The Commissioner and the Ombudsman may determine under subsection 40RM(1) that conduct of a particular kind is to be category 1 conduct for the purposes of this Act only if they are satisfied that:
(a) conduct of that kind is inappropriate conduct that:
(i) relates to minor management matters or customer service matters; or
(ii) reveals a need for improvement in the performance of the AFP appointee concerned; and
(b) conduct of that kind does not warrant being treated as category 2 or category 3 conduct for the purposes of this Act.