If a regulator decides not to take—
the action proposed in a warning notice given by it, or
the action to which a decision notice given by it relates,
it must give a notice of discontinuance to the person to whom the warning notice or decision notice was given.
But subsection (1) does not apply if the discontinuance of the proceedings concerned results in the granting of an application made by the person to whom the warning or decision notice was given.
A notice of discontinuance must identify the proceedings which are being discontinued.