Prospective

17Penalty noticesU.K.

(1)If the Security Industry Authority is satisfied, on the balance of probabilities, that a person is contravening or has contravened a relevant requirement, it may give a penalty notice to the person.

(2)A penalty notice is a notice requiring the person to pay a penalty of a specified amount (a “non-compliance penalty”) to the Security Industry Authority within a specified period.

(3)A person may not be given more than one penalty notice in respect of the same contravention.

(4)A penalty notice may not require a person to pay a non-compliance penalty in respect of a single contravention of an amount greater than the maximum determined in accordance with section 18.

(5)A penalty notice may not specify a period for paying a non-compliance penalty that is less than 28 days, beginning with the day on which the notice is given.

(6)A penalty notice may be given to a person in respect of a contravention whether or not the person has been given a compliance notice or restriction notice in respect of the contravention.

(7)A person is not liable to a non-compliance penalty in respect of any failure to comply with a notice for which the person has been convicted of an offence under this Part.

(8)In this section—

• “relevant requirement” means a requirement imposed by or under any of sections 5 to 10, 13 and 14 or paragraph 3 of Schedule 3;

• “specified” means specified in the penalty notice.

Prospective

20Determining the amount of a penaltyU.K.

(1)A non-compliance penalty or daily penalty imposed on a person by a penalty notice must be of an amount that the Security Industry Authority considers to be—

(a)appropriate, and

(b)proportionate to the contravention in respect of which it is imposed.

(2)In determining the amount of a penalty to be imposed on a person by a penalty notice, the Security Industry Authority must take into account the following matters (in addition to any other matters it considers relevant)—

(a)the effects of the contravention in respect of which the penalty is imposed;

(b)any action taken by the person to remedy the contravention or mitigate its effects;

(c)the ability of the person to pay the penalty.

Prospective

21Penalty notices: contents, procedure, variation and withdrawalU.K.

(1)A penalty notice must contain the following information—

(a)the reasons for giving the notice;

(b)the amount of the non-compliance penalty;

(c)the amount of any daily penalty;

(d)how payments may be made;

(e)the period within which payments must be made;

(f)the rights of appeal under section 22;

(g)the consequences of failing to pay the penalty.

(2)Before giving a penalty notice to a person, the Security Industry Authority must give the person an opportunity to make representations about the proposed notice.

(3)The Security Industry Authority may vary or withdraw a penalty notice by giving notice of the variation or withdrawal to the person to whom the notice was given.

(4)A penalty notice may not be varied so as to—

(a)increase the amount of the non-compliance penalty or any daily penalty,

(b)shorten the period within which the non-compliance penalty or any daily penalty must be paid, or

(c)require the payment of daily penalties not already provided for in the notice.

Prospective

22Appeals against penaltiesU.K.

(1)A person who is given a penalty notice may appeal to the tribunal against the notice or a variation of the notice.

(2)An appeal under this section must be brought before the end of the period of 28 days, beginning with—

(a)the day on which the penalty notice is given, or

(b)if the appeal concerns a variation of the notice, the day on which notice of the variation is given.

(3)On an appeal under this section—

(a)if the tribunal is satisfied that any of the grounds in subsection (4) applies, it may vary or cancel the penalty notice;

(b)if the tribunal is not so satisfied, it must dismiss the appeal.

(4)The grounds referred to in subsection (3)(a) are that the decision to give or vary the notice was—

(a)based, wholly or partly, on an error of fact;

(b)wrong in law;

(c)unfair or unreasonable for any other reason.

(5)In determining an appeal under this section, the tribunal may—

(a)review any determination of fact on which the decision to give or vary the notice was based;

(b)take into account evidence which was not available to the Security Industry Authority.

(6)Where an appeal in respect of a penalty notice is made under this section, the notice or variation (as the case may be) is of no effect until the appeal is determined or withdrawn unless the tribunal orders otherwise.

Prospective

23Recovery of penaltiesU.K.

(1)In England and Wales, a penalty is recoverable as if it were payable under an order of the High Court.

(2)In Scotland, a penalty may be enforced in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

(3)In Northern Ireland, a penalty is recoverable as if it were payable under an order of the High Court.

(4)Where action is taken under this section for the recovery of a penalty, the penalty—

(a)in relation to England and Wales, is to be treated for the purposes of section 98 of the Courts Act 2003 (register of judgments and orders etc) as if it were a judgment entered in the High Court;

(b)in relation to Northern Ireland, is to be treated for the purposes of Article 116 of the Judgments Enforcement (Northern Ireland) Order 1981 (S.I. 1981/226 (N.I. 6)) (register of judgments) as if it were a judgment in respect of which an application has been accepted under Article 22 or 23(1) of that Order.

(5)If the whole or any part of a penalty is not paid by the date by which it is required to be paid, the unpaid balance from time to time is to carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838.

(6)Where the Security Industry Authority receives an amount in respect of a penalty (including interest), it must be paid into the Consolidated Fund.

(7)In this section “penalty” means a non-compliance penalty or daily penalty imposed by a penalty notice.