Payment Systems Act 2003 Chapter 2 — Requirements for Issuance of Designated Payment

Instruments Governance arrangements

s 27

The issuer of a designated payment instrument shall establish adequate governance arrangements which are effective, accountable and transparent to ensure the continued integrity of such designated payment instrument. Operational arrangements

s 28

An issuer of a designated payment instrument shall establish the following operational arrangements: (a) rules and procedures setting out the rights and liabilities of the issuer and the user of the designated payment instrument and the risks the user may incur; (b) measures to ensure prudent management of funds collected from a user of the designated payment instrument, including measures to ensure that such funds are available for repayment to a user; and (c) measures to ensure safety, security and operational reliability of the designated payment instrument including contingency arrangements.

Changes to designated payment instruments

s 29

(1) Where the Bank has prescribed documents and information under subsection (2), an issuer of a designated payment instrument shall submit to the Bank particulars of any proposed change to the documents or information within thirty days prior to the making of such change. (2) The Bank, in prescribing the documents and information to be submitted under subsection 25(1), may also prescribe the documents and information to which subsection (1) shall apply. (3) Where it appears to the Bank that such change is inappropriate, the Bank may, before the expiry of the thirty days referred to in subsection (1)- (a) prohibit the issuer from making such change; or (b) require the issuer to make any other changes as the Bank may specify.