(1)Licensing rules may allow for—
(a)an applicant to be issued with a provisional licence—
(i)in anticipation of its becoming (or becoming eligible to be) a licensed provider, and
(ii)whose full effect as a licence is conditional on its becoming a licensed provider (and such other relevant matters as the rules may specify), or
(b)a licensed provider to be issued with a provisional licence—
(i)in anticipation of its transferring to the regulation of the approved regulator, and
(ii)whose full effect as a licence is conditional on the transfer occurring (and such other relevant matters as the rules may specify).
(2)Licensing rules must—
(a)state that a licence application may be refused on the ground that the applicant appears to be incapable (for any reason) of complying with the regulatory scheme,
(b)provide for grounds for non-renewal, revocation or suspension of a licence where the licensed provider is breaching (or has breached) the regulatory scheme.