PART 1PENSION SCHEME MEMBERSHIP FOR JOBHOLDERS

CHAPTER 2COMPLIANCE

Penalty notices

I140Fixed penalty notices

1

The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has failed to comply with—

a

a compliance notice under section 35,

b

a third party compliance notice under section 36,

c

an unpaid contributions notice under section 37, or

d

a notice issued under Article 67 of the 2005 Order (provision of information).

2

The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has contravened—

a

any provision of regulations under section 3(2) or 5(2) (prescribed arrangements for automatic enrolment or re-enrolment),

b

any provision of regulations under section 7(4) (prescribed arrangements: jobholder's right to opt in),

c

section 8(2)(b) (refund of contributions if jobholder opts out of scheme membership), and any provision of regulations under that provision,

d

section 10 (requirement to give information to workers) and any provision of regulations under that section, or

e

any provision of regulations under section 59 (requirement to keep records).

3

A fixed penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.

4

The penalty—

a

is to be determined in accordance with regulations, and

b

must not exceed £50,000.

5

A fixed penalty notice must—

a

state the amount of the penalty;

b

state the date, which must be at least four weeks after the date on which the notice is issued, by which the penalty must be paid;

c

state the period to which the penalty relates;

d

if the notice is issued under subsection (1), specify the failure to which the notice relates;

e

if the notice is issued under subsection (2), specify the provision or provisions that have been contravened;

f

if the notice is issued under subsection (1), state that, if the failure to comply continues, the Regulator may issue an escalating penalty notice under section 41;

g

notify the person to whom the notice is issued of the review process under section 43 and the right of referral to the Pensions Regulator Tribunal under section 44.