(1)The OfS must ensure that the initial registration conditions applicable to an institution and its ongoing registration conditions are proportionate to the OfS’s assessment of the regulatory risk posed by the institution.
(2)“Regulatory risk” means the risk of the institution, when it is registered, failing to comply with regulation by the OfS.
(3)In light of its duty under subsection (1), the OfS must keep the initial registration conditions applicable to an institution and its ongoing registration conditions under review.