Schedule 12: Redress schemes: Financial penalties
Paragraph 1 deals with the procedure to be followed where an enforcement authority is considering imposing a financial penalty. Subparagraph (1) requires the enforcement authority to give the person notice of their intention to impose a financial penalty (a "notice of intent"). Subparagraph (2) sets the time limits for issuing a notice of intent – which is before the end of a 6 month period of the enforcement authority first being notified of the conduct which relates to the financial penalty. However, if the conduct continues to persist beyond that period, subparagraph (3) allows the enforcement authority to issue a notice of intent at any time that the conduct is continuing, or within the period of 6 months beginning with the last day on which the conduct occurs.
	Subparagraph (4) sets out the information that must be included in a notice of intent. This includes the date on which the notice of intent is given, the amount of the proposed financial penalty, the reasons for proposing to impose the penalty, and information about the right to make representations (under paragraph 2).
	Paragraph 2(1) provides that a person who has been issued with a notice of intent may make written representations to the enforcement authority about the measure to impose a financial penalty. Subparagraph (2) sets out these representations must be made within a 28 day period beginning on the day after the date on which the notice of intent was given to them (the "period for representations").
	Paragraph 3 deals with the actions the enforcement authority must take at the end of the period for representations. Under subparagraph (1), it must decide whether to impose a financial penalty, and if so, the amount of the financial penalty to be imposed.
	Paragraph 3(2) provides that if the enforcement authority decides to impose a financial penalty, it must give notice to the person of that decision (a "final notice").
	Paragraph 3(3) sets out that the final notice must require the penalty to be paid within a 28-day period, beginning with the day after the day on which the notice was given.
	Paragraph 3(4) provides that the final notice must include the following information: the date on which the final notice is given; the amount of the financial penalty; the reasons for imposing the penalty; information about how to pay the penalty; the period for payment of the penalty; information about rights of appeal; and the consequences of failure to comply with the notice.
	Paragraph 4 makes clear that an enforcement authority can, at any point, withdraw either a notice of intent or final notice, or reduce an amount specified in either the notice of intent or final notice. This decision must be provided in writing to the person to whom the notice was given.
	Paragraph 5 sets out the process a person who wants to appeal a final notice needs to take. Subparagraph (1) sets out that a person who has received a final notice may make an appeal to the First-tier Tribunal against the decision to impose the penalty, or the amount of the penalty imposed. Subparagraph (2) makes clear an appeal must be brought within 28 days of the day on which the final notice is given to the person.
	Subparagraph (3) provides that if an appeal is made, the final notice is suspended until the appeal is determined, withdrawn, or abandoned.
	Under subparagraph (4), an appeal is to be a re-hearing of the enforcement authority’s decision, however the tribunal may determine the appeal having regard to matters of which the enforcement authority was not aware.
	Subparagraphs (5) and (6) provide that the Tribunal may quash, confirm, or vary the final notice on appeal. However, the Tribunal may not vary the final notice so as to impose a financial penalty more than the enforcement authority could have imposed under Section 106.
	Paragraph 6 applies where a person fails to pay either all or part of a financial penalty that has been imposed. Subparagraph (2) provides that the enforcement authority which imposed the financial penalty may recover the penalty or part on the order of the county court as if it were payable under an order of the court.
	Under paragraph 7(1), an enforcement authority may use the financial penalty towards meeting its costs and expenses (whether administrative or legal) incurred in, or associated with, any of its functions under this Part of the Act. Subparagraph (2) sets out that any additional proceeds imposed by an enforcement authority other than the Secretary of State must be paid to the Secretary of State.