(1) Where the Bank considers that

(a) there is systemic risk, namely, the risk that the failure of one or more institutions participating in a system within the meaning of section 1 to meet their payment or settlement obligations, may result in any of the other participating institutions being unable to meet their respective payment or settlement obligation; or

(b) a person is engaged in or about to engage in an act, omission or conduct with respect to the system, which may result in systemic risk, or is contrary to the public interest, effectiveness or Security of the system.

the Bank may issue a directive in writing requiring the institution or person to

(c) perform such acts as are necessary to remedy the situation and to cease or refrain from engaging in the act, omission or conduct; or

(d) provide the Bank with such information and documents relating to the matters specified in the directive, within a period specified in the directive.

(2) A person who without good reason refuses or fails to comply with a directive issued under subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding 500 penalty units and the Bank may take steps under the Regulations to safeguard the system without prejudice to any criminal or civil proceedings that may be instituted against that person.