Payment Clearing and Settlement Act

Marginal note:Directive to clearing house

• 6 (1) The Governor of the Bank may issue a directive in writing to a clearing house of a designated clearing and settlement system that requires the clearing house, within any period that may be specified in the directive, to take  — and to have the participants take — any corrective measures that the Governor considers necessary, if the Governor is of the opinion that systemic risk or payments system risk could be inadequately controlled because of

  • (a) the design or operation of the clearing and settlement system;

  • (b) the ownership or control of the clearing and settlement system;

  • (c) aspects of organizational structure or corporate governance of the clearing house that are related to risk management;

  • (d) the management or operation of the clearing house; or

  • (e) actual or anticipated acts or omissions of the clearing house or of a participant.

• Marginal note:Directive to participants

  (2) The Governor of the Bank may issue a directive in writing to a participant that requires the participant, within any period that may be specified in the directive, to take any corrective measures that the Governor considers necessary if the Governor has formed an opinion referred to in subsection (1) that systemic risk or payments system risk could be inadequately controlled and

  • (a) the clearing house fails to comply with a directive that has been issued to it under subsection (1);

  • (b) the designated clearing and settlement system does not have a clearing house located in Canada; or

  • (c) in the opinion of the Governor,

    • (i) the risk could be inadequately controlled because of an actual or anticipated act or omission by a participant, and

    • (ii) the actual or anticipated act or omission is not subject to the by-laws, agreements, rules, procedures, guides or other documentation governing the designated clearing and settlement system.

• Marginal note:Factors to be taken into account

  (2.1) In determining the corrective measures that are necessary, the Governor of the Bank shall take into account the nature, severity and imminence of the risk and any other risk-related factors that the Governor considers appropriate.

• Marginal note:Clarification

  (3) For greater certainty, a directive issued under this section must not be made in respect of

  • (a) the capital adequacy of a participant;

  • (b) the management of a participant’s investments;

  • (c) a participant’s corporate governance;

  • (d) a participant’s relations with customers who are not themselves participants in the designated clearing and settlement system;

  • (e) a participant’s ownership structure; or

  • (f) any other matter that is not directly related to a participant’s participation in the designated clearing and settlement system.

• Marginal note:Directive may apply to statutory system

  (4) Subject to the approval of the Minister, a directive, if it so provides, applies to a designated clearing and settlement system that is established under a statute.