Commentary on provisions of Act Section 8: Financial Penalties
This section provides that an enforcement authority may impose a financial penalty of up to £5,000 on a landlord or letting agent if it is satisfied beyond reasonable doubt that that person has breached the prohibitions in Section 1 or 2. Similarly, an enforcement authority may impose a financial penalty of up to £5,000 if satisfied beyond reasonable doubt that a landlord or letting agent has breached the requirements relating to holding deposits (Schedule 2).
	This section also provides that an enforcement authority may impose a financial penalty of up to £30,000 on a landlord or letting agent as an alternative to prosecution if it is satisfied beyond reasonable doubt that an offence under Section 12 (offences) has been committed.
	An enforcement authority may not impose a financial penalty if the landlord or letting agent has already been convicted or acquitted of an offence in relation to the conduct, or criminal proceedings for the offence have been commenced.
	Subsection (5) places restrictions on the imposition of a financial penalty for a breach of paragraph 3 of Schedule 2. An enforcement authority cannot impose a financial penalty if the landlord or letting agent failed to return the holding deposit because of incorrect information provided by the Secretary of State about the tenant’s right to rent status.
	Where a financial penalty is imposed, only one such penalty may be imposed in respect of the same breach and only one enforcement authority may impose a penalty for the same breach.
	This section provides that an enforcement authority may impose a penalty in respect of a breach that occurs outside of its local area.
	Schedule 3 sets out the procedure to be followed by an enforcement authority where it imposes a financial penalty.