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3(1)Subject to sub-paragraph (2) below, regulations—
(a)may provide for the creation of offences and for their punishment on summary conviction or on conviction on indictment, and
(b)may afford, in respect of any description of offence created by the regulations, such defence (if any) as may be prescribed.
(2)The punishment for an offence created by regulations shall be—
(a)on summary conviction, a fine not exceeding the statutory maximum,
(b)on conviction on indictment, imprisonment for a term not exceeding two years, or a fine, or both,
but without prejudice to any further restriction contained in the regulations on the punishments which can be awarded and without prejudice to the exclusion by the regulations of proceedings on indictment.
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