(1) If the appropriate regulator is satisfied that -
(a) a person ("P") has at any time performed a controlled function without approval, and
(b) at that time P knew, or could reasonably be expected to have known, that P was performing a controlled function without approval,
it may impose a penalty on P of such amount as it considers appropriate.
(2) For the purposes of this section P performs a controlled function without approval at any time if at that time -
(a) P performs a controlled function under an arrangement entered into by an authorised person ("A"), or by a contractor of A, in relation to the carrying on by A of a regulated activity; and
(b) P, when performing the function, is not acting in accordance with an approval given under section 59.
(3) The appropriate regulator may not impose a penalty under this section after the end of the limitation period unless, before the end of that period, it has given a warning notice to the person concerned under section 63B(1).
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