233.This section places a duty on the Authority to prepare and publish a statement of its policy in respect of penalties under section 123.  The Authority will be able to set out in this document the circumstances in which it might impose a penalty and factors it will take into account in deciding what level of penalty to impose.
234.Subsection (2) requires that the Authority’s policy for determining the amount of a penalty must take into account the effect and seriousness of the behaviour, whether or not it was deliberate or reckless and whether the person who engaged in the abuse was an individual.  The Authority may also take into account other matters it considers appropriate. The Authority must consult on the initial version of the statement and on any subsequent changes as provided for in section 125.  Subsection (3) requires the Authority to include in the statement an indication of when the Authority is to expected to regard a person as benefiting from section 123(2).  Subsection (6) makes clear that the Authority must then have regard to a statement issued under this section when using its powers.
Commentary on Sections Part Viii: Penalties for Market Abuse Section 124: Statement of policy