Section 40 — Pensions Act 2008: Fixed penalty notices

Fixed penalty notices 40 1 The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has failed to comply with—

a a compliance notice under section 35, b a third party compliance notice under section 36, c an unpaid contributions notice under section 37, ... d a notice issued under section 72 of the Pensions Act 2004 (c. 35) (provision of information) , so far as relevant to the exercise of any of its functions under or by virtue of this Part , or e a notice issued under section 72A of that Act (interviews), so far as relevant to the exercise of any of its functions under or by virtue of this Part.

2 The Regulator may issue a fixed penalty notice to a person if it is of the opinion that the person has contravened—

a any provision of regulations under section 3(2) or 5(2) (prescribed arrangements for automatic enrolment or re-enrolment),

b any provision of regulations under section 7(4) (prescribed arrangements: jobholder's right to opt in),

c section 8(2)(b) (refund of contributions if jobholder opts out of scheme membership), and any provision of regulations under that provision, d section 10 (requirement to give information to workers), and any provision of regulations under that section, or e any provision of regulations under section 60 (requirement to keep records).

3 A fixed penalty notice is a notice requiring the person to whom it is issued to pay a penalty within the period specified in the notice.

4 The penalty—

a is to be determined in accordance with regulations, and b must not exceed £50,000.

5 A fixed penalty notice must—

a state the amount of the penalty;

b state the date, which must be at least 4 weeks after the date on which the notice is issued, by which the penalty must be paid;

c state the period to which the penalty relates;

d if the notice is issued under subsection (1), specify the failure to which the notice relates;

e if the notice is issued under subsection (2), specify the provision or provisions that have been contravened;

f if the notice is issued under subsection (1), state that, if the failure to comply continues, the Regulator may issue an escalating penalty notice under section 41;

g notify the person to whom the notice is issued of the review process under section 43 and the right of referral to a tribunal under section 44.