ACT No. LXXI of 2021 AN ACT to further amend various financial services laws.

I assent.

(L.S.)

GEORGE VELLA

President

28th December, 2021

ACT No. LXXI of 2021

AN ACT to further 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 Short title.

Laws (Amendment No. 2) Act, 2021.

PART I

AMENDMENTS TO THE MALTA FINANCIAL SERVICES

AUTHORITY ACT

This Part amends the Malta Financial Services Authority Act Amendments to

and it shall be read and construed as one with the Malta Financial the

Financial

Services Authority Act, hereinafter in this Part referred to as "the Services

Authority Act.

principal Act".

In sub-article (1) of article 7A of the principal Act, the words ", Amendment of

and for the monitoring and supervision of local regulated markets and article

principal Act.

participants thereof falling within the regulatory and supervisory remit

of the Authority" shall be deleted.

The First Schedule annexed to the principal Act shall be

amended as follows

(a) in sub-item (1) of item 1 thereof, in the definition

"investment firm", the words "laid down in Article 28(2) of

Directive 2013/36/EU of the European Parliament and of the

Council on access to the activity of credit institutions and the

prudential supervision of credit institutions and investment firms;"

shall be substituted by the words "laid down in Article 28(2) of the

CRD;"; and

(b)

sub-item (1) of item 4 thereof shall be amended as

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

"cooperate closely with the Authority" there shall be

substituted the words "cooperate closely with and consult

the Authority" and for the words "application of resolution

decisions;" there shall be substituted the words

"application of resolution decisions, and in all other

instances where any such cooperation or consultation is

required by the CRD, by the BRRD or by the CRR;"; and

(ii) paragraph (g) thereof shall be substituted by the

following

"(g) cooperate closely with and consult

authorities, both local or overseas, in order to

coordinate resolution measures to protect financial

stability in all affected Member States and EEA

States and, when a cross-border group is failing or

likely to fail, to achieve the most effective outcome

for the group as a whole, and in all other instances

where any such cooperation or consultation is

required by the CRD, by the BRRD or by the CRR.".

PART II

AMENDMENTS TO THE FINANCIAL MARKETS ACT

This Part amends the Financial Markets Act and it shall be read

and construed as one with the Financial Markets Act, hereinafter in this

Part referred to as "the principal Act".

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

amended by the following

(a) immediately before the definition ""APA" or

"approved publication arrangement"" there shall be added the

following new definition

" "agricultural commodity derivatives" means

derivative contracts relating to products listed in Article 1

of Regulation (EU) No. 1308/2013, and Annex I, Parts I to

XX and XXIV/1 thereto, as well as to products listed in

Annex I to Regulation (EU) No. 1379/2013 of the

European Parliament and of the Council;";

(b) the definition ""APA" or "approved publication

arrangement"" shall be substituted by the following new

definition

" "APA" or "approved publication arrangement"

means the same as the meaning assigned to it in point (52)

of Article 2(1) of MiFIR;";

(c) the definition ""ARM" or "approved reporting

mechanism"" shall be substituted by the following new

definition

" "ARM" or "approved reporting mechanism" means

the same as the meaning assigned to it in point (36) of

Article 2(1) of MiFIR;";

(d) the definition ""CTP" or "consolidated tape

provider"" shall be substituted by the following new definition

" "CTP" or "consolidated tape provider" means the

same as the meaning assigned to it in point (35) of Article

2(1) of MiFIR;";

(e) the definition "data reporting services provider" shall

be substituted by the following new definition

" "data reporting services provider" means the same

as the meaning assigned to it in point (36a) of Article 2(1)

of MiFIR;".

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

after the words "in relation to activities of regulated markets" there shall article

principal Act.

be added the words "and any other persons as may be specified therein".

In sub-article (1) of article 9 of the principal Act, for the words, Amendment of

article 9 of the

"article 7", there shall be substituted the words, "article 39K".

principal Act.

Immediately after paragraph (v) of sub-article (1) of article 32 Amendment of

of the principal Act there shall be added the following new paragraph: article

principal Act.

"(vA) any data reporting services provider;".

In sub-article (5) of article 33 of the principal Act, for the

words, "any provision of law, regulation" there shall be substituted the

words "any provision of this Act or any other Act administered by the

Authority, or of any regulations or Rules issued thereunder,".

In article 39B of the principal Act for the words "of article 19"

there shall be substituted the words "of article 39A", wherever they

occur.

In article 39C of the principal Act for the words "of article 19"

there shall be substituted the words "of article 39A", wherever they

occur.

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

words "articles 19, 19A or 19B" there shall be substituted the words

"any of the provisions of this Act".

Sub-article (1) of article 49 of the principal Act shall be

amended by the following

(a) in paragraph (a) thereof, immediately after the words

"central securities depositories," there shall be added the words

"data reporting services providers,";

(b) in paragraph (d) thereof, immediately after the words

"credit rating agencies," there shall be added the words "data

reporting services providers,"; and

(c) in paragraph (e) thereof, immediately after the words

"central securities depositories," there shall be added the words

"data reporting services providers,".

PART III

AMENDMENTS TO THE INVESTMENT SERVICES ACT

This Part amends the Investment Services Act and it shall be

read and construed as one with the Investment Services Act,

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

Immediately after article 10C of the principal Act there shall

be added the following new article

10D. (1) An investment firm established in Malta

which is part of a third-country group having as part of

the same group one or more credit institution or one or

more other investment firm in Malta or in another

Member State or in an EEA State, shall have a single

intermediate EU parent undertaking that is established

in Malta or in another Member State or in an EEA

State.

(2) The competent authority may allow an

investment firm referred to in sub-article (1) to have

two intermediate EU parent undertakings where it

determines that the establishment of a single

intermediate EU parent undertaking would

(a) be incompatible with a mandatory

requirement for separation of activities imposed

by the rules or the overseas regulatory authority

of the third country where the ultimate parent

undertaking of the third-country group has its

head office; or

(b) render resolvability less efficient than

in the case of two intermediate EU parent

undertakings according to an assessment carried

out by the relevant resolution authority of the

intermediate EU parent undertaking.

(3) An intermediate EU parent undertaking shall

be a credit institution licensed in terms of article 7 of

the Banking Act or authorised in accordance with

Article 8 of the CRD, or a financial holding company or

mixed financial holding company that has been granted

approval in accordance with article 11B of the Banking

Act and, or Article 21a of the CRD

Provided that, where the third-country group

referred to in sub-article (1) does not have a credit

institution within the same group or where a second

intermediate EU parent undertaking must be set up in

connection with investment activities to comply with a

mandatory requirement as referred to in sub-article (2),

the intermediate EU parent undertaking or the second

intermediate EU parent undertaking may be an

investment firm which holds an investment services

licence or an investment firm authorised in accordance

with Article 5(1) of the MiFID, that is subject to the

BRRD.

(4) Sub-articles (1), (2) and (3) shall not apply

where the total value of assets in the European Union of

the third-country group is less than forty billion euro

(€40,000,000,000).

(5) For the purposes of this article, the total value

of assets in the European Union of the third-country

group shall be the sum of the following

(a) the total value of assets of each

investment firm and credit institution in the

European Union forming part of the third-country

group, as resulting from its consolidated balance

sheet or as resulting from their individual balance

sheet, where their balance sheet is not

consolidated; and

(b) the total value of assets of each branch

of the third-country group authorised in the

European Union in accordance with the CRD,

MiFID or MiFIR.

(6) The competent authority shall notify the EBA

with the following information in respect of each third-

country group operating in Malta

(a) the names and the total value of assets

of the credit institutions and investment firms

belonging to a third-country group;

(b) the names and the total value of assets

corresponding to branches authorised in Malta in

accordance with the provisions of national law

transposing the CRD, MiFID or MiFIR, and the

types of activities that they are licensed to carry

out;

(c) the name and the type as referred to in

sub-article (3) of any intermediate EU parent

undertaking set up in Malta and the name of the

third-country group of which it is part.

(7) An investment firm established in Malta

forming part of a third-country group shall meet at least

one of the following conditions

(a) it has an intermediate EU parent

undertaking;

(b) it is an intermediate EU parent

undertaking;

(c) it is the only investment firm in the

European Union of the third-country group and

the third-country group does not have any credit

institutions in the European Union; or

(d) it is part of a third-country group with

a total value of assets in the European Union of

less than forty billion euro (€40,000,000,000).

(8) By way of derogation from sub-article (1),

where a third-country group operates through an

investment firm established in Malta and through one

or more credit institutions or one or more other

investment firms in the European Union and with a

total value of assets equal to or greater than forty billion

euro (€40,000,000,000) on 27 June 2019, the

investment firm established in Malta shall ensure that

the intermediate EU parent undertaking referred to in

sub-article (1) or the two intermediate EU parent

undertakings referred to in sub-article (2), as the case

may be, shall be established by 30 December 2023.

(9) For the purposes of this article

(a) the term "branch" means a branch as

defined in point (17) of Article 4(1) of the CRR;

(b) the term "group" means a group as

defined in point (138) of Article 4(1) of the CRR;

(c) the term "investment firm" means an

investment firm as defined in point (2) of Article

4(1) of the CRR;

(d) the term "parent undertaking" means a

parent undertaking as defined in point (15) of

Article 4(1) of the CRR;

(e) the term "resolution authority" means

an authority designated by a Member State or an

EEA State in accordance with Article 3 of the

BRRD; and

(f) the term "third-country group" means

a group of which the parent undertaking is

established in a third country.".

PART IV

AMENDMENTS TO THE BANKING ACT

This Part amends the Banking Act and it shall be read and

construed as one with the Banking Act, hereinafter in this Part referred

to as "the principal Act".

In the Maltese text of the principal Act, for the words

"kumpannija holding", "kumpanniji holding" and "kumpanniji

finanzjarji holding" wherever they occur in the principal Act, there

shall be substituted the words "holding company", "holding

companies" and "holding companies finanzjarji" respectively.

Article 2 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i) immediately after the definition "Banking

Rule", there shall be added the following new definition

" "binding legal instrument" means any directly

applicable measures, including, but not limited to,

any implementing technical standards, regulatory

technical standards or similar measures, issued under

European Union legislation;";

(ii) in the definition "the BRRD", for the words

"and includes any implementing measures, implementing

technical standards, regulatory technical standards,

guidelines and similar measures" there shall be substituted

the words "and includes any binding legal instruments,

guidelines and other measures";

(iii) immediately after the definition "connected

person", there shall be added the following new

definitions

" "consolidated basis" shall have the same

meaning as that assigned to it in point (48) of Article

4(1) of the CRR;

"consolidating supervisor" shall have the same

meaning as that assigned to it in point (41) of Article

4(1) of the CRR;";

(iv) the definition "court" shall be deleted;

(v)

the definition "the CRD" shall be substituted by

the following new definition

" "the CRD" means Directive 2013/36/EU of

the European Parliament and of the Council of 26

June 2013 on access to the activity of credit

institutions and the prudential supervision of credit

institutions, amending Directive 2002/87/EC and

repealing Directives 2006/48/EC and 2006/49/EC, as

amended from time to time, and includes any binding

legal instruments, guidelines and other measures that

have been or may be issued thereunder;";

(vi) the definition "the CRR" shall be substituted by

the following new definition

" "the CRR" means Regulation (EU) No. 575/

2013 of the European Parliament and of the Council of

26 June 2013 on the prudential requirements for credit

institutions and amending Regulation (EU) No. 648/

2012, as amended from time to time, and includes any

binding legal instruments, guidelines and other

measures that have been or may be issued

thereunder;";

(vii) the definition "Directive 2004/39/EC" shall be

deleted;

(viii) immediately after the definition "deposit",

there shall be added the following new definition

" "Directive 2002/87/EC" means Directive

2002/87/EC of the European Parliament and of the

Council of 16 December 2002 on the supplementary

supervision of credit institutions, insurance

undertakings and investment firms in a financial

conglomerate and amending Council Directives 73/

239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/

6/EEC and 93/22/EEC, and Directives 98/78/EC and

2000/12/EC of the European Parliament and of the

Council, as amended from time to time, and includes

any binding legal instruments, guidelines and other

measures that have been or may be issued

thereunder;";

(ix) in the definition "Directive 2004/109/EC", for

the words "and includes any implementing measures" there

shall be substituted the words "and includes any binding

legal instruments, guidelines and other measures";

(x) immediately after the definition "Directive

2004/109/EC", as amended, there shall be added the

following new definitions

" "Directive 2009/138/EC" means Directive

2009/138/EC of the European Parliament and of the

Council of 25 November 2009 on the taking-up and

pursuit of the business of Insurance and Reinsurance

(Solvency II), as amended from time to time, and

includes any binding legal instruments, guidelines

and other measures that have been or may be issued

thereunder;

"Directive (EU) 2015/849" means Directive

(EU) 2015/849 of the European Parliament and of the

Council of 20 May 2015 on the prevention of the use

of the financial system for the purposes of money

laundering or terrorist financing, amending

Regulation (EU) No 648/2012 of the European

Parliament and of the Council, and repealing

Directive 2005/60/EC of the European Parliament

and of the Council and Commission Directive 2006/

70/EC, as amended from time to time, and includes

any binding legal instruments, guidelines and other

measures that have been or may be issued

thereunder;";

(xi) in the definition "director", the words "a member

of a local board or agent or representative of that company;"

shall be substituted by the words "a member of a local board

or agent or a local representative of that company:" and

immediately thereafter there shall be added the following

new proviso

"Provided that in respect of a financial holding

company or a mixed financial company established

outside Malta, "director" shall also include a member

of the management body of the financial holding

company or mixed financial holding company;";

(xii) immediately after the definition "ESRB" there

shall be added the following new definitions

" "EU parent financial holding company" shall

have the same meaning as that assigned to it in point

(31) of Article 4(1) of the CRR;

"EU parent institution" shall have the same

meaning as that assigned to it in point (29) of Article

4(1) of the CRR;

"EU parent mixed financial holding company"

shall have the same meaning as that assigned to it in

point (33) of Article 4(1) of the CRR;";

(xiii) immediately after the definition "financial

holding company" there shall be added the following new

definition

" "financial institution" shall have the same

meaning as that assigned to it in point (26) of Article

4(1) of the CRR;";

(xiv) immediately after the definition "Financial

Services Tribunal" there shall be added the following new

definitions

" "GDPR" means Regulation (EU) 2016/679 of

the European Parliament and of the Council of 27

April 2016 on the protection of natural persons with

regard to the processing of personal data and on the

free movement of such data, and repealing Directive

95/46/EC, as amended from time to time, and

includes any binding legal instruments, guidelines

and other measures that have been or may be issued

thereunder;

"group" shall have the same meaning as that

assigned to it in point (138) of Article 4(1) of the

CRR;";

(xv) immediately after the definition "Malta’s

international commitments" there shall be added the

following new definition

""management body" means the body or bodies

of a financial holding company or mixed financial

holding company established outside Malta, which

are appointed in accordance with the law of the

jurisdiction in which such a company is established,

which are empowered to set the company's strategy,

objectives and overall direction, and which oversee

and monitor management decision-making, and

include the persons who effectively direct the

business of the company;";

(xvi) the definition "material activities" shall be deleted;

(xvii) immediately after the definition "Member State",

there shall be added the following new definitions

" "MiFID" means Directive 2014/65/EU of the

European Parliament and of the Council of 15 May

2014 on markets in financial instruments and

amending Directive 2002/92/EC and Directive 2011/

61/EU, as amended from time to time, and includes

any binding legal instruments, guidelines and other

measures that have been or may be issued

thereunder;

"MiFIR" means Regulation (EU) No. 600/2014

of the European Parliament and of the Council of 15

May 2014 on markets in financial instruments and

amending Regulation (EU) No 648/2012, as may be

amended from time to time, and includes any binding

legal instruments, guidelines and other measures that

have been or may be issued thereunder;";

(xviii)immediately after the definition "Minister"

there shall be added the following new definition

" "mixed activity holding company" shall have

the same meaning as that assigned to it in point (22)

of Article 4(1) of the CRR;";

(xix) the definition "outsourcing" shall be substituted

by the following

" "outsourcing" means an arrangement of any

form between a credit institution and an outsourcing

service provider by means of which that outsourcing

service provider performs a process, a service or an

activity that would otherwise be undertaken by the

credit institution;";

(xx) the definition "outsourcing service provider"

shall be substituted by the following

" "outsourcing service provider" means a third-

party entity that is undertaking an outsourced

process, service or activity, or parts thereof, under an

outsourcing arrangement;";

(xxi) in the definition "PAD", for the words "and

including any implementing measures, implementing

technical standards, regulatory technical standards and

similar measures" there shall be substituted the words "and

includes any binding legal instruments, guidelines and

other measures";

(xxii) immediately after the definition "PAD", as

amended, there shall be added the following new

definitions

" "parent financial holding company" shall

have the same meaning as that assigned to the term

"parent financial holding company in a Member

State" in point (30) of Article 4(1) of the CRR;

"parent institution" shall have the same

meaning as that assigned to the term "parent

institution in a Member State" in point (28) of Article

4(1) of the CRR;

"parent mixed financial holding company"

shall have the same meaning as that assigned to the

term "parent mixed financial holding company in a

Member State" in point (32) of Article 4(1) of the

CRR;";

(xxiii) in the definition "Payment Services

Directive", for the words "and includes any implementing

measures, implementing technical standards, regulatory

technical standards and similar measures" there shall be

substituted the words "and includes any binding legal

instruments, guidelines and other measures";

(xxiv) in the definition "Regulation (EU) No. 1092/

2010", for the words "and includes any implementing

measures", there shall be substituted the words "and

includes any binding legal instruments, guidelines and

other measures";

(xxv) in the definition "Regulation (EU) No. 1093/

2010", for the words "and includes any implementing

measures", there shall be substituted the words "and

includes any binding legal instruments, guidelines and

other measures";

(xxvi) in the definition "Regulation (EU) No. 1094/

2010", for the words "and includes any implementing

measures" there shall be substituted the words "and

includes any binding legal instruments, guidelines and

other measures";

(xxvii) in the definition "Regulation (EU) No. 1095/

2010", for the words "and includes any implementing

measures" there shall be substituted the words "and

includes any binding legal instruments, guidelines and

other measures";

(xxviii)

immediately

after

the

definition

"representative office" there shall be added the following

new definitions

""resolution authority" means an authority

designated by a Member State in accordance with

Article 3 of the BRRD;

"resolution entity" shall have the same meaning

as that assigned to it in regulation 2(1) of the

Recovery and Resolution Regulations;";

(xxix)immediately after the definition "Resolution

Fund" there shall be added the following new definition

" "resolution group" shall have the same

meaning as that assigned to it in regulation 2(1) of

the Recovery and Resolution Regulations;";

(xxx) immediately after the definition "senior

management" there shall be added the following new

definition

" "sub-consolidated basis" shall have the same

meaning as that assigned to it in point (49) of Article

4(1) of the CRR;";

(xxxi) in the definition "third country", the words "or an

EEA state" shall be deleted;

(xxxii) immediately after the definition "third country"

there shall be added the following new definition:"

" "third-country group" means a group of which

the parent undertaking is established in a third

country;";

(xxxiii) in the definition "Third Country Resolution

Authority", for the words "Third Country Resolution Authority"

means" there shall be substituted the words "Third-Country

Resolution Authority" means";

(xxxiv) the definition "working days" shall be substituted

by the following

" "working days" means days other than Saturdays,

Sundays and the Public Holidays and the National

Holidays referred to in the National Holidays and Other Cap. 252.

Public Holidays Act.";

(xxxv) the definition "kumpannija holding finanzjarja

mħallta" in the Maltese text thereof shall be deleted and

substituted by the following

" "holding company finanzjarja mħallta" għandu

jkollha l-istess tifsira mogħtija lilha fil-punt (21) tal-

Artikolu 4(1) tas-CRR;";

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

amended, there shall be added the following new sub-articles

"(1A) For the purposes of applying the requirements

and supervisory powers laid down in this Act and any

regulations and Banking Rules made or issued thereunder

transposing the CRD, in any binding legal instruments

issued under the CRD, or in the CRR, on a consolidated or

sub-consolidated basis in accordance with this Act and any

regulations and Banking Rules made or issued thereunder

transposing the CRD, any binding legal instruments issued

under the CRD, and with the CRR, the terms "institution",

"parent institution", "EU parent institution" and "parent

undertaking" shall also include

(a) financial holding companies and mixed

financial holding companies that have been granted

approval in accordance with article 11B and, or

Article 21a of the CRD;

(b) designated institutions controlled by an

EU parent financial holding company, an EU parent

mixed financial holding company, a parent financial

holding company in a Member State or a parent

mixed financial holding company in a Member State

where the relevant parent is exempted in accordance

with article 11B(5) and, or Article 21a(4) of the

CRD; and

(c) financial holding companies, mixed

financial holding companies or institutions

designated pursuant to article 29AA(1)(f) and, or

Article 21a(6)(d) of the CRD.

(1B) For the purposes of applying the requirements

and supervisory powers laid down in Articles 4(5), 14(2),

14(2A), 14(5), 17E, 19(1), 19(3), 20(1), 25(7), 25(10), 30A

on a consolidated or sub-consolidated basis in accordance

with this Act and any regulations and Banking Rules made

or issued thereunder transposing the CRD, any binding

legal instruments issued under the CRD, and with the CRR,

the term "credit institution" shall also include

(a) financial holding companies and mixed

financial holding companies that have been granted

approval in accordance with article 11B of this Act

and, or Article 21a of the CRD;

(b) designated institutions controlled by an

EU parent financial holding company, an EU parent

mixed financial holding company, a parent financial

holding company in a Member State or a parent

mixed financial holding company in a Member State

where the relevant parent is exempted in accordance

with article 11B(5) and, or Article 21a(4) of the

CRD; and

(c) financial holding companies, mixed

financial holding companies or institutions

designated pursuant to article 29AA(1)(f) and, or

Article 21a(6)(d) of the CRD.

(1C) Reference to the "approval" of financial

holding companies or mixed financial holding companies

in this Act and any regulations and, or Banking Rules

issued thereunder, shall mean an approval granted by the

competent authority in terms of article 11B or an approval

granted through the joint decision of the competent

authority and an overseas regulatory authority in terms of

article 11B of this Act and Article 21a of the CRD, as the

case may be.

(1D) Reference to the "exemption" of financial

holding companies or mixed financial holding companies

in this Act and any regulations and, or Banking Rules

issued thereunder, shall mean an exemption granted by the

competent authority in terms of article 11B or an

exemption granted through the joint decision of the

competent authority and an overseas regulatory authority

in terms of article 11B of this Act and Article 21a of the

CRD, as the case may be."; and

(c) in sub-article (2) thereof, for the words "listed in the

Schedule as may be determined by the competent authority."

there shall be substituted the words "listed in the First Schedule

as may be determined by the competent authority.".

In the second proviso to article 2A of the principal Act, for the Amendment of

words "any regulations made or Banking Rules issued thereunder." article

principal Act.

there shall be substituted the words "any regulations made and, or

Banking Rules and, or Conduct of Business Rules issued thereunder.".

Immediately after paragraph (h) of sub-article (1) of article 3 Amendment of

of the principal Act there shall be added the following new paragraph: article

principal Act.

"(i) transpose, implement and, or give effect to

options and discretions set out in the provisions of

Directives, Regulations and any other legislative measures

or binding legal instruments of the European Union, as

may be amended from time to time, and to implement

options and discretions set out in any guidelines,

recommendations, decisions, opinions or any other

instrument issued by the ECB.".

Article 4 of the principal Act shall be amended as follows

Amendment of

article 4 of the

principal Act.

(a) sub-article (1) thereof shall be substituted by the

following

"(1) It shall be the duty of the competent authority

to carry out the functions and duties prescribed by this Act

and any regulations made and Banking Rules and Conduct

of Business Rules issued thereunder, by any binding legal

instruments issued under the CRD, and by the CRR, and to

ensure that credit institutions licensed under this Act or

carrying out their activities in Malta and financial holding

companies and mixed financial holding companies of

credit institutions comply with this Act and any

regulations, directives, Banking Rules and Conduct of

Business Rules made or issued thereunder, with any

binding legal instruments issued under the CRD, with the

CRR and with the conditions of their licence or approval,

as applicable. In pursuance of that duty the competent

authority shall at all times afford such co-operation to the

Central Bank as the Central Bank may require in the

discharge of its duties.";

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

131(1) of the CRD and shall act jointly with the designated

authority" there shall be substituted the words "of Article 131(1)

of the CRD and Articles 124 and 164 of the CRR and shall act

jointly with the designated authority";

(c) in sub-article (5) thereof, for the words "compliance

with the requirements of the CRR and this Act and any

regulations made or Banking Rules issued thereunder.", there

shall be substituted the words "compliance with the requirements

of the CRR, any binding legal instruments issued under the

CRD, this Act and any regulations made and Banking Rules and

Conduct of Business Rules issued thereunder.";

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

Rules for the purpose of implementing any guidelines,", there

shall be substituted the words "Banking Rules and, or Conduct of

Business Rules for the purpose of implementing any

guidelines,";

(e) in sub-article (9) thereof, for the words "and others as

may be specified therein.", there shall be substituted the words

"and other persons as may be specified therein."; and

(f) in sub-article (10) thereof, for the words

"communicated to credit institutions and the competent

authority", there shall be substituted the words "communicated

to credit institutions and to financial holding companies and

mixed financial holding companies and the competent

authority".

In sub-article (1) of article 4A of the principal Act, for the

words "Banking Rules issued thereunder transposing the CRD, and the

CRR." there shall be substituted the words "Banking Rules issued

thereunder transposing the CRD, of any binding legal instruments

issued under the CRD, and of the CRR.".

Article 4B of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i) for the words "powers conferred in this Act,",

there shall be substituted the words "powers conferred on it

in this Act," and for the words "by the Malta Financial

Services Authority Act and by this Act and any regulations

made or Banking Rules issued thereunder, and by the

CRR." there shall be substituted the words "by the Malta Cap. 330.

Financial Services Authority Act, by this Act and any

made and Banking Rules and Conduct of regulations

Business Rules issued thereunder, by the CRR and by any

binding legal instruments issued under the CRD:";

(ii) the first proviso thereof shall be substituted by

the following

"Provided that, without prejudice to the

generality of the foregoing, the competent authority

may give any such directive even

(i) to financial holding companies and

mixed financial holding companies exempted

in terms of article 11B(5) ; and

(ii) where a credit institution, financial

holding company or mixed financial holding

company ceases to hold a licence or approval,

as the case may be, for whatever reason, or

such licence or approval, as the case may be,

ceases to have effect:";

(iii) the second proviso thereof shall be substituted

by the following

"Provided further that any directive given

in terms of this Act and any regulations made

thereunder shall, unless the competent authority

otherwise directs, continue to apply even when a

credit institution, financial holding company or

mixed financial holding company ceases to hold a

licence or approval, as the case may be, for whatever

reason, or such licence or approval, as the case may

be, ceases to have effect.";

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

under this article shall include" there shall be substituted the

words "directives under this Act and any regulations made

thereunder shall include"; and

(c)

in sub-article (4) thereof, for the words "given under

any of the provisions of this article." there shall be substituted

the words "given under any of the provisions of this Act and any

regulations made thereunder.".

Article 6 of the principal Act shall be amended as follows

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

under this Act." there shall be substituted the words "licence

under this Act:" and immediately thereafter there shall be added

the following new proviso

"Provided that the entities listed in the Second

Schedule shall not be required to apply to the competent

authority for a licence under this Act, and the provisions of

this Act and of any regulations made and, or any Banking

Rules and, or Conduct of Business Rules issued thereunder,

and the CRR shall accordingly not apply thereto, unless

otherwise specifically provided for in this Act, or in any

regulations made or Banking Rules or Conduct of Business

Rules issued thereunder."; and

(b)

in sub-article (2) thereof

(i) for the words "organisation of the credit

institution, and shall conform with such requirements"

there shall be substituted the words "organisation of the

credit institution, an indication of the parent undertakings,

financial holding companies and mixed financial holding

companies within the group and a description of the

arrangements, processes and mechanisms referred to in

article 17B, and shall conform with such requirements";

and

(ii) in the proviso thereof, for the words "before

authorisation is granted or refused," there shall be

substituted the words "before a licence is granted or

refused,".

Article 7 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i)

in paragraph (c) thereof

(aa) in the first proviso thereof, for the words

"Articles 9 and 10 of Directive 2004/109/E and the

conditions", there shall be substituted the words

"Articles 9 and 10 of Directive 2004/109/EC and the

conditions";

(bb) in the second proviso thereof, for the

words "shares which institutions hold" there shall be

substituted the words "shares which credit

institutions hold" and for the words "Annex I to

Directive 2004/39/EC" there shall be substituted the

words "Annex I to MiFID";

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

"requirements referred to in article 14(2) are met." there

shall be substituted the words "requirements referred to in

article 14(2) and (2A) are met.", and for the words "in

paragraph (c), in particular, where the criteria set out in

article 13A(9) are met." there shall be substituted the words

"in paragraph (c), in accordance with the criteria set out in

article 13A(9).";

(iii) in paragraph (e) thereof

(aa) for the words "regulations made or

Banking Rules issued thereunder:" there shall be

substituted the words "regulations made and, or

Banking Rules and, or Conduct of Business Rules

issued thereunder:";

(bb) in the first proviso thereof, for the words

"shall not grant authorisation where the laws," there

shall be substituted the words "shall not grant a

licence where the laws,";

(cc) in the second proviso thereof, for the

words "on a continuous basis." there shall be

substituted the words "on a continuous basis;";

(iv) immediately after paragraph (e) thereof, as

amended, there shall be added the following new

paragraph

"(f) the competent authority is satisfied that

the arrangements, processes and mechanisms

referred to in article 17B enable sound and effective

risk management by that credit institution."; and

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

terms of this Act shall have its head office" there shall be

substituted the words "licensed in terms of this article shall have

its head office".

Article 7B of the principal Act shall be amended as follows

(a) in sub-article (2) thereof, for the words "consult the

overseas regulatory authority that is responsible" there shall be

substituted the words "consult the overseas authority that is

responsible";

(b) in sub-article (3) thereof, for the words "consult with

the relevant overseas regulatory authorities referred to" there

shall be substituted the words "consult with the relevant overseas

authorities referred to"; and

(c) in sub-article (4) thereof, for the words "compliance

with the relevant overseas regulatory authorities referred to"

there shall be substituted the words "compliance with the

relevant overseas authorities referred to".

In paragraph (b) of sub-article (2) of article 8 of the principal

Act, for the words "change in its licence to conduct the business" there

shall be substituted the words "change in its authorisation to conduct

the business".

Article 9 of the principal Act shall be amended as follows

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

words "makes a composition with its creditors" there shall be

substituted the words "makes an arrangement or composition

with its creditors";

(b)

in sub-article (2) thereof

(i) in paragraph (d) thereof, for the words "Six of

the CRR or imposed under regulations" there shall be

substituted the words "Six of the CRR, except for the

requirements laid down in Articles 92a and 92b of the

CRR, or imposed under regulations";

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

regulations or Banking Rules issued thereunder;" there

shall be substituted the words "any regulations made or any

Banking Rules or Conduct of Business Rules issued

thereunder;";

(iii) in paragraph (g) thereof, for the words "any

regulations made or Banking Rules issued thereunder"

there shall be substituted the words "any regulations made

or any Banking Rules or Conduct of Business Rules issued

thereunder"; and

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

regulations or Banking Rules made thereunder" there shall be

substituted the words "any regulations made and, or Banking

Rules and, or Conduct of Business Rules issued thereunder".

Article 10 of the principal Act shall be substituted by the Substitution of

article 10 of the

principal Act.

10. Any person who is aggrieved by a decision

and, or measure taken by the competent authority

pursuant to this Act, or any regulations made or

Banking Rules or Conduct of Business Rules issued

t h e r e u n d e r, o r t h e C R R , o r a n y b i n d i n g l e g a l

instruments issued under the CRD, may appeal against

the decision and, or measure to the Financial Services

Tribunal within such period and under such conditions

as established under the Malta Financial Services

Authority Act.".

Article 11A of the principal Act shall be amended as follows

Amendment of

article 11A of

the principal

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

Act.

be added the following new sub-article

"(1A) Branches of credit institutions which have

their head office in a third country and which are licensed

in Malta to open such branches, shall report to the

competent authority, at least annually, the following

information

(a) the total assets corresponding to the

activities of the branch in Malta;

(b) information on the liquid assets available

to the branch, in particular availability of liquid

assets in Member State currencies;

(c) the own funds that are at the disposal of

the branch;

(d) the deposit protection

arrangements

available to depositors in the branch;

(e)

the risk management arrangements;

(f)

the governance arrangements, including

the key function holders for the activities of the

branch as may be set out in a Banking Rule;

(g)

the recovery plans covering the branch;

and

(h) any other information that may be

requested by the competent authority, as it may

consider necessary to enable comprehensive

monitoring of the activities of the branch.";

(b) sub-article (2) thereof shall be substituted by the

following

"(2) The competent authority shall notify the EBA

of the following

(a) all the licences granted to credit

institutions, having their head office in a third

country, to open a branch in Malta and any

subsequent changes to such licences;

(b) total assets and liabilities of the branches

in Malta of credit institutions having their head office

in a third country which are licensed to open such

branches, as periodically reported;

(c) the name of the third-country group to

which a branch of a credit institution having its head

office in a third country which has been granted a

licence to open such a branch belongs."; and

(c) immediately after sub-article (2) thereof, as

substituted, there shall be added the following new sub-article

"(3) Where

(a) credit institutions having their head office

in a third country are licensed to open branches in

Malta; or

(b) credit institutions licensed in terms of this

Act are part of a third-country group,

the competent authority shall cooperate closely

with overseas regulatory authorities which supervise

credit institutions in other Member States that are

part of the same third-country group and, or with

authorities in other Member States which supervise

investment firms that are part of the same third-

country group and, or with overseas regulatory

authorities which supervise branches in other

Member States of credit institutions having their

head office in a third country that are part of the same

third-country group, as applicable, to ensure that all

activities of that third-country group in the European

Union are subject to comprehensive supervision, so

as to prevent the circumvention of the requirements

applicable to third-country groups pursuant to this

Act and, or any regulations made and, or any

Banking Rules issued thereunder, and, or the CRD,

and, or the CRR, and to prevent any detrimental

impact on the financial stability of the European

Union.".

Immediately after article 11A of the principal Act there shall Addition of

articles 11B and

be added the following new articles

11C to the

principal Act.

11B. (1) Parent financial holding companies,

parent mixed financial holding companies, EU parent

holding companies. financial holding companies and EU parent mixed

financial holding companies, which are established in

Malta or in another Member State and which have a

credit institution as a subsidiary, shall seek the approval

or exemption, as the case may be, of the competent

authority, acting as the consolidating supervisor, in

accordance with this article. Other financial holding

companies and mixed financial holding companies

established in Malta or in another Member State and

which have a credit institution as a subsidiary, shall

seek the approval or exemption, as the case may be, of

the competent authority, acting as the consolidating

supervisor, in accordance with this article where they

are required to comply with the CRD, or the CRR, on a

sub-consolidated basis

Provided that in accordance with Article 21a of

the CRD, where the competent authority is not the

consolidating supervisor, financial holding companies

and mixed financial holding companies established in

Malta and which have a c redit institution as a

subsidiary, shall seek the approval or exemption, as the

case may be, of the consolidating supervisor

determined in accordance with Article 111 of the CRD.

(2) For the purposes of seeking an approval or

exemption, as the case may be, in terms of sub-article

(1), financial holding companies and mixed financial

holding companies referred to therein shall, where

(i) the competent authority is not

the consolidating supervisor but the

financial holding company or the mixed

financial holding company is established in

Malta; or

(ii) the financial holding company

or the mixed financial holding company is

established in a Member State other than

Malta and the competent authority is the

consolidating supervisor,

provide the competent authority with the following

information

(a) the structural organisation of the

group of which the financial holding company or

the mixed financial holding company, as the case

may be, forms part, with a clear indication of its

subsidiaries and, where applicable, parent

undertakings, and the location and type of activity

undertaken by each of the entities within the

group;

(b) information regarding the nomination

of at least two persons effectively directing the

financial holding company or mixed financial

holding company, as the case may be, and

compliance with the requirements set out in

article 14(7) on the qualification of directors;

(c) information regarding compliance

with the criteria set out in article 7 concerning

shareholders and members;

(d) the

internal

organisation

and

distribution of tasks within the group;

(e) any other information that may be

necessary to carry out the assessments referred to

in sub-articles (4) and (5) as may be requested by

the competent authority.

(3) All applications for an approval or exemption,

as the case may be, in terms of this article shall be in

such form and accompanied by such information and

shall conform with such requirements as may be

prescribed, from time to time, by a Banking Rule.

(4) Approval may be granted to a financial holding

company or mixed financial holding company, as the

case may be, pursuant to this article only where all of

the following conditions are fulfilled

(a) the internal arrangements and

distribution of tasks within the group are adequate

for the purpose of complying with the

requirements imposed by this Act and any

regulations made and Banking Rules issued

thereunder transposing the CRD, by any binding

legal instruments issued under the CRD and by

the CRR, on a consolidated or sub-consolidated

basis and, in particular, are effective to

(i) coordinate all the subsidiaries of

the financial holding company or mixed

financial holding company, as the case may

be, including, where necessary, through an

adequate distribution of tasks among

subsidiary institutions;

(ii) prevent or manage intra-group

conflicts; and

(iii) enforce the group-wide policies

set by the parent financial holding company

or parent mixed financial holding company

throughout the group;

(b) the structural organisation of the

group of which the financial holding company or

mixed financial holding company, as the case may

be, is part does not obstruct or otherwise prevent

the effective supervision of the subsidiary

institutions or parent institutions in accordance

with the individual, the consolidated and, where

appropriate, the sub-consolidated obligations to

which they are subject

Provided that the assessment of this

criterion shall take into account, in particular

(i) the position of the financial

holding company or mixed financial

holding company, as the case may be, in a

multi-layered group;

(ii) the shareholding structure; and

(iii) the role of the financial holding

company or mixed financial holding

company, as the case may be, within the

group;

(c) the criteria set out in article 7(1)(c),

(d) and (e), and the requirements laid down in

article 14(7) are complied with.

(5) An exemption may be granted to a financial

holding company or mixed financial holding company,

as the case may be, pursuant to this article only where

all of the following conditions are met

(a) the financial holding company's

principal activity is to acquire holdings in

subsidiaries or, in the case of a mixed financial

holding company, its principal activity with

respect to institutions or financial institutions is to

acquire holding in subsidiaries;

(b) the financial holding company or

mixed financial holding company, as the case may

be, has not been designated as a resolution entity

in any of the group's resolution groups in

accordance with the resolution strategy

determined by the relevant resolution authority

pursuant to the BRRD;

(c) a subsidiary credit institution is

designated as responsible to ensure the group's

compliance with prudential requirements on a

consolidated basis and is given all the necessary

means and legal authority to discharge those

obligations in an effective manner;

(d) the financial holding company or

mixed financial holding company, as the case may

be, does not engage in taking management,

operational or financial decisions affecting the

group or its subsidiaries that are institutions or

financial institutions;

(e) there is no impediment to the effective

supervision of the group on a consolidated basis

Provided that where financial holding

companies or mixed financial holding companies

are exempted from approval in accordance with

this sub-article, they shall not be excluded from

the perimeter of consolidation as laid down in this

Act and any regulations made and Banking Rules

issued thereunder transposing the CRD, in any

binding legal instruments issued under the CRD,

and in the CRR.

(6) Where the competent authority is the

consolidating supervisor, it shall monitor compliance

with the conditions referred to in sub-article (4) or,

where applicable, in sub-article (5), on an ongoing

basis.

(7) (a) Financial holding companies and mixed

financial holding companies shall provide the

c o m p e t e n t a u t h o r i t y, w h e r e i t i s a c t i n g a s t h e

consolidating supervisor, with the information required

to monitor on an ongoing basis the structural

organisation of the group and compliance with the

conditions referred to in sub-article (4);

(b) Financial holding companies and

mixed financial holding companies exempted in

terms of sub-article (5) shall provide the

competent authority, where it is acting as the

consolidating supervisor, with the information

required to monitor on an ongoing basis the

structural organisation of the group and

compliance with the conditions referred to in sub-

article (5).

(c) The competent authority shall share

the information received in terms of this sub-

article with the overseas regulatory authority in

the Member State where the financial holding

company or the mixed financial holding company,

as the case may be, is established.

(8) Where the competent authority is the

consolidating supervisor and has established that the

conditions set out in sub-article (5) are no longer met,

the financial holding company or mixed financial

holding company, as the case may be, shall seek

approval in accordance with this article.

(9) For the purpose of taking decisions on the

approval or the exemption from approval, as the case

may be, referred to in sub-articles (4), (5) and (8) and,

or in sub-articles (3), (4) or (7) of Article 21a of the

CRD, where

(i) the competent authority is not the

consolidating supervisor but the financial holding

company or the mixed financial holding company,

as the case may be, is established in Malta; or

(ii) the financial holding company or the

mixed financial holding company, as the case may

be, is established in a Member State other than

Malta and the competent authority is the

consolidating supervisor,

the competent authority shall work together with the

overseas regulatory authority acting as the

c o n s o l i d a t i n g s u p e r v i s o r o r w i t h t h e ov e r s e a s

regulatory authority in the Member State where the

financial holding company or the mixed financial

holding company is established, as the case may be, in

full consultation.

(10) Where the competent authority is the

consolidating supervisor, it shall prepare an assessment

on the matters referred to in sub-articles (4), (5) and (8)

as applicable, and shall forward that assessment to the

overseas regulatory authority in the Member State

where the financial holding company or the mixed

financial holding company is established, as the case

may be.

(11) The competent authority, whether acting as the

consolidating supervisor or whether it is in receipt of an

assessment referred to in Article 21a(8) of the CRD

from the overseas regulatory authority acting as the

consolidating supervisor, shall do everything within its

power to reach a joint decision on the approval or the

exemption from approval, as the case may be, referred

to in sub-articles (4), (5) and (8) and, or in sub-articles

(3), (4) and (7) of Article 21a of the CRD, with the

overseas regulatory authority in the Member State

where the financial holding company or the mixed

financial holding company is established or with the

overseas regulatory authority acting as the

consolidating supervisor, as the case may be, within

two months of receipt of that assessment

Provided that the joint decision shall be duly

documented and reasoned and where the competent

authority is the consolidating supervisor, it shall

communicate the joint decision to the financial holding

company or the mixed financial holding company, as

the case may be.

(12) In the event of a disagreement between the

competent authority and the overseas regulatory

authority acting as the consolidating supervisor or the

overseas regulatory authority in the Member State

where the financial holding company or the mixed

financial holding company is established, as the case

may be, the competent authority shall refrain from

taking the joint decision referred to in sub-article (11)

and shall refer the matter to the EBA in accordance

with Article 19 of Regulation (EU) No. 1093/2010. In

such cases, the competent authority shall adopt a joint

decision with the overseas regulatory authority acting

as the consolidating supervisor or with the overseas

regulatory authority in the Member State where the

financial holding company or the mixed financial

holding company is established, as the case may be, in

conformity with the decision of the EBA

Provided that the matter shall not be referred to

the EBA after the end of the two-month period referred

to in sub-article (11) or after a joint decision has been

reached.

(13) In the case of mixed financial holding

companies, where the coordinator appointed in terms of

Article 10 of Directive 2002/87/EC is neither the

competent authority, nor the overseas regulatory

authority acting as the consolidating supervisor, nor the

overseas regulatory authority in the Member State

where the mixed financial holding company is

established, the agreement of the said coordinator shall

be required for the purposes of the decisions or joint

decisions referred to in sub-articles (4), (5) and (8) and,

or sub-articles (3), (4) and (7) of Article 21a of the

CRD, as applicable. Where the agreement of the

coordinator is required, the competent authority shall

refer any disagreements to the relevant European

Supervisory Authority, namely, to the EBA or to the

European Supervisory Authority (European Insurance

and Occupational Pensions Authority) (EIOPA),

established by Regulation (EU) No. 1094/2010, which

shall take its decision within one month of receipt of the

referral. Any decision taken in accordance with this

sub-article shall be without prejudice to the obligations

under Directive 2002/87/EC or Directive 2009/138/EC.

(14) Where approval of a financial holding

company or mixed financial holding company, as the

case may be, pursuant to this article is refused and the

competent authority is the consolidating supervisor, the

competent authority shall notify the applicant of the

decision and the reasons thereof within four months of

receipt of the application, or where the application is

incomplete, within four months of receipt of the

complete information required for the decision. Refusal

may be accompanied, where necessary, by any of the

measures referred to in article 29AA

Provided that a decision to grant or refuse

approval shall, in any event, be taken within six months

of receipt of the application.

11C. (1) Without prejudice to the derogation

parent undertaking. provided for in article 38(5), a credit institution

licensed in terms of this Act which is part of a third-

country group having as part of the same group one or

more other credit institution or one or more investment

firm, licensed in Malta or authorised in another

Member State, shall have a single intermediate EU

parent undertaking that is established either in Malta or

in another Member State.

(2) The competent authority may allow a credit

institution referred to in sub-article (1) to have two

intermediate EU parent undertakings where it

determines that the establishment of a single

intermediate EU parent undertaking

(a) would be incompatible with a

mandatory requirement for separation of activities

imposed by the rules or the overseas regulatory

authority of the third country where the ultimate

parent undertaking of the third-country group has

its head office; or

(b) would render resolvability less

efficient than in the case of two intermediate EU

parent undertakings according to an assessment

carried out by the relevant resolution authority of

the intermediate EU parent undertaking.

(3) An intermediate EU parent undertaking shall

be a credit institution licensed in terms of article 7 or

authorised in accordance with Article 8 of the CRD, or

a financial holding company or mixed financial holding

company that has been granted approval in terms of

article 11B and, or Article 21a of the CRD

Provided that, where a second intermediate EU

parent undertaking must be set up in connection with

investment activities to comply with a mandatory

requirement as referred to in sub-article (2), the second

intermediate EU parent undertaking may be an

investment firm holding an investment services licence

in terms of article 6 of the Investment Services Act or is

authorised in accordance with Article 5(1) of the

MiFID, that is subject to the BRRD.

(4) Sub-articles (1), (2) and (3) shall not apply

where the total value of assets in the European Union of

the third-country group is less than forty billion euro

(€40,000,000,000).

(5) For the purposes of this article

(a) the total value of assets in the European

Union of the third-country group shall be the sum

of the following

(i) the total value of assets of each

institution in the European Union forming

part of the third-country group, as resulting

from its consolidated balance sheet or as

resulting from their individual balance sheet,

where an institution's balance sheet is not

consolidated; and

(ii) the total value of assets of each

branch of the third-country group authorised

in the European Union in accordance with

the CRD, MiFID or MiFIR;

(b) the term "institution" shall also include

investment firms.

(6) The competent authority shall notify the EBA

with the following information in respect of each third-

country group operating in Malta

(a) the names and the total value of assets

of institutions belonging to a third-country group;

(b) the names and the total value of assets

corresponding to branches authorised in Malta in

accordance with the provisions of national law

transposing the CRD, the MiFID or MiFIR, and

the types of activities that they are licensed to

carry out;

(c) the name and the type as referred to in

sub-article (3) of any intermediate EU parent

undertaking set up in Malta and the name of the

third-country group of which it is part.

(7) A credit institution forming part of a third-

country group shall meet at least one of the following

conditions

(a) it has an intermediate EU parent

undertaking;

(b) it is an intermediate EU parent

undertaking;

(c) it is the only institution in the

European Union of the third-country group; or

(d) it is part of a third-country group with

a total value of assets in the European Union of

less than forty billion euro (€40,000,000,000).".

Article 13A of the principal Act shall be amended as follows

(a) in sub-article (2) thereof, for the words "Banking

Rule issued for this purpose." there shall be substituted the words

"Banking Rules issued for this purpose:" and immediately

thereafter, there shall be added the following new proviso

"Provided that where the approval or

exemption, as the case may be, of a financial holding

company or mixed financial holding company in terms of

article 11B and, or Article 21a of the CRD, takes place

concurrently with the assessment referred to in this article,

the assessment period referred to in this sub-article shall be

suspended for a period exceeding twenty working days

until the procedure set out in article 11B and, or Article 21a

of the CRD, is complete.";

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

assessment period shall be interrupted. The interruption period

shall not exceed" there shall be substituted the words "the

assessment period shall be suspended. The suspension period

shall not exceed", and for the words "shall not result in an

interruption of such period." there shall be substituted the words

"shall not result in a suspension of such period.";

(c)

in sub-article (6) thereof

(i) for the words "may extend the interruption

period referred to", there shall be substituted the words

"may extend the suspension period referred to";

(ii)

in paragraph (b) thereof

(aa) for the words "is a person not subject"

there shall be substituted the words "a person not

subject";

(bb) in sub-paragraph (iii) thereof, the words

"of the European Parliament and of the Council of 25

November 2009 on the taking-up and pursuit of the

business of Insurance and Reinsurance (Solvency II)

(recast), as amended from time to time" shall be

deleted;

(cc) sub-paragraph (iv)

thereof

shall

be

substituted by the following

"(iv) MiFID or MiFIR."; and

(d)

in sub-article (9) thereof

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

out in article 14(2), of any member of the board of

directors and any member of senior management who will

direct the business" there shall be substituted the words "as

set out in article 14(2) and (2A), of any director who will

direct the business";

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

"Banking Rules issued thereunder, and the CRR," there

shall be substituted the words "Banking Rules issued

thereunder, on any binding legal instruments issued under

the CRD, and on the CRR,"; and for the words "the

competent authority and the overseas regulatory

authorities" there shall be substituted the words "the

competent authority and the overseas regulatory authorities

in other Member States"; and

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

"Directive 2005/60/EC of the European Parliament and of

the Council of 26 October 2005 on the prevention of the

use of the financial system for the purpose of money

laundering and terrorist financing" there shall be

substituted the words "Directive (EU) 2015/849".

Article 13B of the principal Act shall be amended as follows

Amendment of

article 13B of

the principal

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

Act.

consultation with overseas regulatory authorities when carrying

out the assessment" there shall be substituted the words "in full

consultation with overseas regulatory authorities in other Member

States when carrying out the assessment"; and

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-article

"(3) Where the assessment referred to in article 13A

takes place concurrently with the approval or exemption,

as the case may be, of a financial holding company or

mixed financial holding company in terms of article 11B of

this Act and, or Article 21a of the CRD, the competent

authority shall coordinate, as appropriate, with the

overseas regulatory authority acting as the consolidating

supervisor and, or with the overseas regulatory authority of

the Member State where the financial holding company or

mixed financial holding company is established, as the

case may be.".

Sub-article (1) of article 13C of the principal Act shall be

amended as follows

(a) for the words "without prejudice to article 13(1) and

(3), the consent of the competent authority given in writing shall

be required" there shall be substituted the words "without

prejudice to articles 11B, 13(1) and 13(3) and Article 21a of the

CRD, the consent of the competent authority given in writing

shall be required";

(b) in paragraph (c) thereof, for the words "any re-

construction or division;" there shall be substituted the words

"any reconstruction or division;".

Article 13D of the principal Act shall be amended as follows

(a) for the words "Articles 9, 10 and 11 of Directive

2004/109/E and the conditions", there shall be substituted the

words "Articles 9, 10 and 11 of Directive 2004/109/EC and the

conditions"; and

(b) in the proviso thereof, for the words "Section A of

Annex 1 to Directive 2004/39/EC, provided that" there shall be

substituted the words "Section A of Annex 1 to the MiFID,

provided that".

Article 14 of the principal Act shall be amended as follows

(a)

sub-article (2) thereof, shall be substituted by the

following

"(2) Credit institutions, financial holding companies

and mixed financial holding companies shall ensure that

directors are at all times of sufficiently good repute and

possess sufficient knowledge, skills and experience to

perform their duties.";

(b) immediately after sub-article (2) thereof, as

substituted, there shall be added the following new sub-article

"(2A) Directors of credit institutions, financial

holding companies and mixed financial holding companies

shall, in particular, fulfil the following requirements

(a) all directors shall commit sufficient time

to perform their functions in the credit institution,

financial holding company or mixed financial

holding company, as the case may be;

(b) the number of directorships which may be

held by a director at the same time shall take into

account individual circumstances and the nature,

scale and complexity of the activities of the credit

institution, the financial holding company or the

mixed financial holding company, as the case may

be

Provided that a director of a credit

institution that is significant in terms of its size,

internal organisation and the nature, the scope and

the complexity of its activities shall, from 1 July

2014, not hold more than one of the following

combinations of directorships at the same time -

(i) one

directorship

having

an

executive role with two directorships having a

non-executive role;

(ii) four directorships having a non-

executive role;

(c) for the purposes of paragraph (b), the

following shall count as a single directorship -

(i) directorships having an executive or

non-executive role held within the same group;

(ii) directorships having an executive or

non-executive role held within –

(aa) institutions

which

are

members of the same institutional

protection scheme provided that the

conditions set out in Article 113(7) of the

CRR are fulfilled; or

(bb) undertakings (including non-

financial entities) in which the credit

institution, financial holding company or

the mixed financial holding company, as

the case may be, holds a qualifying

holding.";

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

purposes of sub-article (2)(b):" there shall be substituted the

words "for the purposes of sub-article (2A)(b):";

(d) sub-article (5) thereof shall be substituted by the

following

"(5) The board of directors and, where applicable,

the management body, of credit institutions, financial

holding companies and mixed financial holding

companies, shall possess adequate collective knowledge,

skills and experience to be able to understand the credit

institution’s activities, including the main risks. The

overall composition of the board of directors and, where

applicable, the management body, shall reflect an

adequately broad range of experience.";

(e) in sub-article (6) thereof, for the words "Each

director shall act with honesty," there shall be substituted the

words "Each director of a credit institution, financial holding

company and mixed financial holding company shall act with

honesty," and for the words "monitor management decision-

making." there shall be substituted the words "monitor

management decision-making:" and immediately thereafter,

there shall be added the following new proviso

"Provided that, where a director is also a

member of an affiliated company or affiliated entity, this

shall not in itself constitute an obstacle to acting with

independence of mind.";

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

sub-article (2) to perform those duties," there shall be substituted

the words "referred to in sub-articles (1) to (6) and any additional

requirements as may be specified in a Banking Rule to perform

those duties," and for the words "financial holding company or

mixed financial holding company." there shall be substituted the

words "financial holding company or mixed financial holding

company, as the case may be.";

(g) sub-article (8) thereof shall be substituted by the

following

"(8) A credit institution, financial holding company

and mixed financial holding company, as the case may be,

shall forthwith notify to the competent authority –

(a) full particulars of all persons who are

controllers or directors of the credit institution,

financial holding company and mixed financial

holding company, as the case may be;

(b) full particulars of any person who is

proposed to become a controller or director of the

credit institution, financial holding company and

mixed financial holding company, as the case may

be;

(c) full particulars of any person who is

proposed to cease to be a controller or director of the

credit institution, financial holding company and

mixed financial holding company, as the case may

be.";

(h) in sub-article (9) thereof, for the words "A credit

institution shall furnish the competent authority" there shall be

substituted the words "A credit institution, financial holding

company and mixed financial holding company shall furnish the

competent authority";

(i) sub-article (10) thereof shall be substituted by the

following

"(10) If the competent authority is of the opinion that

any person who is or is proposed to become a controller or

director of a credit institution, financial holding company

or mixed financial holding company, as the case may be, is

not a suitable person to be a controller or director, or does

not fulfil the requirements set out in sub-articles (1) to (6),

or any additional requirements as may be specified in a

Banking Rule, the competent authority may give an order

requiring such a person to cease to be a controller or

director or restraining such a person from becoming a

controller or director

Provided that the competent authority shall in

particular verify whether the requirements set out in sub-

articles (1) to (6) and any additional requirements as may

be specified in a Banking Rule are still fulfilled where they

have reasonable grounds to suspect that money laundering

or terrorist financing is being or has been committed or

attempted, or there is increased risk thereof in connection

with that credit institution, financial holding company or

mixed financial holding company, as the case may be.";

(j) in sub-article (11) thereof, for the words "members of

the board of directors or equivalent governing body or the power

to cast" there shall be substituted the words "members of the

board of directors or, where applicable, the management body, or

the power to cast"; and

(k) immediately after sub-article (11) thereof, as

amended, there shall be added the following new sub-article

"(12) The competent authority may issue, amend or

revoke Banking Rules as may be required in order to better

implement the provisions of this article.".

In the proviso to sub-paragraph (i) of paragraph (b) of sub-

article (1) of article 15 of the principal Act, for the words

"(23,293.73);" there shall be substituted the words "(€23,293.73);".

Article 17B of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, for the words "might be

exposed to, and adequate internal control mechanisms" there

shall be substituted the words "might be exposed to, adequate

internal control mechanisms", and for the words "sound and

effective risk management." there shall be substituted the words

"sound and effective risk management:" and immediately

thereafter, there shall be added the following new proviso

"Provided that such remuneration policies and

practices shall be gender neutral.";

(b)

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

arrangements, processes and mechanisms" there shall be

substituted the words "The arrangements, processes and

mechanisms" and for the words "scale and complexity of the

credit institution’s activities." there shall be substituted the

words "scale and complexity of the risks inherent in the business

model and the credit institution’s activities.";

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

regulations made or Banking Rules issued thereunder, and the

CRR at all times." there shall be substituted the words "any

regulations made and, or Banking Rules and, or Conduct of

Business Rules issued thereunder, with any binding legal

instruments issued under the CRD, and with the CRR at all

times."; and

(d) in sub-article (5) thereof, for the words "with any

relevant European resolution authorities or third-country

resolution authorities and shall provide" there shall be

substituted the words "with any relevant European Resolution

Authorities or Third-Country Resolution Authorities and shall

provide".

Immediately after article 17D of the principal Act, there shall Addition of

article 17DA to

be added the following new article

the principal

Act.

17DA. Credit institutions shall have in place

"Transactions with

parent mixed

adequate risk management processes and internal

activity holding

companies and

control mechanisms, in accordance with the Banking

their subsidiaries.

Act (Supervisory Review) Regulations and as may be

prescribed from time to time in a Banking Rule,

including sound reporting and accounting procedures

in order to identify, measure, monitor and control

transactions with their parent mixed activity holding

company and its subsidiaries appropriately. Credit

institutions shall report any significant transaction

with those entities other than the one referred to in

Article 394 of the CRR

Provided that those procedures and significant

transactions shall be subject to overview by the

competent authority.".

Sub-article (1) of article 17E of the principal Act shall be Amendment of

article 17E of

amended as follows

the principal

Act.

(a) paragraph (a) thereof shall be substituted by the

following

"(a) the credit institution does not meet the

requirements of this Act or any regulations made or

Banking Rules issued thereunder, of any binding legal

instruments issued under the CRD or of the CRR;"; and

(b) in paragraph (b) thereof, for the words "likely to

breach the Act, regulations made or Banking Rules issued

thereunder, or the provisions of the CRR,", there shall be

substituted the words "likely to breach this Act or any

regulations made or Banking Rules issued thereunder, any

binding legal instruments issued under the CRD or the

provisions of the CRR,".

Article 19 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

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

prudential and statistical purposes;" there shall be

substituted the words "for prudential supervision, conduct

supervision and, or statistical purposes;";

(ii) paragraph (c) thereof shall be substituted by the

following

"(c) all the information necessary for the

assessment of its compliance with this Act and any

regulations made and, or Banking Rules and, or

Conduct of Business Rules issued thereunder, with

any binding legal instruments issued under the CRD,

and with the CRR, as the competent authority may

require;";

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

amended, there shall be added the following new sub-article

"(1A) A financial holding company and a mixed

financial holding company shall submit to the competent

authority all the information necessary for the assessment of

its compliance with this Act and any regulations made or

Banking Rules issued thereunder, with any binding legal

instruments issued under the CRD, and with the CRR, as the

competent authority may require.";

(c) sub-article (3) thereof shall be substituted by the

following

"(3) A credit institution shall register all its

transactions and document systems and processes, which are

subject to this Act and any regulations made and, or Banking

Rules and, or Conduct of Business Rules issued thereunder,

to any binding legal instruments issued under the CRD, and

to the CRR, in such a manner that the competent authority

may be able to verify compliance with the requirements of

the CRR, of any binding legal instruments issued under the

CRD, of this Act and of any regulations made or Banking

Rules and, or Conduct of Business Rules issued thereunder

at all times.";

(d) in sub-article (4) thereof, for the words "The

provisions of this article shall" there shall be substituted the

words "Without prejudice to article 11A, the provisions of this

article shall";

(e) in sub-article (5) thereof, for the words "periods as

shall be prescribed by Banking Rule." there shall be substituted

the words "periods as the competent authority may from time to

time prescribe by a Banking Rule and, or as may be prescribed in

any applicable binding legal instrument."; and

(f) in sub-article (6) thereof, for the words "credit

institution under sub-articles (1) and (2) shall be regarded as

secret and confidential except as between that credit institution

and the competent authority" there shall be substituted the words

"credit institution, financial holding company and mixed

financial holding company, as the case may be, under sub-

articles (1), (1A) and (2) shall, unless otherwise provided in this

Act or in any other law, be regarded as secret and confidential

except as between that credit institution, financial holding

company or mixed financial holding company, as the case may

be, and the competent authority".

In sub-article (2) of article 19A of the principal Act, for the Amendment of

words "Banking Rule laying down the requirements" there shall be article

the principal

substituted the words "Banking Rule laying down what constitutes Act.

material services or activities, the requirements".

Article 20 of the principal Act shall be amended as follows

Amendment of

article 20 of the

principal Act.

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

terms of the Act, and where applicable," there shall be

substituted the words "licensed in terms of this Act, and where

applicable," and for the words "under this Act and any

regulations made or Banking Rules issued thereunder and the

CRR, and the competent authority" there shall be substituted the

words "under this Act or any regulations made or Banking Rules

or Conduct of Business Rules issued thereunder, the CRR or any

binding legal instruments issued under the CRD, and the

competent authority";

(b)

in sub-article (3) thereof

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

on a credit institution, require the credit institution to

provide a report" there shall be substituted the words

"served on a credit institution, a financial holding company

or a mixed financial holding company, require the credit

institution, financial holding company or mixed financial

holding company, as the case may be, to provide a report",

and for the words "could require the credit institution to

provide information under sub-article (1);" there shall be

substituted the words "could require the credit institution,

financial holding company or mixed financial holding

company, as the case may be, to provide information under

sub-article (1);";

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

on a credit institution, require it to produce within such

time" there shall be substituted the words "served on a

credit institution, a financial holding company or a mixed

financial holding company, require the credit institution,

financial holding company or mixed financial holding

company, as the case may be, to produce within such time";

(iii) in paragraph (c) thereof, for the words "to

require any credit institution to provide him forthwith"

there shall be substituted the words "to require any credit

institution, financial holding company or mixed financial

holding company, to provide him forthwith" and for the

words "under this Act and any regulations or Banking

Rules made thereunder." there shall be substituted the

words "under this Act or any regulations made or Banking

Rules or Conduct of Business Rules issued thereunder.";

(c) in sub-article (4) thereof, for the words "appointed by

a credit institution to make any report required" there shall be

substituted the words "appointed by a credit institution, a

financial holding company or a mixed financial holding

company to make any report required";

(d) in sub-article (5) thereof, for the words "any

documents from a credit institution, that person shall have the

like power" there shall be substituted the words "any documents

from a credit institution, a financial holding company or a mixed

financial holding company, that person shall have the same

power";

(e)

in sub-article (6) thereof

(i) for the words "require a credit institution or any

other person to produce any documents includes power -"

there shall be substituted the words "require a credit

institution, a financial holding company or a mixed

financial holding company, or any other person to produce

any documents includes the power -";

(ii) in paragraph (a) thereof, for the words "require

that credit institution or person, or any other person" there

shall be substituted the words "require the credit

institution, financial holding company, mixed financial

holding company, or person concerned, or any other

person", and for the words "employee of, the credit

institution in question," there shall be substituted the words

"employee of, the credit institution, financial holding

company and mixed financial holding company in

question,";

(f) in sub-article (8) thereof, for the words "officer of a

credit institution require him to furnish," there shall be

substituted the words "officer of a credit institution, financial

holding company or mixed financial holding company, as the

case may be, require him to furnish,";

(g) in sub-article (9) thereof, for the words "shareholding

in a credit institution if it considers" there shall be substituted the

words "shareholding in a credit institution, financial holding

company or mixed financial holding company, if it considers";

(h) in sub-article (11) thereof, for the words "recover

from a credit institution reported on" there shall be substituted

the words "recover from a credit institution, financial holding

company or mixed financial holding company reported on".

In sub-article (5) of article 22 of the principal Act, for the Amendment of

words "investigation under this Act and any regulations or Banking article

principal Act.

Rules made thereunder, or any person appointed" there shall be

substituted the words "investigation under this Act and any regulations

made and, or Banking Rules and, or Conduct of Business Rules issued

thereunder, or any person appointed" and for the words "in respect of

that body under this Act and any regulations or Banking Rules made

thereunder and anyone who has a qualifying shareholding in, or is a

controller of that body -" there shall be substituted the words "in

respect of that body under this Act and any regulations made and, or

Banking Rules and, or Conduct of Business Rules issued thereunder

and anyone who has a qualifying shareholding in, or is a controller of,

that body -".

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

words "provision of this Act and any regulations or Banking Rules

issued thereunder," there shall be substituted the words "provision of

this Act or any regulations made or Banking Rules or Conduct of

Business Rules issued thereunder,".

Article 25 of the principal Act shall be amended as follows

(a) the marginal note thereof shall be substituted by the

following

"Co-operation,

sharing

and

transmission

of

information.";

(b) immediately after sub-article (2) thereof, as

amended, there shall be added the following new sub-articles

"(2A) Notwithstanding article 17(1) of the Malta

Financial Services Authority Act and articles 19(6),

34(2), 34(4) and 34(7), the competent authority may

also, subject to the conditions set out in sub-articles

(2B) and (4A), transmit or share certain information

with the following

(a) the International Monetary Fund and

the World Bank, for the purposes of assessments

for the Financial Sector Assessment Program;

(b) the

Bank

for

International

Settlements, for the purposes of quantitative

impact studies;

(c) the Financial Stability Board, for the

purposes of its surveillance function

Provided that where the disclosure of

information in terms of this sub-article involves the

processing of personal data, any processing of personal

data will be in accordance with the requirements laid

down in the GDPR.

(2B) The competent authority may only share

confidential information with the international bodies

referred to in sub-article (2A) following an explicit

request and where at least the following conditions are

met

(a) the request is duly justified in light of

the specific tasks performed by the requesting

body in accordance with its statutory mandate;

(b) the request is sufficiently precise as to

the nature, scope and format of the required

information, and the means of its disclosure or

transmission;

(c) the requested information is strictly

necessary for the performance of the specific

tasks of the requesting body and does not go

beyond the statutory tasks conferred on the

requesting body;

(d) the information is transmitted or

disclosed exclusively to the persons directly

involved in the performance of the specific task;

(e) the persons having access to the

information are subject to professional secrecy

requirements at least equivalent to those referred

to in article 34(4).";

(c)

in sub-article (3) thereof

(i) for the words "The competent authority may

also conclude cooperation agreements" there shall be

substituted the words "Notwithstanding article 17(1) of the Cap. 330.

Malta Financial Services Authority Act and articles 19(6)

and 34(2), the competent authority may also conclude

cooperation agreements", and for the words "referred to in

article 34(4) and (5) are complied with:" there shall be

substituted the words "referred to in article 34(4) are

complied with:";

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

"agreement of the overseas regulatory authority which has

disclosed it," there shall be substituted the words

"agreement of the overseas authority which has disclosed

it," and for the words "purposes for which the overseas

regulatory authority gave its agreement." there shall be

substituted the words "purposes for which the overseas

authority gave its agreement.";

(d) in sub-article (4) thereof, for the words "extent that

the overseas regulatory authorities receiving" there shall be

substituted the words "extent that the authorities receiving";

(e) immediately after sub-article (4) thereof, as

amended, there shall be added the following new sub-article

"(4A) Where a request is made by any of the entities

referred to in sub-article (2A), the competent authority may

only transmit aggregate or anonymised information and

may only share other information at the premises of the

competent authority.";

(f)

in sub-article (6) thereof

(i) for the words "Nothing in this Act shall

prevent" there shall be substituted the words "Nothing in

this Act or in any other law shall prevent";

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

"those referred to in article 34(4) and (5):" there shall be

substituted the words "those referred to in article 34(4):";

(g)

in sub-article (7) thereof

(i)

for the words "The provisions of article 34(4),

(5) and (7) shall not preclude" there shall be substituted

the words "The provisions of article 17(1) of the Malta

Financial Services Authority Act and of article 34(2),

(4) and (7) shall not preclude";

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

"bankruptcy of credit institutions" there shall be substituted

the words "bankruptcy of institutions";

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

"financial institutions:", there shall be substituted the

words "financial institutions;";

(iv) immediately after paragraph (f) thereof, as

amended, there shall be added the following new

paragraphs

"(g) authorities responsible for supervising the

obliged entities listed in points (1) and (2) of Article

2(1) of Directive (EU) 2015/849 for compliance with

that Directive, and financial intelligence units in

other Member States;

(h) authorities or bodies responsible for the

application of rules on structural separation within a

banking group;";

(v) in the first proviso thereof, for the words

"provisions of article 34(4), (5) and (7)" there shall be

substituted the words "provisions of article 34(4) and (7)";

(vi) in the second proviso thereof, for the words

"referred to in article 34(4) and (5)." there shall be

substituted the words "referred to in article 34(4).";

(h)

in sub-article (8) thereof

(i) for the words "Notwithstanding the provisions

of sub-article (3) of this article and article 34(4), (5) and

(7), the competent authority may exchange information"

there shall be substituted the words "Notwithstanding

article 17(1) of the Malta Financial Services Authority Act, Cap. 330.

the provisions of sub-articles (2) and (3) and of articles

19(6), 34(2), 34(4), 34(5) and 34(7), the competent

authority shall exchange information";

(ii) in paragraph (ii) of the first proviso thereof, for

the words "referred to in article 34(4) and (5);" there shall

be substituted the words "referred to in article 34(4);"; and

(iii) in paragraph (ii) of the second proviso thereof,

for the words "referred to in article 34(4) and (5);" there

shall be substituted the words "referred to in article

34(4);";

(i)

in sub-article (9) thereof

(i) for the words "Notwithstanding the provisions

of article 34(4), (5) and (7), the competent authority", there

shall be substituted the words "Notwithstanding article

17(1) of the Malta Financial Services Authority Act and Cap. 330.

the provisions of articles 19(6), 34(4) and 34(7), the

competent authority";

(ii) in the first proviso thereof, for the words

"referred to in article 34(4) and (5):" there shall be

substituted the words "referred to in article 34(4):";

(j)

in sub-article (10) thereof

(i) for the words "The competent authority may

disclose certain information" there shall be substituted the

words "Notwithstanding article 17(1) of the Malta

Financial Services Authority Act, and the provisions of

articles 19(6), 34(4) and 34(7), the competent authority

may disclose certain information";

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

to in article 34(4) and (5);" there shall be substituted the

words "referred to in article 34(4);";

(iii) in the proviso thereof, for the words "shall

comply with the Data Protection Act and any regulations

made thereunder." there shall be substituted the words

"shall comply with any applicable data protection

legislation.";

(k)

sub-article (12) thereof shall be amended as follows

(i) for the words "The competent authority may

further communicate information, received inter alia under

the provisions of this Act," there shall be substituted the

words "Notwithstanding article 17(1) of the Malta

Financial Services Authority Act and of articles 19(6) and

34(2), the competent authority may communicate

information referred to in sub-articles (2) and (3) and in

articles 34(4), 34(5) and 34(7),";

(ii) in the first proviso thereof, for the words

"received under this article shall" there shall be substituted

the words "received under this sub-article shall", and for

the words "referred to in article 34(4) and (5):" there shall

be substituted the words "referred to in article 34(4):";

(iii) in the second proviso thereof, for the words

"Provided further that the information received under this

sub-article may not be disclosed" there shall be substituted

the words "Provided further that information received by

the competent authority under Article 53(2) of the CRD

may not be disclosed" and for the words "consent of the

overseas regulatory authority which had disclosed it." there

shall be substituted the words "consent of the overseas

regulatory authority in another Member State and the

authority in another Member State responsible for the

supervision of investment firms which had disclosed it.";

and

(l)

sub-article (14) thereof shall be deleted.

Article 26 of the principal Act shall be amended as follows

Amendment of

article 26 of the

principal Act.

(a)

in sub-article (1) thereof

(i) paragraph (a) thereof shall be substituted by the

following

"(a) an auditor of a credit institution, financial

holding company or mixed financial holding

company, as the case may be; or";

(ii) for the words "board of directors of the credit

institution unless there are compelling reasons not to do

so." there shall be substituted the words "board of directors

or to the management body, as applicable, of the credit

institution, financial holding company or mixed financial

holding company, as the case may be, unless there are

compelling reasons not to do so.";

(b) in paragraph (a) of sub-article (2) thereof, for the

words "in relation to which his report is made" there shall be

substituted the words "in relation to which a report is made"; and

(c) in sub-article (5) thereof, for the words "auditor of a

credit institution, this article shall" there shall be substituted the

words "auditor of a credit institution, financial holding company

and mixed financial holding company, as the case may be, this

article shall".

Article 28 of the principal Act shall be amended as follows

Amendment of

article 28 of the

principal Act.

(a) in the Maltese text, for the words "Nonostanti", there

shall be substituted the words "Minkejja";

(b) for the words "any regulations or Banking Rules

made thereunder -" there shall be substituted the words "any

regulations made and, or Banking Rules and, or Conduct of

Business Rules issued thereunder -";

(c) in paragraph (a) thereof, for the words "a credit

institution establishes" there shall be substituted the words "a

credit institution, financial holding company or mixed financial

holding company establishes";

(d) in paragraph (b) thereof, for the words "a credit

institution is likely to become unable" there shall be substituted

the words "a credit institution, financial holding company or

mixed financial holding company is likely to become unable";

(e) in paragraph (c) thereof, for the words "a credit

institution is likely to become unable" there shall be substituted

the words "a credit institution, financial holding company or

mixed financial holding company is likely to become unable".

In sub-article (10) of article 29 of the principal Act, for the

word "court", wherever it occurs in the said sub-article, there shall be

substituted the words "Civil Court (Commercial Section)".

In paragraph (b) of sub-article (5) of article 29A of the

principal Act, for the words "Article 4(1) of Directive 2014/65/EU;"

there shall be substituted the words "Article 4(1) of the MiFID;".

Immediately after article 29A of the principal Act, as

amended, there shall be added the following new article

29AA. (1) Without prejudice to any other power of

the competent authority under this Act or any other law,

where the competent authority is the consolidating

holding companies.

supervisor and has established that the conditions set

out in article 11B(4) are not met or have ceased to be

met, the competent authority shall take the appropriate

supervisory measures to ensure or restore, as the case

may be, continuity and integrity of consolidated

supervision and ensure compliance with the

requirements laid down in this Act and any regulations

made and Banking Rules issued thereunder transposing

the CRD, in any binding legal instruments issued under

the CRD, and in the CRR, on a consolidated basis. In

the case of a mixed financial holding company, the

supervisory measures applied by the competent

authority as the consolidating supervisor shall, in

particular, take into account the effects on the financial

conglomerate. The supervisory measures referred to in

this sub-article shall include

(a) withdrawing the approval granted to a

financial holding company or mixed financial

holding company in terms of article 11B;

(b) suspending the exercise of voting

rights attached to the shares of the subsidiary

institutions held by the financial holding company

or mixed financial holding company;

(c) issuing administrative measures or

administrative penalties, in terms of this Act and

any regulations made or Banking Rules issued

thereunder, against the financial holding

company, the mixed financial holding company or

the directors and managers, subject to the

provisions of national law transposing Articles 65

to 72 of the CRD;

(d) issuing instructions or directions to

the financial holding company or mixed financial

holding company, to transfer to its shareholders

the participations in its subsidiary institutions;

(e) issuing a directive to the financial

holding company or mixed financial holding

company in terms of Article 4B;

(f) designating on a temporary basis

another financial holding company, mixed

financial holding company or institution within

the group as responsible for ensuring compliance

with the requirements laid down in this Act and,

or any regulations made and, or Banking Rules

issued thereunder transposing the CRD, in the

CRD and, or in the CRR on a consolidated basis;

(g) restricting or prohibiting distributions

or interest payments to shareholders;

(h) requiring financial holding companies

or mixed financial holding companies to divest

from, or reduce, holdings in institutions or other

financial sector entities;

(i) requiring financial holding companies

or mixed financial holding companies to submit a

plan on return, without delay, to compliance;

(j) restraining any person within financial

holding companies or mixed financial holding

companies and, or financial holding companies or

mixed financial holding companies from taking,

or continuing to take, any action as a result of

which the conditions set out in article 11B(4) are

not met or have ceased to be met;

(k) requiring any person within financial

holding companies or mixed financial holding

companies and, or financial holding companies or

mixed financial holding companies to take such

steps as may be necessary to restore the position

existing immediately before any action, as a result

of which the conditions set out in article 11B(4)

are not met or have ceased to be met, was taken;

(l) restraining any person within financial

holding companies or mixed financial holding

companies and, or financial holding companies or

mixed financial holding companies from

exercising any rights which a lawful action, as a

result of which the conditions set out in article

11B(4) are not met or have ceased to be met,

would have conferred upon them, including the

right to receive any payment or to exercise any

voting rights attaching to the shares acquired;

(m) any measure under article 29 of this

Act

Provided that in exercising any of its powers

under article 29, the provisions of the said article shall

apply mutatis mutandis, and provided further that any

reference to ''the credit institution'' shall be deemed to

be reference to ''the financial holding company" and, or

"the mixed financial holding company", as applicable.

(2) Where the competent authority intends to

withdraw an approval in accordance with sub-article

(1)(a), it shall serve written notice of its intention on the

financial holding company or mixed financial holding

company; such notice shall specify the grounds upon

which the competent authority intends to take such

action and shall specify a period, being a period not less

than forty-eight hours and not more than thirty calendar

days, in which the financial holding company or mixed

financial holding company shall be entitled to make

representations to the competent authority as to why

such action should not be taken. Unless the competent

authority decides that the matter is urgent, it shall not

withdraw an approval before the expiry of such period.

(3) For the purpose of taking decisions on the

supervisory measures referred to in sub-article (1),

where the financial holding company or the mixed

financial holding company is established in a Member

State other than Malta and the competent authority is

the consolidating supervisor, the competent authority

shall work together with the overseas regulatory

authority in the Member State where the financial

holding company or the mixed financial holding

company is established, as the case may be, in full

consultation.

(4) Where the competent authority is not the

consolidating supervisor but the financial holding

company or the mixed financial holding company is

established in Malta, the competent authority shall, for

the purposes of taking decisions on the supervisory

measures referred to in Article 21a(6) of the CRD, work

together with the overseas regulatory authority acting

as the consolidating supervisor in full consultation.

(5) Where the competent authority is the

consolidating supervisor and where the financial

holding company or the mixed financial holding

company is not established in Malta, the competent

authority shall prepare an assessment on the matters

referred to in sub-article (1), and shall forward that

assessment to the overseas regulatory authority in the

Member State where the financial holding company or

the mixed financial holding company is established.

(6) The competent authority, whether acting as the

consolidating supervisor or whether it is in receipt of an

assessment referred to in Article 21a(8) of the CRD

from the overseas regulatory authority acting as the

consolidating supervisor, shall do everything within its

powers to reach a joint decision on the measures

referred to in sub-article (1) of this article and, or in

Article 21a(6) of the CRD, with the overseas regulatory

authority in the Member State where the financial

holding company or the mixed financial holding

company is established or with the overseas regulatory

authority acting as the consolidating supervisor, as the

case may be, within two months of receipt of that

assessment

Provided that the joint decision shall be duly

documented and reasoned and where the competent

authority is the consolidating supervisor, it shall

communicate the joint decision to the financial holding

company or the mixed financial holding company.

(7) In the event of a disagreement between the

competent authority and the overseas regulatory

authority acting as the consolidating supervisor or with

the overseas regulatory authority in the Member State

where the financial holding company or the mixed

financial holding company is established, as the case

may be, the competent authority shall refrain from

taking the joint decision referred to in sub-article (6)

and shall refer the matter to the EBA in accordance

with Article 19 of Regulation (EU) No. 1093/2010. In

such cases, the competent authority shall adopt a joint

decision with the overseas regulatory authority acting

as the consolidating supervisor or with the overseas

regulatory authority in the Member State where the

financial holding company or the mixed financial

holding company is established, as the case may be, in

conformity with the decision of the EBA

Provided that the matter shall not be referred to

the EBA after the end of the two-month period referred

to in sub-article (6) or after a joint decision has been

reached.

(8) In the case of mixed financial holding

companies, where the coordinator appointed in terms of

Article 10 of Directive 2002/87/EC is neither the

competent authority, nor the overseas regulatory

authority acting as the consolidating supervisor, nor the

overseas regulatory authority in the Member State

where the mixed financial holding company is

established, the agreement of the said coordinator shall

be required for the purposes of the decisions or joint

decisions referred to in sub-article (1) of this article

and, or in Article 21a(6) of the CRD, as applicable.

Where the agreement of the coordinator is required,

the competent authority shall refer any disagreements

to the relevant European Supervisory Authority,

namely, to the EBA or to the European Supervisory

Authority (European Insurance and Occupational

P e n s i o n s A u t h o r i t y ) ( E I O PA ) , e s t a b l i s h e d b y

Regulation (EU) No. 1094/2010, which shall take its

decision within one month of receipt of the referral.

Any decision taken in accordance with this sub-article

shall be without prejudice to the obligations under

Directive 2002/87/EC or Directive 2009/138/EC.".

In Article 29B of the principal Act, for the words Amendment of

"Regulations and Banking Rules made under this Act" there shall be article

the principal

substituted the words "Regulations, Banking Rules and Conduct of Act.

Business Rules made under this Act".

In article 30 of the principal Act, for the words "Every credit Amendment of

institution and, where applicable, financial holding companies and article

principal Act.

mixed financial holding companies," there shall be substituted the

words "Every credit institution, and, where applicable, financial

holding company and mixed financial holding company,".

Article 31 of the principal Act shall be amended as follows

Amendment of

article 31 of the

principal Act.

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

words "of this Act and any regulations made or Banking Rules

issued thereunder" there shall be substituted the words "of this

Act or any regulations made or Banking Rules or Conduct of

Business Rules issued thereunder"; and

(b) immediately after sub-article (9) thereof, as

amended, there shall be added the following new sub-article

"(9A) The competent authority may require the

replacement of an auditor if that auditor acts in breach of

his obligations under sub-article (9).".

Article 33 of the principal Act shall be amended as follows

Amendment of

article 33 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

by the following

"Duties of officers of credit institutions.";

(b) paragraph (a) thereof shall be substituted by the

following

"(a) to secure compliance by the credit

institution with its licence and with the provisions of this

Act and any regulations made and, or Banking Rules and,

or Conduct of Business Rules issued thereunder; and".

Immediately after article 33 of the principal Act, there shall

be added the following new article 33A

33A. Every officer of a financial holding

"Duties of officers

financial

holding companies company or a mixed financial holding company

mixed

financial holding shall take all reasonable steps –

(a) to secure compliance by the

financial holding company or the mixed

financial holding company, as the case

may be, with its approval and with this

Act and any regulations made or Banking

Rules issued thereunder; and

(b) to ensure that no incorrect

information is provided to the competent

authority either wilfully or as the result of

gross negligence.".

Article 34 of the principal Act shall be amended as follows

(a)

in sub-article (2) thereof

(i) for the words "of a bank, shall disclose" there

shall be substituted the words "of a bank, financial holding

company or mixed financial holding company, shall

disclose", for the words "of a bank which he has acquired"

there shall be substituted the words "of a bank, or relating

to the affairs of a financial holding company or a mixed

financial holding company, which he has acquired", and for

the words "under this Act and any regulations or Banking

Rules made thereunder except -" there shall be substituted

the words "under this Act or any regulations made or

Banking Rules or Conduct of Business Rules issued

thereunder except -";

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

"provisions of this Act and any regulations or Banking

Rules made thereunder;" there shall be substituted the

words "provisions of this Act or any regulations made or

Banking Rules or Conduct of Business Rules issued

thereunder;";

(iii) in paragraph (c) thereof, for the words "by any

court or under a provision" there shall be substituted the

words "by any court or tribunal or under a provision";

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

obtained from credit institutions in the course" there shall be

substituted the words "information obtained in the course", and

for the words "in summary or collective form, so as not to enable

the identity of the credit institution, to whom such information

relates, to be ascertained, without prejudice to the provisions"

there shall be substituted the words "in summary or collective

form, such that individual credit institutions cannot be identified,

without prejudice to the provisions";

(c)

in sub-article (6) thereof

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

"companies of which that institution forms part," there

shall be substituted the words "companies of which that

credit institution forms part," and for the words "authorised

by an overseas regulatory authority in a recognised

jurisdiction as well as" there shall be substituted the words

"authorised by an overseas authority in a recognised

jurisdiction, as well as";

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

law, including Regulation (EU) 2016/679 of the European

Parliament and of the Council of 27 April 2016 on the

protection of natural persons with regard to the processing

of personal data and on the free movement of such data,

and repealing Directive 95/46/EC (General Data Protection

Regulation):", there shall be substituted the words "Union

law, including the GDPR:";

(d)

in sub-article (7) thereof

(i) for the words "information under this article, it

shall use", there shall be substituted the words

"information under sub-articles (4) and (5), it shall use";

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

"competent authority including court proceedings pursuant

to article 10;" there shall be substituted the words

"competent authority pursuant to article 10 and in any

court proceedings before the Court of Appeal in terms of

article 21(14) of the Malta Financial Services Authority

Act;"; and

(e) in sub-article (8) thereof, for the words "for the

purposes of the Act and any regulations and, or Banking Rules

issued thereunder," there shall be substituted the words "for the

purposes of this Act and any regulations and, or Banking Rules

and, or Conduct of Business Rules issued thereunder,".

In paragraph (b) of sub-article (1) of article 35 of the principal

Act, for the words "under this Act and any regulations made or

Banking Rules issued thereunder;" there shall be substituted the words

"under this Act or any regulations made or Banking Rules or Conduct

of Business Rules issued thereunder;".

Article 35A of the principal Act shall be amended as follows

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

of articles 35 and 35B and to any regulations made under article

3(1)(e), where any person fails" there shall be substituted the

words "provisions of articles 29AA(1)(c), 35 and 35B and to any

regulations made under articles 3(1)(a), 3(1)(c) and 3(1)(e),

where any person fails", for the words "Banking Rules issued

thereunder, or the CRR, or such person has failed to comply"

there shall be substituted the words "Banking Rules or Conduct

of Business Rules issued thereunder, or the CRR, or any binding

legal instruments issued under the CRD, or such person has

failed to comply", and for the words "Banking Rules issued

thereunder, or the CRR, the competent authority may," there

shall be substituted the words "Banking Rules or Conduct of

Business Rules issued thereunder, or the CRR, or any binding

legal instruments issued under the CRD, the competent authority

may,";

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

administrative penalty, it shall notify" there shall be substituted

the words "an administrative penalty in terms of this Act or any

regulations made thereunder, it shall notify"; and

(c) in sub-article (6) thereof for the words "in terms of

this article shall be without prejudice" there shall be substituted

the words "in terms of this Act, or any regulations made

thereunder, shall be without prejudice".

Article 35B of the principal Act shall be amended as follows

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

this Act and of any regulations made or Banking Rules issued

thereunder, and the CRR." there shall be substituted the words

"provisions of this Act or of any regulations made or Banking

Rules or Conduct of Business Rules issued thereunder, of the

CRR, or of any binding legal instruments issued under the

CRD."; and

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

this Act and of any regulations made or Banking Rules issued

thereunder, and of the CRR, on an anonymous basis," there shall

be substituted the words "provisions of this Act or of any

regulations made or Banking Rules or Conduct of Business

Rules issued thereunder, of the CRR, or of any binding legal

instruments issued under the CRD, on an anonymous basis,".

Immediately after article 35B of the principal Act, as Addition of

article 35C to

amended, there shall be added the following new article

the principal

Act.

35C. In exercising its supervisory powers in

"Obligation to give

accordance with this Act and any regulations made and,

or Banking Rules and, or Conduct of Business Rules

issued thereunder, with the CRR and with any binding

legal instruments issued under the CRD, the competent

authority shall, in its decisions, state the grounds on

which such decisions have been based.".

Article 38 of the principal Act shall be amended as follows

Amendment of

article 38 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

following

"Transitory provisions."; and

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-article

"(3) By way of derogation from article 11C(1), where

a third-country group operates through a credit institution

licensed in terms of this Act, and through one or more other

institutions in the European Union and with a total value of

assets in the European Union equal to or greater than forty

billion euro (€40,000,000,000) on 27 June 2019, the credit

institution licensed in terms of this Act shall ensure that the

intermediate EU parent undertaking referred to in article

11C(1) or the two (2) intermediate EU parent undertakings

referred to in article 11C(2), as the case may be, shall be

established by 30 December 2023.".

Immediately after article 38 of the principal Act, the title Amendment of

the First

"SCHEDULE" shall be substituted by the following title

Schedule

annexed to the

principal Act.

"FIRST SCHEDULE".

Immediately after the First Schedule to the principal Act, as Addition of the

Second

amended, there shall be added the following new Second Schedule

Schedule to the

principal Act.

"SECOND SCHEDULE

(Article 6(1))

List of entities that are not subject to the requirement to apply to the

competent authority for a licence under this Act

1. The Central Bank and central banks of other Member States;

2. Post office giro institutions;

3. In Denmark, the "Eksport Kredit Fonden", the "Eksport

Kredit Fonden A/S", the "Danmarks Skibskredit A/S" and the

"KommuneKredit";

4. In Germany, the "Kreditanstalt für Wiederaufbau",

"Landwirtschaftliche Rentenbank", "Bremer Aufbau-Bank GmbH",

"Hamburgische Investitions- und Förderbank", "Investitionsbank

Berlin", "Investitionsbank des Landes Brandenburg",

"Investitionsbank Schleswig-Holstein", "Investitions- und Förderbank

Niedersachsen – NBank", "Investitions- und Strukturbank Rheinland-

Pfalz", "Landeskreditbank Baden-Württemberg – Förderbank", "LfA

F ö r d e r b a n k B a y e r n " , " N RW. B A N K " , " S a a r l ä n d i s c h e

Investitionskreditbank AG", "Sächsische Aufbaubank – Förderbank",

"Thüringer Aufbaubank", undertakings which are recognised under the

"Wohnungsgemeinnützigkeitsgesetz" as bodies of State housing policy

and are not mainly engaged in banking transactions, and undertakings

recognised under that law as non-profit housing undertakings;

5. In Estonia, the "hoiu-laenuühistud", as cooperative

undertakings that are recognised under the "hoiu-laenuühistu seadus";

6. In Ireland, the Strategic Banking Corporation of Ireland,

credit unions and friendly societies;

7. In Greece, the "Ταμείο Παρακαταθηκών και Δανείων" (Tamio

Parakatathikon kai Danion);

8. In Spain, the "Instituto de Crédito Oficial";

9. In France, the "Caisse des dépôts et consignations";

10. In Croatia, the "kreditne unije" and the "Hrvatska banka za

obnovu i razvitak";

11. In Italy, the "Cassa depositi e prestiti";

12. In Latvia, the "krājaizdevu sabiedrības", undertakings that are

recognised under the "krājaizdevu sabiedrību likums" as cooperative

undertakings rendering financial services solely to their members;

13. In Lithuania, the "kredito unijos" other than the "centrinės

kredito unijos";

14. In Hungary, the "MFB Magyar Fejlesztési Bank Zártkörűen

Működő Részvénytársaság" and the "Magyar Export-Import Bank

Zártkörűen Működő Részvénytársaság";

15. In Malta, "The Malta Development Bank" established in

terms of the Malta Development Bank Act;

16. In the Netherlands, the "Nederlandse Investeringsbank voor

Ontwikkelingslanden NV", the "NV Noordelijke

Ontwikkelingsmaatschappij", the "NV Limburgs Instituut voor

Ontwikkeling en Financiering", the "Ontwikkelingsmaatschappij

Oost-Nederland NV" and kredietunies;

17. In Austria, undertakings recognised as housing associations in

the public interest and the "Österreichische Kontrollbank AG";

18. In Poland, the "Spółdzielcze Kasy Oszczędnościowo —

Kredytowe" and the "Bank Gospodarstwa Krajowego";

19. In Portugal, the "Caixas Económicas" existing on 1 January

1986 with the exception of those incorporated as limited companies

and of the "Caixa Económica Montepio Geral";

20. In Slovenia, the "SID-Slovenska izvozna in razvojna banka,

d.d. Ljubljana";

21. In Finland, the "Teollisen yhteistyön rahasto Oy/Fonden för

industriellt samarbete AB", and the "Finnvera Oyj/Finnvera Abp";

22. In Sweden, the "Svenska Skeppshypotekskassan".".

PART V

AMENDMENTS TO THE FINANCIAL INSTITUTIONS ACT

This Part amends the Financial Institutions Act and it shall be Amendments to

read and construed as one with the Financial Institutions Act, the

Institutions Act.

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

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

after the definition "Regulation (EU) No. 1093/2010" , there shall be article

principal Act.

added the following new definition

" "Regulation (EU) 2015/847" means Regulation (EU)

2015/847 of the European Parliament and of the Council of 20

May 2015 on information accompanying transfers of funds and

repealing Regulation (EC) No. 1781/2006, as may be amended

from time to time, and includes any implementing measures,

implementing technical standards, regulatory technical standards

and similar measures that have been or may be issued

thereunder;".

Paragraphs (f) and (g) of sub-article (2A) of article 3 of the

principal Act shall be deleted.

In the proviso to sub-article (2) of article 8A of the principal

Act, for the words "distribute and redeem electronic money through

agents and, or distributors." there shall be substituted the words

"distribute and redeem electronic money through distributors.".

In sub-article (1) of article 10 of the principal Act, for the

words "Without prejudice to the provisions of paragraph 3(e) of the

Second Schedule," there shall be substituted the words "Without

prejudice to the provisions of paragraph 3(d) of the Second Schedule,".

In article 13A of the principal Act, for the words "account

information service provider concerned." there shall be substituted the

words "account information service provider concerned:" and

immediately thereafter there shall be added the following new proviso

"Provided that article 25(2) and the European

Passport Rights for Financial Institutions Regulations shall

be without prejudice to the obligations of the Financial

Intelligence Analysis Unit established in terms of the

Prevention of Money Laundering Act and the obligations

of those authorities in other Member States which, under

Directive (EU) 2015/849 and Regulation (EU) 2015/847,

in particular under Article 48(1) of Directive (EU) 2015/

849 and Article 22(1) of Regulation (EU) 2015/847, are

responsible for supervising or monitoring compliance with

the requirements laid down in those instruments.".

In sub-article (4) of article 14 of the principal Act, for the words

"which are not incorporated in Malta." there shall be substituted the

words "which is not incorporated in Malta.".

In the proviso to paragraph (c) of sub-article (6A) of article 18

of the principal Act, for the words "within which he is carrying out that

task." there shall be substituted the words "within which he is carrying

out that task:" and immediately thereafter there shall be added the

following new proviso

"Provided further that the competent authority may require

the replacement of an auditor if that auditor acts in breach of his

obligations under this sub-article.".

In sub-article (6) of article 25 of the principal Act, for the Amendment of

words "referred to in the Schedule to the Banking Act." there shall be article

principal Act.

substituted the words "referred to in the First Schedule annexed to the Cap. 371.

Banking Act.".

In sub-paragraph (d) of paragraph 3 of the Second Schedule to Amendment of

the principal Act, for the words "referred to in paragraph (1)(d) or (e) the

Schedule to the

of this Schedule" there shall be substituted the words "referred to in principal Act.

paragraph (2)(d) or (e) of this Schedule".

In sub-paragraph (b) of paragraph 2 of the Third Schedule to Amendment of

the principal Act, for the words "referred to in paragraph 2(d), (e) and the

Schedule to the

(g) of the Second Schedule," there shall be substituted the words principal Act.

"referred to in paragraph 2(d) or (e) of the Second Schedule," and for

the words "conditions laid down in paragraph 3(e) of the Second

Schedule" there shall be substituted the words "conditions laid down in

paragraph 3(d) of the Second Schedule".

Passed by the House of Representatives at Sitting No. 530 of the

14th December, 2021.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€6.12