SCHEDULES

SCHEDULE 15Liability of parent entities etc

4Liability of fellow subsidiary entities for failures by subsidiary entities

1

This paragraph applies if—

a

OFCOM are satisfied that there are grounds to give an entity (“E”) a relevant decision or notice relating to a regulated service,

b

E is the provider of that service,

c

E is a subsidiary undertaking, and

d

there is an entity which is a fellow subsidiary undertaking in relation to E (a “fellow subsidiary entity”).

2

The relevant decision or notice may be given—

a

to E alone, or

b

jointly to E and to a fellow subsidiary entity.

3

But—

a

before giving a penalty notice to a fellow subsidiary entity, or giving a confirmation decision to a fellow subsidiary entity which was not previously given a provisional notice of contravention relating to the same matter, OFCOM must give that entity an opportunity to make representations to OFCOM about—

i

the matters contained in the decision or notice, and

ii

whether joint and several liability would be appropriate; and

b

a relevant decision or notice may be given to a fellow subsidiary entity only if that entity’s acts or omissions contributed to the failure in respect of which the decision or notice is given.

4

If a relevant decision or notice is given to entities jointly as mentioned in sub-paragraph (2)(b), those entities are jointly and severally liable to comply with the requirements, or (as the case may be) pay the penalty, imposed by the decision or notice.

5

See also paragraph 5 of Schedule 13 (maximum amount of penalties: group of entities).