1. The supervisory authority granting supervisory approval to establish the special purpose vehicle may withdraw the authorisation of that special purpose vehicle where:

(a) the special purpose vehicle no longer fulfils the original conditions under which the approval to establish that special purpose vehicle was granted;

(b) the special purpose vehicle fails seriously in its obligations under the regulations to which it is subject.

2. In the case referred to in paragraph (1)(b) above, the supervisory authority shall consider the special purpose vehicle to have committed a serious failure where it does not comply with the requirement to remain fully funded and the supervisory authority considers that the special purpose vehicle cannot restore its compliance within a reasonable timeframe.

3. Any decision to withdraw authorisation shall state the full reasons and shall be communicated to the special purpose vehicle without delay.