Singapore legislation
Clause 28
Clause 28
Emergency powers of Authority
(1)
Where the Authority has reason to believe that an emergency exists, or thinks that it is necessary or expedient in the interests of the public or a section of the public, the Authority may, by notice in writing, direct an operator or a settlement institution of a designated payment system to take such action as the Authority considers necessary to maintain or restore the safe and efficient operation of the designated payment system.
(2)
Without prejudice to the generality of subsection (1), the actions which the Authority may direct an operator or a settlement institution of a designated payment system to take include modifying or suspending any of the rules of the designated payment system.
(3)
Where an operator or a settlement institution of a designated payment system fails to comply with a direction of the Authority under subsection (1) within such time as is specified by the Authority, the Authority may —
appoint a person to advise the operator or settlement institution in the proper conduct of its operations;
assume control of and carry on the operations of the operator or settlement institution (or both) or direct some other person to do so on behalf of the Authority; (c)present a petition to the High Court for the winding up or bankruptcy, as the case may be, of the operator or settlement institution;
require the operator to cease operation of the designated payment system; or
take such other action, as the Authority thinks fit, to maintain or restore the safe and efficient operation of the designated payment system.
(4)
The Authority may modify or cancel any action taken by it under subsection (1), and in so modifying or cancelling any such action, the Authority may impose such conditions as it thinks fit, subject to which the modification or cancellation shall have effect.
(5)
Where the Authority has assumed control of the operations of an operator or a settlement institution of a designated payment system pursuant to subsection (3)(b), the Authority shall remain in control of, and continue to carry on, the operations in the name of the operator or settlement institution, as the case may be, and on its behalf until such time as the Authority is satisfied that the reasons for which it assumed control have ceased to exist or that it is no longer necessary that the Authority should remain in control.
(6)
Where the Authority has assumed control of the operations of an operator or a settlement institution of a designated payment system pursuant to subsection (3)(b) or ceased to control the operations of an operator or a settlement institution of a designated payment system pursuant to subsection (5), the Authority shall notify that fact in the Gazette.
(7)
Where the Authority has assumed control of the operations of an operator or a settlement institution of a designated payment system pursuant to subsection (3)(b), the operator or settlement institution shall submit its operations to the control of the Authority and shall provide the Authority with such facilities as the Authority may require to carry on its operations.
(8)
Any operator or settlement institution which fails to comply with a direction issued under subsection (1), or with subsection (7) or with any requirement of the Authority under subsection (7), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part thereof during which the offence continues after conviction.
(9)
The Authority may at any time (whether or not the appointment of the person has terminated) fix the remuneration and expenses to be paid by the operator or settlement institution of the designated payment system to any person appointed by the Authority under subsection (3)(a) to advise the operator or settlement institution in the proper conduct of its operations.
(10)
Where, under subsection (3)(b), the Authority has assumed control of the operations of an operator or a settlement institution of a designated payment system or directed some other person to do so, the Authority may, at any time, whether or not the Authority or that other person has ceased to be in control of the operations of the operator or settlement institution, fix the remuneration and expenses to be paid by the operator or settlement institution to —
the Authority; and (b)any person employed or authorised by it to assist the Authority in the control of, and the carrying on of the operations of the operator or settlement institution.
(11)
An operator or a settlement institution which is aggrieved by any action taken by the Authority under this section may, within 30 days after the person is notified of the action, appeal in writing to the Minister whose decision shall be final.
(12)
Notwithstanding the lodging of an appeal under subsection (11), any action taken by the Authority under this section shall continue to have effect pending the decision of the Minister.
(13)
The Minister may, when deciding an appeal under subsection (11), make such modification as he considers necessary to any action taken by the Authority under this section, and such modified action shall have effect from the date of the Minister’s decision.
(14)
In this section, “emergency” means —
any situation which prevents a designated payment system from carrying out its functions; (b)any situation in which, in the opinion of the Authority, a designated payment system is carrying on its operations in a manner likely to be detrimental to the interests of its participants; or
any undesirable situation or practice which, in the opinion of the Authority, constitutes an emergency.