Guideline on Oversight of Designated Retail Payment Systems (“Guideline”)

Requirements for a legal basis for the Designated RPS’s activities; governance arrangements; a risk management framework; control mechanisms to ensure proper functioning of the system; detecting and addressing potential violations of statutory and/or regulatory requirements and ensuring that the infrastructure associated with the system provides adequate and continued services; a financial risk management framework; an operational risk system; an incident management framework; business continuity management programmes; a security framework; and rules and procedures as regards how transfer orders effected through the system are to be regarded as settled.

Requirements for the SO and SI of a designated RPS to ensure speed of transfer, clearance and/or settlement of payment orders; ensure flexible technical arrangements of their systems; monitor changes in transaction volume or patterns; and, where appropriate, implement liquidity arrangements for efficient settlement of payment obligations. The criteria for admission as a participant in a designated RPS should be objective, transparent, justified.

The operating rules should be clear, unambiguous, enforceable, up-to-date and consistent with the applicable laws and regulations, and available to all participants. Among other things, the SO and SI of a designated RPS should have effective control mechanisms to ensure that the system is operated in accordance with the established operating rules and to monitor participants’ compliance with relevant rules.