Where it appears to the F1Treasury that an EC company has failed to comply with any provision of law applicable to its insurance activities in the United Kingdom, F2they may require it to take such steps as F2they may specify to comply with that provision.

If the company fails to comply with a requirement under sub-paragraph (1) above, the F1Treasury shall notify the supervisory authority in the home State.

If, after the F1TreasuryF3have taken the action mentioned in sub-paragraphs (1) and (2) above, the company persists in contravening the provision in question, the F1Treasury may, after informing the supervisory authority of the home State, direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of any specified description, in the United Kingdom.

The F1Treasury may exercise his powers under sub-paragraph (3) above without the conditions there mentioned being fulfilled if F4they consider that those powers should be exercised as a matter of urgency.

After giving a direction under this paragraph, the F1Treasury shall by notice in writing inform the company of F5their reasons for doing so.

A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.

A requirement or direction under this paragraph may be varied or revoked by the F1Treasury.