Investment Services Act (Licence and Other Fees) Regulations,

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,141, 30 ta’ Ottubru, 2007

L.N. 328 of 2007

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Licence and Other Fees) Regulations,

IN exercise of the powers conferred by article 12 of the Investment

Services Act, the Prime Minister and Minister of Finance, acting on the

advice of the Malta Financial Services Authority as the competent

authority for the purposes of the Act, has made the following regulations>

(1) The title of these regulations is the Investment Services Citation and

commencement.

Act (Licence and Other Fees) Regulations, 2007.

(2) These regulations shall come into force on the 1st

November, 2007.

(1)

In these regulations, unless the context otherwise Interpretation.

requires -

“the Act” means the Investment Services Act<

“carry on an activity” includes but shall not be limited to

marketing, advertising or otherwise promoting as may be further

stipulated in Investment Services Rules issued by the competent

authority in terms of article 6 of the Act<

“competent authority” means the Malta Financial Services

Authority appointed under”Article 2A of the Act<

“the Directive” means Directive 2004#39#EC of the European

Parliament and of the Council of 21 April 2004 on markets in

financial instruments amending Council Directives 85#611#EEC

and 93#6#EEC and Directive 2000#12#EC of the European

Parliament and of the Council and repealing Council Directive

93#22#EEC, as amended from time to time, and includes any

implementing measures that have been or may be issued thereunder<

“eligible counterparties” shall have the same meaning as that

assigned to it by the Investment Services Rules issued by the

competent authority in terms of article 6 of the Act<

“European investment firm” shall have the same meaning as

that assigned to it by regulation 2 of the European Passport Rights

for Investment Firms Regulations, 2007<

“European management company” shall have the same

meaning as that assigned to it by regulation 2 of the Undertakings

for Collective Investment in Transferable Securities and

Management Companies Regulations, 2004<

“European UCITS” shall have the same meaning as that

assigned to it by regulation 2 of the Undertakings for Collective

Investment in Transferable Securities and Management Companies

Regulations, 2004<

“hold or control” includes the holding by a licence holder of

a mandate over a client’s bank account, or of a power of attorney

to control a client’s assets> provided that a licence holder shall not

be’considered to be holding or controlling a client’s money or assets

if a recommendation made by the licence holder can be placed

into effect only by the customer or by a third party, such as a bank,

acting on the customer’s behalf. The competent authority shall

have the discretion to determine whether a licence holder is holding

or controlling clients’ money or assets in any given case<

“home Member State or EEA State” shall have the same

meaning as that assigned to it by regulation 2 of the European

Passport Rights for Investment Firms Regulations and by regulation

2 of the Undertakings for Collective Investment in Transferable

Securities and Management Companies Regulations, 2004<

“professional client””shall have the same meaning as that

assigned to it by Investment Services Rules issued by the competent

authority in terms of article 6 of the Act<

“retail client” shall have the same meaning as that assigned

to it by Investment Services Rules issued by the competent authority

in terms of article 6 of the Act<

“tied agent” has the meaning assigned to it by regulation 2 of

the Investment Services (Tied Agents) Regulations.

(2) Words and expressions which are also used in the Act

shall have the same meaning as in the Act.

There shall be paid to the competent authority by any person Payment of

application, licence

or body or collective investment scheme scheme -

and other fees.

(a) upon submission of an application for the granting of a

licence, recognition, registration or authorisation, irrespective of

whether the application is eventually accepted or not, the

Application Fee established in the Second Column of the Schedule<

(b) on the date of the granting of a licence, recognition,

registration or authorisation, the Supervisory Fee established in

the Third Column of the said Schedule< and

(c) thereafter annually, upon the anniversary of such date

as is mentioned in paragraph (b), the same annual fee established

in the Third Column of the said Schedule.

(1) A person or body applying for a licence for investment Licence

classification.

services in terms of article 3 of the Act shall be classified at the discretion

of the competent authority into one of four categories which determine

the financial resources requirements of licence holders, as follows>

Category 1a> Licence Holders authorised to receive and

transmit orders in relation to one or more instrument and, or provide

investment advice and, or place instruments without a firm

commitment basis but not to hold or control clients’ money or

customers’ assets.

Category 1b> Licence Holders authorised to receive and

transmit orders, and, or provide investment advice in relation to

one or more instrument and, or place instruments without a firm

commitment basis solely for professional clients and#or eligible

counterparties but not to hold or control clients’ money or

customers’ assets.

Category 2> Licence Holders authorised to provide any

investment service and to hold or control clients’ money or

customers’ assets, but not to operate a multilateral trading facility

or deal for their own account or underwrite or place instruments

on a firm commitment basis.

Category 3> Licence Holders authorised to provide any

investment service and to hold and control clients’ money or

customers’ assets.

Category 4> Licence Holders authorised to act as trustees

or custodians of collective investment schemes.

(2) The competent authority shall set out in the licence the

nature of the activities which particular licence holders may carry out.

(1) There shall be paid to the competent authority by>

(a) any European investment firm establishing a branch in

Malta in terms of regulation 3 of the European Passport Rights for

Investment Firms Regulations, 2007, upon notification to the

competent authority that it wants to establish a branch in Malta

and upon the commencement of business in Malta, the relevant

notification and supervisory fees established in the Second and

Third Column, respectively, of the Schedule<

(b) any European management company establishing a

branch in Malta in terms of regulation 15 of the Undertaking of

Collective Investment in Transferable Securities and Management

Companies Regulations, 2004, upon notification to the competent

authority that it wants to establish a branch in Malta and upon the

commencement of business in Malta, the relevant notification and

supervisory fees established in the Second and Third Column,

respectively, of the Schedule<

(c) European UCITS marketing their units in Malta in terms

of regulation 8 of the Undertaking of Collective Investments in

Transferable Securities and Management Companies Regulations,

2004, upon notification to the competent authority that it wants to

market its units in Malta and upon the commencement of such

marketing in Malta, the relevant notification and supervisory fees

established in the Second and Third Column, respectively of the

Schedule.

(2) In addition to the above fees, the following fees shall

also be paid to the competent authority>

(a) by European investment firms and European

management companies establishing a branch in Malta, annually,

upon the anniversary of the date on which they commence business

in Malta, the supervisory fee established in the Third Column of

the Schedule<

(b) by European UCITS marketing their units in Malta in

terms of regulation 8 of the Undertaking of Collective Investments

in Transferable Securities and Management Companies

Regulations, 2004, annually, upon the anniversary of the date on

which they commence to market their units in Malta, the

supervisory fee established in the Third Column of the Schedule.

The Investment Services Act (Licence and Other Fees)

Repeals L.N. 322 of

Regulations, 2006 are hereby repealed.

2006. SCHEDULE

(Regulation 3 and 5)

Licence Fees

First Column

(a)

Investment Services Licences

Category 1a

Category 1b

Category 2

Category 3

Category 4

(b) Collective Investment Schemes which fall within

the scope of article 4 of the Act; and include schemes

formed in accordance with or existing under the laws of

a country other than Malta which carry on an activity in

Malta

Scheme

Up to fifteen sub-funds (per sub-fund)

Sixteen sub-funds and over (per sub-fund)

(c) Collective Investment Schemes which

qualify as professional investor funds in terms of Rules

issued for this purpose by the competent authority

“In principle” approval

Licence

Scheme

Per sub-fund

Recognition Fees

(d) Persons providing administrative services in

terms of article 9A of the Act

(e)

Private Schemes recognised in terms of the

Investment Services Act (Recognition of Private

Collective Investment Schemes) Regulations

(f) European investment firms establishing a branch

in Malta in terms of regulation 3 of the European

Passport Rights for Investment Firms Regulations

(i) authorised by their Home member State or

EEA State to receive and transmit orders in relation to

one or more instruments and, or provide investment

advice and, or place instrument without a firm

commitment basis , in terms of the Directive but are not

authorized to hold and control Clients Money or

Curstomers’ Assets.

(ii) authorized by their home Member State or

EEA State to provide any investment services in terms

of the Directive and to hold and control Clients’ Money

or Customers’ Assets but not to operate a multilateral

trading facility or to deal for their own account or

underwrite or place instruments on a firm commitment

basis

(iii) authorized by their home Member State or

EEA State to provide any investment services in terms

of the Directive, and to hold and control Clients’ Money

or Customers’ Assets

(g) European management companies establishing a

branch in Malta in terms of regulation 15 of the

Undertakings for Collective Investment in Transferable

Securities and Management Companies Regulations

(h) European UCITS marketing their units in Malta

in terms of regulation 8 of the Undertakings for

Collective Investment in Transferable Securities and

Management Companies Regulations

(i) European UCITS Scheme

(ii) Up to 15 sub-funds (per sub-fund)

(iii) 16 sub-funds and over (per sub-fund)

Registration Fees

(i) Tied agents registered by the competent

authority in terms of regulation 5 of the Appointment of

Tied Agents Regulations

(i) where the tied agent is an individual

(ii) where the tied agent is not an individual

125 and 75 per

individual

employed by

such tied agent

and who is

directly involved

in the provision

of tied agent

activities.

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

Lm0.16 (€0.37)