SCHEDULECivil Sanctions

PART 4Non-compliance penalties

Non-compliance penalties24

1

If a person fails to comply with a compliance notice or a third party undertaking, the regulator may serve a notice on that person imposing a monetary penalty (a “non-compliance penalty”) in respect of the same offence, irrespective of whether a variable monetary penalty was also imposed in respect of that offence.

2

The amount of the penalty must be determined by the regulator, and must be a percentage of the costs of fulfilling the remaining requirements of the compliance notice or third party undertaking.

3

The percentage must be determined by the regulator having regard to all the circumstances of the case and may, if appropriate, be 100%.

4

The notice must also include information as to—

a

the grounds for imposing the non-compliance penalty;

b

the amount to be paid;

c

how payment must be made;

d

the period in which payment must be made, which must not be less than 28 days;

e

the rights of appeal;

f

the consequences of failure to make payment in the specified period; and

g

any circumstances in which the regulator may reduce the amount of the penalty.

5

If the requirements of the compliance notice are complied with or a third party undertaking is fulfilled before the time set for payment of the non-compliance penalty, the penalty is not payable.

Appeals against non-compliance penalties25

1

The person on whom the notice imposing the non-compliance penalty is served may appeal against it.

2

The grounds of appeal are—

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;

d

that the amount of the penalty was unreasonable;

e

any other reason.