(1) This section applies in three cases.
(2) The first case is where it appears to the Treasury that -
(a) events have occurred in relation to -
(i) a collective investment scheme,
(ii) a person who is, or was at the time of the events, carrying on a regulated activity (whether or not as an authorised person), or
(iii) listed securities or an issuer of listed securities,
which posed or could have posed a serious threat to the stability of the UK financial system or caused or risked causing significant damage to the interests of consumers, and
(b) those events might not have occurred, or the threat or damage might have been reduced, but for a serious failure in -
(i) the system established by FSMA 2000, or by any previous statutory provision, for the regulation of such schemes, or of such persons and their activities, or the listing of securities, or
(ii) the operation of that system.
(3) The second case is where it appears to the Treasury that -
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