(1) If a person registered as a small payment institution in accordance with Regulation 35 no longer qualifies as a small payment institution, or (in the case of a person subject to a direction under paragraph 35(4)) proposes to engage in a business activity other than the one specified in the relevant direction, the person shall apply for authorisation under Chapter 2 within 30 calendar days.
(2) If a person referred to in paragraph (1) applies for authorisation in accordance with that paragraph, within the period of 30 calendar days mentioned in that paragraph, it may continue providing payment services until the Bank notifies it of its decision on the application. If such a person fails to apply for authorisation in accordance with that paragraph, it shall cease to provide payment services at the end of that period of 30 calendar days.