(1) In respect of a person to whom regulation 47 applies, a regulator may -

(a) remove a regulated activity from those in respect of which the exemption has effect,

(b) cancel the exemption and direct that regulation 28 is to apply to the person, or

(c) cancel the exemption.

(2) A regulator may only exercise the power in paragraph (1)(a) or (c), if it considers that the exercise of the power is necessary -

(a) for the prevention, detection, investigation or prosecution of a criminal offence;

(b) for the protection of consumers;

(c) in order for the regulator to advance its objectives under Part 1A of the 2000 Act.

(3) In exercising the power in paragraph (1)(b), the regulator must take into account -

(a) the person's conduct,

(b) the practicality of supervision by a regulator,

(c) the size of the person's undertaking, and