Singapore legislation

Section 19A

of Payment and Settlement Systems (Finality and Netting) Act 2002

Section 19A

Power of Authority to approve Rules of designated system

Amended by4/20184/20184/20184/20184/20184/2018

(1)

An operator, a settlement institution or a collateral holder of a designated system must, before implementing or amending any Rules of the designated system, obtain the written approval of the Authority to do so.

Amended by4/2018

(2)

An application for approval under subsection (1) —

(a)

must be made in such form and manner as the Authority may specify in a written direction issued under section 20A(1); and

(b)

must be accompanied by a written legal opinion that —

(i)

is given by a legal practitioner who is any of the following individuals, and whom the Authority is satisfied is qualified to give that opinion:

(A)

an advocate and solicitor;

(B)

a foreign lawyer as defined in section 2(1) of the Legal Profession Act 1966;

(C)

a legal counsel as defined in section 3(7)(a) of the Evidence Act 1893; and

(ii)

certifies that the proposed implementation or amendment of the Rules of the designated system will satisfy the criteria mentioned in subsection (3)(a).

Amended by4/2018

(3)

The Authority may, when determining whether to grant its written approval under subsection (1), have regard to —

(a)

any criteria that may be prescribed in regulations made under section 20 or specified in written directions issued under section 20A; and

(b)

any other matter that the Authority considers relevant.

Amended by4/2018

(4)

The Authority must not refuse any application for approval under subsection (1) without giving the applicant an opportunity to be heard.

Amended by4/2018

(5)

Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $200,000 and, in the case of a continuing offence, to a further fine not exceeding $20,000 for every day or part of a day during which the offence continues after conviction.

Amended by4/2018

(6)

Where any Rules of a designated system are implemented before 6 June 2018 by any operator, settlement institution or collateral holder of the designated system, those Rules are deemed by this subsection to be implemented with the written approval of the Authority under subsection (1).

Amended by4/2018