PART II

THE PENSIONS REGULATOR

Gathering information

Escalating penalty notices
72B
1
The Regulator may issue an escalating penalty notice to a person if it considers that the person has failed to comply with a notice under Article 67 or 67A.
2
But the Regulator may not issue an escalating penalty notice to a person if—
a
the person has exercised the right of referral to a tribunal under section 44 of the Pensions (No. 2) Act (Northern Ireland) 2008 (as applied by Article 72A(5)) in respect of a fixed penalty notice issued under Article 72A in relation to that notice under Article 67 or 67A, and
b
the reference has not been determined.
3
An escalating penalty notice is a notice requiring a person to pay an escalating penalty if the person fails to comply with a notice under Article 67 or 67A before a specified date.
4
An escalating penalty is a penalty which is calculated by reference to a daily rate.
5
The daily rate—
a
is to be determined in accordance with regulations, and
b
must not exceed £10,000.
6
An escalating penalty notice must—
a
specify the failure to which the penalty relates;
b
state that, if the person fails to comply with the notice under Article 67 or 67A before a specified date, the person will be liable to pay an escalating penalty;
c
state the daily rate of the escalating penalty and the way in which the penalty is calculated;
d
state the date from which the escalating penalty will be payable, which must not be earlier than the date specified in the fixed penalty notice under Article 72A(4)(b);
e
state that the escalating penalty will continue to be payable at the daily rate until the date on which the person complies with the notice under Article 67 or 67A or such earlier date as the Regulator may determine;
f
notify the person to whom the notice is issued of the review process under section 43 of the Pensions (No. 2) Act (Northern Ireland) 2008 and the right of referral to a tribunal under section 44 of that Act (as applied by paragraph (7)).
7
The following sections of the Pensions (No. 2) Act (Northern Ireland) 2008 apply to an escalating penalty notice under this Article as they apply to an escalating penalty notice under section 41 of that Act—
a
section 42 (penalty notices: recovery);
b
section 43 (review of penalty notices);
c
section 44 (references to First-tier Tribunal or Upper Tribunal).
8
This Article does not apply in a case where section 41 of the Pensions (No. 2) Act (Northern Ireland) 2008
or section 18 of the Pension Schemes Act (Northern Ireland) 2021
applies.
Arts. 72A, 72B inserted (1.9.2021 for specified purposes, 1.10.2021 in so far as not already in operation) by Pension Schemes Act 2021 (c. 1), s. 131(2)(b), Sch. 8 para. 11; S.R. 2021/240, art. 2(1)(f); S.R. 2021/271, art. 2(5)(c) (with art. 5)
Words in art. 72B(8) inserted (16.3.2022 for specified purposes, 6.4.2022 in so far as not already in operation) by Pension Schemes Act (Northern Ireland) 2021 (c. 6), s. 44(2), Sch. 3 para. 12; S.R. 2022/110, art. 2(a)(b)