Market Standards

Incident Review Process

Our Physical Committee and Compliance Panel oversees the policy development and implementation of our Responsible Sourcing programme.

Incident Review Process

The Incident Review Process is invoked in response to a particular stimulus of a reputational nature. Information can come from a variety of sources (trade associations, law enforcement agencies, market intelligence, etc.) and the LBMA will seek corroboration wherever possible as part of the process. Due to the sensitivities involved, the LBMA may have to keep the process and outcome confidential.

Refiners and Members can raise concerns about the process directly with LBMA. Complaints must be made in writing and be accompanied by supporting evidence. The Compliance Officer will review the details of the complaint and begin the assessment process described below.

The process is designed to ensure a thorough and fair review of the Member’s activities. Given that the process involves numerous stakeholders to verify the information (including those within LBMA's Responsible Sourcing, Good Delivery, and Membership teams), it is difficult to conclude an average lifespan of each incident reviewed under the IRP. However, it must be understood as an iterative process, particularly in situations where new information is produced, or a situation escalates.

Any outcome of the IRP process will be subject to a quality control check, by a subgroup of the LBMA Board, who will also determine the final decision. This subgroup comprises the independent Non-Executive Directors, the Chief Executive and the Executive Directors of the LBMA Board. The decision by this group will be final.

This incident review process should include, inter alia:

  • Receipt/logging of complaint/issue
  • Review of the allegation(s)
  • Identification of possible aberration(s)
  • Using the tools available, as described in this Due Diligence Policy, perform a review of the possible aberration(s)/allegation
  • Legal review should be performed, if appropriate and required
  • The allegation should be referred to the alleged party, if appropriate
  • Escalation to the appropriate LBMA Committee, if necessary
  • Decision-making will be undertaken by the ExCom and/or Sub-Board Group, in accordance with Section 7 of the Due Diligence Policy
  • Notification of a decision, if one is required, to the party in question
  • LBMA public disclosure will be considered, where there is a conclusion of non-compliance with the rules, and if the stability of the market can be maintained and applicable laws allow
  • Lessons learnt.

The process will remain confidential.

Potential Outcomes

Failure to meet the standards required has serious implications for GDL refiners, and members alike. Discipline could include Membership revocation, suspension subject to resolution or being transferred to the Former List with immediate effect.

Whistleblowing Policy

LBMA strongly recommend that anyone in the gold or silver supply chains are encouraged to contact LBMA with all legitimate concerns they may have.