(1) If, after undergoing an examination for the purposes of regulation 67.180 or under regulation 67.230, the holder of a medical certificate fails to meet the relevant medical standard for the certificate (or, in the case of a person who did not, at the time the certificate was issued, meet the standard in all respects, fails to meet the standard in an additional respect), CASA must:
(a) by written notice given to the holder, cancel the certificate; and
(b) if CASA is satisfied that the holding of a medical certificate by the holder will not adversely affect the safety of air navigation--issue to the holder a medical certificate that is subject to any conditions that are necessary in the interests of the safety of air navigation.
(2) CASA must include in the notice the reasons for the holder's failure to meet the relevant medical standard.