Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · Preliminary
4. Revocation of designation
Official textFrom Attorney General's Chambers, unchanged
The Authority may, by order published in the Gazette, revoke the designation of a designated system if —
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
the Authority is satisfied that —
the designated system has ceased to operate as a system;
Payment and Settlement Systems
(Finality and Netting)
the operator of the designated system has knowingly furnished information or documents to the Authority in connection with the designation of the system which is or are false or misleading in any material particular;
the operator or settlement institution of the designated system is in the course of being wound up or otherwise dissolved, whether in Brunei Darussalam or elsewhere;
the operator or settlement institution of the designated system has entered into a compromise or scheme of arrangement with its creditors, whether in Brunei
Darussalam or elsewhere;
a receiver, receiver and manager, judicial manager or an equivalent officer has been appointed, whether in
Brunei Darussalam or elsewhere, in relation to or in respect of any property of the operator or settlement institution of the designated system; or
any of the conditions referred to in section 3(1) has been contravened; or
the Authority considers that it is in the public interest to revoke the designation.
Subject to subsection (3), the Authority shall not revoke a designation without giving the operator of the designated system an opportunity to be heard.
operator
“operator”, in relation to a designated system, means the person specified in the order referred to in section 3(1) as the operator of the designated system;
The Authority may revoke a designation on any of the grounds described in subsection (1)(a) (iii), (iv) or (v) without giving the operator of the designated system an opportunity to be heard.
designated system
“designated system” means a system that is designated by the Authority under section 3 to be a designated system for the purposes of this Act;
A revocation of a designation shall not operate so as to avoid or affect any transaction cleared or settled in the designated system prior to the revocation or preclude the application of this Act, in accordance with section 5, to any such transaction.
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
designated system
Defined · s 2“designated system” means a system that is designated by the Authority under section 3 to be a designated system for the purposes of this Act;
netting
Defined · s 2“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant either issues to, or receives from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
operator
Defined · s 2“operator”, in relation to a designated system, means the person specified in the order referred to in section 3(1) as the operator of the designated system;
settlement institution
Defined · s 2“settlement institution”, in relation to a designated system, means a body corporate providing accounts for the participants of the designated system to hold funds and to settle transactions between participants in the designated system;
system
Defined · s 2“system” means a system established for — (a) the clearing or settlement of payment obligations; or (b) the clearing, settlement or transfer of book-entry securities; Payment and Settlement Systems (Finality and Netting)
Part
Transactions Effected Through Designated System
Part
Netting
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