(1) Paragraph (3) applies where -

(a) a person was, immediately before commencement -

(i) a registered person or former registered person for the purposes of the SFA rules;

(ii) a registered individual for the purposes of Rule 1.2(2) to (4) of Chapter IV and Chapter VIII of the IMRO rules; or

(iii) a registered individual or former registered individual for the purposes of the PIA rules;

(b) it appears to the FCA or the PRA that that person, before commencement,

(i) failed to comply with rule 1.8.13(1) of the PIA rules (cases in which a member is liable to disciplinary action etc.),

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

(iii) committed a relevant IMRO contravention,

in the course of carrying on a relevant activity.

(2) In paragraph (1), "relevant activity" means