# Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on settlement discipline (Text with EEA relevance), Article 18: Costs of the penalty mechanism

Extent: E+W+S+N.I.

1. CSDs shall not use cash penalties to cover costs related to the penalty mechanism.
2. CSDs shall disclose, in detail, the amount of the costs referred to in paragraph 1 to participants.
3. CSDs shall charge participants separately for the costs of the penalty mechanism. Those costs shall not be charged on the basis of gross penalties applied to each participant.

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Source: https://www.legislation.gov.uk/eur/2018/1229/article/18 (the official version)
Page: https://openlegislation.uk/eu-regulation-2018-1229/article-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.