Either regulator may, on the application or with the consent of a person who is subject to rules made by that regulator, direct that all or any of those rules—
are not to apply to that person, or
are to apply to that person with such modifications as may be specified in the direction.
Subsection (1) does not apply to—
rules made by either regulator under section 64A (rules of conduct);
rules made by either regulator under section 137O (threshold condition code);
rules made by the FCA under section 247 (trust scheme rules) , section 248 (scheme particulars rules), section 261I (contractual scheme rules) or section 261J (contractual scheme particulars rules);
rules made by the FCA under section 309Z1 (rules of conduct).
An application must be made in such manner as the regulator may direct.
A regulator may not give a direction unless it is satisfied that—
compliance by the person with the rules, or with the rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the rules were made, and
the direction would not adversely affect the advancement of any of the regulator's objectives.
In subsection (4)(b) "objectives", in relation to the FCA, means operational objectives.
A direction may be given subject to conditions.
The regulator may—
revoke a direction, or
vary it on the application, or with the consent, of the person to whom it relates.
"Direction" means a direction under this section.