ACT No. XV of 2026 AN ACT to amend the Malta Financial Services Authority Act, BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same as follows:-

I assent.

(L.S.)

MYRIAM SPITERI DEBONO

President

28th April, 2026

ACT No. XV of 2026

AN ACT to amend the Malta Financial Services Authority Act,

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

consent of the House of Representatives, in this present Parliament

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

(1) The short title of this Act is the Malta Financial Short title and

Services Authority (Amendment) Act, 2026 and this Act shall be read commencement.

and construed as one with the Malta Financial Services Authority Cap. 330.

Act, hereinafter referred to as the "principal Act".

(2) This Act shall come into force on such date or dates as the

Minister responsible for the regulation of financial services may, by

notice in the Gazette, establish and different dates may be established

for different provisions and, or different purposes of this Act.

The principal Act shall be amended as follows

General

amendments to

the principal

(a)

in the Maltese version only, the words "mis-Sezzjoni

Act.

għar-Riżoluzzjoni", wherever they occur, shall be substituted by

the words "mit-Taqsima ta’ Riżoluzzjoni";

(b) in the Maltese version only, the words "tas-Sezzjoni

għar-Riżoluzzjoni", wherever they occur, shall be substituted by

the words "tat-Taqsima ta’ Riżoluzzjoni";

(c)

in the Maltese version only, the words "Is-Sezzjoni

għar-Riżoluzzjoni", wherever they occur, shall be substituted by

the words "It-Taqsima ta’ Riżoluzzjoni";

(d) in the Maltese version only, the words "Sezzjoni

għar-Riżoluzzjoni", wherever they occur, shall be substituted by

the words "Taqsima ta’ Riżoluzzjoni";

(e)

the words "Chairman" and "chairman", wherever

they occur, shall be substituted by the words "Chairperson" and

"chairperson" respectively.

Article 2 of the principal Act shall be amended as follows

(a)

the definition "Audit Committee"

shall

be

substituted by the following new definition

" "Audit and Risk Committee" means the

Committee established by article 12A;";

(b) immediately before the definition "Authority" there

shall be added the following new definition

" "authorisation" means any form of authorisation

granted by the Authority to any entity or individual, other

than a licence, and includes a registration, a recognition, a

notification or any other form of approval or permission;";

(c)

immediately after the definition "the BRRD" there

shall be added the following new definition

" "Capital Markets Decisions Committee" means

the Committee established by article 10B;";

(d) the definition "Chief Executive Officer" shall be

substituted by the following new definition

" "Chief Executive Officer" means the Officer

appointed in accordance with article 7D;";

(e)

immediately after the definition "Chief Officer"

there shall be added the following new definition

" "Deputy Chief Executive Officer" means an

officer responsible for assisting and supporting the Chief

Executive Officer in the performance of his duties and

responsibilities, appointed in accordance with article 7D;";

(f)

the definition "Directorate" shall be substituted by

the following new definition

" "Directorate" means a section of the Authority,

established by the Chief Executive Officer after

consultation with the Board of Governors, made up of a

number of sub-sections or Units responsible for the different

functions and areas of operation of the authority;";

(g) the definition "Executive Committee" shall be

substituted by the following new definition

" "Executive Committee" means the Committee

established by article 9;";

(h) the definition "Enforcement Decisions Committee"

shall be substituted by the following new definition

" "Enforcement Decisions Committee" means the

Committee established by article 11;";

(i)

the definition "financial services"

shall

be

substituted by the following new definition

" "financial services" means the business of credit

and financial institutions, the business of insurance and the

activities of insurance intermediaries, the provision of

investment services and collective investment schemes,

pensions and retirement funds, regulated markets, central

securities depositories, the provision of services related to

crypto-assets including their issuance, offer to the public

and admission to trading, the business of trustees, trusts

and company service providers, and such other areas of

activity or services as may be placed under the supervisory

and regulatory competence of the Authority by the

Minister or by any other law;";

(j)

the definition "General Counsel" shall be substituted

by the following new definition

" "General Counsel" means the Chief Officer

leading the Directorate responsible for legal affairs;";

(k) the definition "institution" shall be substituted by the

following new definition

" "institution" means a credit institution or an

investment firm for the purposes of the BRRD;";

(l)

immediately after the definition "Minister" there

shall be added the following new definitions

" "MTF" means a Multilateral Trading Facility

operated by an investment firm or a market operator, which

brings together multiple third-party buying and selling

interests in financial instruments into the system and in

accordance with non-discretionary rules, in a way that

results in a contract in accordance with Title II of MiFID;

"OTF" means an Organised Trading Facility which

is not a regulated market or an MTF and in which multiple

third-party buying and selling interests in bonds, structured

finance products, emission allowances or derivatives are

able to interact in the system in a way that results in a

contract in accordance with Title II of MiFID;";

(m) immediately after the definition "prescribed" there

shall be added the following new definition

" "Regulatory Decisions Committee” means the

Committee established by article 10A;".

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

substituted by the following new sub-article

"(3) Save as expressly provided for in this Act or in any

other Act administered by the Authority, in the exercise of its

functions and powers the Authority, including its decision

making bodies, shall be autonomous and shall act objectively

and independently, and shall not seek or take instructions from,

nor be subject to any interference by any other authority, body

or person.".

Article 4 of the principal Act shall be amended as follows

(a)

sub-article (1) thereof shall be amended as follows

(i) in paragraph (a) thereof the words "in Malta;"

shall be substituted by the words "provided in or from

Malta;";

(ii) paragraph (gA) thereof shall be substituted by

the following new paragraph

"(gA) to provide, promote and foster further

training, knowledge and education on all matters

relating to financial services, including financial

literacy;";

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

following new sub-article

"(2) Subject to the provisions of article 17

(a) the Authority shall, for the better performance

of its functions under this Act or any other Act,

collaborate with other relevant local and foreign

bodies, Government departments and entities,

international organisations, with the European

Securities and Markets Authority (ESMA), the

European Banking Authority (EBA), the European

Insurance and Occupational Pensions Authority

(EIOPA), colleges of supervisors, the European

Systemic Risk Board (ESRB), the European Central

Bank (ECB), the European Anti-Money Laundering

Authority (AMLA), the Single Resolution Board

(SRB) and other entities which exercise regulatory,

licensing, authorisation, registration and supervisory

functions and powers under any law in Malta or

abroad or which are otherwise engaged in overseeing

or monitoring areas or activities in the financial

services sector and the registration of commercial

partnerships, and shall make arrangements for the

mutual exchange of information and for other forms

of assistance in regulatory and supervisory matters;

and

(b) in the exercise of its functions under this Act

or any other Act the Authority shall also cooperate

with local and foreign law enforcement, intelligence,

prosecutorial and judicial authorities.";

(c)

immediately after sub-article (2) thereof, as

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

"(2a) For the better performance of its function

under sub-article (1)(gA), the Authority may establish a

training academy or other appropriate educational

arrangement to provide training, knowledge and education

on matters relating to the financial services sector,

including trends and developments in regulation and

supervision.

(2b) The Authority may establish public private

partnership initiatives with financial sector stakeholder

bodies, associations, groups or representatives for the

better performance of its functions, to strengthen the

exchange of information regarding emerging issues, to

facilitate cooperation and communication between the

Authority and stakeholders, and to raise standards in the

financial services sector.";

(d) in sub-article (3) thereof immediately after the

words "relating to financial services." there shall be added the

words "The Authority shall also have the power to charge

interest up to the maximum permitted by law on any amount of

fees or charges the payment of which is overdue, until such date

as such amount is paid

Provided that the Authority may, in

exceptional and justifiable circumstances, and subject to

the approval of the Regulatory Decisions Committee,

waive any prescribed fees and, or charges or interest due to

it, in whole or in part, or in respect of such period or matter

as the Authority may deem justified

Provided further that the Authority shall not,

of its own initiative, refund any fees, charges or interest

already paid.".

Article 4A of the principal Act shall be substituted by the

following new article

4A. (1) The granting of a licence shall

constitute a concession and a revocable privilege,

be a concession.

granted to persons who, in addition to satisfying the

requirements as may be established by the Authority, are

considered to be fit and proper and suitable to hold a

licence. No licence holder shall be deemed to have

acquired any vested rights in or under the licence. The

burden of proving the licence holder’s suitability to be

granted and to hold a licence shall rest at all times on the

licence holder.

(2) The Authority may conduct fit and proper and

suitability assessments as it deems appropriate prior to

granting a licence and as it deems necessary thereafter,

and the person on whom the assessment is being carried

out shall provide the Authority with all the information

and documentation as the Authority may request for this

purpose.

(3) Any person engaged by an applicant for a

licence to provide professional advice and assistance in

connection with such application, or engaged by a

licence holder to provide professional advice and

assistance on any regulatory matter, and who acts and

communicates with the Authority on behalf of such

applicant or licence holder, shall conduct due diligence

and probity checks on such applicant or licence holder,

and shall inform the Authority without delay of any

adverse or suspicious information identified which may

have a bearing on the fit and proper and suitability

assessment conducted by the Authority on such applicant

or holder.

(4) Any applicant for a licence, any licence

holder and any person providing professional advice or

assistance as is mentioned in sub-article (3) who,

knowingly and with the intention of misrepresenting the

suitability and fitness and properness of the applicant or

licence holder, submits to the Authority misleading or

false information in respect of the suitability and fitness

and properness of the applicant or holder of a licence or

fails to submit to the Authority any adverse information

of which he is aware, which is relevant for the purposes

of establishing the suitability of the applicant or licence

holder, shall be guilty of an offence and liable on

conviction to a fine (multa) not exceeding fifty thousand

euro (€50,000).

(5) In this article licence includes and applies to

any licence and authorisation, howsoever designated,

issued by the Authority under any law for whose

administration the Authority is responsible.".

Article 5 of the principal Act shall be amended as follows

(a)

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

following new sub-article

"(1) The main organs of the Authority are the

Board of Governors, the Executive Committee, the

Regulatory Decisions Committee, the Enforcement

Decisions Committee, the Capital Markets Decisions

Committee, and the Resolution Committee to the extent

that the Authority acts as the Resolution Authority in

accordance with article 7B.";

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

duty of the organs of the Authority" shall be substituted by the

words "It shall be the duty of the organs, Directorates and Units

of the Authority".

Article 6 of the principal Act shall be amended as follows

(a)

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

(i) paragraph (b) thereof shall be substituted by

the following new paragraph

"(b) the Chief Executive Officer, who shall

not have the right to vote;";

(ii) in paragraph (c) thereof the words "five

members or more," shall be substituted by the words "six

(6) other members,", the words "of financial services."

shall be substituted by the words "of financial services;"

and the words "The Board of Governors shall choose a

Deputy Chairman from amongst its members." shall be

deleted;

(iii) immediately after paragraph (c) thereof, as

amended, there shall be added the following new

paragraph

"(d) a Deputy Chairperson chosen by the

Board of Governors from amongst the members of

the Board.";

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

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

"(2A) Where a vacancy occurs amongst the

members of the Board of Governors, a new member

shall be appointed in accordance with the provisions

of this article. The appointment shall be made as

soon as possible and by not later than three (3)

months from when the vacancy occurs.";

(c)

sub-article (4) thereof shall be substituted by the

following new sub-article

"(4) Where the Chairperson is absent or is unable

to exercise the functions and powers of his office and the

Prime Minister has not appointed another person to act as

Chairperson during the period of absence or inability, the

Deputy Chairperson shall carry out the functions of the

Chairperson during such period.";

(d) in sub-article (5) thereof the words "shall receive

such remuneration as the Minister may from time to time,

determine." shall be substituted by the words "shall receive such

remuneration as established in their letter of appointment.";

(e)

sub-article (6) thereof shall be amended as follows

(i)

paragraph (a) thereof shall be amended as

follows

(ia) in sub-paragraph (vi) thereof the words

"business practice or otherwise" shall be substituted

by the words "business practice or activity or

otherwise" and immediately after the word

"competence" there shall be added the word ",

integrity";

(ib) in sub-paragraph (viii) thereof the word

"office." shall be substituted by the words "office;

or";

(ic) immediately after sub-paragraph (viii)

thereof, as amended, there shall be added the

following new sub-paragraphs

"(ix) has been disqualified by any professional

or regulatory body; or

(x) has been found guilty or is being charged

with the commission of a "relevant offence" as defined

in the Proceeds of Crime Act.";

(ii) in paragraph (b) thereof the words "is likely

to fulfil those responsibilities and" shall be substituted by

the words "is likely to fulfil those responsibilities, to his

reputation and integrity, and";

(iii) paragraph (d) thereof shall be substituted by

the following new paragraph

"(d) A member of the Board may not be

removed from his office by the Prime Minister, or

required to resign his office, other than for any of

the reasons mentioned in sub-paragraphs (i) to (x)

of paragraph (a), or on the ground of inability to

perform the functions of his office, whether due to

infirmity of mind or body, or misbehaviour. For the

purposes of this paragraph, repeated and unjustified

failure to attend meetings may be deemed to

amount to misbehaviour.".

Article 7 of the principal Act shall be amended as follows

(a)

in sub-article (2) thereof the words "a quorum

consisting of not less than three members present at the

meeting." shall be substituted by the words "a quorum

consisting of not less than four (4) members having the right to

vote present at the meeting.";

(b) in sub-article (3) thereof the words "by the Deputy

Chairman, or by a member" shall be substituted by the words

"by the Deputy Chairperson, or where both the Chairperson and

the Deputy Chairperson are absent, by a member";

(c)

in paragraph (a) of sub-article (5) thereof the words

"shall designate a person to act" shall be substituted by the

words "shall designate an official of the Authority to act".

Article 7A of the principal Act shall be deleted.

Article 7B of the principal Act shall be substituted by the

following new article

7B. (1) (a) The Authority shall also act as the

Resolution Authority for the purposes of article 3 of the

BRRD. The functions of the Resolution Authority shall

be carried out through the Resolution Committee

established in sub-article (2).

(b) The Authority shall create adequate structural

arrangements to ensure operational independence and

avoid conflicts of interest between its supervisory and

other functions, and its resolution function under this

Act.

(2) There shall be a Resolution Committee which

shall have all the powers assigned to the Resolution

Authority under the BRRD. The composition, powers

and functions of the Resolution Committee shall be

governed by the provisions set out in the First Schedule

and in accordance with any regulations made hereunder.

The Resolution Committee shall act independently of the

organs of the Authority.".

In article 7C of the principal Act the words "the Authority, Amendment of

through the Resolution Committee," shall be substituted by the words article

"the Resolution Authority, through the Resolution Committee,".

Immediately after article 7C of the principal Act there shall Addition of new

be added the following new article

7D. (1) The Chief Executive Officer shall be

appointed by the Board of Governors according to such

procedures and on such terms and conditions as the

Board may determine.

(2) The Chief Executive Officer shall be

responsible for

(a)

the overall operations and performance

of the Authority;

(b) the implementation of the objectives,

strategy and policies of the Authority;

(c)

chairing the Executive Committee;

(d) monitoring and oversight of the

Regulatory Decisions Committee, the Capital

Markets Decisions Committee, the Enforcement

Decisions Committee and all the Directorates and

Units of the Authority to ensure the proper and

effective implementation of the Authority’s

functions in terms of law;

(e)

the Authority’s administrative affairs,

including the management and the finances of the

Authority, human resources and ancillary services;

(f)

establishing

and

empowering

Directorates and Units, and determining the

respective remits of the Directorates and Units so

established; and

(g) any other matter as may be determined

by the Board of Governors.

(3) The Chief Executive Officer shall, after

consultation with the Board of Governors, appoint one

or more Deputy Chief Executive Officers to assist in the

performance of his duties and responsibilities.

(4) A person shall not be eligible to be appointed

Chief Executive Officer or Deputy Chief Executive

Officer if he is not a fit and proper person to hold such

office.

(5) In determining whether a person is a fit and

proper person, due regard shall be given to that person’s

probity, to his competence and soundness of judgement

for fulfilling the responsibilities of such office, to his

reputation and integrity, and to the diligence with which

he is likely to fulfil those responsibilities.

(6) The Board of Governors may appoint any one

of the Deputy Chief Executive Officers of the Authority

to act as Acting Chief Executive Officer during the

period when the Chief Executive Officer is unable to act,

or during any vacancy in the office of the Chief

Executive Officer.".

Article 9 of the principal Act shall be substituted by the

following new article

9. (1) There shall be an Executive Committee

which shall be responsible for

(a)

the coordination and monitoring of the

statutory and strategic objectives, and policies of

the Authority;

(b) ensuring

coordination

and

communication between the different Directorates

and Units of the Authority;

(c)

approving of regulatory rules made by

the Authority and proposed legislation;

(d) proposing

policy

and

other

recommendations to the Board of Governors on

matters falling within the remit of the Authority;

and

(e)

any other matter as may be determined

by the Chief Executive Officer and the Board of

Governors.

(2) The Executive Committee may from time to

time delegate in writing any of its functions and powers

on such matters and subject to such conditions and

modalities as may be specified in the delegation, subject

to the terms and duration as determined by the Executive

Committee, to the Chief Executive Officer or to one or

more of the members of the Executive Committee. Any

such delegation shall be approved by the Board of

Governors.

(3) The Executive Committee shall consist of the

Chief Executive Officer, who shall preside, and the

Deputy Chief Executive Officers

Provided that the Chief Executive Officer may

appoint any one or more of the Chief Officers of the

Authority to the Executive Committee, as he may deem

necessary

Provided further that the Executive Committee

shall consist of not less than five (5) members.

(4) The Chief Executive Officer shall designate

one of the officers of the Authority to act as Secretary to

the Executive Committee for such period and under such

terms and conditions as the Chief Executive Officer shall

deem appropriate.

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

the necessary preparations for the meetings of the

Executive Committee and to keep minutes of those

meetings.

(6) The quorum required for meetings of the

Executive Committee shall consist of not less than four

(4) members, which shall include the Chief Executive

Officer. The decisions of the Committee shall be taken by

a majority of votes of the members present and in the

case of an equality of votes the Chief Executive Officer

shall have an original and a second or casting vote. The

Committee shall regulate its own procedure.".

Immediately after article 10 of the principal Act there shall Addition of new

articles to the

be added the following new articles

principal Act.

10A. (1) There shall be a Regulatory Decisions

Committee which shall be responsible for the

implementation of the regulatory framework in the

financial services sector and, without prejudice to the

generality of the aforesaid, shall in particular be

responsible for

(a)

considering and assessing applications

for licences and any other authorisations, including

applications for their voluntary restriction,

modification, suspension or cancellation, and

deciding on their approval or rejection;

(b) issuing of licences and any other

authorisations;

(c)

monitoring and supervising persons

licensed or authorised by the Authority in the

financial services sector in order to verify their

compliance with their regulatory obligations;

(d) considering, assessing and reviewing

supervisory findings and recommendations as may

be brought before it by the supervisory directorates

and confirming, modifying or rejecting such

findings and recommendations as it may deem fit;

(e)

taking all manner of regulatory

decisions and measures as the Authority is by this

or any other Act or regulations empowered to take

for the purpose of safeguarding, ensuring or

restoring compliance with regulatory requirements

and, or to safeguard the interests of consumers of

financial services and, or the integrity of the

financial system, including issuing any directive or

directives or taking such other measure as the

Regulatory Decisions Committee may deem

necessary under the circumstances, and where

serious circumstances warrant the taking of

immediate action, the said Committee may take

urgent and, or precautionary decisions and

measures, including to temporarily limit business

activities

Provided that the Regulatory Decisions

Committee shall not be empowered to impose any

modification,

restriction,

suspension

or

cancellation of a licence or any other form of

authorisation, or to impose an administrative

penalty;

(f)

appointing or requiring the appointment

of a qualified person, or appointing a skilled person

or an inspector or appointing a temporary

administrator or appointing a competent person as

may be required under any law administered by the

Authority for the purpose of advising and assisting

a licence or authorisation holder in the conduct of

its business or appointing any other person having

the required expertise as the Regulatory Decisions

Committee may deem necessary to assist the

Authority with its supervisory function;

(g) deciding whether any regulatory matter,

including a case of non-compliance or of potential

breaches of regulatory requirements, or of

suspected misconduct or wrongdoing should be

referred to the Enforcement Directorate for further

review, investigation and, or enforcement action;

(h) engaging with and, or referring to the

Resolution Unit and, or the Resolution Committee

any matter as the Regulatory Decisions Committee

may deem appropriate; and

(i)

any other matter as may be determined

by the Board of Governors.

(2) For the purpose of discharging its functions,

the Regulatory Decisions Committee shall have all the

relevant powers vested in the Authority under this Act or

any other Act administered by the Authority.

(3) The Regulatory Decisions Committee may

from time to time delegate in writing any of its functions

and powers on such matters and subject to such

conditions and modalities as may be specified in the

delegation, subject to the terms and duration as

determined by the said Committee, to one or more of its

members, any one or more of the sub-committees as may

be established by the Regulatory Decisions Committee

or to a Directorate or Unit of the Authority, as may be

specified. Any delegation so made shall be approved by

the Board of Governors.

(4) The Regulatory Decisions Committee shall

consist of

(a)

the Chief Executive Officer, who shall

preside;

(b) the Deputy Chief Executive Officer

responsible for sectoral supervision and the Chief

Officers reporting thereto;

(c)

the Deputy Chief Executive Officer

responsible for cross-sectoral supervision and the

Chief Officers reporting thereto;

(d) the General Counsel;

(e)

the Chief Officer responsible for

strategy and policy; and

(f)

the Chief Officer responsible for digital

and information services.

(5) The Chief Executive Officer shall designate

one of the members of the Regulatory Decisions

Committee to act as Deputy Chairperson who shall

preside over the meetings of the said Committee in the

absence of the Chief Executive Officer.

(6) The Chief Executive Officer shall designate

one of the officers of the Authority to act as Secretary to

the Regulatory Decisions Committee for such period and

under such terms and conditions as the Chief Executive

Officer shall deem appropriate.

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

the necessary preparations for the meetings of the

Regulatory Decisions Committee and to keep minutes of

those meetings.

(8) The quorum required for meetings of the

Regulatory Decisions Committee shall consist of not less

than six (6) members which shall include the Chief

Executive Officer or, in his absence, the designated

Deputy Chairperson. The decisions of the said

Committee shall be taken by a majority of votes of the

members present and in the case of an equality of votes

the Chief Executive Officer or the Deputy Chairperson

presiding the meeting shall have an original and a second

or casting vote. The Committee shall regulate its own

procedure.

(9) Without prejudice to the provisions of article

8, the Regulatory Decisions Committee may from time

to time authorise one or more senior officers of the

Authority to sign a licence, category of licence or any

other form of authorisation or decision, as it may deem

appropriate.

(10) The Regulatory Decisions Committee shall

submit an annual report to the Executive Committee

providing statistics and non-case specific information on

the conduct of its functions.

10B. (1) There shall be a Capital Markets

Decisions Committee which shall be responsible for

(a)

implementing the policies on capital

markets and admissibility to listing and trading of

financial instruments as may be established by the

Board of Governors from time to time;

(b) considering, assessing, authorising or

rejecting applications for admissibility to listing

and trading, or requests for discontinuing or

suspending the listing of financial instruments or

for derogations from applicable requirements or

conditions as may be permitted in accordance with

applicable laws, rules and regulations;

(c)

approving prospectuses;

(d) approving covered bonds programmes;

(e)

ensuring

compliance

with

any

requirements or conditions applicable to issuers

and set out for listed and traded financial

instruments;

(f)

monitoring the capital market to ensure

market integrity, investor protection and to prevent

market abuse;

(g) taking all manner of regulatory

decisions and measures as the Authority is by this

or any other Act or regulations empowered to take

in relation to the capital markets for the purpose of

safeguarding, ensuring or restoring compliance

with regulatory requirements and, or to safeguard

the interests of investors and, or the integrity of the

capital market, including issuing any directive or

directives or taking such other measure as the

Capital Markets Decisions Committee may deem

necessary under the circumstances. Where serious

circumstances warrant the taking of immediate

action, the said Committee may take urgent and, or

precautionary decisions and measures, including to

temporarily limit business activities

Provided that the Committee shall not

be empowered to withdraw an approval for covered

bonds programmes, or remove listed financial

instruments from listing and, or trading on an

authorised regulated market, or remove financial

instruments from trading on an MTF or an OTF, or

to appoint a special administrator, or to impose an

administrative penalty;

(h) deciding whether a case of non-

compliance, or of potential breaches of regulatory

requirements, or of suspected market abuse,

misconduct or wrongdoing should be referred to

the Enforcement Directorate for further

investigation and, or enforcement action;

(i)

engaging with and, or referring to the

Resolution Unit and, or the Resolution Committee

any matter as the Capital Markets Decisions

Committee may deem appropriate; and

(j)

any other matter as may be determined

by the Board of Governors.

(2) For the purpose of discharging its functions,

the Capital Markets Decisions Committee shall have all

the relevant powers vested in the Authority under this

Act or any other Act administered by the Authority.

(3) The Capital Markets Decisions Committee

may from time to time delegate in writing any of its

functions and powers, on such matters and subject to

such conditions and modalities as may be specified in the

delegation, subject to the terms and duration as

determined by the Committee, to one or more of its

members, any one or more of the sub-committees as may

be established by the Committee or to a Directorate or

Unit of the Authority, as may be specified. Any

delegation so made shall be approved by the Board of

Governors.

(4) The Capital Markets Decisions Committee

shall consist of

(a)

the Chief Executive Officer;

(b) the Deputy Chief Executive Officer

responsible for sectoral supervision;

(c)

the Deputy Chief Executive Officer

responsible for cross-sectoral supervision; and

(d) two (2) members of the Board of

Governors, one of whom shall act as Chairperson

of the Committee appointed by the Board.

(5) The Chairperson of the Capital Markets

Decisions Committee shall designate one of the officers

of the Authority to act as Secretary to the Committee for

such period and under such terms and conditions as the

Chief Executive Officer shall deem appropriate.

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

the necessary preparations for the meetings of the

Capital Markets Decisions Committee and to keep

minutes of those meetings.

(7) The quorum required for meetings of the

Capital Markets Decisions Committee shall consist of

not less than three (3) members, which shall include the

Chairperson or, in his absence, the Chief Executive

Officer who shall preside. The decisions of the

Committee shall be taken by a majority of votes of the

members present, and in the case of an equality of votes,

the Chairperson or the Chief Executive Officer presiding

the meeting shall have an original and a second or

casting vote. The Committee shall regulate its own

procedure.

(8) The Capital Markets Decisions Committee

shall submit an annual report to the Executive

Committee providing statistics and non-case specific

information on the conduct of its functions.".

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

following new article

11. (1) There shall be an Enforcement Decisions

Committee which shall act impartially and

independently from the other organs of the Authority and

the Resolution Committee. The Enforcement Decisions

Committee shall not be subject to any direction or

control by any person, authority or body, and shall carry

out its functions without any influence or interference.

(2) The Enforcement Decisions Committee shall

be responsible for the enforcement of the regulatory

framework in the financial services sector and without

prejudice to the generality of the aforesaid shall in

particular be responsible for

(a)

independently

and

impartially

considering, assessing, and reviewing enforcement

cases, the findings of investigations, and

recommendations for enforcement action, brought

before it by the Enforcement Directorate and

confirming, modifying or rejecting such findings

and recommendations as it may deem fit;

(b) deciding on whether the entity or

person subject to the enforcement action has

contravened or failed to comply with any provision

of this Act or any other Act administered by the

Authority, or with any regulations or rules issued

thereunder, or with any regulations or rules

transposing the BRRD, or with any provision of

any other applicable regulation, or with any of the

conditions imposed in a licence or authorisation

issued by the Authority or with any directives

issued by the Authority, or any other regulatory

requirements;

(c)

in

exercising

the

Authority’s

enforcement function, and without prejudice to the

provisions of paragraphs (e) and (f) of sub-article

(1) of article 10A

(i) taking all manner of regulatory

decisions as the Authority is by this or any

other Act or regulations empowered to take

for the purpose of imposing and enforcing

compliance with regulatory requirements and,

or to safeguard the interests of consumers of

financial services, investors and, or the

integrity of the financial system and the

financial markets, including issuing any

directive or directives or imposing such other

measure as the Enforcement Decisions

Committee may deem necessary;

(ii) issuing orders for the freezing of

funds and, or other assets including bank

accounts as provided by article 16(8), in the

name of a licence or authorisation holder or

any other third party as may be indicated;

(iii) appointing or requiring the

appointment of a qualified person, or

appointing a skilled person or an inspector; or

appointing a competent person or an

administrator as may be required under any

law administered by the Authority or

appointing any other person having the

required expertise as the Enforcement

Decisions Committee may deem necessary to

assist the Authority with its enforcement

function;

(iv) imposing any prohibition or

other restrictive measure or limitation of

business activities on any person or entity in

possession of a licence or authorisation

granted by the Authority;

(v) determining that an individual

holding a position which requires the

Authority’s approval is no longer considered

to be fit and proper to exercise the functions

and duties in respect of which he was

approved;

(d) cancelling, suspending, modifying or

restricting a licence or any other form of

authorisation;

(e)

deciding

on

and

imposing

administrative penalties on any person that has

contravened or failed to comply with any provision

of this Act or any other Act administered by the

Authority or with any regulations or rules issued

thereunder or with any regulations or rules

transposing the BRRD, or with any provision of

any other applicable regulation, or with any of the

conditions imposed in a licence or authorisation

issued by the Authority or with any directives

issued by the Authority, or any other regulatory

requirements;

(f)

the suspension or removal of listed

financial instruments from listing and, or trading

on an authorised regulated market;

(g) the suspension or removal of financial

instruments from trading on an MTF or OTF;

(h) approving settlement agreements in

terms of article 15A; and

(i)

any other matter as may be determined

by the Board of Governors.

(3) For the purpose of discharging its functions,

the Enforcement Decisions Committee shall have all the

relevant powers vested in the Authority under this Act or

any other Act administered by the Authority.

(4) The Enforcement Decisions Committee shall

consist of the following persons

(a)

the Deputy Chief Executive Officer

responsible for enforcement;

(b) the Deputy Chief Executive Officer

responsible for legal affairs;

(c)

the Deputy Chief Executive Officer

responsible for digital and corporate services; and

(d) the Chief Officer responsible for

Quality Assurance

Provided that the Board of Governors shall

appoint a Chairperson and a Deputy Chairperson from

amongst the members of the Committee.

(5) One of the officers of the Authority shall be

designated to act as Secretary to the Committee for such

period and under such terms and conditions as the Chief

Executive Officer shall deem appropriate.

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

the necessary preparations for the meetings of the

Enforcement Decisions Committee and to keep minutes

of those meetings.

(7) The Enforcement Decisions Committee shall

not hold its sittings in public. The cases shall be brought

before the said Committee by the Enforcement

Directorate. The Committee shall hear officers from the

Enforcement Directorate, any other officers of the

Authority or any other person that may provide relevant

information, and the entity or person subject to the

enforcement action, prior to taking a decision

Provided that the entity or person subject to the

enforcement action shall have a right to be assisted

during any hearing before the Committee.

(8) The quorum required for meetings of the

Enforcement Decisions Committee shall consist of not

less than three (3) members which shall include the

Chairperson. The decisions of the Committee shall be

taken by a majority of votes of the members present and

in the case of an equality of votes, the Chairperson shall

have an original and a second or casting vote.

(9) The Enforcement Decisions Committee shall

conduct hearings and take decisions in accordance with

rules of natural justice and in accordance with

procedures which safeguard the rights of a fair hearing

within a reasonable time of any person or entity subject

to proceedings before the Committee. Such procedures

shall be approved by the Board of Governors and shall

be made public. The standard of proof required by the

Committee is that of a balance of probabilities.

(10) The Enforcement Decisions Committee shall

submit an annual report to the Executive Committee

providing statistics and non-case specific information on

the conduct of its functions.".

Article 12 of the principal Act shall be substituted by the Substitution of

article 12 of the

following new article

principal Act.

12. (1) There shall be an Enforcement

Directorate whose function shall be to deal with matters

of enforcement under the provisions of this Act or any

other Act administered by the Authority, or any

regulations or rules made thereunder, and without

prejudice to the generality of the aforesaid, the

Enforcement Directorate shall in particular be

responsible for

(a)

considering,

assessing

and,

or

investigating any referrals made to it by the

Regulatory Decisions Committee, the Capital

Markets Decisions Committee, the Resolution

Committee, the Chairperson, the Chief Executive

Officer, or any of the Directorates of the Authority,

including those made following information and, or

requests received from local or overseas

enforcement, intelligence or regulatory authorities,

bodies or other entities, or a network or grouping

comprising such local or overseas enforcement or

regulatory authorities, bodies or other entities, or

both;

(b) considering,

assessing

and,

or

investigating reports and, or other information

received in connection with breaches of this Act or

any other Act administered by the Authority, or any

regulations or rules issued thereunder or any other

regulatory requirements, or any misconduct or

wrongdoing;

(c)

conducting

administrative

investigations in relation to financial services

business or activity, whether authorised or

otherwise;

(d) establishing potential breaches of any

provision of this Act or any other Act administered

by the Authority, or any regulations or rules issued

thereunder, or any provision of any other applicable

regulation, or any regulations or rules transposing

the BRRD, or any of the conditions imposed in a

licence or authorisation issued by the Authority, or

any directives issued by the Authority, or any other

regulatory requirements, or potential market abuse,

misconduct or wrongdoing;

(e)

establishing the proposed regulatory

measures, administrative penalties and, or

sanctions;

(f)

considering

and

assessing

representations made by licence or authorisation

holders or any other person in respect of the

potential breaches and proposed regulatory

measures, administrative penalties and, or

sanctions;

(g) making

recommendations

for

enforcement action to the Enforcement Decisions

Committee;

(h) implementing any decision of the

Enforcement Decisions Committee, including the

making of appropriate arrangements and the

carrying out of such actions and procedures as may

be necessary for such purpose;

(i)

conducting proceedings before the

Enforcement

Decisions

Committee,

and

representing the Authority in proceedings before

the Financial Services Tribunal and the courts; and

(j)

carrying out such other duties as may be

assigned to it by the Chief Executive Officer.

(2) In carrying out its functions under sub-article

(1)(d) to (g), the Enforcement Directorate shall take into

account the information and views provided by the

Regulatory Decisions Committee, for the purpose of

ensuring alignment with the Authority’s supervisory and

enforcement approach, objectives and policies relevant to

the matter under consideration.

(3) The Enforcement Directorate shall, for the

purpose of discharging its functions, have all the relevant

powers vested in the Authority under this Act or any

other Act administered by the Authority.

(4) The Enforcement Directorate shall upon

request provide to the Chief Executive Officer,

information, documentation, updates and explanations on

any enforcement action or matter being conducted by the

Directorate.".

Article 12A of the principal Act shall be substituted by the Substitution of

article 12A of

following new article

the principal

Act.

12A. (1) There shall be an Audit and Risk

Committee whose function shall be to

(a)

determine whether the governance,

controls and risk management processes of the

Authority in implementing agreed policies and

strategies across the activities of the Authority are

adequate, effective and functioning;

(b) determine the remit and role of the

Internal Audit Unit;

(c)

evaluate the performance of the Internal

Audit Unit established under article 12B;

(d) determine the remit and role of the Risk

Management Unit and evaluate its performance;

(e)

carry out such other functions as may

be assigned to it by the Board of Governors.

(2) In carrying out its functions the Audit and

Risk Committee shall have all powers necessary to

enable it to perform its functions properly, and the

provisions of article 12B(4) and (5) shall, mutatis

mutandis, apply to the Committee.

(3) In carrying out its functions under sub-article

(1)(b) and (d) the Audit and Risk Committee shall

consult the Chief Executive Officer regarding new tasks

and the processes applied throughout the activities of the

Authority to ensure full coverage of the activities of the

Authority by the Internal Audit Unit and the Risk

Management Unit. In so far as its functions under sub-

article (1)(c) are concerned, the Audit and Risk

Committee shall take into consideration the internal audit

plan and any audit quality assurance assessment reports.

(4) The Audit and Risk Committee shall be

composed of

(a)

two (2) co-chairpersons and another

person appointed by the Board of Governors from

amongst its members; and

(b) one (1) person who has relevant

expertise and experience, appointed by the Board

of Governors.

(5) The co-chairpersons and members shall be

appointed for such term, being a period of not more than

three (3) years, as may be specified in the letter of

appointment. They shall be eligible for reappointment

and shall receive such remuneration as the Board of

Governors may from time to time, determine.

(6) One of the co-chairpersons shall, in so far as

possible, chair meetings of the Committee on internal

audit matters while the other co-chairperson shall, in so

far as possible, chair meetings of the Committee on risk

matters.

(7) The Authority shall consult the Audit and

Risk Committee before appointing the most senior

officer or officers within the Internal Audit Unit and the

Risk Management Unit.

(8) The Audit and Risk Committee shall submit to

the Board of Governors an annual audit plan which shall

be approved by the said Board.

(9) The Audit and Risk Committee shall report to

the Board of Governors on the progress made in its area

of competence and on the progress made by the Internal

Audit Unit and the Risk Management Unit.

(10) The members of the Audit and Risk

Committee shall act in their personal capacity and in

their individual judgement, and the Committee shall be

independent of the Board of Governors.

(11) The Audit and Risk Committee shall designate

one (1) of the officers of the Authority as its Secretary

for such period and under such terms and conditions as

the Chief Executive Officer shall deem appropriate.

(12) The Audit and Risk Committee shall regulate

its own procedure.

(13) The provisions of article 6(6)(a), (b), (d) and

(e) shall apply, mutatis mutandis, as far as applicable, to

the office of the co-chairpersons and the members of the

Committee with the substitution of "Audit and Risk

Committee" for "Board of Governors", and "Board of

Governors" for "Prime Minister".".

Article 12B of the principal Act shall be amended as

(a)

in sub-article (1) thereof the words "risk

management processes of the Authority." shall be substituted by

the words "risk management processes of the Authority and to

conduct internal investigations into any failure to comply

therewith or with other policies, processes and procedures of the

Authority as may be directed by the Board of Governors or the

Audit and Risk Committee or the Chief Executive Officer." and

the words "Audit Committee" shall be substituted by the words

"Audit and Risk Committee";

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

Unit," shall be substituted by the words "Head of the Unit,";

(c)

in sub-article (4) thereof the words "may audit all

parts of the Authority," shall be substituted by the words "may

audit and investigate all parts of the Authority," and the words

"performance of an audit." shall be substituted by the words

"performance of an audit or investigation.";

(d) in sub-article (6) thereof for the words "Audit

Committee" there shall be substituted the words "Audit and

Risk Committee".

Article 13 of the principal Act shall be substituted by the Substitution of

article 13 of the

following new article

principal Act.

" Officers and

13. (1) The Authority may appoint Deputy Chief

employees of

Executive Officers, Chief Officers, Heads, Deputy Heads

the Authority.

and such other officers and employees as it may consider

necessary for the efficient discharge of its functions,

powers and duties under this Act or any other law. The

selection and appointment of the Deputy Chief Executive

Officers shall be made by the Chief Executive Officer in

consultation with the Board of Governors. The other

officers and employees of the Authority shall be selected

and appointed by the Chief Executive Officer according

to the procedures and on such terms and conditions as the

Board of Governors may establish

Provided that the officers and employees of the

Authority shall be appointed on the basis of published

criteria that are objective and transparent and shall, at all

times, be persons of integrity and good conduct.

(2) The Authority shall put in place policies,

rules, prohibitions and arrangements to prevent conflicts

of interest of members of staff in accordance with

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. Such

policies, rules, prohibitions and arrangements shall as a

minimum apply to conflicts that may arise through

(a)

trading in certain financial instruments;

and

(b) being employed by, or accepting any

kind of contract for the provision of professional

services during an established period of time with

such entities as shall be identified in policies, rules,

prohibitions and arrangements put in place by the

Authority.

(3) The policies, rules, prohibitions and

arrangements put in place by the Authority

(a)

shall be proportionate to the role and

responsibilities of the members of staff and shall

apply in such circumstances, provide for such terms

and conditions, and apply for such period of time as

may be reasonably necessary to prevent conflict of

interest by employees and former employees;

(b) shall require members of staff to

provide the Authority with a declaration of interest

on any of their financial holdings that may raise

conflict of interest concerns and to dispose thereof

or otherwise, as may be prescribed;

(c)

may

provide

for

exceptions,

exemptions, derogations and compensation as may

be allowed under the Directive mentioned in sub-

article (2);

(d) shall not constitute a breach of workers’

rights as established in Maltese law or a breach of

any fundamental right recognised in the

Constitution of Malta or the Charter of

Fundamental Rights of the European Union; and

(e)

shall not unduly restrict the ability of

the Authority to exercise its supervisory functions.

(4) For the purposes of the Criminal Code and of

any provision of a criminal nature in any other law, the

members of the Authority, and every officer or employee

thereof, shall be deemed to be public officers.".

Article 14 of the principal Act shall be amended as Amendment of

(a)

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

following new sub-article

" Publication and

14. (1) The Authority shall arrange for the

dissemination of

dissemination and publication in such form and manner

as it considers appropriate of such information,

regulatory measures and advice, as it may consider

expedient to give the public, about matters relating to

the exercise of its functions under this Act or any other

enactment.";

(b) in sub-article (2) thereof the words "information or

advice" shall be substituted by the words "information,

regulatory measures or advice".

Immediately after article 15 of the principal Act there shall Addition of new

be added the following new article

15A. (1) The Authority may, in its discretion, at any

time in the course of an investigation or other action

conducted by the Enforcement Directorate, propose or

agree to a request, to enter into a settlement agreement

with a licence or authorisation holder or a person subject

to the enforcement action, in respect of any

contravention, breach or failure to comply with any

provision of this Act, or any other Act administered by

the Authority, any regulations or rules issued thereunder,

any conditions imposed in a licence or authorisation

issued by the Authority, any directives issued by the

Authority, or any European Union law, as applicable.

(2) The Authority shall not enter into a settlement

agreement in cases where

(a)

the contravention, breach or failure to

comply relates to

(i) the conduct of unauthorised

financial services activity;

(ii) a criminal offence other than an

offence under this Act or any other Act

administered by the Authority; or

(iii) serious, repeated and systematic

breaches of the anti-money laundering and

funding of terrorism laws and regulations;

(b) the contravention, breach or failure to

comply is such that it could undermine the

integrity and, or public confidence in, or otherwise

have an adverse impact on, the financial sector or

on the reputation of Malta, or is of such a nature

that it would not be in the public interest to enter

into a settlement agreement;

(c)

following an assessment carried out by

the Authority, the individual subject to

enforcement action is deemed to no longer satisfy

the criteria to be regarded fit and proper to carry

out a senior position within a licensed entity;

(d) ongoing settlement discussions are

interrupted due to lack of interest or lack of

cooperation by the licence or authorisation holder

or the person subject to the enforcement action;

(e)

a minimum of two (2) years has not yet

elapsed from the previous execution of a

settlement agreement with the same licence or

authorisation holder or person

Provided that the Authority may, on a case by

case basis, consider entering into a settlement

agreement with the same licence or authorisation

holder or person within two (2) years from the

execution of a previous settlement agreement, after

considering the materiality or otherwise of the

breaches in respect of which the first settlement

agreement was entered into and the materiality or

otherwise of the breaches in respect of which it is

proposed to enter into a second settlement

agreement

Provided further that no more than two (2)

settlement agreements shall be entered into by the

Authority with the same licence or authorisation

holder or person involved during a period of two

(2) years;

(f)

the licence or authorisation holder or

the person subject to the enforcement action has

once again, in a serious, repeated and systematic

manner, committed the same contravention, breach

or failure, in respect of which a settlement

agreement had previously been entered into; and

(g) a final decision has already been taken

on the matter by the Enforcement Decisions

Committee

Provided that the Authority may

exceptionally consider entering into a settlement

agreement after a final decision has been taken by

the Enforcement Decisions Committee, on a case

by case basis.

(3) A settlement agreement shall be approved by

the Enforcement Decisions Committee. The agreement

shall be in writing and shall be binding on the Authority

and the licence or authorisation holder or person

involved. It shall establish the terms and conditions of

the agreement and shall include

(a)

a description of the contraventions,

breaches or failures committed, and their

acceptance by the licence or authorisation holder

or person involved;

(b) the specific regulatory action and, or

measures agreed to be imposed by the Authority

and the actions agreed to be undertaken by the

licence or authorisation holder or person involved

to remedy the contraventions, breaches or failures

committed and to ensure compliance with the

applicable legal and regulatory frameworks within

such timeframes as shall be established by the

Authority;

(c)

the amount of the administrative

penalty, if any, applicable to the breaches, and the

amount of the administrative penalty as may be

reduced in terms of the agreement and the terms

and conditions for the payment thereof; and

(d) a waiver by the licence or authorisation

holder or person involved of any right to appeal or

to otherwise challenge any administrative penalty

imposed, and the findings and measures agreed

with the Authority.

(4) Where a settlement agreement is not entered

into due to lack of interest or lack of cooperation by the

licence or authorisation holder or the person subject to

the enforcement action, or within such time as may be

determined by the Authority, the Authority shall proceed

with the imposition of the administrative penalty in the

full amount it was intent on imposing and such other

measures as it is empowered by law to impose and as it

may deem necessary.

(5) Where a licence or authorisation holder or the

person subject to the enforcement action fails without

reasonable justification to pay the reduced

administrative penalty, if any, within such time as

established in the settlement agreement and, or to

comply with the terms of the agreement

(a)

the licence or authorisation holder or

the person involved shall forfeit any concession or

other benefit arising from the agreement, including

the reduction in the administrative penalty, if any,

and the full unreduced penalty shall become due

and payable to the Authority;

(b) the Authority shall, by notice in

writing, require the licence or authorisation holder

or the person involved to pay the amount of the full

unreduced administrative penalty, if any, due to the

Authority and, or to comply with the specific

regulatory actions and, or measures imposed by the

Authority in the settlement agreement and, or the

actions agreed to be undertaken by the licence or

authorisation holder or the person involved to

remedy the contraventions, breaches and, or

failures committed and to ensure compliance with

the applicable legal and regulatory frameworks

within such timeframes as shall be established by

the Authority; and

(c)

the Authority may, by notice in writing,

take such other regulatory actions or measures as

the Authority is by this Act or any other Act

empowered to take, and as may be deemed

necessary in the circumstances, including issuing

directives in writing requiring the licence or

authorisation holder or the person involved to do or

to refrain from doing any act, including such

prohibitions, restrictions and limitations under

such conditions as may be specified in the

directives.

(6) Without prejudice to the provisions of sub-

article (5), where a licence or authorisation holder or the

person subject to the enforcement action fails to comply

with the terms of the settlement agreement, the

Authority may institute an action before the Civil Court

First Hall to recover from the licence or authorisation

holder or the person involved any administrative penalty

due and payable, and to enforce compliance with the

terms of the agreement.

(7) The Authority shall establish policies, rules

and procedures in relation to settlement agreements,

including policies on the reduction of administrative

penalties and on the information to be published upon

execution of the settlement agreement. Such policies and

rules shall be approved by the Board of Governors and

shall be made public.

(8) The provisions of this article shall be without

prejudice to any other powers that may be exercised by

the Authority in terms of this Act or any other law.".

Article 16 of the principal Act shall be substituted by the Substitution of

following new article

16. (1) In the exercise of its functions under

this Act or any other law or any regulations or rules

made thereunder, and without prejudice to any other

right or power under this or any other law or any

regulations made thereunder, the Authority shall have

the rights and powers provided in this article.

(2) (a)

The Authority shall have the power

and right to

(i) reasonable access and entry to

any business premises and, or offices of a

licence or authorisation holder;

(ii) access and process any relevant

information, documentation, data and, or

records in whatever form held by a licence or

authorisation holder or by any other person,

including any person with whom the licence

or authorisation holder may have or may have

had any outsourcing arrangement for the

retention of data, where the Authority has

reasonable cause to believe that such person

is in possession of relevant information,

documentation, data and, or records. The

power and right of access and processing in

accordance with this sub-paragraph shall

include access to data on customers’ assets

and financial transactions, telephonic or other

communication records, and access to any

other information relating or pertaining to the

activities licensed or authorised by the

Authority or otherwise falling under its

supervisory or regulatory functions

Provided that where a licence or

authorisation holder outsources the retention

of data to a third party, such licence or

authorisation holder shall irrevocably

authorise the Authority in writing to access

any such data held by such third party as it

may deem necessary for the exercise of its

regulatory functions;

(iii) request from a licence or

authorisation holder or from any other

person, including any person with whom the

licence or authorisation holder may have or

may have had any outsourcing arrangement

for the retention of data, such information and

data relating or pertaining to the activities

licensed or authorised by the Authority, as the

Authority may deem necessary for the

purpose of the exercise of its functions under

this or any other law. Upon a written request

by the Authority, a licence or authorisation

holder or such other person shall promptly

provide the Authority with any information

and data that it may request.

(b) Licence or authorisation holders shall

have a duty to keep all information,

documentation, data and, or records in a safe place

and in a secure manner and shall ensure that all

information, documentation, data and, or records,

wherever and howsoever kept, are accessible by

the Authority at all times and without delay.

(c)

Any person submitting information and

data to the Authority shall have a duty to ensure

that such information and data is correct and up to

date, and shall submit such information and data

within such time or date, and in such form and

format, in such manner and by such means or

method, including in electronic format by

electronic transmission and through such

electronic system and, or portal, accompanied

where required, by a qualified electronic signature,

as may be specified and required by the Authority.

(d) In this sub-article "licence or authorisation

holder" shall include a person who has formerly held a

licence or authorisation, and the employees and officials

of such licence or authorisation holder.

(3) (a)

The right of the Authority to obtain

information and data from a licence or

authorisation holder, or from any of the officials or

employees of such holder, or from any other

person, shall not be restricted, obstructed or

precluded in any manner. Any gagging or similar

confidentiality obligation or other restrictive

condition arising from the legal or contractual

relationship between a licence or authorisation

holder and his officials or employees or any other

person, shall, in so far as it is contrary to these

provisions and impedes or restricts the right of the

Authority to receive information and data required

in the pursuance of its regulatory functions and

duties arising under this or any other Act, be null

and void.

(b) A licence or authorisation holder, or

any of the officials or employees of such holder, or

any other person, may not raise any contractual

gagging restriction or similar prohibition or other

confidentiality obligation arising or alleged to

arise under contract law or otherwise refuse to

comply with a request for information and data

from the Authority, and no action for breach of

contract and no disciplinary measure may be

taken, directly or indirectly, by a licence or

authorisation holder against any of its officials or

employees or any other person for providing the

Authority with any information and data required

by the Authority.

(c)

For the purposes of this sub-article

(i) "information and data" shall

include explanations and other forms of

assistance; and

(ii) "employees" and "officials"

shall include former employees and officials.

(4) Any person or entity holding a licence or any

other form of authorisation granted by the Authority to

provide any form of financial service falling under the

regulatory and supervisory functions of the Authority,

and the directors and managers, by whatever name

designated, or any other persons who are or have been in

charge of the operations or activities of any entity as

aforesaid, or any person who is carrying out or has

carried out a financial service without the required

licence or authorisation shall, for the purpose of

safeguarding the public interest in the effective

regulation of financial services, have a duty to assist and

collaborate with the Authority in order to enable it to

discharge its regulatory functions including to supervise

compliance with the applicable licence, authorisation or

approval conditions and regulatory requirements.

(5) In the exercise of its functions under this Act

or any other law, the Authority may

(a)

take all manner of regulatory decisions

and measures as the Authority is by this or any

other Act or regulations empowered to take, as it

may deem necessary and appropriate, for the

purpose of safeguarding, ensuring or restoring, or

enforcing

compliance

with

regulatory

requirements and, or to safeguard the interests of

consumers of financial services, investors and, or

the integrity of the financial system and the capital

markets;

(b) issue a directive in writing requiring a

person to do or to refrain from doing any act,

including prohibitions, restrictions and limitation

of business activities, subject to such conditions as

may be specified in the directive; and any person

to whom or to which the directive is given shall

obey, comply with and otherwise give effect to any

such directive within the time and in the manner

stated in the directive; and

(c)

cancel, suspend, modify or restrict a

financial services licence or any other

authorisation granted by the Authority.

(6) Without prejudice to the powers conferred to

the Authority under this Act or any other law, in the

exercise of its functions and whenever deemed

necessary or expedient, the Authority may appoint any

of the following to assist it in the fulfilment of any of its

functions and, or to carry out such tasks as the Authority

may determine, under such terms and conditions as the

Authority may direct

(a)

a qualified person, to serve various

purposes, including

(i) conducting analyses on specific

areas of concern;

(ii) assessing risks from unexpected

events requiring immediate action;

(iii) gathering information on trends

and risks;

(iv) implementing remedial actions

following compliance reviews;

(v) undertaking

preventive

measures to reduce risks, and

(vi) assessing

proposals

for

significant changes in a firm’s business

model or governance

Provided that the Authority may also

require a qualified person to be appointed by a

licence holder or other person;

(b) a skilled person who in the opinion of

the Authority possesses the expertise necessary to

provide the assistance required by the Authority.

Where a skilled person is appointed in terms of

this sub-article, the following provisions shall

apply

(i) the person in relation to whom

the skilled person is appointed shall co-

operate with the skilled person and provide

any information and documentation, as may

be required, by such skilled person in the

fulfilment of his appointment;

(ii) the Authority may require the

skilled person, inter alia, to provide it with a

report relating to the assistance provided to

the Authority in terms of his appointment;

and

(iii) a report drawn up by the skilled

person in terms of sub-paragraph (ii) and

endorsed by the Authority in writing shall for

all purposes have the same effect as a

document drawn up by the Authority

Provided that where a skilled

person is appointed to draw up an

independent report, this provision shall not

apply with respect to such independent

report;

(c)

a

competent

person,

or

an

administrator, special administrator or temporary

administrator, or an inspector as may be required

under any law administered by the Authority;

(d) such other person who in the opinion

of the Authority possesses the expertise required to

assist the Authority in the performance of its

regulatory functions and to carry out such tasks as

the Authority may direct.

(7) (a)

The Authority may, for the purpose of

making the appointments in terms of sub-article

(6), issue rules or guidelines outlining procedures

and requirements, including the powers, duties,

and obligations of the appointee.

(b) All fees and expenses related to such

appointments, including fees charged by the

appointee, shall be paid by the individual or entity

for whom the appointment is made, unless

otherwise determined by the Authority.

(c)

For the better carrying out of its

functions under this Act or any other law, and to

ensure that the Authority is able to make the

appointments mentioned in sub-article (6) in a

timely and effective manner, the Authority shall,

for the purpose of making such appointments, be

exempt from the provisions of any rules and

regulations on the public procurement of services

as may be in force from time to time.

(8) In the exercise of its functions and powers

under this or any other law, for the purpose of

safeguarding, preserving and preventing the dissipation

of funds and other assets, in the interests of consumers

of financial services and investors, the Authority shall

have the right to issue orders for the freezing of funds

and, or other assets including bank accounts in the name

of the licence or authorisation holder or any other third

party as may be indicated for such time and under such

conditions as the Authority may establish in writing.

The order may also prohibit a licence or authorisation

holder or such other third party from transferring,

disposing or losing possession of any such funds or

assets. The Authority may communicate such orders to a

foreign enforcement or supervisory authority and

request assistance for the execution of such orders

outside of Malta. Such orders may also be issued at the

request of a foreign enforcement or supervisory

authority. The Authority may exercise the powers in

accordance with this sub-article notwithstanding the

provisions of articles 17A and 17B and any provision as

may be contained in any other law.

(9) (a) (i) Where it has been determined by a

relevant regulatory, supervisory, intelligence,

law enforcement and, or judicial authority

that a holder of a licence or other

authorisation has committed a serious,

repeated or systematic breach of the

Prevention of Money Laundering Act, any

regulations made thereunder, or any

procedures or guidance issued in terms of the

said Act or any such regulations, or any EU

anti-money laundering and counter funding

of terrorism legislation or other enforceable

rules or technical standards, without

prejudice to the functions and powers of such

other relevant regulatory, supervisory,

intelligence, law enforcement, or judicial

authority, the Authority may on the basis of

such determination immediately proceed to

take such regulatory action and measures in

respect of the said licence or authorisation

holder in accordance with its powers under

this Act, as it may deem necessary under the

circumstances.

(ii) Where on the basis of

information received from a regulatory,

supervisory, intelligence, law enforcement

and, or judicial authority, the Authority has

reasonable cause to believe or suspect that a

holder of a licence or other authorisation may

be or may have acted in breach of the Act, the

regulations made thereunder, procedures,

guidance issued in accordance with the said

Act or EU legislation, rules or technical

standards referred to in paragraph (a)(i),

without prejudice to the functions and powers

of any other competent regulatory,

supervisory, intelligence, law enforcement, or

judicial authority, the Authority may take

such action and measures in respect of the

said licence or authorisation holder in

accordance with its powers under this Act or

any other law, as it may deem necessary

under the circumstances, for the purpose of

ensuring compliance with licence or

authorisation conditions and prudential

regulatory requirements and, or to safeguard

the interests of consumers of financial

services, investors and, or the integrity of the

financial system and capital markets.

(b) Where an individual, holding a

position which requires the Authority’s approval,

has caused or contributed to a breach as is

mentioned in paragraph (a)(i), the Authority may,

without prejudice to any other power or function

conferred to it under this Act or any other law,

issue a directive prohibiting, temporarily or

otherwise, or suspending, such individual from

exercising any such functions and duties in

connection with their position as mentioned under

this paragraph as may be determined by the

Authority, with the same licence or authorisation

holder mentioned in paragraph (a)(i), or with any

other holder of a licence or other authorisation

issued by the Authority, or with any person

otherwise falling under the Authority’s

supervisory or regulatory functions.

(10) In the exercise of its functions and powers

under this or any other law, the Authority may request

and may be assisted by local or foreign law enforcement

authorities, intelligence agencies or authorities,

regulators and, or supranational authorities.

(11) The Authority may, for the better carrying out

of the provisions of this Act or any other Act

administered by it, or any other function as may be

assigned to it from time to time, issue and publish rules

regulating the procedures and duties of persons licensed

or authorised by it or falling under its regulatory or

supervisory functions. Such rules may

(a)

stipulate additional requirements and

conditions in relation to activities of such persons,

the conduct of their business, their relations with

customers, the public and other parties, their

responsibilities to the Authority, reporting

requirements,

financial

resources,

capital

adequacy and related requirements, and any other

matters as the Authority may consider appropriate;

(b) provide for the returns, statements and

notices to be made or given for any purposes in

regard to which the Authority exercises

supervisory or regulatory functions, or any other

function as may be assigned to it, under this Act or

any other Act, and the form and contents thereof;

and

(c)

prescribe the information that such

persons are to submit to the Authority

Provided that such rules shall be binding on

all licence and authorisation holders and other persons

as may be specified therein.

(12) (a)

Without prejudice to any other powers

that may be exercised by the Authority in terms of

this Act or of any other law, where the Authority

determines that any person has breached or failed

to comply with any provision of this Act or any

other Act administered by the Authority, or with

any regulations or rules issued thereunder, or with

any of the provisions of Regulation (EU) 2019/

2088 of the European Parliament and of the

Council

of

November

on

sustainability‐related disclosures in the financial

services sector, or with any of the provisions of

Articles 5, 6 or 7 of the Regulation (EU) 2020/852

of the European Parliament and of the Council of

18 June 2020 on the establishment of a framework

to facilitate sustainable investment, and amending

Regulation (EU) 2019/2088, or with any of the

conditions imposed in a licence or authorisation

issued by the Authority or with any directives

issued by the Authority, the Authority may by

notice in writing impose an administrative penalty

which may not exceed one hundred and fifty

thousand euro (€150,000) in respect of each

individual breach, infringement or failure to

comply, as the case may be. The Authority shall

ensure that administrative penalties imposed in

accordance with this sub-article are effective,

dissuasive and proportionate.

(b) Where circumstances so warrant, the

Authority may issue reprimands or warnings or

take other regulatory or corrective measures as

may be deemed warranted by the circumstances

and the nature and seriousness of the breach and

wrongdoing.

(c)

Where a notice as referred to in

paragraph (a) has not been appealed, or where such

notice has been appealed, within fifteen (15) days

of the determination by the Financial Services

Tribunal of such appeal, the administrative penalty

as contained in the notice or as reduced or

increased by the decision of the Tribunal shall be

due to the Authority. Upon the service of a copy of

the notice or the decision, as the case may be, by

means of a judicial act on the person indicated in

the notice or decision, the said notice or decision

shall constitute an executive title for all effects and

purposes of Title VII of Part I of Book Second of

the Code of Organization and Civil Procedure.

(13) (a)

Any enforcement decision or measure

of whatever type, including reprimands or

warnings, imposed by the Authority, in accordance

with any law for whose administration the

Authority is responsible, shall be published in such

medium and in such manner and for such duration

as may be deemed warranted by the circumstances

and the nature and seriousness of the breach or

wrongdoing. The Board of Governors may from

time to time establish policies and guidelines

regarding the publication of decisions, measures,

sanctions and administrative penalties.

(b) Such

publication

shall

include

information on the type and nature of the breach, if

any, and the reason for the imposition of the

decision, measure, sanction or administrative

penalty, and the identity of the person on whom the

decision, measure, sanction or administrative

penalty is imposed. The publication shall be made

without undue delay after such person is informed

of the decision, measure, sanction or

administrative penalty

Provided that in cases where an appeal

has been filed by the person on whom such

decision, measure, sanction or administrative

penalty has been imposed, the Authority shall,

without undue delay, also publish information on

the status of the appeal and the outcome thereof.

(c)

Notwithstanding the provisions of

paragraph (b), the Authority may publish

information on an anonymous basis, in any of the

following circumstances

(i) where the administrative penalty

imposed does not exceed an amount as may

be established in policies established by the

Board of Governors;

(ii) where

publication

would

jeopardise the stability of financial markets or

on-going

supervision,

or

criminal

investigations;

(iii) where publication would cause,

insofar

as

may

be

determined,

disproportionate damage to the person or

entity involved

Provided that publication on an

anonymous basis shall be an exceptional measure

which must be justified, and shall be approved by

the Enforcement Decisions Committee in

accordance with the Authority’s publication

policies

Provided

further

that

in

the

circumstances referred to in sub-paragraphs (ii)

and (iii), the Authority may postpone publication

for such period of time until such circumstances

cease and, in the circumstances referred to in sub-

paragraph (ii), if such circumstances so warrant,

the Authority may decide not to publish any

information.

(d) This sub-article shall be without

prejudice to any provision on the publication or

otherwise of any enforcement decision or measure

which may be provided for in any other Act

administered by the Authority or in any

regulations made thereunder, or in European

Union legislation.

(14) In the exercise of its functions in accordance

with this or any other law, the Authority may use and

apply any of its powers and rights under this article to

persons or entities whose licence or authorisation has

been suspended or cancelled or voluntarily surrendered

to the Authority, until such time as there are no

outstanding regulatory matters and the legitimate rights

of interested consumers have been fulfilled.".

Immediately after article 16A of the principal Act there

shall be added the following new articles

16B. Any person who through a wilful act or

omission obstructs the Authority in the performance of

its functions in accordance with this Act or any other

Act shall, without prejudice to any liability under any

other law, be guilty of an offence against this Act and

shall be liable on conviction to a fine (multa) not

exceeding fifty thousand euro (€50,000).

16C. (1) (a) Any processing of personal data

conducted by the Authority shall fully comply with the

provisions of the GDPR and the Data Protection Act,

including the regulations made thereunder.

(b) The Authority shall collect, retain and

process personal data as necessary and required for

the purpose of the performance of all its functions

and, or the exercise of any of its powers under this

Act, including the regulations made thereunder, or

any other law and shall store and process such data

by any means, including electronic means and

systems.

(2) The Authority may process personal data for

a purpose other than that for which it was collected

where such other purpose is compatible, in accordance

with Article 6(4) of the GDPR, with the original purpose

for which the personal data was collected, including

where such other processing is necessary and

proportionate for the performance of any of its

regulatory functions, for the prevention, detection or

investigation of breaches of regulatory requirements, or

for the exercise of any other legal obligation or function

in the public interest as assigned to the Authority by law.

(3) (a)

The Authority may process personal

data for such period of time and in accordance with

such policies as may be established by the

Authority for this purpose.

(b) Without prejudice to any time limits

provided for by any law for storing or erasing data,

the Authority shall establish appropriate time

limits for the erasure of personal data or for a

periodic review of the need for the storage of

personal data.

(c)

In establishing appropriate time limits

for the storage and erasure of personal data, the

Authority shall take into consideration its

regulatory obligations and the purpose for which

the data has been collected; and where personal

data has been collected for the purpose of a licence

or authorisation issued by the Authority, it shall be

considered necessary to retain and process such

data throughout the duration of the validity of such

licence or authorisation and for such additional

period as may be required by law or necessary to

address audit, regulatory, supervisory or legal

obligations directly related to such licence or

authorisation, after which the data shall be securely

erased or anonymised.

(4) Without prejudice to sub-articles (5) to (8),

the Authority may restrict the rights and obligations

established in Articles 12 to 22 and Article 34 of the

GDPR, as well as Article 5 of the GDPR in so far as its

provisions correspond to the rights and obligations

provided for in Articles 12 to 22 of the GDPR, where

such restriction is necessary and proportionate to

safeguard against

(a)

any hindrance to the Authority in the

performance of its functions and, or the exercise of

its powers at law, including the enforcement of

laws regulating financial services and the

prevention, detection and investigation of any

breach of such law;

(b) any hindrance to any process,

procedure, investigation, inquiry, assessment,

scheme, application or settlement being

undertaken by the Authority in the performance of

its functions and, or the exercise of its powers at

law;

(c)

any hindrance to the achievement by

the Authority of a regulatory objective which is in

the public interest;

(d) any hindrance to the imposition or

recovery of any administrative penalties, fees or

charges due to the Authority in accordance with

the provisions of this Act or any other applicable

law;

(e)

the unlawful disclosure of any

information that has been acquired by the

Authority in the discharge of its functions; or

(f)

any hindrance or prejudice with respect

to the establishment, exercise or defence of a legal

claim and, or legal proceedings, including any

anticipated legal claim or proceedings, to which a

data subject is or may be a party, and which are or

may be instituted under any law, whether before

any competent court, tribunal or body having

judicial or quasi-judicial powers

Provided that where the Authority

anticipates a legal claim and, or legal proceedings,

the Authority shall be responsible for, and be able

to demonstrate that based on factual and specific

circumstances, such legal claim and, or legal

proceedings are reasonably likely to arise

Provided further that before applying

any restriction, the Authority shall conduct a

necessity and proportionate assessment and shall

be able to demonstrate that the application of the

restriction is necessary and proportionate.

(5) The data protection officer appointed by the

Authority shall be duly consulted and in a timely

manner, with respect to any such restriction as referred

to in sub-article (4), both prior to and throughout the

duration of such restriction.

(6) Where a restriction as referred to in sub-

article (4) applies, the Authority shall notify the data

subject in writing of the rights and obligations being

restricted, the reasons for such restriction, and his right

to submit a data protection complaint with the IDPC

Provided that the provisions of this sub-

article shall not apply where such notification would

prejudice the safeguarding of the relevant objective

established in sub-article (3).

(7) The Authority shall periodically review the

decision applying a restriction as referred to in sub-

article (4) and assess the necessity and proportionality

thereof to ensure that the justification for the restriction

is still valid

Provided that where the reason for the

restriction no longer applies, the Authority shall lift the

restriction without undue delay.

(8) The Authority shall keep a record of any such

restriction as referred to in sub-article (4) and the

reasons for such restriction and it shall, whenever so

required by the IDPC, furnish the said IDPC with a copy

of such record.

(9) Words and expressions used in this article

which are also used in the GDPR, but which are not

defined in this Act, shall have the same meaning as in

the GDPR.

(10) For the purposes of this article

(a)

"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 may be amended

from time to time, and includes any implementing

measures that may have been or may be issued

thereunder;

(b) "IDPC" means the Information and Data

Protection Commissioner and shall have the same

meaning as that assigned to "Commissioner" in

accordance with the Data Protection Act;

(c)

"processing" shall have the same

meaning as that assigned to it in accordance with

Article 4(1) of the GDPR.".

Article 17 of the principal Act shall be amended as Amendment of

(a)

the marginal note thereof shall be substituted by the

following new marginal note

"Disclosure and exchange of information.";

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

following new sub-article

"(1) Other than for the proper discharge of their

duties or functions under this or any other Act, or as may

be otherwise provided in any other law, the members of the

Board of Governors or of any other organ of the Authority,

and the officers and employees of the Authority, and any

agent, expert or other person appointed by the Authority to

assist it in the exercise of its regulatory function, and the

officers and employees thereof, shall treat any information

acquired in the discharge of their duties as confidential and

shall not, directly or indirectly, disclose such information

to any other person, except with the consent of the person

who had divulged the information. For the purposes of this

sub-article "employees" and "officers" shall also include

former employees and officers.";

(c)

immediately after sub-article (1) thereof, as

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

"(1a) Any officer or employee of the Authority, or

an agent, expert or other person appointed by the Authority

to assist it in the exercise of its regulatory function, or any

officer or employee thereof, whether still in the service of

the Authority or otherwise who, in any circumstance

discloses to a third party any information or documents

acquired in the performance of his duties, the exercise of

his functions, or any information or document relating to

the affairs of the Authority, other than as provided in this

article, shall be guilty of an offence and shall be liable on

conviction to a fine (multa) not exceeding fifty thousand

euro (€50,000), or to imprisonment for a term not

exceeding two (2) years, or to both such fine and

imprisonment.";

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

(i) in paragraph (a) thereof the words "and the

registration of commercial partnerships" shall be deleted;

(ii) in paragraph (b) thereof the words "local or

overseas enforcement or regulatory authorities," shall be

substituted by the words "local or overseas law

enforcement, intelligence, prosecutorial, judicial or

regulatory authorities," and the words "comprising such

local or overseas enforcement or regulatory authorities,"

shall be substituted by the words "comprising such local or

overseas authorities,";

(iii) in paragraph (c) thereof the words

"regulatory, supervisory, judicial, registration or licensing

function" shall be substituted by the words "regulatory,

supervisory, registration or licensing function";

(iv) in the proviso thereof the words "with the

Authority." shall be substituted by the words "with the

Authority:" and immediately thereafter there shall be

added the following new proviso

"Provided further that any request for

disclosure of information shall be accompanied by

a formal and clear justification, outlining the

purpose of the request and demonstrating its

relevance and necessity in relation to a particular

matter or transaction. Requests should be limited to

specific details necessary to fulfil the stated

purpose and the requesting party shall precisely

identify the information sought. Information shall

only be provided once the justification and

specificity are deemed satisfactory in accordance

with applicable legal standards and organizational

policies.";

(e)

immediately after sub-article (2) thereof, as

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

"(2a) Without prejudice to the provisions of sub-

articles (2b) and (4), the Authority may provide and

disclose regulatory information and documentation

acquired in the exercise of its functions to a court or

tribunal in the course of judicial proceedings.

(2b) Notwithstanding the provisions of any other

(a) the Authority shall not be obliged to

provide or disclose any information or document

requested by any court or tribunal, authority, body,

entity or person where the Authority has reasonable

grounds to believe that the provision or disclosure

of the information or document requested may

prejudice, undermine or impede any regulatory,

supervisory or enforcement action being carried out

or which the Authority intends to carry out

Provided that the reasons for any refusal

to provide or disclose any information or document

under this sub-article shall be clearly explained to

the court, tribunal, authority, body, entity or person

requesting the information

Provided further that where the request

to provide or disclose information or documents is

made by a court or tribunal and the court or tribunal

are not satisfied with the reasons provided by the

Authority, the court or tribunal may nevertheless

order the giving of evidence and, or the submission

of such information or document in camera;

(b) the Authority shall not be obliged and

shall not provide or disclose to a court, tribunal,

authority, body, entity or person, any information or

document that has been obtained by or provided to

the Authority by way of or in the form of

intelligence, or which was otherwise classified as

secret when obtained or provided to the Authority,

without the prior written authorisation to do so

from the provider of such information or document

Provided that any provision or

disclosure of any information or document as

aforesaid shall be subject to, and shall be received

and retained under absolute confidentiality and

secrecy, and shall not be disclosed by the recipient

to any other third party

Provided further that where such

information or document is provided or disclosed

to a court or tribunal, the giving of evidence and the

submission of such information or document shall be

carried out in camera

Provided further that where upon a

request by the Authority the court is satisfied that

the disclosure of any information or document as

aforesaid may prejudice national interest or

security, public interest, or international relations,

the court may order that such information or

document shall not be disclosed;

(c) the Authority shall not be obliged by a

court or tribunal, in civil proceedings to which it is

not a party, to provide any confidential information

or document to any person claiming to have a

legitimate interest therein or any other pretended

right thereto where the court or tribunal is satisfied

that the disclosure and, or provision of such

information or document are regulated by specific

laws, rules or regulations that establish who shall

be entitled, the conditions to be satisfied and the

procedures applicable, to obtain such information

or document;

(d) for the purpose of safeguarding the

confidentiality of proceedings of the Authority’s

decision-making bodies and the Authority’s

operational autonomy and independence, the

Authority shall not be obliged to provide or disclose

to a court, tribunal, authority, body, entity or person

any document, representing correspondence with

regulatory, supervisory, intelligence, enforcement

and other competent authorities, internal

communications and records of internal

deliberations or meetings.";

(f)

in sub-article (3) thereof immediately after the

words "the European Central Bank (ECB)," there shall be added

the words "the European Anti-Money Laundering Authority

(AMLA),".

Immediately after article 19 of the principal Act there shall Addition of new

articles to the

be added the following new articles

principal Act.

19A. (1) Without prejudice to the powers

conferred on the Authority under this Act or any other

law, the Authority shall, for the better performance of its

functions and to safeguard the interests of consumers of

financial services, have the power to purchase services,

under a cover identity, from any person licensed or

otherwise authorised by it, or who otherwise carries out

activities falling under the Authority’s regulatory or

supervisory functions, hereinafter referred to as "mystery

shopping".

(2) The Authority may, in accordance with its

powers at law, take any such action as it may deem

necessary, based on the findings resulting from such

mystery shopping.

(3) In the exercise of its power under sub-article

(1) the Authority shall not induce or cause any person to

commit any unlawful act or an act that would constitute a

contravention or breach of, or failure to comply with the

applicable legal and regulatory framework, which act

such person would have otherwise been unlikely or

unwilling to commit.

(4) The Authority may establish policies, rules

and procedures for the better carrying out of, and to

better implement, the provisions of this article. Such

policies and rules shall be made public.

19B. (1) Every licence or authorisation holder

shall provide the Authority with a valid email address

and physical address and shall be obliged to promptly

notify the Authority in writing of any changes thereto.

(2) A notice, document or any other form of

communication required to be delivered or given to, or

served on a licence or authorisation holder, or any other

person, by this Act or any other Act administered by the

Authority, shall be deemed to be delivered if

(a)

it has been delivered or sent by post to

the last known physical address; or

(b) it has been sent by email to the last

known email address;

irrespective of whether or not a delivery confirmation is

received by the Authority in relation to such notice,

document, or other form of communication.

(3) Without prejudice to the previous sub-articles

the Authority may implement any form of electronic

system as it may deem necessary for the better exercise

of its functions under this Act and any other law,

including for the purpose of communication, delivery

and exchange of information, documents and data

between licence or authorisation holders and the

Authority and the licence and authorisation holders shall

communicate with the Authority through such a system

as the Authority may direct.

19C. (1) Any document supplied to the

Authority, which is required to be authenticated, shall be

so authenticated either by a hand-written signature or by

a qualified electronic signature, as may be instructed by

the Authority, from time to time.

(2) For the purposes of this article "qualified

electronic signature" shall be an electronic signature as

defined in Regulation (EU) No. 910/2014 of the

European Parliament and of the Council of 23 July 2014

on electronic identification and trust services for

electronic transactions in the internal market and

repealing Directive 1999/93/EC.".

Sub-article (4) of article 20A of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof the words "for each

infringement or failure to comply" shall be substituted by the

words "in respect of each individual breach, infringement or

failure to comply";

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

following new paragraph

"(c) administrative penalties and fines higher than

one hundred and fifty thousand euro (€150,000), as may be

deemed necessary or appropriate in respect of any

contravention of or failure to comply with any EU

legislation or any regulations made under this article to

transpose or to give effect to any EU legislation.".

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

article 20D of

the principal

Act.

(a)

in sub-article (1) thereof immediately after

paragraph (c) there shall be added the following new paragraph

"(ca) to provide for, and to regulate the payment

by any person of, any such fees and charges payable to the

Resolution Authority in respect of any matter provided for,

by or under this Act or any regulations made under this

article, including the drawing up of resolution plans, as

may be prescribed;";

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

shall be substituted by the words "the Resolution Authority,".

Article 21 of the principal Act shall be substituted by the Substitution of

article 21 of the

following new article

principal Act.

21. (1) There shall be an independent tribunal to

be called the ''Financial Services Tribunal'', in this Act

also referred to as ''the Tribunal'', which shall exercise and

perform the functions and powers assigned to it by law.

(2) The Tribunal shall consist of one or more

panels, and each shall consist of a Chairperson and two (2)

other members, as may be appointed by the Minister.

(3) The Minister shall, from time to time and

according to necessity, appoint not less than two (2)

substitute members, which number shall be within the

discretion of the Minister. Any substitute members shall

satisfy the criteria established in sub-articles (4) or (5), as

applicable and shall also be subject to sub-articles (6), (7),

(8) and (9). In case of a vacancy in the composition of any

panel of the Tribunal or for the reasons contemplated in

sub-article (16) or due to indisposition of any member of

any panel, including the Chairperson, the Minister shall

appoint a substitute member in accordance with the

schedule, who satisfies the requisites of the vacancy

according to sub-articles (4) or (5), as the case may be,

and sub-article (6).

(4) The Chairperson of any panel of the Tribunal

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

amounting in the aggregate to, not less than twelve (12)

years has served as an advocate in Malta or has served as a

judge or magistrate in Malta, or partly so practised and

partly so served.

(5) Without prejudice to any other provision in any

other law related to the composition of the Tribunal or to

the qualifications of its members, the two (2) other

members of any panel of the Tribunal shall be persons

who in the opinion of the Minister possess the necessary

expertise and experience in the business or regulation of

financial services, or finance.

(6) (a)

A person shall not be eligible to be

appointed and to serve as Chairperson or member of

any panel of the Tribunal if he

(i) is the holder of a licence or other

authorisation issued by the Authority or

otherwise falls under the regulatory or

supervisory functions of the Authority, or is a

director, an officer, or an employee of such

holder of a licence or other authorisation; or

(ii) is a member of the House of

Representatives; or

(iii) is legally incapacitated or

interdicted; or

(iv) has been declared bankrupt or has

made a composition or arrangement with his

creditors; or

(v) has breached any provision made

by or under any law appearing to be drafted for

protecting members of the public against

financial loss due to dishonesty, incompetence

or malpractice concerned with regard to the

provision of financial services or in the

management of companies; or

(vi) has engaged in any business

practice which the Minister deems to be

deceitful, oppressive or otherwise improper,

whether unlawful or otherwise, or which

otherwise reflects discredit on his method of

conducting business or professional activities;

or

(vii) has engaged in or been associated

with any other business practice or activity or

otherwise conducted himself in such a manner

as to cast doubt on his competence, integrity, or

soundness of judgement; or

(viii) has been disqualified by any

professional or regulatory body; or

(ix) has a financial or other interest as

is likely to have a prejudicial effect on the

discharge of his functions; or

(x) has been found guilty or is being

charged with the commission of a "relevant

offence" as defined in the Proceeds of Crime

Act; or

(xi) for some other reason is not a fit

and proper person to hold such office.

(b) In determining whether a person is a fit

and proper person, the Minister shall have regard to

such person’s probity, his competence and soundness

of judgement for fulfilling the responsibilities of

such office, his reputation and integrity and to the

diligence with which he is likely to fulfil those

responsibilities.

(7) The Chairperson and the other members of any

panel of the Tribunal shall hold office for a term of five

(5) years and may not be removed during their term of

office other than for any of the reasons mentioned in sub-

article (6)(a)(i) to (x) or on grounds of proved inability to

perform the functions of their office whether arising from

infirmity of body or mind or any other cause, or proved

misbehaviour.

(8) The Chairperson and other members of any

panel of the Tribunal shall receive such remuneration as

may be determined in their instrument of appointment and

such remuneration shall be paid out of the Consolidated

Fund.

(9) The remuneration referred to in sub-article (8)

shall not be altered during the tenure of office of a

member by whom it is receivable, except for such changes

as may from time to time be required to preserve at all

times during the tenure of office between the proportion of

the remuneration and the salary of a judge of the superior

courts, as existed on the date of the appointment.

(10) The procedure for an appeal to the Tribunal in

accordance with the provisions of sub-articles (13) and

(14) shall be by means of written pleadings. The appeal

application shall explain clearly the grounds for the appeal

and shall be filed with the Tribunal by not later than thirty

(30) days from the date on which the notice of the decision

or act in question has been served to the aggrieved person.

The Tribunal shall serve the appeal on the competent

authority by not later than fifteen (15) days from the filing

of the appeal and the competent authority shall have thirty

(30) days from the date on which it was served with the

appeal to file its reply.

(11) The application shall include all the evidence,

including every sworn affidavit and documents that the

aggrieved party intends to submit to the Tribunal, together

with all the written pleadings in support of the appeal. The

reply by the competent authority shall similarly include all

the evidence, including every sworn affidavit, document

and written pleadings it intends to submit in its defence.

The application, reply, written pleadings, sworn affidavits,

evidence and other documents shall be filed in the registry

of the Tribunal.

(12) (a)

The Tribunal shall proceed to deal with

the appeal before it with utmost urgency and shall

appoint the appeal for hearing at an early date, which

date shall in no case be later than three (3) months

from the date of the filing of the appeal.

(b) The appeal shall be decided within

twelve (12) months from the date appointed for the

first hearing of the appeal and no adjournment

beyond the said twelve (12) months shall be granted,

except for one adjournment for an exceptional and

justified reason to be recorded by the Tribunal, and

in any case such adjournment shall be for a date not

later than three (3) months following the said twelve

(12) months.

(13) The Tribunal shall hear appeals from decisions

of the competent authority and shall have full jurisdiction

to review such decisions on points of law and fact

Provided that no appeal shall lie from any

decision imposing an administrative penalty not

exceeding one thousand euro (€1,000) and from any

reprimand or warning.

(14) The Tribunal shall also hear appeals from

decisions of the Resolution Authority and shall have full

jurisdiction to review such decisions on both points of law

and fact

Provided that with respect to an appeal from a

decision of the Resolution Authority to take a crisis

management measure, the Tribunal shall use the complex

economic assessments of the facts carried out by the

Resolution Authority as a basis for its own assessment of

such decision

Provided further that the complex nature of

such economic assessments shall not prevent the Tribunal

from examining whether the evidence relied on by the

Resolution Authority is factually accurate, reliable and

consistent, and whether such evidence contains all

relevant information which should be taken into account

in order to assess a complex situation, and whether it is

capable of substantiating the conclusions drawn

therefrom.

(15) The Tribunal shall ensure that the hearing of all

its sittings and the delivery of all its decisions are open

and accessible to the public, including by electronic or

other viable means of communication, as it deems

appropriate, unless the Tribunal, after having regard to the

exceptional nature of the matter before it, deems it fit and

proper to conduct the proceedings or any part thereof

behind closed doors and in any such case the decision of

the Tribunal shall always be delivered in public.

(16) The Chairperson or any member of any panel

of the Tribunal may be challenged or may abstain from

sitting in a case in those circumstances that would

disqualify a judge in a civil lawsuit, and in such case the

Chairperson or member shall be substituted by another

member appointed by the Minister in accordance with

sub-article (3)

Provided that for the purposes of insurance

business, such member is to be substituted by another

member appointed by the Minister, who shall have the

knowledge and experience required in accordance with

article 57(1) of the Insurance Business Act.

(17) The Tribunal shall have the power to summon

witnesses and to administer the oath thereto, and to

appoint any expert as it may deem necessary for the

determination of the case before it.

(18) (a)

In addition to the written pleadings,

sworn affidavits, evidence and documents submitted,

the Tribunal may, whenever under the circumstances

it shall deem it expedient so to do, allow the parties

to file an additional written pleading within such

times as the Tribunal shall direct.

(b) The Tribunal may also allow or request

any of the parties to give oral evidence or to reply to

any questions or to clarify any matters, whenever it

deems that it is expedient to do so in the

circumstances, before handing down its decision

Provided that the Tribunal shall disallow

any evidence which it considers to be irrelevant or

superfluous.

(19) Upon the hearing of an appeal, filed before it

under any law, the Tribunal shall have the power

(a)

to confirm, annul or vary the decision of

the competent authority or the Resolution Authority

under the relevant law and to give directions within

its powers under this Act or any other law to the said

competent authority or the Resolution Authority to

implement the decision of the Tribunal;

(b) subject to the provisions of article 17, to

require the production of any document or other

information;

(c)

to order the payment of costs and

expenses by any party to the appeal.

(20) In the absence of any rules, the Tribunal may

regulate its own procedure and may

(a)

take all such measures and issue all such

orders as it deems appropriate to ensure the proper

conduct of the sittings of the Tribunal, including by

electronic or other viable means of communication;

(b) allow the filing of documents in

proceedings before it and the notification thereof to

the parties, to take place by electronic means and in

such format as it may deem appropriate;

(c)

communicate with the parties by

electronic means or by conventional mail, at its

discretion;

(d) receive all acts, including appeals and

replies thereto, by the transmission of the original

duly signed act, by electronic means;

(e)

receive the fee prescribed by electronic

payment or other means; and

(f)

hold and conduct the hearing of its

sittings and give its decisions by such electronic or

other viable means of communication, as it deems

appropriate

Provided that any failure or damage to

electronic or other means of communication, including

video-conferencing systems, shall not render the hearing

null and void

Provided further that service by electronic mail

shall be deemed to have been effected on the date on

which the act was transmitted by electronic means

Provided further that the Chairperson of the

Tribunal may direct that the use of electronic means shall

apply to the entire proceedings in respect of any particular

appeal, including the filing and service of acts and

documents, and the conduct of hearing of sittings.

(21) There shall lie an appeal to the Court of Appeal

on questions of law only from a decision of the Tribunal.

An appeal shall be made by not later than twenty (20) days

from the date of the decision of the Tribunal. In the

determination of such an appeal, the Court of Appeal shall

have all the powers of the Tribunal to make orders.

(22) The Minister may make regulations governing

the procedure and fees for bringing and conducting

appeals before the Tribunal, provided that in the absence

of such regulations and subject to the rules of natural

justice, the Tribunal shall regulate its own procedure.

(23) The Minister responsible for justice, in

consultation with the Minister responsible for finance,

may by regulations made under this sub-article establish

the fees payable in the registry of the court in relation to

the filing of judicial acts in connection with appeals to the

Court of Appeal under this article

Provided that until such fees are so established

by the said Minister, the fees listed in Schedule A to the

Code of Organization and Civil Procedure shall apply.

(24) An appeal made under this article shall not

suspend the operation of any decision or directive from

which the appeal is made

Provided that any decision to cancel a licence

or authorisation shall not become operative until the

expiration of the period within which an appeal lies under

this article and, if an appeal is made within such period,

the decision shall become operative on the date of the

decision of the Tribunal dismissing the appeal or on the

date on which the appeal is abandoned

Provided further that where an appeal is related

to a decision of the Resolution Authority to take a crisis

management measure

(a)

the filing of an appeal from such

decision shall not entail any automatic suspension of

the effects of the challenged decision; and

(b) the decision of the Resolution Authority

shall be immediately enforceable and it shall give

rise to a rebuttable presumption that a suspension of

its enforcement would be against the public interest.

(25) In this article "competent authority" refers to

the Authority under this Act and under any other law for

the purposes of which it is appointed as the competent

authority.".

Immediately after article 21 of the principal Act, as

substituted, there shall be added the following new article

21A. (1) There shall be a registry to serve the

Financial Services Tribunal which shall be known as the

"Registry of the Financial Services Tribunal".

(2) (a)

The Registry shall be a depository

competent to receive all acts, written pleadings and

other documents which, in accordance with this Act

and any other law, are to be filed with the Tribunal.

Any provision in any law which makes reference to

the filing of any act or document with the Tribunal

shall be construed as a reference to the filing of such

act or document with the registry herein established

Provided that any acts, written pleadings

and other documents filed by electronic means shall,

for all intents and purposes of law, be deemed to

have been filed directly in the registry and any copy

thereof issued by the registry shall, for all intents

and purposes of law, be deemed to be the original.

(b) All acts, written pleadings and

documents filed with the Tribunal as of the date of

its establishment shall be transferred to the registry

and the archives of the Tribunal.

(3) (a)

The Minister shall appoint a person to

act as the "Executive Director of the Registry of the

Financial Services Tribunal".

(b) The Executive Director shall be a person

who in the opinion of the Minister is fit and proper

to hold such office and who possesses qualifications,

experience and the competence required for

fulfilling the responsibilities of such office. In

determining whether a person is a fit and proper

person, the Minister shall have regard to such

person’s probity, his reputation and integrity, and

the diligence with which he is likely to fulfil his

responsibilities.

(c)

The Minister may by regulations

prescribe the functions, powers and duties to be

performed by the Executive Director, the

qualifications and criteria for appointment and all

matters ancillary thereto.

(4) The executive director shall be the head of the

Registry and shall be responsible for the management and

administration of the registry and the archives, and for all

matters necessary for the proper functioning of the

Tribunal. The Executive Director may be assisted by such

other officers and staff as the Minister may determine.

(5) Without prejudice to the functions, powers and

duties as may, by regulations, be vested in him, the

executive director shall

receive and register all acts, written

(a)

pleadings and other documents which shall be

filed with the Tribunal in accordance with any

law;

(b) keep a register of all cases and

proceedings before the Tribunal;

(c)

register the orders and decisions of the

Tribunal;

(d) keep a record and minutes of the

proceedings during sittings and, or hearings of the

Tribunal;

(e)

register any verbal request to the

Tribunal made by any party to the proceedings;

(f)

issue certified true copies of any act or

document existing in the registry, including such

acts or documents which may have been filed by

electronic means; and

(g) keep a register with the email addresses

of all persons participating in the appeal proceedings

and such register shall be available to all persons

participating in the said appeal.

(6) The Executive Director shall be responsible for

the service and the execution of any acts and other orders

given by the Tribunal and to perform such other duties as

may be assigned to him by the Chairperson of the

Tribunal.

(7) The Executive Director shall be responsible for

the safekeeping of all acts and documents filed in the

registry.

(8) In the conduct of his duties the Executive

Director shall report to and receive instructions from the

Chairperson of the Tribunal in relation to any proceedings

before the Tribunal and in relation to any act and, or

document forming part of such proceedings.

(9) The Tribunal shall maintain archives, including

in electronic form, in which the records, acts, written

pleadings and documents of cases and proceedings of the

Tribunal shall be deposited. The Minister may make

regulations governing the archives and their management.

(10) The Executive Director shall be responsible for

the administration of the archives and for the proper

storage of documents therein, access thereto, the making

and authentication of copies and for all other matters

relating to the archives.

(11) The Minister may by regulations prescribe all

the matters necessary for the proper functioning of the

registry.".

In paragraph (d) of article 22 of the principal Act the words Amendment of

"the Authority." shall substituted by the words "the Authority:" and article

immediately thereafter there shall be added the following new

"Provided that income derived from the payment of

administrative penalties shall be transferred to the Consolidated

Fund.".

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

(a)

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

Committee" shall be substituted by the words "The Chief

Executive Officer";

(b) in sub-article (4) thereof the words "the Executive

Committee may adopt supplementary estimates" shall be

substituted by the words "the Chief Executive Officer may

cause to be prepared supplementary estimates".

In article 28 of the principal Act the words "as soon as may Amendment of

be but not later than six (6) months" shall be substituted by the words article

"as soon as may be, but not later than six (6) months".

Article 29 of the principal Act shall be substituted by the Substitution of

following new article

29. (1) The Authority, the members of the Board

of Governors when acting in any function assigned to the

Board under any provision of this Act, any body or other

organ of the Authority, including any committee or sub-

committee established under this Act, and any member or

officer of such body or organ and the officers and

employees of the Authority, shall not be liable in damages

for anything done or omitted to be done in the discharge or

purported discharge of any such function, or otherwise in

the exercise of their official duties, unless the act or

omission is shown to have been done or omitted to be

done, as the case may be, through wilful misconduct.

(2) Without prejudice to the provisions of sub-

article (1), in case of any judicial proceedings against any

member of the Board of Governors, or any member or

officer of any body or organ of the Authority or of any

committee or sub-committee established under this Act, or

against any officer or employee of the Authority,

concerning a claim for damages for any act done or

omitted to be done in the discharge or purported discharge

of their function or otherwise in the exercise of their

official duties, the applicable provisions of the Holders of

Public Office and Public Entities (Responsibility) Act

shall also apply.

(3) For the purposes of this article

(a)

the phrase "this Act" shall include any

other Act administered by the Authority and any

regulations or rules made thereunder; and

(b) the phrases "members", "any member or

officer" and "officers and employees" shall include

former members, any former member or officer and

former officers and employees, respectively

Provided their act or omission has been

done or omitted to be done in the discharge of their

functions, or otherwise in the exercise of their official

duties during such period of time when they were

serving the Authority, and it is shown that the act or

omission has not been done or omitted to be done, as

the case may be, through wilful misconduct.".

Immediately after article 31 of the principal Act there shall

be added the following new article

32. (1) Any decision taken by the Executive

Committee or by any sub-committee thereof, or by any

official of the Authority to whom the Executive

Committee has delegated decision making powers prior to

the date of the coming into force of this article shall

continue to apply.

(2) Any decision regarding the approval of

prospectuses and admissibility to listing, taken by the

Board of Governors or by any committee, sub-committee

or official of the Authority to whom the Board of

Governors has delegated decision making powers prior to

the date of the coming into force of this article shall

continue to apply.

(3) For purposes of this article the term "decision"

shall include licences issued, approvals and authorisations

granted, and any regulatory action taken.

(4) Any reference in any law to the Audit

Committee shall be read and construed as a reference to

the Audit and Risk Committee as defined in article 2.".

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

the First

as follows

Schedule to the

principal Act.

(a)

item 2 thereof shall be substituted by the following

new item

"The Resolution Committee.

2. (1) The Resolution Committee shall carry out

the functions of the Resolution Authority. The Committee

shall ensure full and complete adherence to the

requirements and obligations prescribed by regulations

made under this Act, either directly or in collaboration

with European and third-country resolution authorities,

and may, for such purposes, exercise any of its powers

under this Act and any regulations made thereunder.

(2) The Resolution Committee shall be composed

of five (5) persons as follows

(a) two (2) members appointed by the

Board of Governors from amongst its members;

(b) the Deputy Chief Executive Officer

responsible for enforcement;

(c) the Deputy Chief Executive Officer

responsible for legal affairs; and

(d) a person appointed by the Minister

responsible for finance.

The Board of Governors shall appoint a

Chairperson and a Deputy Chairperson from amongst the

members of the Committee.

(3) (a) The Resolution Committee shall act

independently of the organs and Units of the

Authority.

(b)

The Resolution Committee shall report to the

Board of Governors on its objectives and the

conduct of its functions.

(4) The quorum required for meetings of the

Resolution Committee shall consist of not less than three

(3) members, which shall include the Chairperson or, in his

absence, the Deputy Chairperson. Decisions of the

Committee shall be taken by a majority of votes of the

members present, and in the case of an equality of votes,

the Chairperson or Deputy Chairperson presiding the

meeting shall have an original and a second or casting

vote. The Committee shall otherwise regulate its own

procedures.

(5) The Chairperson of the Resolution

Committee shall designate an official of the Authority to

act as a secretary to the Resolution Committee for such

period of time and under such terms and conditions as the

Chief Executive Officer shall deem appropriate.

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

the necessary preparations for the meetings of the

Resolution Committee and to keep minutes of those

meetings.

(7) The Resolution Committee may invite any

person, including from the Central Bank of Malta and from

any other local competent authority, body or entity, and

may require any officer of the Resolution Unit or of the

Authority to attend a meeting of the Resolution Committee

and to take part in the discussion.";

(b) item 4 thereof shall be substituted by the following

new item

"Functions

and

powers

of

the

Resolution

Committee.

4. (1) Without prejudice to any other function or

power conferred to it by this Act or any other law or

regulations, it shall be the function of the Resolution

Committee to

(a) review

and

decide

upon

the

recommendations made to it by the Resolution Unit

established in accordance with this Schedule, in

relation to resolution decisions;

(b) liaise and consult, on matters relating to

budgets and resources, with the Authority;

(c) exchange information, where necessary,

with the Authority;

(d) carry out such other functions which are

assigned to it by this Act or any regulations made

thereunder;

(e) apply resolution measures

when

an

institution is failing or is likely to fail;

(f) cooperate closely with and consult the

Authority in the preparation, planning and

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;

(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;

(h) cooperate with European resolution

authorities and third country resolution authorities

on matters relating to resolution;

(i) set up a resolution financing arrangement

through mandatory contributions from institutions;

(j) communicate to the Board of Governors its

resolution

decisions

which

requires

implementation;

(k) implement the resolution decisions referred

to in paragraph (j);

(l) assist the Resolution Authority on any

matter falling under this Part, on which the

Resolution Authority seeks assistance.

(2) In carrying out its general functions the

Resolution Committee shall

(a) ensure that no conflict of interest shall

arise with the supervisory and other functions of

the Authority;

(b) obtain the approval in writing of the

Minister, after informing the Board of Governors

and the Central Bank of Malta, prior to taking any

decisions that may have a direct fiscal impact or

which have systemic implications;

(c) notify the Minister, after having informed

the Board of Governors, of any decisions taken by

it in accordance with this Act.

(3) The Resolution Committee shall have all the

necessary powers to enable it to perform its functions and

to ensure the effective implementation of the provisions of

the BRRD.

(4)

The Resolution Committee shall

(a) collect the contributions from institutions

towards the resolution financing arrangements;

(b) make referrals to the Enforcement

Directorate recommending the imposition of

administrative penalties on

(i) institutions, for failure to comply with

the decisions addressed to them;

(ii) any person whose conduct, in the

opinion of the Resolution Committee, amounts

to a breach of any of the provisions of this Act

or any regulations or Rules issued thereunder

transposing the BRRD;

(iii) any person who has failed to comply

with a directive issued by the Resolution

Committee under this Act or any regulations or

Rules issued thereunder transposing the BRRD;

and

(c) publish, collect and recover any

administrative penalties imposed in accordance

with this item.

(5) The Resolution Committee shall also have the

power to appoint a special manager and an independent

valuer in accordance with the requirements under the

Recovery and Resolution Regulations.";

(c)

immediately after item 4 thereof, as substituted,

there shall be added the following new item

"Administrative penalties.

4A. (a) Any breach of any of the provisions of this

Act or of any regulations or Rules issued

thereunder transposing the BRRD and any failure

to comply with a directive issued by the Resolution

Committee under this Act or under any regulations

or Rules transposing the BRRD shall be subject to

an administrative penalty of

(i) up to twice the amount of the benefit

derived from the breach, where that benefit can

be determined;

(ii) in the case of a natural person, up to

five million euro (€5,000,000); or

(iii) in the case of a legal person, up to ten

per cent (10%) of the total annual net turnover

of the undertaking in the preceding business

year, including the gross income consisting of

interest receivable and similar income, income

from shares and other variable or fixed-yield

securities, and commissions or fees receivable

in accordance with Article 316 of the CRR. In

the case of a subsidiary of a parent undertaking,

the relevant turnover shall be the turnover

resulting from the consolidated accounts of the

ultimate parent undertaking in the preceding

business year.

(b) Where the Resolution Authority decides

to impose an administrative penalty as referred to in

this item and such decision has not been appealed, or

where such decision has been appealed, within

fifteen (15) days of the determination of such

appeal, the administrative penalty if confirmed, or as

reduced or increased on appeal, shall be due to the

Resolution Authority. Upon the service of a copy of

the decision imposing the penalty or that of the

appeal, as the case may be, by means of a judicial

act on the person indicated in the decision, the said

decision shall constitute an executive title for all

effects and purposes of Title VII of Part I of Book

Second of the Code of Organization and Civil

Procedure. The Resolution Authority may institute

proceedings before the civil courts to recover as a

debt an amount of administrative penalty due to it

Provided that income derived from the

payment of administrative penalties shall be

transferred to the Consolidated Fund.

(c) The imposition by the Resolution

Authority of an administrative penalty in

accordance with this item shall be without

prejudice to the consequences of any other act or

omission of the offender under civil or criminal

law

Provided that in all cases where the

Resolution Authority imposes an administrative

penalty in respect of anything done or omitted to be

done by any person and such act or omission also

constitutes also a criminal offence, no proceedings

may be taken or continued against the said person

in respect of such criminal offence.";

(d)

item 5 thereof shall be amended as follows

(i) sub-item (1) thereof shall be substituted by

the following new sub-item

"(1) The Resolution Authority shall publish, on

its official website and in any other media as it

considers appropriate, any administrative penalty or

penalties for any breaches of the provisions of the

BRRD imposed by the Resolution Authority under

the provisions of this Act and of any regulations

made or Rules issued thereunder. Such publications

shall include information on the type and nature of

the breach and the identity of the person on whom

the administrative penalty is imposed. The

publication shall be made without undue delay after

such person is informed of those penalties

Provided that in cases where an appeal has been

filed by the person on whom such administrative

penalty has been imposed, the Authority shall,

without undue delay, also publish on its official

website and in any other media as it considers

appropriate, information on the status of the appeal

and the outcome thereof.";

(ii) sub-item (2) thereof shall be amended as

follows

- the words "The Authority shall publish the

administrative penalties for any breaches of the

provisions of the BRRD, imposed by the Resolution

Committee" shall be substituted by the words "The

Resolution Authority shall publish the administrative

penalties for any breaches of the provisions of the

BRRD, imposed by the Resolution Authority";

- the first proviso thereof shall be substituted by

the following new proviso

"Provided that publication on an

anonymous basis shall be an exceptional measure

which needs to be justified by the Resolution

Committee:";

(iii) in sub-item (3) thereof the words "the

Authority", wherever they occur, shall be substituted by

the words "the Resolution Authority";

(e)

item 6 thereof shall be deleted;

(f)

item 8 thereof shall be amended as follows

(i) in sub-item (1) thereof the words "There shall

be a Resolution Unit" shall be substituted by the words

"There shall be within the Authority, a Resolution Unit";

(ii) sub-item (2) shall be substituted by the

following new sub-item

"(2) The Resolution Unit shall report and

provide such information, documentation, updates

and explanations on the activities and

developments within its area of competence, to the

Resolution Committee, the Chairperson of the

Resolution Authority and the Chief Executive

Officer, as may be requested.";

(iii) in sub-item (3) thereof the words "Director of

the Office" shall be substituted by the words "Head of the

Unit";

(iv) paragraph (d) of sub-paragraph (4) thereof

shall be substituted by the following new paragraph

"(d) cooperate, liaise and exchange

information, as necessary, with the other Units and

Directorates of the Authority.";

(g) in item 9 thereof the words "remedies for a wrongful

decision or action by the Resolution Committee" shall be

substituted by the words "remedies for an annulled decision or

action";

(h) in paragraph (f) of sub-item (1) of item 11 thereof

the words "under this Schedule." shall be substituted by the

words "under this Schedule:" and immediately thereafter there

shall be added the following new proviso

"Provided that income derived from the

payment of administrative penalties shall be transferred to

the Consolidated Fund.".

Passed by the House of Representatives at Sitting No. 457 of the

22nd April, 2026.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Clerk of the House of Representatives

€7.02