(1) Subsection (3) applies where it appears to the FCA that -

(a) events have occurred in relation to a regulated person or collective investment scheme which -

(i) indicated a significant failure to secure an appropriate degree of protection for consumers,

(ii) had or could have had a significant adverse effect on the integrity of the UK financial system, as defined by section 1D of FSMA 2000 (the integrity objective), or

(iii) had or could have had a significant adverse effect on effective competition in the interests of consumers in the markets for the services described in paragraphs (a) and (b) of section 1E(1) of FSMA 2000 (the competition objective), and

(b) those events might not have occurred, or the failure or adverse effect might have been reduced, but for a serious failure in -