[Video 7] Managing the follow-up to a regulatory inspection
9th November 2023
The Topline
“Being aware of the possible outcomes from an inspection helps businesses understand the risks and mitigate any issues at the earliest opportunity. Engaging with the regulator effectively can influence those outcomes and help limit the risk of formal enforcement action and associated financial exposure.”
– Rachel Turnbull, Director, Regulatory & Compliance
In the final video in our “Environmental Law in Practice” series, Rachel Turnbull discusses the various outcomes that businesses may face after a regulatory inspection and provides guidance on effectively managing each situation.
Key Points
Potential Outcomes after Inspection
Businesses may experience the following outcomes:
- No further information required/action taken.
- Further requests for information or assistance.
- Formal invitation to attend an interview (under caution) at the regulator’s office. Obtaining legal advice is crucial at this stage to decide if attendance is in the company’s best interest.
- Service of a notice including Stop Notices, Notices requesting Documentation and Compliance Notices. Understanding the implications of any notice received is crucial.
- Notification of breaches for permitted businesses, which may impact subsistence fees.
- Written warning regarding an identified breach.
- Formal caution involving an acknowledgement of guilt for wrongdoing, which is kept on file.
- Civil sanctions such as a fixed penalty notice or Enforcement Undertaking.
- Prosecution resulting in significant financial, reputational and commercial implications.
Reducing Financial Exposure
Businesses can take steps to reduce financial exposure through mitigation and engagement with the regulators during the investigation.
Managing the Follow-Up to a Regulatory Inspection – how we can support you
Understanding and influencing potential outcomes following a regulatory inspection requires a clear understanding of the enforcement landscape meaning businesses should take legal advice at the earliest opportunity. Proactive engagement with regulators and taking appropriate mitigating actions can help businesses manage the aftermath of an inspection effectively.
If your business has the potential to negatively impact upon the environment and you want to ensure that you are best placed to handle a regulatory inspection, contact our Environmental team for advice and support.
Visit our Environmental law in practice hub to explore more resources.
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