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3.—(1) After the end of the 28-day period for making representations and objections under paragraph 2, the administrator must decide whether to impose the non-compliance penalty with or without modifications.
(2) An administrator may decide not to impose a non-compliance penalty if the administrator considers that in all the circumstances of the case it would be inexpedient to do so.
(3) The administrator must take into consideration any representations or objections made by the seller under paragraph 2.
(4) Where an administrator decides to impose a non-compliance penalty it must do so by serving a notice (a “non-compliance penalty notice”) on the seller.
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