14(1)Provision under paragraph 12 may include provision for a person to pay a monetary penalty (a “non-compliance penalty”) to an administrator if the person fails to comply with a non-monetary discretionary requirement imposed on the person.E+W+N.I.
(2)Provision under sub-paragraph (1) may—
(a)specify the amount of the non-compliance penalty or provide for that amount to be determined in accordance with the regulations, or
(b)provide for the amount to be determined by the administrator or in some other way.
(3)If the regulations make provision within sub-paragraph (2)(b), they must, in relation to each kind of failure for which a non-compliance penalty may be imposed—
(a)specify the maximum penalty that may be imposed for a failure of that kind, or
(b)provide for that maximum to be determined in accordance with the regulations.
(4)Provision under sub-paragraph (1) must secure that—
(a)the non-compliance penalty is imposed by notice served by the administrator, and
(b)the person on whom it is imposed may appeal against that notice.
(5)Provision pursuant to paragraph (b) of sub-paragraph (4) must secure that the grounds on which a person may appeal against a notice referred to in that sub-paragraph include the following—
(a)that the decision to serve the notice was based on an error of fact;
(b)that the decision was wrong in law;
(c)that the decision was unfair or unreasonable for any reason (including, in a case where the amount of the non-compliance penalty was determined by the administrator, that the amount is unreasonable).