ACT No. X of 2011 AN ACT to amend various financial services laws.

I assent.

G EORGE A BELA

(L.S.)

President

24th June, 2011

ACT No. X of 2011

AN ACT to amend various financial services laws.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

The short title of this Act is the Various Financial Services

Laws (Amendment) Act, 2011.

PART I

AMENDMENTS TO THE MALTA FINANCIAL SERVICES

AUTHORITY ACT

This Part amends and shall be read and construed as one

with the Malta Financial Services Authority Act, hereinafter in this

Part referred to as "the principal Act".

In paragraph (f) of sub-article (6) of article 6 of the

principal Act, for the words "of any such person, shall be notified in

the Gazette" there shall be substituted the words "of any such person

including the reason for such termination or resignation, as

applicable, shall be notified in the Gazette".

Article 16 of the principal Act shall be amended as Amendment of

article 16 of the

follows

principal Act.

(a)

in sub-article (3) thereof, for the words "an

administrative penalty which may not exceed ninety-three

thousand and one hundred and seventy-four euro and ninety-

four cents (93,174.94)." there shall be substituted the words "an

administrative penalty which may not exceed one hundred and

fifty thousand (150,000) euro for each infringement or failure to

comply, as the case may be.";

(b) in sub-article (4) thereof, for the words "shall be due

to the competent authority." there shall be substituted the words

"shall be due to the Authority.";

(c)

in sub-article (7) thereof, for the words "the

competent authority may issue reprimands," there shall be

substituted the words "the Authority may issue reprimands,";

and

(d) in the Maltese text of sub-article (8) thereof, for the

words "għandha tkun bla ħsara għall-pubblikazzjoni" there shall

be substituted the words "għandha tkun soāāetta għall-

pubblikazzjoni".

Sub-article (2) of article 17 of the principal Act shall be Amendment of

article 17 of the

amended as follows

principal Act.

(a)

in paragraph (a) thereof, for the words "a foreign

competent authority or body" there shall be substituted the

words "an overseas regulatory authority or body"; and

(b) in the proviso thereto, for the words "concluded with

the Competent Authority." there shall be substituted the words

"concluded with the Authority.".

Article 20A of the principal Act shall be amended as Amendment of

article 20A of

follows

the principal

Act.

(a)

in sub-article (1) thereof, for the words "The

Minister, acting on the advice of the competent authority," there

shall be substituted the words "The Minister, acting on the

advice of the Authority,"; and

(b) in sub-article (2) thereof, for the words "The

Minister, acting on the advice of the competent authority," there

shall be substituted the words "The Minister, acting on the

advice of the Authority,".

In paragraph (a) of sub-article (2) of article 20C of the

principal Act, for the words "and from other competent authorities,"

there shall be substituted the words "and from other overseas

regulatory authorities,", and for the words "with overseas competent

authorities, as may be necessary;" there shall be substituted the words

"with overseas regulatory authorities, as may be necessary;".

For sub-article (18) of article 21 of the principal Act, there

shall be substituted the following

"(18) In this article, "competent authority" refers to the

Authority under this Act and under any other law for the

purposes of which it is appointed as the competent authority.".

PART II

AMENDMENTS TO THE TRUSTS AND TRUSTEES ACT

This Part amends and shall be read and construed as one

with the Trusts and Trustees Act, hereinafter in this Part referred to as

"the principal Act".

Article 43 of the principal Act shall be amended as

follows

(a)

in paragraph (j) of subarticle (7) thereof, for the

words "their individual nominal value does not exceed one

euro" there shall be substituted the words "their aggregate

nominal value does not exceed five euro";

(b)

in paragraph (a) of subarticle (9) thereof

(i) for sub-paragraph (i) thereof, there shall be

substituted the following

"(i) securities or interests in or issued by a

Maltese legal entity, other than securities which are

listed or traded on a regulated market or on a

multilateral system established in Malta or in a

recognised jurisdiction; or";

(ii)

in sub-paragraph (ii) thereof

1. for the words "immovable property in

Malta (hereafter referred to as "relevant property")

by trustees who are not authorised shall be

permitted only if a person –", there shall be

substituted the words

"immovable property in Malta,

(hereafter referred to as "relevant property")

by trustees who are not authorised shall be

permitted only if a person -";

2. for the words "by the Authority from

time to time.", there shall be substituted the words

"by the Authority from time to time;

For the purposes of this paragraph

(i)

"recognised jurisdiction" shall mean

(a) an EEA State, an EU Member

State, or Switzerland;

(b) any country that is a member of

the Organisation for Economic Co-operation

and Development (OECD);

(c) a country that is a signatory of the

IOSCO Multilateral Memorandum of

Understanding; or

(d) any other jurisidiction with whom

the Authority has a Memorandum of

Understanding covering securities;

(ii) "regulated market" and "multilateral

system" shall have the same meaning assigned to

them by the Financial Markets Act."; and

(c)

in paragraph (a) of subarticle (11) thereof, for the

words "their individual nominal value does not exceed one

euro", there shall be substituted the words "their aggregate

nominal value does not exceed five euro".

Article 51 of the principal Act shall be amended as Amendment of

article 51 of the

principal Act.

(a)

in sub-article (6) thereof, for the words "fine (multa)

not exceeding four hundred and sixty-five thousand and eight

hundred and seventy-four euro and sixty-eight cents

(465,874.68)" there shall be substituted the words "fine (multa)

not exceeding four hundred and sixty-six thousand (466,000)

euro"; and

(b) in sub-article (7) thereof, for the words "may not

exceed ninety-three thousand and one hundred and seventy-four

euro and ninety-four cents (93,174.94)." there shall be

substituted the words "may not exceed one hundred and fifty

thousand (150,000) euro for each infringement or failure to

comply, as the case may be.".

In sub-article (6) of article 53 of the principal Act, for the

words "not more than forty-six thousand and five hundred and eighty-

seven euro and forty-seven cents (46,587.47)" there shall be

substituted the words "not more than forty-seven thousand (47,000)

euro".

PART III

AMENDMENTS TO THE FINANCIAL MARKETS ACT

This Part amends and shall be read and construed as one

with the Financial Markets Act, hereinafter in this Part referred to as

"the principal Act".

In sub-article (1) of article 2 of the principal Act for the

definition "competent authority" there shall be substituted the

following

" "competent authority" means the Malta

Financial Services Authority established by the

Malta Financial Services Authority Act;".

In sub-article (2) of article 11A of the principal Act, for the

words "an administrative penalty which may not exceed ninety-three

thousand and one hundred and seventy-four euro and ninety-four

cents (€93,174.94)." there shall be substituted the words "an

administrative penalty which may not exceed one hundred and fifty

thousand (150,000) euro for each infringement or failure to comply,

as the case may be.".

In sub-article (1) of article 19 of the principal Act, for the

words "not exceeding ninety-three thousand and one hundred and

seventy-four euro and ninety-four cents (93,174.94)." there shall be

substituted the words "not exceeding one hundred and fifty thousand

(150,000) euro for each infringement or failure to comply, as the case

may be.".

Sub-article (5) of article 28 of the principal Act shall be Amendment of

article 28 of the

deleted.

principal Act.

In sub-article (3) of article 38 of the principal Act, for the Amendment of

words "fine (multa) of eleven thousand and six hundred and forty-six article

principal Act.

euro and eighty-seven cents (11,646.87)" there shall be substituted the

words "fine (multa) of twelve thousand (12,000) euro".

In sub-article (1) of article 39A of the principal Act, for the Amendment of

words "may not exceed ninety-three thousand and one hundred and article

the principal

seventy-four euro and ninety-four cents (93,174.94)." there shall be Act.

substituted the words "may not exceed one hundred and fifty

thousand (150,000) euro for each infringement or failure to comply,

as the case may be.".

In sub-article (1) of article 41 of the principal Act, for the Amendment of

words "fine (multa) not exceeding four hundred and sixty-five article

principal Act.

thousand and eight hundred and seventy-four euro and sixty-eight

cents (465,874.68)" there shall be substituted the words "four hundred

and sixty-six thousand (466,000) euro".

In sub-article (2) of article 42 of the principal Act, for the Amendment of

words "in excess of one thousand and one hundred and sixty-four article

principal Act.

euro and sixty-nine cents (1,164.69)." there shall be substituted the

words "in excess of one thousand and one hundred and sixty-five

(1,165) euro.".

PART IV

AMENDMENTS TO THE INVESTMENT SERVICES ACT

This Part amends and shall be read and construed as one Amendment of

with the Investment Services Act, hereinafter in this Part referred to the

Services Act.

as "the principal Act".

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

in sub-article (1) thereof

(i) for the definition "competent authority" there

shall be substituted the following

" "competent authority" means the

Malta Financial Services Authority

established by the Malta Financial

Services Authority Act, which body

shall also carry out the duties as

competent authority for all purposes of

the MIFID Directive and the UCITS

Directive;".

(ii) the definition "Directive" shall be deleted;

(iii) in the definition "European investment firm",

for the words "of the Directive", there shall be substituted

the words "of the MIFID Directive";

(iv) in the definition "European regulatory

authority", for the words "Article 48 of the Directive to

carry out each of the duties provided for under the different

provisions of the Directive", there shall be substituted the

words "Article 48 of the MIFID Directive and Article 97 of

the UCITS Directive to carry out each of the duties

provided for under the different provisions of both said

Directives";

(v) immediately after the definition "Member

State" there shall be inserted the following new definition

" "MIFID Directive” means Directive 2004/

39/EC of the European Parliament and of the

Council of 21 April 2004 on markets in financial

instruments amending Council Directives 85/611/

EEC and 93/6/EEC and Directive 2000/12/EC of

the European Parliament and of the Council and

repealing Council Directive 93/22/EEC, as

amended from time to time, and includes any

implementing measures that have been or may be

issued thereunder;";

(vi) in the proviso to the definition "qualifying

shareholding", for the words "Annex 1 to the Directive",

there shall be substituted the words "Annex 1 to the MIFID

Directive";

(vii) immediately after the definition "subsidiary"

there shall be inserted the following new definition

" "UCITS Directive" means Directive 2009/

65/EC of the European Parliament and of the

Council of 13 July 2009 on the coordination of

laws, regulations and administrative provisions

relating to undertakings for collective investment

in transferable securities (UCITS) (recast), as

amended from time to time, and includes any

implementing measures that have been or may be

issued thereunder;"; and

(b) in sub-article (3) thereof, for the word "Directive"

there shall be substituted the words "MIFID Directive and the

UCITS Directive".

For article 2A of the principal Act, there shall be Substitution of

article 2A of the

substituted the following

principal Act.

"2A. The competent authority shall carry out its functions

under this Act and, in particular, shall ensure compliance with

the provisions of this Act.".

Paragraph (b) of sub-article (6) of article 10A of the Amendment of

article 10A of

principal Act shall be amended as follows

the principal

Act.

(a) in sub-paragraph (i) thereof, for the words "the

Directive" there shall be substituted the words "the MIFID

Directive"; and

(b) for sub-paragraph (ii) thereof, there shall be

substituted the following

"(ii) the UCITS Directive;".

Article 12 of the principal Act shall be amended as Amendment of

article 12 of the

principal Act.

(a)

in sub-article (1) thereof

(i) in paragraph (k) thereof, for the words

"requirements of the Directive" there shall be substituted

the words "requirements of the MIFID Directive and the

UCITS Directive";

(ii) in paragraph (m) thereof, for the words

"Directive thereon", there shall be substituted the words

"MIFID Directive and UCITS Directive thereon";

(iii) in paragraph (n) thereof, for the words

"within the terms of this Act" there shall be substituted the

words "within the terms of this Act and for this purpose to

provide that any provision in any other law shall not apply

to matters falling under the regulations, and, in particular,

may provide that in so far as any of the provisions of the

regulations are inconsistent with the provisions of the

Companies Act, such provisions shall prevail, and the

provisions of the Companies Act shall, to the extent of the

inconsistency, not apply";

(iv) paragraphs (o) and (p) thereof shall be

renumbered (p) and (q) respectively;

(v) immediately after paragraph (n) thereof, there

shall be added the following new paragraph

"(o) provide that any one or more of the

bodies mentioned in Article 107(3) of the UCITS

Directive may, in the interests of consumers, and in

accordance with the applicable laws of Malta, take

action before the courts or administrative bodies of

Malta, to ensure that the provisions of this Act and

the Investment Services Rules and regulations

issued hereunder transposing the UCITS Directive

are implemented;"; and

(b) in sub-article (5) thereof, for the words "fine (multa)

of ninety-three thousand and one hundred and seventy-four euro

and ninety-four cents (93,174.94)" there shall be substituted the

words "fine (multa) of one hundred and fifty thousand (150,000)

Sub-article (2) of article 15 of the principal Act shall be

amended as follows

(a)

in paragraph (f) thereof, for the words "in the

implementation of the Directive", there shall be substituted the

words "in the implementation of the MIFID Directive and the

UCITS Directive"; and

(b) in paragraph (g) thereof, for the words "of the

Directive", there shall be substituted the words "of the MIFID

Directive".

Article 16A of the principal Act shall be amended as Amendment of

article 16A of

the principal

Act.

(a)

in sub-article (1) thereof, for the words "may not

exceed ninety-three thousand and one hundred and seventy-four

euro and ninety-four cents (93,174.94)." there shall be

substituted the words "may not exceed one hundred and fifty

thousand (150,000) euro for each infringement or failure to

comply, as the case may be.";

(b)

in sub-article (2) thereof

(i) for the words "Investment Services Rules

may provide for the imposition of administrative penalties"

there shall be substituted the words "Administrative

penalties"; and

(ii) for the words "whether in the form of a fixed

penalty, a daily penalty, or both, for any breach of the

Rules." there shall be substituted the words "may be

imposed in the form of a fixed penalty, a daily penalty, or

both.";

(c)

in sub-article (4) thereof

(i) for the words "Upon conclusion of any appeal

proceedings in terms of article 19, or the lapse of time

required to lodge an appeal, the competent authority may",

there shall be substituted the words "The competent

authority may"; and

(ii) for the words "such disclosure would

seriously jeopardise the financial markets or cause

disproportionate damage to the parties involved.", there

shall be substituted the words "such disclosure would

seriously jeorpardise the financial markets, be detrimental

to the interests of investors or cause disproportionate

damage to the parties involved.".

In article 16B of the principal Act, for the words "in terms Amendment of

of any provisions which transpose the Directive", there shall be article

the principal

substituted the words "in terms of any provisions which transpose the Act.

MIFID Directive and the UCITS Directive".

Article 17 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words "of the

Directive", there shall be substituted the words "of the MIFID

Directive, and it shall also exercise its powers and duties as

provided for in the UCITS Directive";

(b)

in sub-article (2) thereof

(i) for the words "carrying out its duties under

the Directive." there shall be substituted the words

"carrying out its duties and exercising its powers under the

MIFID Directive and the UCITS Directive.", and

(ii) for the words "In terms of the Directive",

there shall be substituted the words "In terms of the MIFID

Directive and the UCITS Directive";

(c)

in sub-article (3) thereof

(i) for the words "of the Directive", there shall be

substituted the words "of the MIFID Directive", and

(ii) for the words "pursuant to the Directive"

there shall be substituted the words "pursuant to the MIFID

Directive";

(d)

in sub-article (7) thereof

(i) in paragraph (a) thereof, for the words "the

business of investment services licence holders", there

shall be substituted the words "the business of licence

holders, including undertakings contributing towards the

business activity of UCITS";

(ii) in paragraph (b) thereof, for the words "of the

Directive", there shall be substituted the words "of the

MIFID Directive";

(iii) in paragraph (d) thereof, the word "or" shall

be deleted;

(iv) in paragraph (e) thereof, for the words "Malta

Financial Services Authority Act.", there shall be

substituted the words "Malta Financial Services Authority

Act; or"; and

(v) immediately after paragraph (e) thereof, there

shall be inserted the following new paragraph

"(f) in taking any decision in the

implementation of the UCITS Directive and the

MIFID Directive.";

(e)

sub-articles (8), (9), (10) and (11) thereof shall be

renumbered as sub-articles (9), (10), (11) and (12) respectively;

(f)

immediately after sub-article (7) thereof, there shall

be added the following new sub-article

"(8) Sub-article (7) hereof and article 26 shall not

preclude the competent authority from exchanging

information, in terms of the UCITS Directive, with

European regulatory authorities, where that information is

to be divulged to

(i) authorities with public responsibility for

the supervision of credit institutions, investment

undertakings, insurance undertakings or other

financial organisations, or authorities responsible

for the supervision of financial markets;

(ii) bodies involved in the liquidation or

bankruptcy of UCITS or undertakings contributing

towards their business activity, or bodies involved

in similar procedures; or

(iii) persons charged with carrying out

statutory audits of the accounts of insurance

undertakings, credit institutions, investment firms

or other financial institutions.";

(g) in sub-article (9) thereof, as renumbered, for the

words "acts contrary to the provisions of the Directive", there

shall be substituted the words "acts contrary to the provisions of

the MIFID Directive or the UCITS Directive";

(h) in sub-article (11) thereof, as renumbered, for the

words "contrary to the provisions of the Directive", there shall

be substituted the words "contrary to the provisions of the

MIFID Directive or the UCITS Directive"; and

(i)

immediately after sub-article (12) thereof, as

renumbered, there shall be inserted the following new sub-

"(13) The competent authority shall have the

powers conferred upon it by Article 101(8) of the UCITS

Directive.".

Article 17A of the principal Act shall be amended as

(a)

in the proviso to sub-article (1) thereof, for the

words "of the Directive", there shall be substituted the words

"of the MIFID Directive";

(b) sub-article (2) thereof shall be renumbered as sub-

article (3);

(c)

immediately after sub-article (1) thereof, there shall

be inserted the following new sub-article

"(2) If, upon the request for cooperation by the

competent authority in terms of Article 101(5) of the

UCITS Directive, a verification or an investigation is

carried out in a Member State by a European regulatory

authority, the competent authority may request that its own

officers, employees or agents accompany the officials

carrying out the verification or investigation, and such

officers, employees or agents shall, however, be subject to

the overall control of such Member State.";

(d) sub-article (3) thereof, as renumbered, shall be

amended as follows

(i) in paragraph (b) thereof, for the words "or

investigation" there shall be substituted the words "or

investigation, and, it may also, in terms of Article 101(5)

of the UCITS Directive, request that its own officers,

employees or agents accompany the European regulatory

authority in carrying out the verification or investigation";

and

(ii) in paragraph (c) thereof, for the words "allow

inspectors or experts within the meaning of article 14"

there shall be substituted the words "allow inspectors or

experts within the meaning of article 14 and auditors

within the meaning of article 18".

In article 17B of the principal Act, for the words "of the Amendment of

Directive", there shall be substituted the words "of the MIFID article

the principal

Directive, or with European regulatory authorities designated under Act

Article 101(1) of the UCITS Directive for the purpose of carrying out

duties and exercising powers thereunder".

Immediately after subarticle (3) of article 19 of the Amendment of

article 19 of the

principal Act, there shall be added the following new subarticle

principal Act.

"(4) In pursuance of the UCITS Directive, the Tribunal

referred to in this article shall also have the competence to hear

appeals by European management companies, exercising a

freedom of establishment or a freedom to provide services in

Malta, from decisions of the competent authority to take

measures for breaches incurred by European management

companies and the phrases "aggrieved person" and "appellant"

in article 21 of the Malta Financial Services Authority Act shall

include European management companies.".

In article 23 of the principal Act, for the words "fine Amendment of

(multa) not exceeding four hundred and sixty-five thousand and eight article

principal Act.

hundred and seventy-four euro and sixty-eight cents (465,874.68)"

there shall be substituted the words "fine (multa) not exceeding four

hundred and sixty six thousand (466,000) euro".

Article 26 of the principal Act shall be amended as Amendment of

article 26 of the

follows

principal Act.

(a)

in sub-article (1) thereof

(i) in paragraph (d) thereof, for the words

"identity of any persons to whom the information relates",

there shall be substituted the words "identity of any

persons, including UCITS, their management companies

and custodians to whom the information relates"; and

(ii) in the proviso thereof

1. for the words "in accordance with the

Directive" there shall be substituted the words "in

accordance with the MIFID Directive, the UCITS

Directive,"; and

2. for the words "pension funds, UCITS,"

there shall be substituted the words "pensions

funds,";

(b) in sub-article (2) thereof, for the words "of the

Directive", there shall be substituted the words "of the MIFID

Directive and of Article 102 of the UCITS Directive";

(c)

in sub-article (3) thereof

(i) for the words "where appropriate, to other

public authorities" there shall be substituted the words

"where appropriate, to recognised clearing houses or other

similar body performing clearing or settlement services, to

bodies which administer compensation schemes, and to

other public authorities"; and

(ii) for the words "their functions." there shall be

substituted the words "their functions:", and immediately

thereafter there shall be added the following new proviso

"Provided that where the exchange of

information is carried out in terms of the UCITS

Directive, the express consent of the European

regulatory authority shall be obtained."; and

(d) immediately after sub-article (3) thereof, there shall

be added the following new sub-article

"(4) Where an officer or an employee of

a licence holder has reason to believe that a

transaction or a proposed transaction could

involve money laundering or the funding of

terrorism, he shall act in compliance with the

reporting and other obligations set out in the

regulations made under article 12 of the

Prevention of Money Laundering Act and any

procedures and guidance issued thereunder,

and such disclosure shall not constitute a

breach of confidentiality.".

PART V

AMENDMENTS TO THE BANKING ACT

This Part amends and shall be read and construed as one

with the Banking act, hereinafter in this Part referred to as "the

principal Act".

In sub-article (1) of article 2 of the principal Act, for the Amendment of

definition "competent authority" there shall be substituted the article

principal Act.

following

" "competent authority" means the Malta

Financial Services Authority established by the

Malta Financial Services Authority Act;".

Article 3 of the principal Act shall be amended as follows

Amendment of

article 3 of the

principal Act.

(a)

sub-article (1) thereof shall be deleted; and

(b) sub-articles (2) and (3) thereof shall be renumbered

as sub-articles (1) and (2) respectively.

In sub-article (3) of article 34 of the principal Act, for the Amendment of

words "has reason to believe that a transaction or a proposed article

principal Act.

transaction could involve money laundering," there shall be

substituted the words "has reason to believe that a transaction or a

proposed transaction could involve money laundering or the funding

of terrorism,".

In the proviso to sub-article (7) of article 35 of the Amendment of

principal Act, for the words "an administrative penalty may not article

principal Act.

impose a financial penalty greater than one hundred and sixteen

thousand and four hundred and sixty-eight euro and sixty-seven cents

(116,468.67)." there shall be substituted the words "an administrative

penalty may not impose a financial penalty greater than one hundred

and fifty thousand (150,000) euro for each infringement or failure to

comply, as the case may be.".

In the Schedule to the principal Act, for the title "Schedule Amendment of

(Article 2(4)) List of Additional Activities", there shall be substituted the

the principal

the title "Schedule (Article 2(3)) List of Additional Activities".

Act.

PART VI

AMENDMENTS TO THE FINANCIAL INSTITUTIONS ACT

(1) This Part amends and shall be read and construed as Amendment of

one with the Financial Institutions Act, hereinafter in this Part the

Institutions Act.

referred to as "the principal Act".

(2) The provisions of paragraphs (c) and (d) of article 54 shall

be deemed to have come into force on the 1st January, 2011.

Sub-article (1) of article 2 of the principal Act shall be Amendment of

article 2 of the

amended as follows

principal Act.

(a)

for the definition "agent" there shall be substituted

the following

" "agent" means a person who acts on behalf of a

financial institution in providing those services listed

under the First Schedule, other than issuing electronic

money;";

(b) immediately after the definition "agent" there shall

be added the following new definition

" "average outstanding electronic money" means

the average total amount of financial liabilities related to

electronic money in issue at the end of each calendar day

over the preceding six calendar months, calculated on the

first calendar day of each calendar month and applied for

that calendar month;";

(c) for the definition "the competent authority" there

shall be substituted the following

" "the competent authority" means the

Malta

Financial

Services

Authority

established by the Malta Financial Services

Authority Act;";

(d)

the definition "the Directive" shall be deleted;

(e)

immediately after the definition "EEA State" there

shall be inserted the following new definition

" "Electronic Money Directive" means Directive

2009/110/EC of the European Parliament and of the

Council of 16 September 2009 on the taking up, pursuit

and prudential supervision of the business of electronic

money institutions amending Directives 2005/60/EC and

2006/48/EC and repealing Directive 2000/46/EC, as may

be amended from time to time and includes any

implementing measures that have been issued or may be

issued thereunder, and "electronic money" shall have the

meaning assigned to it in the Third Schedule;"; and

(f)

immediately after the definition "payment

institution" there shall be inserted the following new definition

" "Payment Services Directive" means Directive

2007/64/EC of the European Parliament and of the Council

of 13 November 2007 on payment services in the internal

market amending Directives 97/7/EC, 2002/65/EC, 2005/

60/EC and 2006/48/EC and repealing Directive 97/5/EC,

as may be amended from time to time and includes any

implementing measures that have been issued or may be

issued thereunder.".

Article 3 of the principal Act shall be amended as follows

Amendment of

article 3 of the

principal Act.

(a)

for sub-article (5) thereof, there shall be substituted

the following

"(5) A licensed financial institution

may not take deposits or other repayable

funds from the public within the meaning of

the Banking Act."; and

(b) immediately after sub-article (6) thereof, there shall

be added the following new sub-articles

"(7) The competent authority may, in

relation to a licensed company whose head

office is in Malta and that issues electronic

money in Malta, waive the application of all

or part of the provisions relating to general

prudential requirements, initial capital, own

funds and safeguarding requirements, as set

out in this Act and in any Financial

Institutions Rules applying to financial

institutions authorised to issue electronic

money, in cases where

(a)

the total business activities

of the company generate an average

outstanding electronic money that does

not exceed the amount of two million

euro (€ 2,000,000); and

(b) none of the natural persons

responsible for the management or

operation of the company’s business has

been convicted of offences relating to

money laundering or terrorist financing

or other financial crimes

Provided that, the underlying contractual

arrangements of the company shall provide

that the payment instrument or payment

account of the consumer where the electronic

money is stored is subject to a maximum

storage amount of not more than two hundred

and fifty euro (€ 250).

(8) A company that issues electronic

money which has been granted a waiver in

terms of the preceding sub-article shall be

entered into a public register of financial

institutions held in accordance with article

8D. (9) The competent authority shall

determine which of the activities in the Third

Schedule may be provided by the companies

registered in accordance with the provisions

of sub-article (8).

(10) A company that has been granted a

waiver in terms of sub-article (7) shall

(a)

notify

the

competent

authority of any change in its situation

which is relevant to the conditions laid

down in sub-article (7); and

(b) report periodically, at least

annually or during any other period

which the competent authority may

determine, on its average outstanding

electronic money

Provided that, where the conditions laid

down in sub-article (7) are no longer met, the

company shall within thirty calendar days

apply to the competent authority for a

modification of the licence to reflect the new

circumstances of the company

Provided further that where a company as

referred to in the preceding proviso has not

sought for the modification of the licence

within such period, it shall be prohibited from

issuing electronic money in accordance with

this Act.

(11) A company as referred to in sub-

article (7) shall be treated as a financial

institution authorised to issue electronic

money but shall not benefit from the freedom

to provide services and the right of

establishment.

(12) For the better carrying out of the

provisions of this article on the granting of

waivers, the competent authority may, from

time to time, publish Financial Institutions

Rules which shall be binding on licence

holders as specified therein.

(13) Notwithstanding

anything

provided for in this article, the application of

the provisions of the Prevention of Money

Laundering Act shall not be waived.".

In paragraph (b) of sub-article (4) of article 5 of the Amendment of

principal Act, for the words "to better transpose the provisions of the article

principal Act.

Directive" there shall be substituted the words "to better transpose the

provisions of the Electronic Money Directive and the Payment

Services Directive".

In sub-article (2) of article 5A of the principal Act, for the Amendment of

words "listed in the Second Schedule" there shall be substituted the article

principal Act.

words "listed in the Second or the Third Schedule".

In paragraph (h) of sub-article (1) of article 6 of the Amendment of

principal Act, for the words "within the meaning of the Second article

principal Act.

Schedule." there shall be substituted the words "within the meaning

of the Second and Third Schedules.".

Article 8 of the principal Act shall be amended as follows

Amendment of

article 8 of the

principal Act.

(a)

in paragraph (a) of sub-article (3) thereof, for the

words "other than paragraph 4 thereof" there shall be substituted

the words "other than paragraphs 4 and 10 thereof"; and

(b) in sub-article (4) thereof, for the words "any

licensed financial institution carrying out payment services"

there shall be substituted the words "any licensed financial

institution carrying out payment services or issuing electronic

money, or both,".

Article 8A of the principal Act shall be amended as Amendment of

article 8A of the

follows

principal Act.

(a)

sub-articles (2) and (3) thereof shall be renumbered

as sub-articles (3) and (4) respectively;

(b) immediately after sub-article (1) thereof, there shall

be inserted the following new sub-article

"(2) A financial institution authorised to issue

electronic money shall not issue electronic money through

agents

Provided that a financial institution authorised to

issue electronic money may, subject to such conditions as

may be established by the competent authority, distribute

and redeem electronic money through agents."; and

(c)

immediately after sub-article (4) thereof, as

renumbered, there shall be inserted the following new sub-

article

"(5) Where the financial institution licensed or

holding an equivalent authorisation in another Member

State or EEA State carries out the activities listed in the

Schedules in Malta through a branch or by engaging an

agent, the financial institution shall follow the procedures

laid out in a Financial Institutions Rule

Provided that if the competent authority has

reasonable grounds to suspect that, through such branch or

agent, money laundering or terrorist financing, within the

meaning of Council Directive 2005/60/EC, is being or has

been committed or attempted, or that the engagement of

such branch or agent could increase the risk of money

laundering or terrorist financing, it shall inform the

Member State or EEA State in which the financial

institution is established, and may refuse to register the

branch or agent, or may withdraw the registration of the

branch or agent.".

Sub-article (4) of article 8B of the principal Act shall be

Immediately after article 8D of the principal Act, there

shall be added the following new articles

8E. (1) In the assessment of an

application for the opening of a branch by a

financial institution authorised to issue electronic

money and having its head office outside the

Community, the competent authority may not

apply provisions which result in more favourable

treatment than that accorded to a financial

institution having its head office within the

Community.

(2) The competent authority shall notify the

European Commission of all authorisations for

branches of financial institutions having their head

office outside the Community as stated in sub-

article (1).

8F. (1) Financial institutions authorised

to issue electronic money shall issue electronic

money at par value on the receipt of funds.

(2) A financial institution authorised to

issue electronic money shall ensure that, at any

moment, upon request by the holder thereof, it is in

a position to redeem the monetary value of any

electronic money held, at par value and without

delay.

(3) For the better carrying out of the

provisions of this article and to better transpose the

provisions of the Electronic Money Directive on

issuance and redeemability of electronic money,

the competent authority may, from time to time,

publish Financial Institutions Rules which shall be

binding on financial institutions authorised to issue

electronic money as specified therein.".

Article 9 of the principal Act shall be amended as follows

(a)

in paragraph (a) of sub-article (1) thereof, for the

words "or to increase or reduce, directly or indirectly" there

shall be substituted the words "or to further increase or reduce,

directly or indirectly";

(b) for sub-article (4) thereof, there shall be substituted

the following

"(4) (a) Where a person intends to take any action

as set out in sub-article (1)(a) and (b), such person shall

notify the competent authority in writing of any such

decision, indicating the size of the intended shareholding

and providing any relevant information as and in the

manner that the competent authority may by a Financial

Institutions Rule require, including the form in which such

notification shall be made and the criteria adopted by the

competent authority in determining whether such person is

a suitable person. The competent authority shall, within

two months of receiving such notification, give its

approval or otherwise and if such period elapses without

the competent authority having notified its decision, such

decision shall be deemed to be an approval.

(b) Where the qualifying shareholding is

acquired despite the opposition of the competent authority,

the competent authority shall, regardless of any other

sanction which may be adopted, provide for the suspension

of the exercise of the voting rights of the acquirer, the

nullity of the votes cast or the possibility of annulling those

votes."; and

(c)

immediately after sub-article (5) thereof, there shall

be inserted the following new sub-article (6)

"(6) The competent authority may, by means of a

Financial Institutions Rule and subject to such criteria as

may be established therein, provide that all or part of the

provisions of this article be waived.".

Immediately after article 10 of the principal Act, there

shall be inserted the following new articles

" Prohibition

10A. The granting of interest or of any other

of interest.

benefit related to the length of time during which a

financial institution providing the services listed in

the Third Schedule holds electronic money shall be

prohibited.

10B. (1) A financial institution shall

Safeguarding

requirements.

safeguard all funds received from payment services

users or in exchange for electronic money that has

been issued.

(2)

For the better carrying out of the

provisions of this Act on safeguarding

requirements, the competent authority may, from

time to time, publish Financial Institutions Rules

which shall be binding on financial institutions

authorised to issue electronic money as specified

therein.".

Article 12 of the principal Act shall be amended as Amendment of

(a)

sub-article (1) thereof shall be deleted;

(b) sub-article (2) thereof shall be renumbered as sub-

article (1);

(c)

for paragraph (b) of sub-article (1) thereof, as

renumbered, there shall be substituted the following

"(b) determine the circumstances under

which a company may be exempted from

requiring a licence under this Act;

(c)

transpose, implement and give

effect to the requirements of the Electronic

Money Directive and the Payment Services

Directive;

(d)

regulate

the

transposition,

implementation and giving effect to the

provisions, requirements, obligations and

commitments relating to the regulation of

payment institutions and electronic money

institutions arising out of membership of,

affiliation to or relationship with international

or regional organisations or groupings of

countries or out of any treaty, convention or

other international agreement whether

bilateral, regional or multilateral, to which

Malta is a party; and

(e)

provide that any other law, or any

provision thereof, shall not apply to matters

falling under the regulations, and, in particular,

may exempt activities as may be designated

from the application of any article or provision

of the Civil Code."; and

(d) immediately after sub-article (1) thereof, as

renumbered, there shall be inserted the following new sub-

article

"(2) Regulations made under this article may be

made subject to such exemptions or conditions as may be

specified therein, may make different provision for

different cases, circumstances or purposes and may give to

the competent authority such powers of adaptation of the

regulations as may also be so specified.".

Article 13 of the principal Act shall be amended as

follows

(a)

in paragraph (d) of sub-article (1) thereof, for the

words "other than those listed in the Schedule" there shall be

substituted the words "other than those listed in the Schedules";

and

(b) immediately after sub-article (4) thereof, there shall

be added the following new sub-article

"(5) Where the competent authority has availed

itself of the waiver provided for in article 3(7), it shall

(a) notify the European Commission

forthwith of any subsequent change;

(b) inform the European Commission of the

number of legal persons concerned; and

(c) inform the European Commission, on

an annual basis, of the total amount of outstanding

electronic money issued as at 31 December of each

calendar year.".

For sub-article (3) of article 14 of the principal Act, there

shall be substituted the following

"(3) Financial institutions providing the services listed in

paragraphs 2 and 3 of the Second Schedule and financial

institutions authorised to issue electronic money carrying out

the additional activities listed in paragraphs 2(b) to (e) of the

Third Schedule, shall provide separate accounting information

as specified in a Financial Institutions Rule issued by the

competent authority. The accounting information shall be

subject to an auditor’s report.".

Article 20 of the principal Act shall be amended as

follows

(a)

sub-article (2) thereof shall be amended as follows

(i) in paragraph (a) thereof, for the words

"financial institutions carrying out payment services solely

for their supervisory and regulatory purposes" there shall

be substituted the words "financial institutions carrying out

payment services or issuing electronic money or both

solely for their supervisory and regulatory purposes";

(ii) for paragraph (c) thereof, there shall be

substituted the following

"(c) other relevant authorities designated

under Directive 2007/64/EC, Directive 2009/110/

EC, Directive 95/46/EC, Directive 2005/60/EC and

other Community legislation applicable to financial

institutions authorised to provide payment services

and to issue electronic money, including measures

regulating the protection of individuals with regard

to the processing of personal data and the

prevention of money laundering and funding of

terrorism."; and

(b) for the proviso to sub-article (3) thereof, there shall

be substituted the following

"Provided that the competent authority may

exchange information and communicate with other

overseas regulatory authorities either upon their request or

on its own initiative

Provided further that in the case of cross-border

consumer disputes, the competent authority may use any of

its powers under this article and shall co-operate and

exchange information for the purpose of investigating and

resolving any such disputes.".

In sub-article (1) of article 23 of the principal Act, for the Amendment of

words "an administrative penalty which may not exceed ninety-three article

principal Act.

thousand and one hundred seventy four euro and ninety-four cents

(€93,174.94)." there shall be substituted the words "an administrative

penalty which may not exceed one hundred and fifty thousand

(€150,000) euro for each infringement or failure to comply, as the

case may be.".

For sub-article (3) of article 25 of the principal Act, there

shall be substituted the following

"(3) Where an officer of a financial

institution has reason to believe that a transaction

or a proposed transaction could involve money

laundering or the funding of terrorism, he shall act

in compliance with the reporting and other

obligations set out in the regulations made under

article 12 of the Prevention of Money Laundering

Act and any procedures and guidance issued

thereunder, and such disclosure shall not constitute

a breach of confidentiality.".

For article 26 of the principal Act there shall be substituted

"26. (1) (a) Without prejudice to the

generality of article 20 of the Malta Financial

Services Authority Act, the Consumer Complaints

Manager shall also have the function of

investigating complaints from a payment service

user and a holder of electronic money arising out

of, or in connection with, any alleged infringement

by a financial institution of the provisions of this

Act implementing the Payment Services Directive

and the Electronic Money Directive.

(b) The provisions of article 20 of the

Malta Financial Services Authority Act shall,

mutatis mutandis, apply to complaints made under

this article.

(c) Complaints as described in sub-

article (1) may include complaints from interested

parties, within the meaning of the Payment

Services Directive and the Electronic Money

Directive, as well as complaints from registered

consumer associations as defined in the Consumer

Affairs Act.

(2) (a) A dispute between a payment service

user or a holder of electronic money and a financial

institution may, at the discretion of the payment

service user or a holder of electronic money, or if

agreed between the parties involved in the dispute,

whether by written agreement or otherwise, be

referred to arbitration in accordance with the

Arbitration Act. The appointing authority and

administrator shall be the Malta Arbitration Centre,

and only one arbitrator shall be appointed in such

disputes.

(b) Reference of a dispute to arbitration

in accordance with paragraph (a) shall be one of

the conditions of a licence of persons licensed

under this Act.

(c) The Consumer Complaints Manager

shall, when replying to a complaint, inform the

complainant of the possibility of having the dispute

settled through arbitration proceedings in terms of

this article.

(3) Any action taken by the Consumer

Complaints Manager under this article shall be

without prejudice to the right of a consumer, within

the meaning of the Consumer Affairs Act, to

submit a claim to the Consumer Claims Tribunal

established under that Act, or to exercise any other

rights under that Act.".

For article 27 of the principal Act there shall be substituted Substitution of

"27. The objective of this Act is, in part, to implement the

provisions of Directive 2007/64/EC of the European Parliament

and of the Council on payment services in the internal market,

in particular Titles I, II, Chapter 5 of Title IV and the Annex and

of Directive 2009/110/EC of the European Parliament and of the

Council on the taking up, pursuit and prudential supervision of

the business of electronic money institutions and shall be

interpreted and applied accordingly.".

For the First Schedule to the principal Act, there shall be Amendment of

substituted the following

"FIRST SCHEDULE

(Article 2)

ACTIVITIES OF FINANCIAL INSTITUTIONS

1. Lending (including personal credits, mortgage

credits, factoring with or without recourse, financing of

commercial transactions including forfeiting);

2. Financial leasing;

3. Venture or risk capital;

4. Payment services as defined in the Second

Schedule;

5. Issuing and administering other means of payment

(travellers cheques and bankers’ drafts and similar instruments)

in so far as this activity is not covered by point 4 above;

6. Guarantees and commitments;

7. Trading for own account or for account of customers

in

(a) money market instruments (cheques, bills,

Certificates of deposit and similar instruments);

(b)

foreign exchange;

(c)

financial futures and options;

(d)

exchange and interest rate instruments;

(e)

transferable instruments;

8. Underwriting share issues and participation in such

issues;

9. Money broking;

10. Issuing of electronic money as defined in the Third

Schedule.".

In paragraph 1 of the Second Schedule to the principal Act,

for the definition "payment institution" there shall be substituted the

following

" "payment institution" means a company that has been

licensed in accordance with this Act or that holds an equivalent

authorisation in another country in terms of the Payment

Services Directive, to provide and execute payment services;".

Immediately after the Second Schedule to the principal Addition of a

Third Schedule

Act, there shall be inserted the following new Third Schedule

to the principal

Act.

"THIRD SCHEDULE

(Article 2)

FINANCIAL INSTITUTIONS ISSUING ELECTRONIC

MONEY

Objective

The purpose of this Schedule is to set out the activities that

may be undertaken by financial institutions that issue electronic

money in terms of this Act.

Interpretation

1. In this Schedule, unless the context otherwise

requires, the following definitions shall apply -

"electronic money" means electronically, including

magnetically, stored monetary value as represented by a

claim on the issuer which is issued on receipt of funds for

the purpose of making payment transactions as defined in

paragraph 1 of the Second Schedule and which is accepted

by a natural or legal person other than the financial

institutions that issued the electronic money;

"electronic money institution" means a financial

institution that has been licensed in accordance with this

Act and authorised to issue electronic money or that holds

an equivalent authorisation in another country in terms of

the Electronic Money Directive to issue electronic money.

Activities

2. In addition to issuing electronic money, electronic

money institutions may also engage in any of the following

activities

(a) the provision of payment services listed in

paragraph 2 of the Second Schedule;

(b) the granting of credit related to payment

services referred to in paragraph 2(d), (e) and (g) of the

Second Schedule, where the conditions laid down in

paragraph 3(e) of the Second Schedule are met;

(c) the provision of operational services and

closely related ancillary services in respect of the issuing

of electronic money or to the provision of payment

services referred to in point (a);

(d) the operation of payment systems as defined

in the Second Schedule;

(e) business activities other than the issuance of

electronic money, having regard to the applicable law

regulating such activities.

Credit referred to in point (b) above shall not be granted

from the funds received in exchange of electronic money and

held in accordance with safeguarding requirements prescribed.".

PART VII

AMENDMENT OF THE CONTROLLED COMPANIES

(PROCEDURE FOR LIQUIDATION) ACT

This Part amends and shall be read and construed as one

with the Controlled Companies (Procedure for Liquidation) Act,

hereinafter in this Part referred to as "the principal Act".

In article 2 of the principal Act, for the definition

"competent authority" there shall be substituted the following

" "competent authority" means the body

appointed as the competent authority under and for

the purposes of the Banking Act;".

PART VIII

AMENDMENTS TO THE COMPANIES ACT

This Part amends and shall be read and construed as one

with the Companies Act, hereinafter in this Part referred to as "the

principal Act".

Paragraph (ii) of the definition "home Member State" in

sub-article (1) of article 2 of the principal Act shall be amended as

follows

(a) for the words "for any issues of non-equity securities

whose denomination per unit amounts to at least one thousand

and one euro and sixty-three cents (1,001.63)" there shall be

substituted the words "for any issues of non-equity securities

whose denomination per unit amounts to at least one thousand

euro (1,000)"; and

(b) for the words "provided that the value of such

minimum denomination is nearly equivalent to one thousand

and one euro and sixty-three cents (1,001.63)", there shall be

substituted the words "provided that the value of such minimum

denomination is nearly equivalent to one thousand euro

(1,000)".

Article 170 of the principal Act shall be amended as Amendment of

article 170 of

the principal

Act.

(a)

sub-articles (5), (7) and (8) thereof shall be deleted;

and

(b

sub-article (6) thereof shall be renumbered as sub-

article (5).

In paragraph (f) of sub-article (3) of article 420 of the Amendment of

principal Act, for the words "the recognised stock exchange" there article

the principal

shall be substituted the words "the regulated marke".

Act.

Article 425 of the principal Act shall be amended as Amendment of

article 425 of

the principal

Act.

(a)

paragraph (d) of sub-article (2) thereof shall be

amended as follows

(i) in sub-paragraph (i) thereof, for the words "of

not more than two hundred and thirty-two thousand and

nine hundred and thirty-seven euro and thirty-four cents

(232,937.34)" there shall be substituted the words "of not

more than two hundred and thirty thousand (230,000)

euro"; and

(ii) in sub-paragraph (ii) thereof, for the words

"not exceeding two thousand and three hundred and

twenty-nine euro and thirty-seven cents (2,329.37), or

daily default penalties not exceeding forty-six euro and

fifty-nine cents (46.59) for every day" there shall be

substituted the words "not exceeding two thousand and

three hundred (2,300) euro, or daily default penalties not

exceeding fifty (50) euro for every day";

(b) sub-articles (6) and (7) thereof shall be renumbered

as sub-articles (8) and (9) respectively; and

(c)

immediately after sub-article (5) thereof, there shall

be inserted the following new sub-articles (6) and (7)

"(6) (a) The Minister may by regulations provide

for the registration of company services providers with the

Registrar and for the further regulation of such providers.

In this sub-article, "company services providers" refers to

natural or legal persons which by way of business provide

services in respect of the formation, operation or

management of companies and other commercial

partnerships; including acting as director or in a similar

administrative position or as company secretary, arranging

for another person to act as such or for another person to

provide nominee or other fiduciary services in respect of

shares, providing registered office or business address

facilities and providing any other ancillary or related

services.

(b) Without prejudice to the generality of the

foregoing, regulations made by the Minister in virtue of

paragraph (a) may, in particular prescribe

(i) the conditions to be satisfied for

registration and for the renewal thereof;

(ii) the form, content and manner of

application for registration;

(iii) the fees that may be levied in relation to

the registration and renewal thereof;

(iv) offences and administrative penalties

for failure to comply with, or for any contravention

of, any provision of the regulations made by virtue

of this sub-article;

(v) powers exercisable by the Registrar in

respect of company services providers, including

powers to investigate their activities and to require

information, to give directives, to issue procedures

and guidelines and powers to cancel registration;

and

(vi) for any matter incidental

to

or

connected with any of the above.

(7) The Minister may make regulations to

transpose, implement and give effect to the provisions and

requirements of Directives, Regulations and any other

legislative measures of the European Union requiring

transposition and, or implementation, as they may be

amended from time to time, including any implementing

measures that have been or may be issued thereunder.".

Article 426 of the principal Act shall be amended as Amendment of

article 426 of

follows

the principal

Act.

(a)

in sub-article (1) thereof, for the words "shall on

conviction be liable to a fine (multa) of not more than four

thousand and six hundred and fifty-eight euro and seventy-five

cents (4,658.75)" there shall be substituted the words "shall on

conviction be liable to a fine (multa) of not more than two

hundred and thirty thousand (230,000) euro"; and

(b) in sub-article (2) thereof, for the words "of not more

than two thousand and three hundred and twenty-nine euro and

thirty-seven cents (2,329.37) and, where applicable, to a further

penalty of forty-six euro and fifty-nine cents (46.59) for every

day" there shall be substituted the words "of not more than two

thousand and three hundred (2,300) euro and, where applicable,

to a further penalty of fifty (50) euro for every day".

PART IX

AMENDMENTS TO THE INSURANCE BUSINESS ACT

This Part amends and shall be read and construed as one Amendment of

with the Insurance Business Act, hereinafter in this Part referred to as the

Business Act.

"the principal Act".

Sub-article (1) of article 2 of the principal Act shall be Amendment of

article 2 of the

amended as follows

principal Act.

(a)

for the definition "competent authority" there shall

be substituted the following

" "competent authority" means the Malta

Financial Services Authority established by

the Malta Financial Services Authority Act;";

and

(b) in the definition "insurance rule" for the words

"issued by the competent authority in virtue of article 4(3);"

there shall be substituted the words "issued by the competent

authority in virtue of article 4(2);".

For article 3 of the principal Act, there shall be substituted

3. It shall be the duty of the competent

authority to carry out the functions assigned to it

by or under this Act and to ensure that persons

authorised to carry on the business of insurance in

or from Malta comply with the provisions of this

Act and of any regulations made thereunder, with

any insurance rule made by the competent

authority in virtue of this Act and of any

regulations made thereunder and with the

conditions

specified

in

their

respective

authorisation.".

Article 4 of the principal Act shall be amended as follows

(a)

sub-article (1) thereof shall be deleted; and

(b) sub-articles (2), (3), (4) and (5) thereof shall be

renumbered as sub-articles (1), (2), (3) and (4) respectively.

Sub-article (1) of article 58 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words "under

articles 7, 13 or 21", there shall be substituted the words "under

articles 7 or 21"; and

(b) in paragraph (b) thereof, for the words "issued or

held under articles 7, 13 or 21", there shall be substituted the

words "issued or held under articles 7 or 21".

For sub-article (6) of article 59 of the principal Act there

shall be substituted the following

"(6) Where an officer or an employee of an

authorised company has reason to believe that a

transaction or a proposed transaction could involve

money laundering or the funding of terrorism, he

shall act in compliance with the reporting and other

obligations set out in the regulations made under

article 12 of the Prevention of Money Laundering

Act and any procedures and guidance issued

thereunder, and such disclosure shall not constitute

a breach of confidentiality.".

Article 64 of the principal Act shall be amended as Amendment of

article 64 of the

follows

principal Act.

(a)

in paragraph (i) of sub-article (1) thereof, for the

words "being penalties not exceeding ninety-three thousand and

one hundred and seventy-four euro and ninety-four cents

(93,174.94), in respect of any offence and in respect of a

continuing offence of a further penalty and not exceeding two

hundred and thirty-two euro and ninety-four cents (232.94) for

each day during which the offence continues." there shall be

substituted the words "being penalties not exceeding one

hundred and fifty thousand (150,000) euro, in respect of any

offence and in respect of a continuing offence of a further

penalty and not exceeding two hundred and thirty (230) euro for

each day during which the offence continues."; and

(b) in sub-article (2) thereof, for the words "shall be

liable to a penalty of not less than two hundred and thirty-two

euro and ninety-four cents (232.94) and not exceeding ninety-

three thousand and one hundred and seventy-four euro and

ninety-four cents (93,174.94), in respect of each offence and in

the case of a continuing offence to a further penalty not

exceeding two hundred and thirty-two euro and ninety-four

cents (232.94) for each day during which the offence

continues." there shall be substituted the words "shall be liable

to a penalty of not less than two hundred and thirty (230) euro

and not exceeding one hundred and fifty thousand (150,000)

euro, in respect of each offence and in the case of a continuing

offence to a further penalty not exceeding two hundred and

thirty (230) euro for each day during which the offence

continues.".

Article 67 of the principal Act shall be amended as Amendment of

article 67 of the

follows

principal Act.

(a)

in paragraph (b) of sub-article (5) thereof, for the

words "shall not provide for a fine (multa) of less than two

hundred and thirty-two euro and ninety-four cents (232.94) or

greater than one hundred and sixteen thousand and four hundred

and sixty-eight euro and sixty-seven cents (116,468.67)." there

shall be substituted the words “shall not provide for a fine

(multa) of less than two hundred and thirty (230) euro or greater

than one hundred and sixteen thousand (116,000) euro."; and

(b)

in sub-article (6) thereof

(i) for the first proviso thereto, there shall be

substituted the following

"Provided that an administrative penalty may

not be greater than a financial penalty of one

hundred and fifty thousand (150,000) euro in

respect of each infringement or failure to comply,

as the case may be, and, where such infringement

or failure to comply continues, a further penalty not

exceeding one hundred and sixteen (116) euro for

each day during which the infringement or failure

to comply continues:"; and

(ii) in the second proviso thereto, for the words

"may, in no case, exceed ninety-three thousand and one

hundred and seventy-four euro and ninety-four cents

(93,174.94)." there shall be substituted the words "may, in

no case, exceed one hundred and fifty thousand (150,000)

euro.".

In sub-article (8) of article 69 of the principal Act, for the

words "Any reference to an insurance directive issued by the

competent authority in virtue of article 4(3) in any licence, notice,

decision or other act made or taken by the competent authority" there

shall be substituted the words "Any reference in any licence, notice,

decision or other act made or taken by the competent authority, to an

insurance directive issued by the competent authority,".

PART X

AMENDMENTS TO THE PREVENTION OF FINANCIAL

MARKETS ABUSE ACT

This Part amends and shall be read and construed as one

with the Prevention of Financial Markets Abuse Act, hereinafter in

this Part referred to as "the principal Act".

In sub-article (1) of article 2 of the principal Act, in the

definition "the competent authority" the words "as appointed in terms

of article 2 of the Financial Markets Act and article 2A of the

Investment Services Act" shall be deleted.

In the first proviso to paragraph (a) of sub-article (1) of

article 19 of the principal Act, for the words "of thirteen thousand and

nine hundred and seventy-six euro and twenty-four cents (13,976.24)

every year" there shall be substituted the words "of fourteen thousand

(14,000) euro every year".

In sub-article (1) of article 22 of the principal Act, for the Amendment of

words "not exceed ninety-three thousand and one hundred and article

principal Act.

seventy-four euro and ninety-four cents (93,174.94)." there shall be

substituted the words "not exceed one hundred and fifty thousand

(150,000) euro for each infringement or failure to comply, as the case

may be.".

Article 24 of the principal Act shall be amended as Amendment of

article 24 of the

follows

principal Act.

(a)

in sub-article (5) thereof, for the words "fine (multa)

of not less than two thousand and three hundred and twenty-

nine euro and thirty seven cents (2,329.37) and not exceeding

nine hundred and thirty one thousand and seven hundred and

forty-nine euro and thirty-six cents (931,749.36)" there shall be

substituted the words "fine (multa) of not less than two thousand

and five hundred (2,500) euro and not exceeding nine hundred

forty thousand (940,000) euro";

(b) in sub-article (6) thereof, for the words "fine (multa)

not exceeding eleven thousand and six hundred and forty -six

euro and eighty-seven cents (11,646.87)" there shall be

substituted the words "fine (multa) not exceeding twelve

thousand (12,000) euro"; and

(c)

in sub-article (7) thereof, for the words "fine (multa)

not exceeding eleven thousand and six hundred and forty-six

euro and eighty-seven cents (11,646.87)" there shall be

substituted the words "fine (multa) not exceeding twelve

thousand (12,000) euro".

Sub-article (3) of article 25 of the principal Act shall be Amendment of

article 25 of the

amended as follows

principal Act.

(a)

in paragraph (a) thereof, for the words "a fine

(multa) of ninety-three thousand and one hundred and seventy

four euro and ninety-four cents (93,174.94)" there shall be

substituted the words "a fine (multa) of ninety-five thousand

(95,000) euro"; and

(b) in paragraph (b) thereof, for the words "a fine of

ninety-three thousand and one hundred and seventy four euro

and ninety-four cents (93,174.94)." there shall be substituted the

words "a fine of one hundred and fifty thousand (150,000) euro

for each infringement or failure to comply, as the case may be.".

PART XI

AMENDMENT OF THE SECURITISATION ACT

This Part amends and shall be read and construed as one

with the Securitisation Act, hereinafter in this Part referred to as "the

principal Act".

In article 2 of the principal Act, for the definition "the

competent authority" there shall be substituted the following

" "the competent authority" means the Malta

Financial Services Authority established by the

Malta Financial Services Authority Act;".

PART XII

AMENDMENTS TO THE INSURANCE INTERMEDIARIES ACT

This Part amends and shall be read and construed as one

with the Insurance Intermediaries Act, hereinafter in this Part referred

to as "the principal Act".

In sub-article (1) of article 2 of the principal Act, for the

definition "competent authority" there shall be substituted the

following

" "competent authority" means the Malta

Financial Services Authority established by the

Malta Financial Services Authority Act;".

Article 3 of the principal Act shall be amended as follows

(a)

for sub-article (1) thereof, there shall be substituted

the following

"(1) The competent authority shall carry out its

functions under this Act and, in particular, shall ensure

compliance with the provisions of this Act."; and

(b)

in sub-article (2) thereof

(i) for the first proviso of paragraph (h) thereof

there shall be substituted the following

"Provided that, an administrative penalty may

not be greater than a financial penalty of one

hundred and fifty thousand (150,000) euro for each

infringement or failure to comply, as the case may

be, and, where such infringement or failure to

comply continues, a further penalty not exceeding

one hundred and sixteen (116) euro for each day

during which the infringement or failure to comply

continues:";

(ii) in the second proviso of paragraph (h)

thereof, for the words "may, in no case, exceed ninety-

three thousand and one hundred and seventy-four euro and

ninety-four cents (93,174.94);" there shall be substituted

the words "may, in no case, exceed one hundred and fifty

thousand (150,000) euro;"; and

(iii) in paragraph (i) thereof, for the words "being

penalties of not less than two hundred and thirty-two euro

and ninety-four cents (232.94) and not exceeding ninety-

three thousand and one hundred and seventy-four euro and

ninety-four cents (93,174.94), in respect of any offence

and in respect of a continuing offence of a further penalty

not exceeding two hundred and thirty-two euro and ninety-

four cents (232.94) for each day during which the offence

continues;" there shall be substituted the words "being

penalties of not less than two hundred and thirty (230) euro

and not exceeding one hundred and fifty thousand

(150,000) euro, in respect of any offence and in respect of

a continuing offence of a further penalty not exceeding two

hundred and thirty (230) euro for each day during which

the offence continues;".

For sub-article (6) of article 46 of the principal Act, there Amendment of

article 46 of the

shall be substituted the following

principal Act.

"(6) When an officer or an employee of an

enrolled company, or a person registered or

enrolled, or an officer or an employee of such

person, has reason to believe that an activity or

proposed activity could involve money laundering,

he shall act in compliance with the reporting and

other obligations set out in the regulations made

under article 12 of the Prevention of Money

Laundering Act and any procedures and guidance

issued thereunder, and such disclosure shall not

constitute a breach of confidentiality.".

Sub-article (1) of article 53 of the principal Act shall be Amendment of

article 53 of the

amended as follows

principal Act.

(a)

in paragraph (b) thereof, for the words "shall not

provide for a fine (multa) of less than two hundred and thirty-

two euro and ninety-four cents (232.94) or greater than one

hundred and sixteen thousand and four hundred and sixty-eight

euro and sixty-seven cents (116,468.67);" there shall be

substituted the words "shall not provide for a fine (multa) of less

than two hundred thirty (230) euro or greater than one hundred

sixteen thousand (116,000) euro;"; and

(b) in paragraph (c) thereof, for the words "shall not

provide for a fine (multa) of less than one hundred and sixteen

euro and forty-seven cents (116.47) or greater than two hundred

and thirty-two euro and ninety-four cents (232.94) for each day

during which the offence continues." there shall be substituted

the words "shall not provide for a fine (multa) of less than one

hundred and sixteen (116) euro or greater than two hundred

thirty (230) euro for each day during which the offence

continues.".

Passed by the House of Representatives at Sitting No. 366 of the

15th June, 2011.

M ICHAEL F RENDO

Speaker

P AULINE A BELA

Clerk to the House of Representatives