1.—(1) In the circumstances specified in regulations made under sub-paragraph (4), ITMA may impose on a registered person or a regulated person in accordance with those regulations a penalty which is of such amount as ITMA considers appropriate.
(2) The amount of any penalty imposed under sub-paragraph (1) must not exceed—
(a)in the case of a penalty imposed on a registered person who is an individual, £5 million;
(b)in the case of a penalty imposed on a regulated person, £5 million;
(c)in the case of a penalty imposed on an ITMA-registered body, £25 million.
(3) A penalty under sub-paragraph (1) is payable to ITMA.
(4) For the purpose of giving effect to sub-paragraph (1), ITMA must make regulations as to—
(a)the acts and omissions in respect of which ITMA may impose penalties under sub-paragraph (1);
(b)the criteria and procedure to be applied by ITMA in determining whether to impose a penalty and the amount of any penalty; and
(c)arrangements for payment, including the time within which any penalty is to be paid.