Regulations for the Navy Part IICentral Regulations · 1957
(1) A sailor holding an acting rank may be reduced to a lower rank by warrant as a punishment in accordance with the usual procedure and the reductions in rank shall have the usual effect on assessment of character, Good Conduct Badges and the like.
(2) If such sailor commits an offence which, though indicating an unfitness for the higher rank is not considered sufficiently serious to merit reduction in rank by warrant, and if his general conduct is otherwise unsatisfactory, he may be reverted by his Commanding officer for unsuitability in which case the penalties which follow reduction in rank by warrant shall not be applicable