(1) If the designated body considers that the statement required by regulation 8 (application statement) made by a registered third country auditor is no longer correct, it must -

(a) notify the registered third country auditor of the steps that the registered third country auditor must take to ensure that the statement is correct, and

(b) if the registered third country auditor has not taken those steps on or before the date three months after the notification, remove the registered third country auditor from the register.

(2) The designated body may remove a registered third country auditor from the register if it considers that the registered third country auditor has failed to comply with any of the obligations of the registered third country auditor -

(a) regulation 11 (duty to provide updated information),

(b) section 1242 [Section 1242 was amended by S.I. 2007/3494, regulation 32, and by S.I. 2011/1856, regulation 4.] of the Act (duties of registered third country auditors),

(c) section 1243 of the Act (matters to be notified to the Secretary of State), or