ACT No. VIII of 2019 AN ACT to amend the Malta Financial Services Authority Act, 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:-

I assent.

(L.S.)

MARIE-LOUISE

COLEIRO PRECA

President

29th March, 2019

ACT No. VIII of 2019

AN ACT to amend the Malta Financial Services Authority Act,

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 Malta Financial Services Short title.

Authority Act, 2019, and this Act shall be read and construed as one

with the Malta Financial Services Authority Act, hereinafter referred Cap. 330.

to as "the principal Act".

Article 2 of the principal Act shall be amended as follows

(a)

the definition "Board

of

Management

and

Resources" shall be deleted;

(b) immediately after the definition "Chief Executive

Officer" there shall be added the following new definition

" "Chief Officer" means the Officer responsible for

a Directorate;";

(c)

the definition "Chief Operations Officer" shall be

deleted;

(d)

the definition "Co-Ordination Committee" shall be

deleted;

(e)

the definition "Director-General" shall be deleted;

(f)

immediately after the definition "Chief Officer"

there shall be added the following new definitions

" "Directorate" means a section of the Authority,

established by the Board of Governors in terms of article 5,

made up of a number of units and functions;

"Enforcement Decisions Committee" means the sub-

committee of the Executive Committee established by

article 11;";

(g) immediately after the definition "Directorate" there

shall be added the following new definition

" "Executive Committee" means the Committee

appointed in terms of article 9;";

(h) immediately after the definition "financial services"

there shall be added the following new definition

" "General Counsel" means the Officer leading the

Directorate for Legal and International Relations;";

(i)

the definition "Registrar of Companies" shall be

deleted; and

(j)

the definition "Supervisory Council" shall be

deleted.

Paragraph (b) of sub-article (1) of article 4 of the principal Amendment of

article 4 of the

Act shall be substituted by the following

principal Act.

"(b) to promote financial market integrity and the

legitimate expectations of consumers of financial services, to

promote fair competition practices and consumer choice in

financial services and to complement the Central Bank of Malta

in its role to ensure the stability of the financial system;".

In sub-article (1) of article 5 of the principal Act, for the Amendment of

words "the Co-Ordination Committee, the Supervisory Council, the article

principal Act.

Board of Management and Resources and the Legal Office" there

shall be substituted the words "the Executive Committee and

Directorates as may be established by the Board of Governors from

time to time".

Article 7A of the principal Act shall be amended as Amendment of

article 7A of the

follows

principal Act.

(a) in sub-article (3) thereof, for the words "any one or

more of the Listing Committees" there shall be substituted the

words "the Listing Committee"; and

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

be added the following new sub-article

"(4) Where the Board of Governors when acting as

the Listing Authority delegates any of its functions, powers

or decisions in terms of sub-article (3), such delegation

shall be made public on the website of the Authority.".

In sub-article (2) of article 7B of the principal Act, for the Amendment of

words "Supervisory Council" there shall be substituted the words article

principal Act.

"Executive Committee".

Article 9 of the principal Act shall be substituted by the Substitution of

article 9 of the

principal Act.

following

" The Executive

(1) The Executive Committee

Committee.

shall be responsible for the implementation of

the strategy and policies of the Authority, for the

approval of regulation, for the approval of and

for the issuing of licences and other

authorisations, and for the monitoring and

supervision of persons and other entities

licensed or authorised by the Authority in the

financial services sector, for the enforcement of

the regulatory framework in the financial

services sector, for carrying out the day-to-day

management and the finances of the Authority

including human resources and ancillary

services, and for the general coordination of the

Authority’s administrative affairs.

(2) The Executive Committee may from

time to time delegate in writing its functions and

powers, on such matters and subject to such

conditions and modalities as may be specified in

the delegation, subject to the terms and duration

as determined by the Executive Committee, to

the Chief Executive Officer or one or more of

the members of the Committee or a function or

unit of the Authority, as may be specified. Any

decisions so made shall be approved by the Board

of Governors and subsequently made public on

the website of the Authority.

(3) The Executive Committee shall also

be responsible for establishing and empowering

sub-committees, units and functions. The

Executive Committee shall determine the

respective remits of the sub-committees, units

and functions.

(4) The Executive Committee shall

consist of the Chief Executive Officer, who shall

preside thereat, the General Counsel, and of

each of the Chief Officers responsible

respectively for supervision, enforcement,

corporate services, operations, strategy, policy

and innovation, and for any other aspect falling

within the remit of the Authority as may be

determined by the Board of Governors.

(5) The Executive Committee shall

designate one of the officers of the Authority,

engaged in any of its functions mentioned in

sub-article (1), to act as Secretary to the

Executive Committee for such period and under

such terms as the Executive Committee shall

deem appropriate.

(6) It shall be the duty of the Secretary to

make the necessary preparations for the

meetings of the Executive Committee and to

keep minutes of those meetings.

(7) The provisions of article 7, in so far

as applicable, shall apply to the meetings of the

Executive Committee as they apply to the

meetings of the Board of Governors.

(8) The Executive Committee may from

time to time make internal arrangements to

authorize one or more of the senior officers,

responsible for the approval of and for the

issuing of licences and other authorisations, to

sign a licence, category of licences or any other

form of authorisation as it may deem

appropriate.

(9) The Executive Committee shall act as

the Listing Committee in terms of article 14 of

the Financial Markets Act.".

8. Article 10 of the principal Act shall be deleted.

Deletion of

article 10 of the

principal Act.

9. Article 11 of the principal Act shall be substituted by the Substitution of

article 11 of the

principal Act.

(1) The

Enforcement

Decisions

Committee shall decide or take such action as it

considers appropriate, promptly and without delay, in

relation to any recommendation for enforcement

action brought before it by the Chief Officer

responsible for Enforcement or any other official from

the Directorate responsible for enforcement

Provided that the Executive Committee may

take any enforcement action itself if

(a)

it considers that, in the particular

case, the action proposed should occur before it

is practicable or possible to convene the

Enforcement Decisions Committee; or

(b) it considers that, in the particular

case, an urgent decision on the proposed action is

necessary to protect the interests of consumers.

(2) The members of the Enforcement Decisions

Committee shall be appointed by the Board of

Governors.

(3) The Executive Committee may, after seeking

the approval of the Board of Governors, establish a

detailed remit for the Enforcement Decisions

Committee and may also establish that certain

enforcement action, which it does not deem to be

material, may be taken by the Chief Officer responsible

for enforcement.

(4) The Enforcement Decisions Committee shall

be composed of a chairman and four (4) other members

appointed by the Board of Governors for such term,

being a period of not more than three (3) years, as may

be specified in the letter of appointment, and shall be

eligible for reappointment; and shall receive such

remuneration as the Authority may from time to time

determine.

(5) The chairman of the Enforcement Decisions

Committee shall be an advocate who for a period of, or

periods amounting in the aggregate to, not less than

seven (7) years has served as an advocate in Malta or

served as a judge or magistrate in Malta, or partly so

practiced and partly so served, and who in the opinion

of the Board of Governors possesses the necessary

expertise and experience in the business or regulation of

financial services, or in finance.

(6) The members of the Enforcement Decisions

Committee shall be persons who in the opinion of the

Board of Governors possess the necessary expertise and

experience in the business or regulation of financial

services, or in finance.

(7) For the better carrying out of its functions,

and before arriving at any decision, the Enforcement

Decisions Committee may decide to hear any person in

relation to any matter being considered by the said

Committee.

(8) Before arriving at a decision, the

Enforcement Decisions Committee shall serve written

notice of the decision it proposes to take on the persons

being the subject of the recommendation for

enforcement action being considered by the said

Committee, setting out the reasons for its proposed

decisions. Such notice shall also specify therein the

period in which the person upon whom the notice is

served shall be entitled to make representations in

writing to the Enforcement Decisions Committee as to

why the proposed decision should not be taken, in

accordance with the relevant provisions of the Acts

administered by the Authority

Provided that the Enforcement Decisions

Committee may, where it decides that the matter is

urgent, take the final decision prior to the expiration of

the period stated in the notice.

(9) The Executive Committee, with the approval

of the Board of Governors, may make rules governing

the procedure for conducting any hearings that may take

place before the Enforcement Decisions Committee.

(10) The Board of Governors shall designate one

of the officers of the Authority, engaged in any of its

functions mentioned in article 9(1), to act as Secretary

to the Enforcement Decisions Committee for such

period and under such terms as the Board of Governors

shall deem appropriate.

(11) It shall be the duty of the Secretary to make

the necessary preparations for the meetings of the

Enforcement Decisions Committee and to keep minutes

of those meetings.

(12) The Enforcement Decisions Committee shall

report to the Board of Governors on the progress made

in its area of competence

Provided that the Enforcement Decisions

Committee shall be independent of the Executive

Committee and the Board of Governors, and shall act

independently of them.

(13) The provisions of article 7, in so far as

applicable, shall apply to the meetings of the

Enforcement Decisions Committee as they apply to the

meetings of the Board of Governors.

(14) The provisions of paragraphs (a), (b), (d) and

(e) of article 6(6) shall, as far as applicable, mutatis

mutandis, apply to the office of the chairman and

members of the Enforcement Decisions Committee.".

10. Article 12 of the principal Act shall be substituted by the

(1) It shall be the function of the

Enforcement Directorate to

(a)

deal with enforcement

(i) under the provisions of this

Act or any other Act administered by the

Authority, or of any regulations or rules

made thereunder; or

(ii) in relation to any of the

conditions imposed in a licence or other

authorisation; or

(iii) in

relation

to

any

administrative measure or penalty imposed

by the Authority in terms of this Act or any

other Act administered by the Authority, or

of any regulations or rules made thereunder;

(b) investigate any referrals made to it by

any other organ of the Authority;

(c)

conduct investigations in relation to

any enforcement action;

(d) make recommendations for any

enforcement action to the Enforcement

Decisions Committee established in article 11;

(e)

implement any decision of the

Enforcement Decisions Committee, including

the making of appropriate arrangements for such

purpose;

(f)

assist, as applicable, in the conduct of

proceedings before the Financial Services

Tribunal in relation to such enforcement action;

(g) carry out such other duties as may be

assigned to it by the Executive Committee.

(2) The Enforcement Directorate shall, for the

purpose of discharging its functions, have all the

powers vested in the Authority under this Act or any

other Act administered by the Authority.

(3) The Enforcement Directorate shall be

composed of the Chief Officer responsible for

enforcement, and such number of officers and

employees as may be required for the proper exercise

of its functions.".

11. In sub-article (3) of article 12A of the principal Act, for the Amendment of

words "the Director General and the Chief Operations Officer" there article

the principal

shall be substituted the words "the Chief Executive Officer".

Act.

12. Sub-article (1) of article 13 of the principal Act shall be Amendment of

article 13 of the

substituted by the following

principal Act.

"(1) The Authority may appoint a General Counsel,

Chief Officers, Heads, Deputy Heads and such other officers

and employees as it may consider necessary for the efficient

discharge of its functions, powers and duties under this Act or

any other law. The appointment of the General Counsel and

Chief Officers shall be made by the Chief Executive Officer in

consultation with the Board of Governors. The appointment of

officers and other employees of the Authority other than the

General Counsel and the Chief Officers shall be made by the

Executive Committee on such terms and conditions as the Board

of Governors may establish.".

Article 23 of the principal Act shall be amended as Amendment of

article 23 of the

follows

principal Act.

(a)

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

Ordination Committee" there shall be substituted the words

"Executive Committee"; and

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

Ordination Committee" there shall be substituted the words

"Executive Committee".

In article 29 of the principal Act, for the words "Co- Amendment of

Ordination Committee, of the Resolution Committee, of the article

principal Act.

Supervisory Committee, of the Board of Management and Resources

and of the Legal Office" there shall be substituted the words "Executive

Committee or any sub-committee thereof and of the Resolution

Committee".

Immediately after article 30 of the principal Act there shall Addition of new

article to the

principal Act.

be added the following new article

" Transitory

(1) Any decision taken by the Co-

provisions and

ordination Committee, the Supervisory Council

construction of

and the Board of Management and Resources,

references.

prior to the date of entry into force of this

article, shall continue to apply

Provided that, for purposes of this article,

the term "decision" shall, in the case of the

Supervisory Council, include licences issued,

approvals and authorisations granted, and

regulatory action taken.

(2) Any reference in any law to the

Director General or Chief Operations Officer of

the Authority shall be read and construed as a

reference to the Chief Executive Officer of the

Authority as so defined in article 2.

(3) Any reference in any law to the Co-

ordination Committee, the Supervisory Council,

or the Board of Management and Resources

shall be read and construed as a reference to the

Executive Committee and shall include a

reference to any sub-committees, directorates,

functions or units established under this Act, as

the case may require.".

Passed by the House of Representatives at Sitting No. 210 of the

25th March, 2019.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€1.08