§ 42 — Power of Authority to designate payment systems

42.—(1) The Authority may, by order in the Gazette, designate a payment system as a designated payment system for the purposes of this Act, if the Authority is satisfied that any of the following considerations applies:(a)

a disruption in the operations of the payment system could —(i)

trigger, cause or transmit further disruption to participants of the payment system;

(ii)

trigger or cause systemic disruption to the financial system of Singapore; or

(iii)

affect public confidence in the payment systems of Singapore or the financial system of Singapore;

(b)

the payment system is widely used in Singapore or the operations of the payment system may have an impact on the operations of one or more other payment systems in Singapore, and the designation is necessary to ensure efficiency or competitiveness in any of the services provided by the operator of the payment system;

(c)

the designation is otherwise in the interests of the public.

(2) Any order made under subsection (1) —(a)

must —(i)

if the Authority is satisfied of any consideration in subsection (1)(a)(i), (ii) or (iii) or (c) — identify the operator and the settlement institution of the designated payment system; or

(ii)

if the Authority is satisfied of the consideration in subsection (1)(b) —(A)

state that the payment system is designated because the Authority is satisfied of the consideration in subsection (1)(b); and

(B)

identify the operator of the designated payment system; and

(b)

continues to have effect until the order is withdrawn by the Authority.

(3) Any operator or settlement institution of a payment system that is aggrieved by a decision of the Authority to designate the payment system as a designated payment system may, within 30 days after the date on which the order designating the payment system is published in the Gazette, appeal in writing to the Minister, whose decision is final.

(4) Despite the lodging of an appeal under subsection (3), the designation by the Authority under this section continues to have effect pending the decision of the Minister.

(5) The Minister may, when deciding an appeal under subsection (3), direct the Authority to withdraw the designation of the payment system as a designated payment system, and the direction takes effect from the date of the Minister’s decision.

—(1) The Authority may, by order in the Gazette, designate a payment system as a designated payment system for the purposes of this Act, if the Authority is satisfied that any of the following considerations applies:(a)

a disruption in the operations of the payment system could —(i)

trigger, cause or transmit further disruption to participants of the payment system;

(ii)

trigger or cause systemic disruption to the financial system of Singapore; or

(iii)

affect public confidence in the payment systems of Singapore or the financial system of Singapore;

(b)

the payment system is widely used in Singapore or the operations of the payment system may have an impact on the operations of one or more other payment systems in Singapore, and the designation is necessary to ensure efficiency or competitiveness in any of the services provided by the operator of the payment system;

(c)

the designation is otherwise in the interests of the public.

(2) Any order made under subsection (1) —(a)

must —(i)

if the Authority is satisfied of any consideration in subsection (1)(a)(i), (ii) or (iii) or (c) — identify the operator and the settlement institution of the designated payment system; or

(ii)

if the Authority is satisfied of the consideration in subsection (1)(b) —(A)

state that the payment system is designated because the Authority is satisfied of the consideration in subsection (1)(b); and

(B)

identify the operator of the designated payment system; and

(b)

continues to have effect until the order is withdrawn by the Authority.

(3) Any operator or settlement institution of a payment system that is aggrieved by a decision of the Authority to designate the payment system as a designated payment system may, within 30 days after the date on which the order designating the payment system is published in the Gazette, appeal in writing to the Minister, whose decision is final.

(4) Despite the lodging of an appeal under subsection (3), the designation by the Authority under this section continues to have effect pending the decision of the Minister.

(5) The Minister may, when deciding an appeal under subsection (3), direct the Authority to withdraw the designation of the payment system as a designated payment system, and the direction takes effect from the date of the Minister’s decision.