(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 -