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Section 391G: Financial penalty: procedure

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part XIII: Insolvency Practitioners and their Qualification

Before imposing a penalty on a recognised professional body, the Secretary of State must give notice to the body—

stating that the Secretary of State proposes to impose a penalty and the amount of the proposed penalty,
specifying the requirement in question,
stating why the Secretary of State is satisfied as mentioned in section 391F(1), and
specifying a period within which the body may make written representations with respect to the proposal.

The period specified under subsection (1)(d)—

must begin with the date on which the notice is given to the body, and
must not be less than 28 days.

On the expiry of that period, the Secretary of State must decide—

whether to impose a penalty, and
whether the penalty should be the amount stated in the notice or a reduced amount.

The Secretary of State must give notice of the decision to the body.

Where the Secretary of State decides to impose a penalty, the notice under subsection (4) must—

state that the Secretary of State has imposed a penalty on the body and its amount,
specify the requirement in question and state—
why it appears to the Secretary of State that the requirement has not been complied with, or
where, by that time, the requirement has been complied with, why it appeared to the Secretary of State when giving the notice under subsection (1) that the requirement had not been complied with, and
specify a time by which the penalty is required to be paid.

The time specified under subsection (5)(c) must be at least three months after the date on which the notice under subsection (4) is given to the body.

Where the Secretary of State decides to impose a penalty, the Secretary of State must publish the notice under subsection (4).

The Secretary of State may rescind or reduce a penalty imposed on a recognised professional body; and, where doing so, the Secretary of State—

must give the body notice that the penalty has been rescinded or reduced to the amount stated in the notice, and
must publish the notice; and it must (if possible) be published in the same manner as that in which the notice under subsection (4) was published.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.