(1)The Lord President may, in relation to a category 1 or category 2 regulator, take one or more of the measures mentioned in subsection (4) if the Lord President considers that to be necessary following a review under section 18(1).
(2)When considering whether it is necessary to take any of those measures, or a combination of them, the Lord President must take account of the effect that it may have on the regulator’s observance of the regulatory objectives.
(3)Schedule 2 (to which subsection (1) is subject) makes provision concerning the measures mentioned in subsection (4) and the procedure to be followed in taking them.
(4)The measures are—
(a)setting performance targets,
(b)directing that action be taken,
(c)publishing a statement of censure,
(d)making changes to the regulatory functions exercised by the regulator,
(e)making changes to the way in which any of the regulatory functions of the regulator are to be exercised by it,
(f)removing all of the regulatory functions exercised by—
(i)an accredited regulator, or
(ii)a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act.
(5)The Scottish Ministers may by regulations—
(a)specify other measures that may be taken by the Lord President in relation to category 1 and category 2 regulators,
(b)make further provision about the measures that the Lord President may take (including for the procedures to be followed).
(6)But the Scottish Ministers may exercise the power to make regulations under subsection (5) only following, and in accordance with, a request to exercise the power received from the Lord President.
(7)Before making a request mentioned in subsection (6), the Lord President must consult—
(a)each category 1 and category 2 regulator,
(b)the independent advisory panel of the Commission, and
(c)such other person or body as the Lord President considers appropriate.
(8)A request under subsection (6) must include—
(a)a document setting out the reasons for the request, and
(b)copies of any written representations received in response to the consultation under subsection (7).
(9)As soon as reasonably practicable after making a request under subsection (6), the Lord President must publish the documents included with the request in such manner as the Lord President considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
(10)Regulations under subsection (5) are subject to the affirmative procedure.