Clause 21

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.(2) An application for approval under subsection (1) —

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

must be accompanied by a written legal opinion that —

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:

an advocate and solicitor;

a foreign lawyer as defined in section 2(1) of the Legal Profession Act (Cap. 161);

a legal counsel as defined in section 3(7)(a) of the Evidence Act (Cap. 97); and

certifies that the proposed implementation or amendment of the Rules of the designated system will satisfy the criteria mentioned in subsection (3)(a).(3) The Authority may, when determining whether to grant its written approval under subsection (1), have regard to —

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

any other matter that the Authority considers relevant.(4) The Authority must not refuse any application for approval under subsection (1) without giving the applicant an opportunity to be heard.(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.(6) Where any Rules of a designated system are implemented before the date of commencement of section 21 of the Payment and Settlement Systems (Finality and Netting) (Amendment) Act 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).”.