regarding ‘Business and Finance’ specifically, for instance are grouped and include:

  • Financial Conduct Authority (FCA)
  • Financial Reporting Council
  • Institute of Chartered Accountants in England and Wales
  • Office of the Regulator of Community Interest Companies (ORCIC)
  • Payment Systems Regulator (PSR)
  • Pensions Regulator
  • Prudential Regulation Authority (PRA)
  • The Office for Professional Body Anti-Money Laundering Supervision (OPBAS)

Failure to Comply with Regulatory Bodies

Failure to comply with the rules and requirements set by any regulatory body means there are consequences of ‘non-compliance.’ Non-compliant behaviour can be both intentional and/or unintentional, although both actions of non-compliance require the accountability of responsible/offending parties. Within the workplace, non-compliance refers to employees refusing to follow Health and Safety procedures, codes of conduct, or any other policy or procedure laid down by a company.

Regulatory Roles and Responsibilities

It is the responsibility of the business or organisation’s owner/director to deal with any failures by employees to comply or conduct themselves according to the laws and policies of the UK and the company.

Non-Compliance Examples

Failure of the employer to hold an employee accountable can lead to the employer becoming culpable for non-compliance as both employers and employees under UK criminal law can be prosecuted for non-compliance with regulatory body guidelines. Some specific forms of non-compliance in the workplace are:

  • Disregard for the Health and Safety regulations, such as failure to wear the necessary personal protective equipment (PPE) when undertaking specific tasks
  • Habitually showing up late to shifts or not showing up at all
  • Working within the business without the required licensing, certification, qualifications and/or training

Firstly, a fine may be incurred for the most severe safety breaches. In addition, the party responsible for non-compliance will have to pay for their legal representation and the prosecuting parties in the form of hundreds of thousands of pounds. An expensive outcome for a business when failing to comply with the regulatory body. Secondly, imprisonment is particularly prevalent in health and safety non-compliance. H&S is enforceable by law in the UK, and with non-compliance, prosecution can be sought. Sentences of 6 months if prosecuted in a Magistrates court and up to 2 years if charged in a Crown Court. Some other penalties for non-compliance include:

  • Loss of reputation
  • Loss of correct and potential staff
  • Down Time and Loss of Productivity

Finally, non-compliance and the resulting penalties are avoidable if the policies are enacted correctly, and regulatory bodies’ guidelines and frameworks are met satisfactorily. If you would like help with your policy and procedure documents or legal advice and contracts, please contact us using the form below.


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