The Central Bank will initiate the designation process under the designation framework as stipulated in Article (126) (3) of the Central Bank Law, if it considers an LVPS is meeting or is likely to meet the criteria for designation.
For the Central Bank to determine whether an LVPS is eligible to be designated and whether it satisfies the designation criteria for the purposes of this Regulation, the Central Bank will request information or documents regarding the LVPS from any Person who is holding, or whom the Central Bank reasonably believes holds such information or documents, or from the SO or SI of the LVPS. This power to request for information or documents applies to LVPS, individuals or corporations established, located or incorporated in the State and/or outside the State. The Central Bank will coordinate with any competent Regulatory Authority or other competent authorities in other jurisdictions for the purpose of requesting and securing such information and documents.
The nature of information or documents that the Central Bank may require might vary from LVPS to LVPS. Generally speaking, the Central Bank will seek to request information or documents as set out in the Annexes of this Regulation and may, where necessary, seek additional information as is required in order to assist the Central Bank in making such determination.
During the designation process, the Central Bank may discuss with the SO and/or SI of such system where necessary to understand the features and the design of the system and determine the LVPS’s eligibility for designation.
The time for the designation process may vary depending on the particular circumstances of each case, including the nature and complexity of the prospective designated LVPS and the completeness of the information and documents submitted to the Central Bank.
The SO and/or SI of a Designated System licensed by the Central Bank may submit a grievance against the designation decision, issued by the Central Bank in accordance with Article (126) (3) of the Central Bank Law, by applying to the Grievances & Appeals Committee as set out in Article (11) of this Regulation.
If the Central Bank intends to designate any of the LVPS licensed by any Regulatory Authority in the State or the competent regulatory authorities in other jurisdictions as systemically important, the Central Bank shall implement the process for designation as provided for under Article (126) (6) of the Central Bank Law.
LVPS deemed to have been licensed and designated
As stipulated in Article (126) (5) of the Central Bank Law, the LVPS established, developed, and/or operated by the Central Bank are deemed to have been licensed and designated.
The LVPS that are deemed to have been designated are required to observe all the obligations and oversight requirements imposed on designated LVPS under this Regulation in the same manner as other designated LVPS.