2.—(1) The maximum amount of penalty prescribed for the purpose of paragraph 2 of schedule 4 to the Act is the higher of—
(a)an amount equal to 5 per cent of all income which the approved regulator derived from its regulatory functions under Part 2 of the Act in respect of its most recent accounting period; and
(b)£10,000.
(2) The income which the approved regulator derived from its regulatory functions for a particular accounting period is to be determined by reference to the audited accounts for that period.
(3) The reference to the most recent accounting period in paragraph (1) is to the accounting period which ended most recently before the imposition of the financial penalty and for which audited accounts have been prepared.
(4) In this regulation, “audited accounts” refers to the accounts of the approved regulator which have been drawn up in accordance with generally accepted accounting practice.