16. Variation of designation

The AFSA may vary any designation made under section 10(1)(a) (Decision on application for designation):

• (a) by amending the documents that evidence the Payment System Rules or amending the name or title of a Person to whom notices relating to the payment system must be given; or
• (b) by revoking or amending any condition to which the designation is subject; or
• (c) by making the designation subject to a new condition.

17. Revocation of designation

The AFSA may revoke any designation made under section 10(1)(a).

18. Settlement and Netting not affected by variation or revocation of designation

The variation or revocation of a designation under section 10(1)(a) does not affect the application of sections 11 (Payment System Rules of Designated Payment Systems valid and enforceable), 12 (Settlements and provision of Collateral Security must not be reversed etc.) and 14 (Netting valid and enforceable) to Settlements that were effected, and Netting that took place, before the variation or revocation.

19. Matters AFSA must and may have regard in deciding whether to vary or revoke designation

(1) In deciding whether to vary or revoke the designation of a Designated Payment System under section 10(1)(a), the AFSA must have regard to:

1. (a) the object of these Regulations under section 7(1) (Object of these Regulations etc.); and
2. (b) the need for the AFSA to Exercise its Functions under these Regulations in accordance with section 7(2).

(2) In deciding whether to vary or revoke the designation of a Designated Payment System under section 10(1)(a), the AFSA may have regard to any or all of the following matters

1. (a) the purpose and scope of the payment system;
2. (b) the Payment System Rules of the payment system;
3. (c) any AIFC Regulations and AIFC Rules, and any regulatory requirements, relating to the operation of the payment system and the extent to which the payment system complies with them;
4. (d) any Failure to comply with any condition to which the designation is subject; and
5. (e) any other matters that the AFSA considers appropriate.

20. Procedure for variation or revocation of designation

(1) Before deciding to vary or revoke a designation of a Designated Payment System under section 10(1)(a), the AFSA must, unless it considers that the financial system may be prejudiced as a result:

1. (a) give the Designated Contact notice of:
2. (i) the reasons for considering whether to vary or revoke the designation; and

(ii) if the AFSA is considering whether to vary the designation—the variation being considered; and

(iii) the fact that the Designated Contact may make submissions to the AFSA in relation to the variation or revocation;

1. (b) give the Designated Contact an opportunity to make submissions to the AFSA within a specified period that the AFSA considers reasonable in the circumstances; and
2. (c) consider any submissions made by the Designated Contact before the end of the specified period.

(2) The notice mentioned in subsection (1)(a) may be given either in Writing or orally depending on the circumstances of the particular case.