Explanatory Notes

Regulatory Enforcement and Sanctions Act 2008

2008 CHAPTER 13

21 July 2008

Commentary on Sections

Part Three: Civil Sanctions

Section 53: Costs recovery

143.This section enables a Minister to include provision for a regulator to recover its costs, by notice, from a person on whom a discretionary requirement or a stop notice is imposed. This provision does not extend to fixed monetary penalties and enforcement undertakings. The costs are those incurred by the regulator in relation to the imposition of the sanction, up to the point of imposition, and include investigation costs, administration costs and the costs of obtaining expert (including legal) advice. The person is not required to pay any costs he can show have been unnecessarily incurred. Section 53 requires that where a costs notice is served, the person subject to the notice has a right of appeal against both the regulator’s decision to impose the costs notice and the amount of the costs.