Decision whether to impose discretionary requirements
4.—(1) After the end of the 28-day period for making representations and objections under paragraph 3, the administrator must decide whether to impose—
(a)the discretionary requirement with or without modifications; or
(b)any other discretionary requirement that the administrator has power to impose under this Schedule.
(2) The administrator must take into consideration any representations or objections made by the seller under paragraph 3.
(3) An administrator may not impose a discretionary requirement if the administrator discovers that its proposal to impose the requirement was—
(a)based on an error of fact;
(b)wrong in law;
(c)in relation to the amount of any variable monetary penalty, unreasonable;
(d)in relation to the nature of any non-monetary discretionary requirement, unreasonable;
(e)unreasonable for any other reason.
(4) An administrator may not impose a fixed monetary penalty in place of a discretionary requirement.
(5) Where an administrator decides to impose a discretionary requirement it must do so by serving the final notice on the seller.