Payment Clearing and Settlement Act

Marginal note:Significant change

• 9 (1) For the purposes of this section, a change is significant if it could reasonably be expected to have a material impact on the efficiency, safety or soundness of the designated clearing and settlement system.

• Marginal note:Notice required

  (2) A clearing house shall provide the Bank with reasonable notice before making

  • (a) any significant change in relation to the designated clearing and settlement system;

  • (b) any change in relation to the design or operation of the system or to the by-laws, agreements, rules, procedures, guides or other documentation governing the system; or

  • (c) any change to the constating documents and by-laws of the clearing house.

• Marginal note:Approval required

  (3) If the Governor of the Bank is of the opinion that a significant change that the clearing house intends to make in relation to the designated clearing and settlement system would have an effect on the control of risk for the system, the clearing house, the participants or the financial system in Canada, that change shall not take effect unless it is approved in writing by the Governor, subject to any conditions that the Governor considers appropriate.

• Marginal note:Notice required of other changes

  (4) A clearing house shall, without delay after it makes any change in relation to the designated clearing and settlement system, other than a change referred to in subsection (2), provide the Bank with written notice of the change, including any change affecting

  • (a) the composition of a board of directors of the clearing house due to resignation or otherwise; or

  • (b) the appointed auditor of the clearing house.