ACT No. LXII of 2020 AN ACT to amend the Malta Financial Services Authority Act, Cap.

I assent.

(L.S.)

GEORGE VELLA

President

22nd December, 2020

ACT No. LXII of 2020

AN ACT to amend the Malta Financial Services Authority Act, Cap.

330. 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

Authority (Amendment) Act, 2020 and this Act shall be read and

construed as one with the Malta Financial Services Authority Act,

hereinafter referred to as "the principal Act".

Sub-article (2) of article 4 of the principal Act shall be

amended as follows

(a) the words "and colleges of supervisors" shall be

deleted; and

(b) the words "the European Insurance and Occupational

Pensions Authority (EIOPA), the European Systemic Risk Board

(ESRB), the European Central Bank (ECB), the Single

Resolution Board (SRB) and other entities which exercise

regulatory, supervisory or licensing powers" shall be substituted

by the words "the European Insurance and Occupational

Pensions Authority (EIOPA), colleges of supervisors, the

European Systemic Risk Board (ESRB), the European Central

Bank (ECB), the Single Resolution Board (SRB) and other

entities which exercise regulatory, supervisory, registration or

licensing functions and powers".

In sub-article (4) of article 11 of the principal Act, the words Amendment of

"and four (4) other members" shall be substituted by the words "and two article

principal Act.

(2) other members".

Article 17 of the principal Act shall be amended as follows

Amendment of

article 17 of the

principal Act.

(a)

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

(i) the words "Without prejudice to" shall be

substituted by the word "Notwithstanding";

(ii) in paragraph (c) thereof, the words "judicial or

licensing function" shall be substituted by the words

"judicial, registration or licensing function"; and

(iii) in the proviso of paragraph (c) thereof, the

words "collaboration with overseas regulatory authorities

including" shall be substituted by the words "collaboration,

including";

(b) in sub-article (3) thereof, the words "the European

Banking Authority (EBA) and colleges of supervisors, to the

European Insurance and Occupational Pensions Authority

(EIOPA), or to the European Systemic Risk Board (ESRB),"

shall be substituted by the words "the European Banking

Authority (EBA), the European Insurance and Occupational

Pensions Authority (EIOPA), colleges of supervisors or to the

European Systemic Risk Board (ESRB),"; and

(c)

sub-article (4) shall be amended as follows

(i) the words "overseas regulatory authorities or

other bodies" shall be substituted by the words "any

authority, body or other entity"; and

(ii) the words "the overseas regulatory authority is

obtained." shall be substituted by the words "any such

authority, body or other entity is obtained.".

Article 21 of the principal Act shall be amended as follows

Amendment of

article 21 of the

principal Act.

(a) in paragraph (a) of sub-article (9) thereof, the words

"this Act;" shall be substituted by the words "this Act, or any

regulations issued thereunder;";

(b) immediately after the second proviso of sub-article

(9) thereof, the following new sub-article shall be added

"(9A) The Tribunal shall also determine whether, for

the reasons adduced by the appellant

(a) the Resolution Committee has, in its

decision, wrongly applied any of the provisions of

this Act or any regulations issued thereunder; or

(b) the decision of the Resolution Committee

constitutes an abuse of discretion or is manifestly

unfair

Provided that, with respect to an appeal

from a decision of the Resolution Committee to take

a crisis management measure, the Tribunal shall use

the complex economic assessments of the facts

carried out by the Resolution Committee as a basis

for its own assessment of that decision

Provided further, that the complex nature of

such economic assessments shall not prevent the

Tribunal from examining whether the evidence relied

on by the Resolution Committee is factually accurate,

reliable and consistent, and whether that evidence

contains all relevant information which should be

taken into account in order to assess a complex

situation, and whether it is capable of substantiating

the conclusions drawn therefrom.";

(c) paragraph (a) of sub-article (13) thereof shall be

amended as follows

(i) the word "reverse" shall be substituted by the

word "annul";

(ii) the words "the competent authority under" shall

be substituted by the words "the competent authority or the

Resolution Committee under"; and

(iii) the words "the said competent authority to

implement" shall be substituted by the words "the said

competent authority or the Resolution Committee to

implement"; and

(d)

sub-article (17) thereof shall be amended as follows

(i) in the first proviso thereof, the words "the

appeal is abandoned." shall be substituted by the words

"the appeal is abandoned;"; and

(ii) immediately after the first proviso thereof,

there shall be added the following new proviso

"Provided further that, with respect to a

decision of the Resolution Committee to take a crisis

management measure

(a) the lodging of an appeal from such

decision shall not entail any automatic suspension of

the effects of the challenged decision; and

(b) the decision of the Resolution Committee

shall be immediately enforceable and it shall give

rise to a rebuttable presumption that a suspension of

its enforcement would be against the public

interest.".

The First Schedule to the principal Act, shall be amended as Amendment of

the First

Schedule to the

principal Act.

(a) sub-article (2) of article 3 thereof shall be amended

as follows

(i) in paragraph (d), the words "protecting

depositors, client funds and client assets." shall be

substituted by the words "protecting depositors and

investors;"; and

(ii) immediately after paragraph (d) there shall be

added the following new paragraph

"(e) protecting

clients’

funds

and

clients’

assets.";

(b)

in article 9 thereof

(i) the heading thereto shall be substituted by the

following heading

"Remedies for a wrongful decision or action.";

(ii)

sub-articles (1) to (5) thereof shall be deleted;

and

(c)

article 12 thereof shall be deleted.

Passed by the House of Representatives at Sitting No. 412 of the

16th December, 2020.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€0.54