The appropriate regulator may impose a penalty on a person if it is satisfied that—
the person has at any time performed a designated senior management function without approval, and
at that time the person knew, or could reasonably be expected to have known, that they were performing a designated senior management function without approval.
The penalty may be of such amount as the appropriate regulator considers appropriate.
A person performs a designated senior management function without approval at a time if—
the person performs a designated senior management function under an arrangement entered into by a relevant recognised body, or by a contractor of a relevant recognised body, in relation to the carrying on of an activity by the body, and
when performing the function, the person is not acting in accordance with an approval given under section 309G.
The appropriate regulator may not impose a penalty on a person under this section after the end of the limitation period unless it gave the person a warning notice under section 309V before the end of that period.
For the purposes of subsection (4)—
"the limitation period" means the period of 6 years beginning with the first day on which the appropriate regulator knew that the person concerned had performed a designated senior management function without approval, and
the appropriate regulator is to be treated as knowing that a person has performed a designated senior management function without approval if it has information from which that can reasonably be inferred.