Commentary on Sections Background Section 38: Financial penalties: procedure
136.Section 37(1) sets out the threshold conditions that must be met before the Board can exercise its power to impose financial penalties. The Board is required to make rules by statutory instrument (subject to the negative resolution procedure – see section 206(6)), prescribing the maximum amount of the penalty that may be imposed and the Lord Chancellor’s consent to these rules is required. Section 38 sets out the procedure that applies to the imposition of financial penalties.