Regulatory Alerts2022-05-17
Designation and Oversight of Designated Settlement Systems (DSS1)
The Reserve Bank of New Zealand and the Financial Markets Authority jointly regulate designated settlement systems under Part 5C of the Reserve Bank of New Zealand Act 1989 to ensure financial system stability. This document outlines the opt-in designation process, which provides legal certainty and enforceability for settlement rules, while establishing the specific oversight roles and information-sharing protocols between the regulators. Applicants must demonstrate compliance with robust legal frameworks, international standards, and adequate risk management and financial resource policies to secure designation.
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