The appropriate regulator may, on the application or with the consent of a recognised body, direct that rules made under section 293 or 295—
are not to apply to the body; or
are to apply to the body with such modifications as may be specified in the direction.
An application must be made in such manner as the appropriate regulator may direct.
Subsections (4) to (6) apply to a direction given under subsection (1).
The appropriate regulator may not give a direction unless it is satisfied that—
compliance by the recognised body 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 result in undue risk to persons whose interests the rules are intended to protect.
A direction may be given subject to conditions.
The appropriate regulator may—
revoke a direction; or
vary it on the application, or with the consent, of the recognised body to which it relates.
In this section, "recognised body", in relation to rules made under section 293, includes a third country CSD.