Regulations, 2000

L.N.l24 of 2000

MALTA STOCK EXCHANGE ACT

(CAP. 345)

Malta Stock Exchange Act (Amendment of First Schedule)

Regulations, 2000

IN exercise of the powers conferred by section 8 of the Malta Stock

Exchange Act, the Minister of Finance, on the recommendation of the

Council of the Exchange, and after consultation with the Central Bank

of Malta, has made the following regulations:-

These regulations may be cited as the Malta Stock Exchange

Act (Amendment of First Schedule) Regulations, 2000 and shall be

read and construed as one with the Statute contained in the First Schedule

to the Malta Stock Exchange Act, hereinafter referred to as "the Statute" .

In paragraph (i) of Article 2 of the Statute

Amends Article 2 of

(i) for the definition of "Committee" there shall be

substituted the following

" "College" shall mean the College of Stockbroking

Firms established in terms of article 8 of the Statute;";

immediately following the definition of "Committee",

(ii)

there shall be added the following:-

" "Financial Services Organisation" means

(a)

a person who is in possession of

(1) a valid investment services licence in

terms of section 3 of the Investment Services Act;

or

(2) a licence for the carrying on of the

business of banking in terms of section 5 of the

Banking Act; or

(3) a licence in terms of section 3 of the

Financial Institutions Act.

or

(b) a person who is authorised to carry on the

business of insurance under the Insurance Business

Act;"; and

immediately after the definition of "Securities" there

(iii)

shall be added the following

" "Stockbroking Firm" means a firm approved by the

Council in terms of the Bye-Laws through which a Member

conducts his business.".

Paragraph (i) of Article 3 of the Statute shall be amended as Amends article 3 of

follows:-

the Statute.

(i) in paragraph (a) of the proviso thereto, the words "and

will not be eligible for election as a member of the Committee of

the Exchange" shall be deleted; and

immediately after the said proviso thereto, there shall

(ii)

be added the following

"Provided further that a person or persons nominated by

a Financial Services Organisation shall be licensed by the

Council to act as a stockbroker, subject to the condition that

such person or persons shall be deemed to have resigned from

membership of the Exchange if the Council receives notice

in writing from the Financial Services Organisation

nominating such person or persons that it intends to withdraw

its nomination in respect of such person or persons.".

Articles 6, 8 and 10 ofthe Statute shall be deleted.

Deletes Articles 6. 8

and 10 fo the

Statute.

Articles 7 and 9 of the Statute shall be renumbered as Articles

Renumbers Anicles

6 and 7 respectively •

7 and 9 of the

Statute.

Immediately after Article 7 of the Statute as renumbered, there Adds new Articles

8,9 and 10 to the

shall be added the following new Articles 8, 9 and 10:-

Statute.

"8.

College of Stockbroking Firms

Stockbroking

(i) There shall be a College of Stockbroking

Firms, hereinafter referred to as "the College", whose

task it shall be

(a) to tender advice to the Council on matters

affecting trading procedures;

(b) to report to Council any matter of

concern to the members of the Exchange or

incidental to the proper functioning of the

Exchange;

(c) to examine any complaint and/or report

received from Members of the Exchange, clients

and/or the Council of alleged misconduct or failure

of a licensed stockbroker in maintaining the highest

ethical standards or of any alleged failure of a

licensed stockbroker to comply with the Act, Statute

and Bye-laws;

(d) to report to the Council on any findings

whatsoever and to make such recommendation as

the College may deem necessary.

(ii)

In exercise of the task mentioned in paragraph

(i) (c) above, the College shall have all such powers,

including the power of holding meetings with any

complainant or any person lodging a report as aforesaid,

as may be necessary or expedient.

(iii) Each Stockbroking Firm shall be a member

of the College.

(iv) Each Stockbroking Firm shall appoint a

licensed stockbroker to represent it on the College.

(v) The College shall elect from among the

appointed representatives, a Chairman, a Deputy

Chairman and a Secretary .

(vi) Each representative shall hold office for a

period of one year effective from the first day of April

but shall be eligible for re-appointment.

(vii) The licensed stockbroker appointed in terms

of Article 8 (iv) shall attend meetings of the College.

Vacancies in the College.

The appointment of the licensed stockbroker

(i)

to represent the member firm shall cease in the following

cases

(a) if he ceases to conduct the business of a

Member of the Exchange through the Stockbroking

Firm which appointed him to represent it on the

College;

(b) upon his resignation notified in writing

to the Chairman of the College;

(c) in the event that he is adjudged bankrupt

or is convicted of any crime involving public trust;

(d) in the event that he has been interdicted

or incapacitated.

(ii) A vacancy on the College shall be filled,

where applicable, by another licensed stockbroker of the

Stockbroking Firm that was previously represented by

the representative giving rise to the vacancy.

Meetings of the College

(i) The College shall meet on such dates and at

such places as the College Chairman shall from time to

time determine sohowever that the College shall meet at

least once every calendar month.

(ii) Notice of the date, place and time of the

College meeting, stating the business to be dealt with in

the meeting, shall be given in writing by the College

Chairman to each member of the College.

(iii) In the event that the appointed representative

is unable to attend, the member shall have the right to be

represented at the meeting by at least an Accredited

Representative in lieu of the appointed representative.

(iv) No business shall be transacted at any meeting

of the College unless a quorum of members is present.

The quorum necessary for the transaction of business

shall be at least fifty per cent of the members entitled to

attend.

If within thirty minutes after the time fixed for the

meeting the representatives present are not sufficient to

form a quorum, such meeting shall stand adjourned to

the same day in the next week, at the same time and

place, and a notice to this effect shall be sent to all

members.

If at the adjourned meeting a quorum is not

(V)

present within thirty minutes from the time fixed for the

meeting, the members present shall then form a quorum.

(vi) Every member ofthe College shall have only

one vote.

(vii) All decisions of the College shall require the

support of at least sixty per cent of the representatives

present at the meeting.

(viii) Special Meetings of the College may be

convened by the College Chairman on the request by

notice in writing of not less than fifty per cent of the

College members and shall be held within one week of

such request. Notice of any special meeting stating the

objects thereof shall be given by the College Chairman

to each representative at least seventy-two hours before

the date fixed for such meeting.

(ix) Any College member who is directly or

indirectly involved in any matter under discussion before

the College shall withdraw from the meeting when such

matter is being discussed or decided upon and in such -

an event, for all intents and purposes, the meeting shall

be constituted of all the other members present at that

meeting; provided that where the College is fulfilling

the task mentioned in Article 8(i)(c) ofthe Statute it shall

afford an opportunity to the licensed stockbroker

involved to present his case.

(x) The College shall have the power, subject to

the provisions of this Statute, to fix its own meetings

and regulate its own proceedings.".

7. In paragraph (vii) of Article 11, for the words "sub-paragraph (a)

of paragraph (iv) of Article 8" there shall be substituted "subparagraph (a) of

paragraph (iv) of Article 7".