5.—(1) After the end of the 28 day period for making representations and objections under paragraph 4, the administrator must decide whether to impose the non-compliance penalty with or without modifications.
(2) Without restricting the power under sub-paragraph (1), an administrator may decide not to impose a non-compliance penalty if the administrator considers that in all the circumstances of the case it would be inexpedient to do so.
(3) In making a decision under this paragraph an administrator must take into consideration any representations or objections made by the seller in accordance with paragraph 4.
(4) Where an administrator decides to impose a non-compliance penalty it must do so by serving a notice (“a non-compliance penalty notice”) on the seller.
(5) A non-compliance penalty notice must comply with paragraph 6.