(1) Where -

(a) before commencement, the Regulator has served a preliminary notice on aperson pursuant to paragraph 3(4) of Schedule 2D or paragraph 5(3) of Schedule 13A (notice imposing conditions);

(b) no notice requiring conditions to be complied with has been served in respect of that preliminary notice;

(c) the interest to which the preliminary notice relates is an interest which would, if the person had proposed to acquire it after commencement, have given rise to an obligation to notify under section 178(1),

the preliminary notice is to be treated after commencement as a warning notice given by the Authority under section 185(3).

(2) A notice having effect under paragraph (1) as a warning notice has effect -

(a) as if it gave notice of the Authority's intention to impose conditions on the person under section 185(1);

(b) as if it stated that section 394 does not apply;