PART 3Compliance

Penalty notices9

1

Subject to paragraph (2) and to regulation 11(1) and (3)(b), the Authority may issue a penalty notice to—

a

a person where they are of the opinion that the person has—

i

failed to comply with a compliance notice under regulation 7; or

ii

contravened a provision under Part 2 of, or the Schedule to, these Regulations;

b

a third party where they are of the opinion that the third party has failed to comply with a third party compliance notice under regulation 8.

2

Where the Authority are of the opinion that a person has failed to comply with the requirement in regulation 6(1)(b) to publish a report on a publicly available website, accessible free of charge, the Authority must issue a penalty notice to that person.

3

A penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.

4

The amount of the penalty is to be determined by the Authority, but—

a

for the purpose of a penalty notice issued under paragraph (1) or (2), must not exceed—

i

£5,000 if the person is an individual; or

ii

£50,000 if the person is a body corporate, Scottish partnership or any other person;

b

for the purpose of a penalty notice issued under paragraph (2), must be at least £2,500.

5

A penalty notice must—

a

where it is issued to trustees, be issued to all the trustees of the scheme and specify their joint and several liability for the penalty;

b

state the amount of the penalty;

c

state the date by which the penalty must be paid, which must be at least 4 weeks after the date on which the notice is issued;

d

state the period (if any) to which the penalty relates;

e

if the notice is issued under paragraph (1)(a)(i) or (b) or (2), specify the failure to which the notice relates;

f

if the notice is issued under paragraph (1)(a)(ii), specify the provision or provisions which have been contravened; and

g

notify the person to whom the notice is issued of the review process under regulation 12 and the right of referral to a tribunal under regulation 13.