Subsections (1)(a) and (2)(a) provide that a local housing authority may impose a financial penalty of up to £7,000 on a person if it is satisfied beyond reasonable doubt that the person has breached the requirement in section 64 to be a member of an approved or designated redress scheme, or the person (e.g., letting agent or other) has marketed a property where the landlord is not yet a member of a landlord redress scheme.
	Subsections (1)(b) and (2)(b) provide that a local housing authority may impose a financial penalty of up to £40,000 on a person as an alternative to prosecution, if it is satisfied beyond reasonable doubt that an offence under section 67 has been committed.
	Subsections (3) and (4) provide that more than one penalty may only be imposed for the same conduct if that conduct continues for a minimum of 28 days after a final notice is issued and no appeal is made – e.g., not signing up to a landlord redress scheme but continuing to meet the definition of "residential landlord". "Final notice" – as noted in subsection (9)(b) – is defined in paragraph 6 of Schedule 5. Should a successful appeal be made, no financial penalty can be imposed. Should it be unsuccessful, the 28-day period will commence from the day on which the appeal is determined, withdrawn, or abandoned after which another financial penalty may be imposed.
	Subsection (5) clarifies that a local housing authority may not impose a financial penalty if criminal proceedings against the person in respect of the same offence are ongoing, or have concluded with a conviction or acquittal.
	Subsections (6) and (7) provide for the Secretary of State to issue guidance for local housing authorities on how to exercise the powers provided in this section and require local housing authorities to have regard to such guidance.
	Subsection (8) provides for the Secretary of State to change the maximum amounts of financial penalties specified in this Section to account for inflation.
	Subsection (9) clarifies that, for the purposes of sections 66 and 67, a financial penalty is imposed on the date specified in the final notice as the date on which the notice is given, and that "final notice" is defined in paragraph 6 of Schedule 5.
Part 2: Residential landlord Chapter 2: Landlord Redress Schemes Section 66: Financial penalties Effect