AIA UPDATES SANCTIONS HANDBOOK

AIA operates a range of sanctions that can be imposed on Members depending on the seriousness of the situation, the level and history of the Member’s non-compliance and the risk posed to the interests of the public and the integrity of AIA’s reputation and the reputation of the profession as a whole. 

Following a recent review, amendments have been introduced to AIA’s Sanctions Handbook which affect all members and firms. Changes have been made to increase the effectiveness, efficiency, and deterrence of AIA’s enforcement action. 

The main changes relate to the introduction of a ‘fixed penalty approach’ to non-compliance identified during Quality Assurance and AML Monitoring Reviews. 

The process applies to areas of non-compliance and referrals which the AIA Disciplinary Committee determines suitable for the process, graded with an increasing monetary penalty. More serious incidents of non-compliance or failure to rectify compliance following AIA’s intervention will result in referral to the Practice Compliance Committee. 

For example, a supervised firm failing to produce evidence of its firm-wide risk assessment when requested during a monitoring review and subsequently failing to provide it as part of an agreed Action Plan would receive a fixed penalty and a deadline for submission of evidence. Failure to pay the fixed penalty and produce evidence of a completed firm-wide risk assessment would result in a referral to the Practice Compliance Committee. 

David Potts, AIA Director of Operations, said, “Imposing sanctions is a last resort and AIA supports Members to prevent situations arising that would require the imposing of a sanction. But when sanctions are required, AIA acts to remove the benefits of non-compliance and provide a credible deterrent. Changes announced to AIA’s Sanctions Handbook build on these strong principles to deliver a more effective and efficient sanctions process, ensuring we continue to protect the public and uphold proper standards of conduct within the profession.” 

The updated framework became effective on 27 June 2023 following ratification by AIA’s Council and applies to all future compliance referrals and disciplinary cases. Ongoing compliance referrals and disciplinary cases will continue to be covered by the previous Sanctions Handbook (as introduced on 19 July 2019). 

About the Sanctions Handbook  

The AIA Sanctions Handbook sets out the methodology followed by the Committees involved in AIA’s Complaints, Disciplinary and Appeals process in determining the appropriate sanction to impose on an AIA Member, former Member, Elected Member or Student.

The guidance is provided to:

• describe general principles that Committees should take into account when considering the appropriate sanction;
• set out the range of sanctions available to the Committees;
• describe relevant factors to be considered and/or decided in relation to the various sanctions;
• suggest criteria to apply when considering the seriousness of a particular case.

The guidance provides a structured approach for committee members who make decisions on sanctions and to provide Members, who may be the subject of complaints or disciplinary referrals, with a transparent range of penalties and orders likely to be imposed. Committee members refer to this guidance in every case when considering what sanction, or combination of sanctions, to impose.

access the latest version of the Sanctions Handbook

"When sanctions are required, AIA acts to remove the benefits of non-compliance and provide a credible deterrent..."