Section 100 of the Act (Penalties) provides that the FSA must prepare and operate a scheme for ensuring that the amounts paid to it as penalties are applied for the benefit of issuers.
The FSA will allow a permitted deduction from the annual fees of an amount equal to that issuer's share of the amounts paid to the FSA by way of penalties.
The FSA will notify issuers annually of the amount of the permitted deduction for each relevant year.