A person who provides a Tier 1 service must observe the code for the time being published under section 368HF.
The duty under subsection (1) applies only on and after the end of the grace period that applies in relation to the service.
In subsection (2), "the grace period", in relation to a Tier 1 service, means the period of 12 months beginning with whichever is the later of the following—
the day on which the on-demand programme service, or non-UK on-demand programme service, became a Tier 1 service;
the day when the first code under section 368HF was published.
Where regulations under section 368HB(1) provide that an on-demand programme service, or a non-UK on-demand programme service, specified in the regulations is a Tier 1 service, the regulations may also provide—
that subsections (2) and (3) do not apply in relation to the service, or
that those subsections apply in relation to the service as if the reference in subsection (3) to 12 months were a reference to such lesser period as may be specified in the regulations.