Section 35
Operational arrangements
of Financial Services Act 2013
(1)
An operator of a designated payment system, approved operator of a payment system or approved issuer of a designated payment instrument shall establish the following operational arrangements:
(a)
rules, procedures and requirements setting out the rights, liabilities or any other obligations of—
(i)
the operator and participants of the designated payment system;
(ii)
the approved operator of a payment system and its participants; and
(iii)
the approved issuer of a designated payment instrument and its users,
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including the risks that such participants or users may incur;
and
(b)
measures to ensure the safety, security and operational reliability of the designated payment system, payment system set out in Division 1 of Part 1 of Schedule 1 or the designated payment instrument including contingency arrangements.
(2)
In addition to the operational arrangements under subsection (1), an operator of a designated payment system or approved operator of a payment system shall establish the following operational arrangements:
(a)
procedures, controls and measures for the management of credit, liquidity or settlement risk, including rules determining the time when a transfer order is final in the case of payment systems that have been issued a certificate of finality by the Bank under section 38; and
(b)
criteria for participation in the designated payment system or payment system set out in Division 1 of Part 1 of Schedule 1.
(3)
Without limiting the generality of subsection (1), the approved issuer of a designated payment instrument shall establish measures to ensure prudent management of funds collected from the users, including measures to ensure that such funds are always available for repayment to the users of the designated payment instrument.