Where the Authority is of the opinion that a licensee has contravened or is contravening a relevant obligation it may, having regard to the matters in subsection (2), (a) enter into an agreement with the licensee under section 191, (b) proceed to deal with the alleged contravention under Chapter 4, or (c) carry out a directed investigation under Chapter 5. In determining whether to proceed the Authority must have regard to the nature, gravity and duration of the alleged contravention; whether the primary objective is deterrence or to achieve compliance; the damage and how easily it may be repaired; any gain made or loss avoided by the licensee or any connected person; and any previous notice of non-compliance, licence condition, suspension, revocation, sanction under Chapter 6 or conviction under this Act.

"Act of 2010" means the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010; "civil partner" has the same meaning and "cohabitant" has the meaning given in section 172(1) of that Act. "Connected person" means a connected relative; a company or body corporate of which the person, a connected relative or a nominee is a member; a partnership in which the person or a connected relative is a partner; or an employer of the person or of a connected relative. "Connected relative" means the person’s spouse, civil partner or cohabitant, or a parent, brother, sister or child of the person or of their spouse, civil partner or cohabitant. "Nominee" means a person named to act as the agent or representative of another person.