assume they would charge this to the ADI if they lost.
There is no mention of any compensation or costs for an appeal won.
The £3860 will just be the cost of the appeal, then you need to add the civil sanction plus there are also costs. The enforcer is allowed to add the cost involved in bringing the civil sanction.
http://www.oft.gov.uk/shared_oft/consultations/OFT1296.pdf
These could be;
5.16 If the enforcer wishes to recover costs then this will need to be made
clear to the trader upfront in a Costs Notice. These costs can cover a range of activities undertaken by the enforcer which have been caused by the trader's illegal activities, and can include:
• investigation costs
• administrative costs
• costs of any special expert advice (including legal advice)
5.17 The enforcer can only claim those costs which have been necessarily incurred.
With the potential of all this money via civil sanctions flowing into the DSA, you could be forgiven in thinking that DSA could lower the ADI registration fee. However there is a sting in the tail for DSA, they don’t get to keep any of the money.
Research on this matter suggests that if the ADI Registrar gets the authority to issue civil sanctions the DSA don't get to keep the money. Any money has to go into a central fund (Consolidated Fund), so his ploy to raise money at our expense will fail.
Para 5.15 states:
“Enforcers will pay any money collected from penalties, discharge payments, interest or late payment charges into the Consolidated Fund. The enforcer cannot retain or spend this money.”
www.parliament.uk/site-information/glossary/consolidated-fund/