Market Standards

Raising Concerns and Incident Review Process (IRP)

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

Raising Concerns

LBMA encourages stakeholders, including Good Delivery List (GDL) Refiners and their employees, third-party service providers, members of civil society, affected communities and other interested parties (GDL stakeholders), to report concerns about unethical behaviour, illegal activities, grievances, wrongdoing or malpractice occurring throughout the GDL supply chain (Incident).

Where GDL stakeholders are directly affected by the matter in question, or where GDL stakeholders feel victimised for escalating the concern, the matter may be raised to LBMA confidentially and anonymously. Incidents must be made in writing, and be accompanied by supporting evidence, to

The first review of the Incident will be undertaken by the Head of Responsible Sourcing who will, where required, escalate the matter to the Compliance Panel. The LBMA Sub-Board will determine whether to invoke an IRP.

Incident Review Process

The IRP is an effective tool to address Incidents which are brought to LBMA. It also supports the LBMA Rules and Guidance by ensuring that GDL Refiners adhere to our stringent guidelines and requirements.

Escalation to an IRP may come from a variety of sources, such as industry press and civil society, as well as LBMA’s own proactive monitoring achieved through our internal Due Diligence Procedures. LBMA will seek corroboration wherever possible; however, due to the sensitivities involved, LBMA may keep the information received under the process confidential. Overseen by the General Counsel, the process is designed to ensure a thorough and fair review of the Refiner’s activities and involves follow-up communications with the ASP, the Refiner and any other stakeholder related to the Incident.

Each step within the IRP is a high priority for LBMA. Upon receipt of relevant information, the Compliance Panel reviews whether to instigate the IRP. The Refiner will then be notified of the identified issue before LBMA publicly notifies the market via its website.

LBMA will urge the Refiner to demonstrate transparency on the allegations reported publicly. LBMA requests the Refiner to disclose the challenges and identified risks, and how those risks have been mitigated, as well as what further action the Refiner is taking. LBMA will also undertake another thorough review of a Refiner’s assurance engagement report, contextualised by the alleged Incident. It is an iterative process, particularly in situations where new information is produced, or as the situation escalates or deteriorates.

The outcome of the IRP process will be subject to a quality control check by the LBMA Sub-Board Group, who will also determine the final decision. The Sub-Board Group 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.

Potential Outcomes

The outcome of an IRP can involve a Refiner being removed from the GDL. Other outcomes include an independent Assurance Provider developing a Corrective Action Plan (CAP) for a Refiner’s future activities or a special re-assurance of the Refiner’s activities that were originally reviewed.

The IRP process:

  1. Receipt/logging of complaint/issue.
  2. Review of the allegation(s).
  3. Identification of possible aberration(s).
  4. Using the tools available, as described in this Due Diligence Policy, perform a review of the possible aberration(s)/allegation(s).
  5. Legal review should be performed, if appropriate and required.
  6. The allegation should be referred to the alleged party, if appropriate.
  7. Escalation to the appropriate LBMA Committee, if necessary.
  8. Decision-making will be undertaken by the Executive Committee and/or Board Sub-Group, in accordance with Section 7 of the Due Diligence Policy.
  9. Notification of a decision if one is required, to the party in question.
  10. 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.
  11. Evaluate the lessons learnt.