Section 44
Power to issue written directions
of Payment and Settlement Systems (Oversight) Act
(1)
Where the Authority is of the opinion that an issuer of a designated payment instrument —
(a)
is engaging or is about to engage in any act or course of conduct, or has omitted any act or is about to omit any act, that results or is likely to result in systemic risk being inadequately controlled or that is detrimental to the interests of its users or creditors or the public generally;
(b)
has contravened any provision of this Act, or any code, guideline, policy statement or practice note issued under section 61; or
(c)
has become or is likely to become unable to meet all or any of his obligations, the Authority may issue a written direction requiring the issuer of the designated payment instrument to —
(i)
take any steps or action, do or not do any act or thing, in relation to the designated payment instrument which in the opinion of the Authority is necessary to remedy the situation; or
(ii)
cease to issue the designated payment instrument.
(2)
In giving any written direction under subsection (1), the Authority may include requirements of a consequential, ancillary or incidental nature to
Payment and Settlement Systems
(Oversight)
B.L.R.O. 9/2022 49
be complied with by the issuer of a designated payment instrument and the
Authority may impose such terms and conditions as it deems necessary or expedient.
(3)
An issuer of a designated payment instrument shall comply with any written direction issued under subsection (1) within such time as the
Authority may specify.
(4)
If the Authority exercises its power under subsection (1)(ii), the approval to issue a designated payment instrument is deemed to have been revoked under section 37.
(5)
The Authority shall give the issuer referred to in subsection (1) an opportunity to make representations before making a decision to issue a written direction under that subsection.