(1)  If the Regulator is satisfied that there is reason to believe there may be proper cause for disciplinary action against the holder of a licence, the Regulator may give the holder a show cause notice, being a notice –

(a) stating that the Regulator believes there is proper cause for disciplinary action for reasons specified in the notice; and

(b) allowing the holder a reasonable opportunity to show why the disciplinary action should not be taken against the holder under this Part.

(2)  The Regulator must not give a show cause notice under this section if –

(a) the reason for the disciplinary action lies in defective work for which the holder of the licence is responsible; and

(b) a rectification order has been made in relation to the defective work; and

(c) the holder of the licence has complied with the rectification order, or the time for complying with the rectification order has not yet expired.