(1) If the FCA is satisfied that a self-regulatory organisation has failed to comply with -
(a) a supervision requirement,
(b) a requirement under regulation 7, regulation 12 or regulation 13,
(c) a direction given under regulation 14, or
(d) a requirement under regulation 27,
the FCA may make a recommendation to the Treasury that the self-regulatory organisation is removed from Schedule 1 to the MLR.
(2) The FCA may make a recommendation for removal if, in purported compliance with a supervision requirement or a requirement imposed on the self-regulatory organisation by or under these Regulations, it provides information to the FCA which is false or misleading in a material particular and -
(a) knows that the information is false or misleading, or
(b) is reckless as to whether the information is false or misleading.
(3) The FCA must not make a recommendation for removal for failure to comply with a requirement listed in paragraph (1) if the FCA is satisfied that the self-regulatory or
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