(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.