Regulations, 2003

L.N. 370 of 2003

FINANCIAL MARKETS ACT

(CAP. 345)

Financial Markets (Amendment of Schedule)

Regulations, 2003

IN exercise of the powers conferred by article 29 of the Financial

Markets Act, the Minister of Finance and Economic Affairs, acting on

the recommendation of the Malta Financial Services Authority, as the

competent authority appointed for the purposes of that Act, has made

the following regulations>–

(1) The title of these regulations is the Financial Markets Citation and

commencement.

(Amendment of Schedule) Regulations, 2003 and shall be read and

construed as one with the Statute set out in the Schedule to the Financial

Markets Act, hereinafter referred to as “the Statute”.

(2) These regulations shall come into force on the 21st November,

2003.

The definition of “accredited representative” in sub-article Amends article 2 of

the Statute.

(1) of article 2 of the Statute shall be deleted.

Article 3 of the Statute shall be amended as follows>

Amends article 3 of

the Statute.

(a)

sub-article (11) thereof shall be deleted<

(b) sub-articles 12, 13 and 14 thereof shall be re-numbered as

sub-articles 11, 12 and 13 respectively< and

(c) in sub-article 11 thereof, as re-numbered, for the words

“A register of members and accredited representatives together”,

there shall be substituted the words “A register of members

together”.

In paragraph (a) of sub-article (2) of article 4 of the Statute, Amends article 4 of

the Statute.

for the words “the members of the Exchange and their accredited

representatives” there shall be substituted the words “the members of

the Exchange”.

Article 12 of the Statute shall be amended as follows>

(a)

sub-article (4) thereof shall be deleted< and

(b) sub-article (5) thereof shall be re-numbered as sub-

article (4).

Sub-article (7) of article 13 shall be deleted.

6.

The unnumbered article entitled “Compensation Fund” shall

be amended as follows>

(a) for sub-article (1) thereof entitled “Establishment”, there

shall be substituted the following sub-article>

“The Compensation Fund and the Select Committee

established by Bye-laws in terms of this Schedule shall cease

to be in effect as from the date of the coming into force of

these regulations and the Compensation Fund shall as from

such date become absorbed as an integral part of the Investor

Compensation Scheme established under the Investor

Compensation Scheme Regulations, 2003 subject to the

following provisions of this paragraph>

(1) The Bye-laws as in force immediately before

the coming into force of these regulations, shall mutatis

mutandis continue to regulate any claim made by an

investor in terms of Bye-law 7.03 with reference to events

occurring prior to 3rd January, 2003 and any reference

to the Council shall be deemed to be a reference to the

Compensation Schemes Management Committee

established under the Investor Compensation Scheme

Regulations, 2003.

(2) (a) The portion of the Compensation Fund

comprising the payments made by the Malta Stock

Exchange in terms of Bye-law 7.12(b) shall be

transferred back to the Malta Stock Exchange>

Provided that the Malta Stock Exchange shall keep

such portion of the Compensation Fund separate and

distinct from any other funds or assets.

(b) The Malta Stock Exchange shall provide

an indemnity in favour of the Investor Compensation

Scheme, up to the amount of funds kept separate and

distinct in accordance with the proviso to the immediately

preceding sub-regulation and in proportion to the

percentage of the funds constituting the Compensation

Fund that have been transferred back to it, and it shall

remain responsible in accordance with the provisions of

the first proviso to paragraph (b) of sub-regulation (3)

of this regulation, up till 3rd January, 2008, for any claims

that may arise with reference to events occurring prior

to 3rd January, 2003.

(3) (a) The portion of the Compensation Fund

that had been paid by the members of the Malta Stock

Exchange in terms of Bye-law 7.12 (a) and any other

remaining funds pertaining to the Compensation Fund

shall be transferred to the Investor Compensation Scheme

as established under the Investor Compensation Scheme

Regulations, 2003 and shall become an integral part

thereof>

Provided that a moratorium shall be allowed in

favour of members of the Malta Stock Exchange who

had paid such portion to the Compensation Fund as in

force immediately before the coming into force of these

regulations, so that their respective contributions to the

Compensation Fund shall be set off against contributions

now due by them to the Investor Compensation Scheme.

(b) The Investor Compensation Scheme shall be

responsible for claims made against the Compensation

Fund by investors in terms of Bye-law 7.03 and arising

out of or with reference to events occurring prior to 3rd

January, 2003>

Provided that claims accepted for settlement by the

Compensation Schemes Management Committee shall

be settled out of funds transferred from the Compensation

Fund to the Investor Compensation Scheme and the

Malta Stock Exchange pro rata>

Provided further that the liability of the Investor

Compensation Scheme shall not exceed the amount of

funds transferred in accordance with the provisions of

paragraph (a) of sub-regulation (3) of these regulations

and the responsibility of the Investor Compensation

Scheme shall expire on 3rd January, 2008.

(4) Any reference in any law to the Compensation

Fund established by Bye-laws in terms of this Schedule,

shall henceforth be deemed to be a reference to the

Investor Compensation Scheme.”< and

(b) sub-article (2) thereof entitled “Constitution” shall be

deleted.

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