Part 3: The Pensions Regulator Gathering information Section 112: Fixed penalty notices and escalating penalty notices 77B Escalating penalty notices
New section 77B(1) details when an escalating penalty notice may be issued. New subsection (2) provides that where a person has exercised their right of referring the Regulator’s decision to issue a fixed penalty notice to a tribunal and the referral has not yet been determined, the Regulator may not issue an escalating penalty notice. New subsection (3) explains what an escalating penalty notice is and the effect of the notice, subsection (4) explains that an escalating penalty is a penalty calculated by reference to a prescribed daily rate and subsection (5) provides a regulation making power to enable the Secretary of State to set the level of the penalty at a rate not exceeding £10,000 a day. New subsection (6) details information which must be included in the escalating penalty notice.
	New section 77B(7) sets out the review and appeal rights where a recipient wishes to challenge the penalty by applying the existing provisions in sections 42, 43 and 44 of the Pensions Act 2008 relating to the recovery of the penalty and the recipient’s rights to ask for a review of the penalty notice or appeal to a tribunal. Subsection (8) makes it clear that this section does not apply in a case if an escalating penalty was issued under section 41 of the Pensions Act 2008 or section 18 of the Pension Schemes Act 2017.