5in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
- (a) confidence inthe financial system; or
- (b) the ability of the firm to meet either:
- (i) the "fit and proper" test in threshold condition 5 (Suitability); or
- (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.