Regulation 31 Power to reduce a participant’s periodic support payments
Where the Authority is satisfied that there has been a material or repeated failure by a participant to comply with an ongoing participant obligation during any quarter and the periodic support payment for that quarter has not been paid, the Authority may take one or more of the following actions—
reduce the participant’s periodic support payment by an amount which corresponds to the proportion of that quarter during which the participant failed so to comply,
reduce a participant’s periodic support payment for that quarter or for the quarter immediately following.
Within 21 days of making a decision under paragraph (1) to reduce a periodic support payment, the Authority must give a notice to the participant specifying, as applicable—
the respect in which the participant has failed to comply with an ongoing participant obligation,
the period in respect of which any periodic support payment is to be reduced,
the level of any reduction, and
details of the participant’s right of review under regulation 62.
In reducing a periodic support payment in accordance with paragraph (1)(b), the Authority may determine the level of the reduction (taking into consideration all factors which it considers relevant) up to a maximum reduction of 10% of the periodic support payment in question.