Limits of arguments against accepting penalty (8)

I believe the answer is:

confines

'limits' is the definition.
('confine' can be a synonym of 'limit')

'arguments against accepting penalty' is the wordplay.
'arguments against' becomes 'cons' (I've seen this before).
'accepting' is an insertion indicator.
'penalty' becomes 'fine' (fine is a kind of penalty).
'cons' enclosing 'fine' is 'CONFINES'.

'of' is the link.

I've seen this clue in The Telegraph.

Want a hint initially instead of a full solution? Install my app