This section applies if the Board is satisfied—
that an approved regulator has failed to comply with a requirement to which this section applies, and
that, in all the circumstances of the case, it is appropriate to impose a financial penalty on the approved regulator.
This section applies to any requirement imposed on the approved regulator—
by rules under section 30 (internal governance rules),
by a direction given under section 32 (Board directions), or
by section 51 (control of practising fees charged by approved regulators) or by rules under that section.
The Board may impose a penalty, in respect of the failure, of such an amount as it considers appropriate, but not exceeding the maximum amount prescribed under subsection (4).
The Board must make rules prescribing the maximum amount of a penalty which may be imposed under this section.
Rules may be made only under subsection (4) with the consent of the Lord Chancellor.
A penalty under this section is payable to the Board.
In sections 38 to 40 references to a "penalty" are to a penalty under this section.