Administrative monetary penalties are fines that can be imposed as part of an enforcement action against persons who have violated federal, provincial, and municipal regulations. They can be used to encourage compliance or prevent individuals from deriving any economic benefit from contraventions of the law. Depending on the nature of the violation, AMPs can range in amount from nominal to substantial and have been upheld by courts. Unlike criminal fines, which can have a significant impact on an individual’s financial stability, AMPs are typically not imposed based on a finding that the person committed a specific crime, but rather on the basis that they failed to meet a specific regulatory standard.
Administrative Monetary Penalties
In addition to promoting compliance, the purpose of AMPs is also to discourage repeat violations, which could lead to further enforcement actions and potential criminal sanctions. While the penalties imposed under AMPs may seem relatively small, they are intended to be significant enough to discourage people from violating the law.
Using AMPs is just one of many ways that FSRA promotes and maintains compliance with the legislation that applies to the administration of the pension plan system. In addition to the AMP process described above, other tools that FSRA uses to promote compliance include education and outreach.
FSRA’s General AMP Guidance provides more information about AMPs and how the AMP process works. A copy is available here.