Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/17

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

17. Suspension or revocation of certificate of finality

(1) The Monetary Authority may at any time by notice in writing, with effect from a date and time specified in the notice, suspend or revoke a certificate of finality in respect of a designated system if he is of the opinion that, as regards that system—
 * (a) any one or more of the criteria specified in section 16(1)(a) or (b) are no longer met; or
 * (b) there has been any contravention of section 6(2), 7(3), 12, 13, 14, 45 or 53(4).

(2) Before suspending or revoking a certificate of finality under this section the Monetary Authority shall—
 * (a) notify in writing the system operator and settlement institution of his intention to suspend or revoke the certificate of finality and the grounds on which the suspension or revocation is to be made; and
 * (b) allow such period as is specified in the notice, being a period of not less than 14 days, within which the system operator or settlement institution may be heard or may make representations as to why the certificate of finality should not be suspended or revoked.

(3) The Monetary Authority shall publish in the Gazette notice of any suspension or revocation of a certificate of finality effected under this section. Division 3—Finality of transactions and proceedings within designated systems 18. Scope of modification of law of insolvency under this Division

(1) The law of insolvency shall have effect in relation to—
 * (a) transfer orders effected through a designated system;
 * (b) action taken under the operating rules of a designated system with respect to such orders; and
 * (c) collateral security, subject to the provisions of this Division.

(2) This Division shall apply in relation to bankruptcy and winding up proceedings in respect of a participant, but shall not apply in relation to bankruptcy and winding up proceedings in respect of any person who is not a participant.