Regulations, 2003

L.N. 365 of 2003

SPECIAL FUNDS (REGULATION) ACT

(CAP. 450)

Special Funds (Registration of Retirement Fund Custodians)

Regulations, 2003

IN exercise of the powers conferred by paragraph (b) of sub-article

(1) of article 50 of the Special Funds (Regulation) Act, the Minister of

Finance and Economic Affairs, acting on the advice of the Malta

Financial Services Authority, has made the following regulations>

(1) The title of these regulations is the Special Funds Citation and

commencement.

(Registration of Retirement Fund Custodians) Regulations, 2003.

(2) These regulations shall come into force on the 1st January, 2004.

Any reference in these regulations to “the Act” is a reference Interpretation.

to the Special Funds (Regulation) Act, 2002, and the provisions of article

2 of the said Act shall also apply to these regulations.

(1) No person, other than a Retirement Fund Administrator, Registration of

shall provide or hold itself as providing the services in regulation 5 to a Retirement

Custodians.

Retirement Fund, unless such person is Registered by the Authority

under these regulations, to act as a Retirement Fund Custodian.

(2) No person shall be registered as a Retirement Fund

Custodian unless such person is>

(a)

a credit institution licensed under the Banking Act< or<

(b) an entity licensed as a Custodian for collective investment

schemes under the Investment Services Act< or

(c) a credit institution licensed in a country where, in the opinion

of the Authority, it is subject to an adequate level of regulatory

supervision, having an established place of business in Malta< or

(d) such other entity acceptable to the Authority<

having the business organisation, systems, experience and

expertise deemed necessary by the Authority for it to maintain custody

of assets.

(3) An application for the registration of a Retirement Fund

Custodian shall be made in the form and manner required by the

Authority by directives issued under the Act from time to time and

shall>

(a) specify the name, address, telephone number and

e-mail address of the applicant<

(b) be accompanied by such fees laid down in the

Special Funds (Registration Fees) Regulations, 2003<

(c) contain the address in Malta for the service on the

applicant of any notice or other document required or

authorised to be serviced on it by or under this Act or any

other law<

(d) specify the nature of the applicant’s business and

relevant experience< and

(e) contain or be accompanied by such other particulars

as the Authority may require by means of directives.

(1) Upon receiving an application, the Authority may register

or may decide to refuse to register a Retirement Fund Custodian in

terms of these regulations.

(2) The Authority shall not issue a registration to a

Retirement Fund Custodian unless it is satisfied that>

(a) the applicant is fit and proper to provide the services

of a Retirement Fund Custodian< and

(b) the applicant will comply and observe the

provisions of the Act and any regulations prescribed

thereunder or directives issued under the Act.

(3) The registration of a Retirement Fund Custodian may

be made subject to such conditions as the Authority may deem

appropriate, and after registration the Authority may, from time to time,

vary or revoke any condition so imposed or impose new conditions.

(4) Where a Retirement Fund Custodian contravenes or fails

to comply with any of the conditions imposed on it under this regulation,

the Authority may by notice in writing and, without recourse to a court

hearing, impose on the Retirement Fund Custodian, an administrative

penalty which may not exceed forty thousand liri.

(5) The provisions of paragraph (e) of sub-article(1) of

article 54 of the Act shall apply mutatis mutandis to Retirement Fund

Custodians.

The Retirement Fund Custodian shall be entrusted with the Duties of a

Retirement Fund

safekeeping of the assets of a Retirement Fund and shall comply with Custodian.

the provisions of the Special Funds (Control of Assets) Regulations,

2003.

(1) The remuneration that is payable to the Retirement Fund Remuneration of the

Retirement Fund

Custodian shall be set out in a written contract between such person Custodian.

and the Retirement Fund or the Retirement Fund Administrator, as

applicable and shall be approved by the board of directors of the

Retirement Fund or the Retirement Fund Administrator and be disclosed

in the Retirement Fund’s annual report.

(2) For the purposes of this regulation “remuneration”

includes sums paid in respect of expenses.

(3) The provisions of this regulation shall apply in relation

to benefits in kind as well as to payments in cash, and in relation to any

benefit in kind, references to its amount are to be taken as references to

its estimated money value. The nature of any such benefit shall also be

disclosed.

Every Retirement Fund Custodian shall pay to the Authority Payment of fees to

the Authority.

such periodic and application fees, and within such time, as may from

time to time be established.

(1) The Authority shall have the power to oversee and Regulation

Retirement Fund

monitor the activities and performance of a Retirement Fund Custodian. Custodian.

(2) The Authority may at any time cancel or suspend the

registration of the Retirement Fund Custodian if>

(a) the Authority considers that such person is not fit

and proper to carry out the function required of it in connection

with the Retirement Fund< or

(b) information has been furnished to the Authority

by or on behalf of the Retirement Fund Custodian which is

false, inaccurate or misleading.

(3) The Authority shall, in the exercise of its powers under

sub-regulation (2) of this regulation, have regard to all relevant matters

and shall act in the best interest of the beneficiaries.

A Retirement Fund Custodian shall provide the Authority

with particulars of any changes in the information provided under these

regulations as soon as such person, or its delegate becomes aware of

such changes.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press