(1) In this section "relevant EEA firm" means an EEA firm falling within paragraph 5(i) of Schedule 3 which is exercising in the United Kingdom an EEA right deriving from the mortgages directive.
(2) This section applies if -
(a) a relevant EEA firm has a branch in the United Kingdom; and
(b) the appropriate regulator ascertains that the firm has contravened, or is contravening, a requirement to which Article 34(2) of the mortgages directive applies.
(3) The appropriate regulator must give the firm written notice which -
(a) requires the relevant EEA firm to put an end to the contravention;
(b) states that the appropriate regulator’s power of intervention will become exercisable in relation to the firm if the firm continues the contravention; and
(c) indicates any requirements that the appropriate regulator proposes to impose on the firm in exercise of its power of intervention in the event of the power becoming exercisable.
(4) The appropriate regulator may exercise its power o