(1) Where the appropriate regulator receives a section 178 notice, it must -
(a) determine whether to approve the acquisition to which it relates unconditionally; or
(b) propose to -
(i) approve the acquisition subject to conditions (see section 187); or
(ii) object to the acquisition.
(2) The appropriate regulator must -
(a) consider the suitability of the section 178 notice-giver and the financial soundness of the acquisition in order to ensure the sound and prudent management of the UK authorised person;
(b) have regard to the likely influence that the section 178 notice-giver will have on the UK authorised person; and
(c) disregard the economic needs of the market.
(3) The appropriate regulator may only object to an acquisition -
(a) if there are reasonable grounds for doing so on the basis of the matters set out in section 186; or
(b) if the information provided by the section 178 notice-giver is incomplete.