Grounds for revocation

1. As stipulated in Article (128) of the Central Bank Law, the Central Bank may revoke the License it has given to an LVPS if the LVPS is unable to carry out its operations in compliance with the provisions of the Central Bank Law or this Regulation.
    
2. As stipulated in Article (126) (7) of the Central Bank Law, the Central Bank may revoke the designation of an LVPS it licenses if the LVPS has ceased or is likely to cease being a Systemically Important Financial Infrastructure System or an LVPS whose proper functioning is material to the monetary or financial stability of the State.

Revocation process

3. The Central Bank will prepare a review report on whether a licensed and/or designated LVPS satisfies the ground of revocation under this Regulation. If the Central Bank intends to revoke the License and/or designation of an LVPS, the Central Bank will notify in writing the SO and/or the SI of the LVPS or the regulatory authority where the LVPS is licensed so that such authority can notify the SO and/or SI of the system the intention of the Central Bank to revoke the License and/or designation. The notice will state the grounds on which the revocation is to be made and specify in the notice a period of not less than twenty (20) working days from the date of notification, during which the SO and/or SI of the system may be heard, or may make written justifications, as to why the grounds for revocation stated in the notice are not valid.
    
4. If any SO and/or SI of the licensed and/or designated LVPS wish to be heard or to make written justifications, it should make such a request to the Central Bank in writing before the revocation takes effect, giving reasons as to why the grounds for revocation specified in the notice have not been established. After reviewing the reasons given by the SO and/or SI, the Central Bank will determine whether the License and/or designation should be revoked. In the course of reviewing the matter, the Central Bank may meet with the SO and/or SI of the licensed and/or designated LVPS should such need arise.
    
5. If the Central Bank decides to proceed to revoke the License and/or designation of the LVPS, the Central Bank will notify the SO and/or SI of the LVPS of the Central Bank’s decision in writing.
    
6. The SO and/or SI may object to the Central Bank’s decision to revoke the License and/or designation of the LVPS and provide justifications for such objection by applying to the Grievances & Appeals Committee as provided by the Central Bank Law.
    
7. If the Central Bank considers that any designated LVPS licensed by another Regulatory Authority in the State or the concerned regulatory authorities in other jurisdictions is no longer meeting the designation criteria, the Central Bank may request the concerned regulatory authority, via an official notice, to revoke the designation of the LVPS.
    
8. In all cases, the revocation of the License and/or designation of the LVPS shall not affect any transaction cleared and settled in the concerned LVPS prior to the effective date of revocation.