Bad conduct
Entrepreneurs are often assessed on their conduct when applying for a license. Administrative bodies use this test to assess whether someone exhibits poor conduct in any respect. If this is the case, a license may be refused.
What is poor conduct?
Poor conduct is a legal term that frequently appears in laws and regulations, particularly in sectors where integrity and reliability are essential, such as gambling, financial services and licensing procedures. The concept refers to behaviors or circumstances that indicate a person does not meet the requirements of good conduct and reliability.
What consequences can poor conduct have?
Governments and supervisory authorities, such as municipalities, apply the criterion of poor conduct when granting or revoking licenses. A negative assessment can lead to:
- Refusal of a license.
- Revocation of existing rights.
- Reputational damage for companies and individuals.
For enterprises in regulated markets, it is therefore crucial to understand how this criterion is applied and what measures can be taken to limit risks. An assessment is made whether the applicant or interested party exhibits poor conduct in any respect. The assessment scope for poor conduct in any respect is broad and gives an administrative body considerable room to reach a refusal, for example.
We guide our clients in preventing revocations or refusals of licenses.
How is Poor Conduct assessed?
Poor conduct is assessed based on:
- Criminal background: In poor conduct assessments, criminal data may be involved such as an extract from the Judicial Documentation Register.
- Administrative data: In a poor conduct test, information from supervisors and administrative bodies can be used, such as penalty orders or administrative fines.
- Integrity investigations: In a poor conduct assessment, known data from, for example, Bibob investigations for license applications can be used.
There is no fixed list of behaviors in the assessment of poor conduct; the assessment is context-dependent and considers severity, frequency and relevance to the requested license.
What can you do against a poor conduct assessment?
- Prevention: Ensure internal compliance programs and codes of conduct.
- Screening: Conduct integrity checks in advance on staff and partners.
- Legal support: In case of a negative assessment, objection or appeal is possible.
Our firm advises and guides clients in:
- Preparing license applications where poor conduct forms part of the assessment.
- Conducting procedures against decisions based on poor conduct.
- Drafting internal policies and compliance structures.
