(1) Paragraph (2) applies if -

(a) an authorised person (within the meaning of the Act) was, immediately before commencement, a member of a recognised self-regulating organisation or a recognised self-regulating organisation for friendly societies;

(b) the FCA or the PRA is satisfied that before commencement -

(i) he failed to comply with any of the provisions specified in rule 1.3.1(6) of the PIA rules (cases in which a member is liable to disciplinary action);

(ii) he committed an act of misconduct within the meaning of rule 7.23A(3) of the SFA rules; or

(iii) he committed a relevant IMRO contravention;

(c) that organisation had, immediately before commencement, a power that corresponded to the power of that regulator under section 384(5) (power to order restitution) in relation to that failure, misconduct or contravention (or would have had such a power had an application been made to it by or on behalf of a person who had suffered loss or been otherwise adversely affected as a result of the conduct of the person concerned) but had not exercised that power; and