21Directions

#### 21 Directions (1) The Reserve Bank may give a direction to a participant in a designated payment system if the Reserve Bank considers that: (a) the participant has failed to comply with a standard determined by the Reserve Bank under subsection 18(1); or (b) the participant has failed to comply with an access regime imposed by the Reserve Bank under subsection 12(1). (1A) A nominated special regulator in relation to a special designated payment system may give a direction to a participant in the special designated payment system if the nominated special regulator considers that: (a) the participant has failed to comply with a standard determined by the nominated special regulator under subsection 18(1A); or (b) the participant has failed to comply with an access regime imposed by the nominated special regulator under subsection 12(1A). (2) The direction is to require the participant to take specified action, or to refrain from specified action, as the Reserve Bank or the nominated special regulator (as the case may be) considers appropriate having regard to the failure. (3) The direction must not be inconsistent with any applicable standards and with any applicable access regime (whether or not the standard was determined or the access regime was imposed by the entity giving the direction). (4) The direction may deal with the time by which, or the period during which, it is to be complied with. (5) The direction is to be given by notice in writing given to the participant. When direction is in force (6) The direction: (a) comes into force: (i) unless subparagraph (ii) applies—on the day on which it is given; or (ii) if the instrument giving the direction specifies a later day as the day on which it comes into force—on the day so specified; and (b) continues in force until it is revoked. > Note: Even if a direction does not cease to be in force under this subsection, the operation of section 21A may result in the whole or a part of the direction not applying. Revocation of directions (7) The Reserve Bank or the nominated special regulator (as the case may be) may revoke the direction by notice in writing given to the participant if, at the time of revocation, it considers that the direction is no longer necessary or appropriate. Contravention of directions (8) The participant contravenes this subsection if: (a) the participant does, or fails to do, an act; and (b) doing, or failing to do, the act results in a contravention of the direction given under subsection (1) or (1A); and (c) if the direction was given under subsection (1)—the doing of the act, or the failure to do the act, occurs at a time when: (i) the participant is still a participant in the payment system referred to in subsection (1); and (ii) that payment system is still a designated payment system; and (d) if the direction was given under subsection (1A)—the doing of the act, or the failure to do the act, occurs at a time when: (i) the participant is still a participant in the payment system referred to in subsection (1A); and (ii) that payment system is still a special designated payment system. Fault‑based offence (9) The participant commits an offence if the participant contravenes subsection (8). The physical elements of the offence are set out in that subsection. Penalty: 100 penalty units. Civil penalty provision (10) A person is liable to a civil penalty if the participant contravenes subsection (8). Civil penalty: 100 penalty units. Continuing contraventions of offence provision (11) If a contravention of the direction occurs in circumstances that give rise to the participant committing an offence against subsection (9), the participant commits an offence against that subsection in respect of: (a) the day on which the contravention occurs; and (b) each subsequent day (if any) on which the contravention continues (including the day of conviction for any such offence or any later day). > Note 1: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations. > Note 2: Subsection (10) is a continuing civil penalty provision under section 93 of the Regulatory Powers Act.