40.—(1) If the designated body considers that the statement required by regulation 36 (application statement) made by the third country auditor is no longer correct, it must—
(a)notify the third country auditor of the steps he must take to ensure that the statement is correct, and
(b)if the third country auditor has not taken those steps on or before the date three months after the notification, remove him from the register.
(2) The designated body may remove a third country auditor from the register if it considers that the third country auditor has failed to comply with his obligations under—
(a)regulation 39 (duty to provide updated information),
(b)section 1242 of the Companies Act 2006(1) (duties of registered third country auditors),
(c)section 1243 of that Act (matters to be notified to the Secretary of State), or
(d)section 1244 of that Act (Secretary of State’s power to call for information).