The Act provides that we may impose a monetary penalty (a fine) on a recognised awarding organisation that has breached a condition of its recognition. The Act allows us to impose a fine of up to 10 per cent of an awarding organisation's annual turnover (as determined in accordance with an order made by the Secretary of State). This limit applies to each breach separately and is not a cumulative limit for a financial year. We will decide what the appropriate amount of the fine should be in all the circumstances of the case.

In imposing a fine, we will follow the procedural requirements in the Act, set out below under “Procedural matters”.