s 31 Daily MSR default — offence
31.—(1) An entity commits an offence if —(a) the entity is subject to a minimum stockholding requirement in section 20(a) in relation to an MSR product on any day for which a trigger notice given to the entity is in force; and (b) the entity intentionally or recklessly holds less than the daily MSR of stocks of the MSR product designated for the entity for any day for which a trigger notice given to the entity is in force. (2) An entity that is guilty of an offence under subsection (1) shall be liable on conviction to a fine not exceeding one of the following amounts, whichever being the higher:(a) $25,000; (b) an amount that is calculated in relation to that day using the formula in subsection (3). (3) For the purposes of subsection (2)(b), the formula for the day which is the subject of the charge, is as follows: where — (a) N is the rate prescribed by the Part 2 Rules for the MSR product concerned and in force on the day; and (b) K is the MSR product shortfall for that day, calculated in accordance with subsection (4). (4) For the purposes of subsection (3), “MSR product shortfall”, for an entity that is subject to a minimum stockholding requirement in relation to an MSR product on a day, means the quantity calculated by subtracting —(a) the quantity of the stocks of the MSR product actually held by the entity on that day where lower than the quantity in paragraph (b); from (b) the quantity of the stocks of the MSR product specified in a trigger notice which the entity is required to hold on that day.