Financial Markets Act (Membership and Access) Regulations,

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

L.N. 331 of 2007

FINANCIAL MARKETS ACT

(CAP. 345)

Financial Markets Act (Membership and Access) Regulations,

IN exercise of the powers conferred by article 49 of the Financial

Markets 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 Financial Markets Title,

commencement and

Act (Membership and Access) Regulations, 2007.

objective.

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

November, 2007.

(3) The objective of these regulations is to implement

articles 33 and 42(3) of the Directive, as herein defined, and shall be

interpreted and applied accordingly.

(1)

In these regulations, unless the context otherwise Interpretation.

requires>

“the Act” means the Financial Markets Act and the words Cap. 345.

and expressions used shall have the same meaning as is given to

them in the said Act<

“branch” means a place of business which is a part of the

European investment firm, and which has no legal personality and

which provides the services for which the European investment

firm has been authorised< all the places of business set up in the

same Member State or EEA State by a European investment firm

with headquarters in another Member State or EEA State shall be

regarded as a single branch<

“competent authority” means the Malta Financial Services

Authority appointed under article 2 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<

“home Member State or EEA State” means>

(a) where the European investment firm is a natural

person, the Member State or EEA State in which the head

office of that person is situated<

(b) where the European investment firm is a legal

person, the Member State or EEA State in which its registered

office is situated< or

(c) if the European investment firm has, under its

national law, no registered office, the Member State or EEA

State in which its head office is situated<

(2) For the purposes of these regulations, “Persons licensed

under the Investment Services Act” shall mean persons licensed to

execute orders on behalf of other persons and, or to deal on own account

in terms of the Schedule to the Investment Services Act.

Persons licensed under the Investment Services Act may

become members of a regulated market and participate in the clearing

and settlement system provided for members of such a regulated market.

A European investment firm may, either directly or indirectly,

become a member of or have access to a regulated market established

in Malta and participate in the clearing and settlement system provided

for members of such a regulated market.

(1) European investment firms shall have the right of

membership or have access to any regulated market established in Malta

by means of any one of the following arrangements>

(a) directly, by setting up branches in Malta, in terms of the

European Passport Rights for Investment Firms Regulations, 2007<

and, or

(b) indirectly, by setting up a subsidiary company in Malta

duly licensed in terms of the Investment Services Act and

regulations issued thereunder, or by acquiring other investment

firms in Malta and which are already members of any such

regulated market or already have access thereto.

(2) Where a regulated market operates without any

requirement for a physical presence, European investment firms may

become members of or have access to such regulated market on the

same basis as aforesaid without having to be established in Malta.

(3) The arrangements referred to in sub-regulations (1) and

(2) hereof shall be provided for in the bye-laws of a regulated market.

(1) Persons licensed under the Investment Services Act and Compliance with

bye-laws issued by

European investment firms which are granted the right of membership the regulated

or access to a regulated market in terms of these regulations shall comply market.

with any applicable bye-laws issued by the regulated market, including

bye-laws relating to the membership, conduct of business and fees< bye-

laws relating to transactions effected by means of the facilities provided

by the regulated market< requirements and procedures for clearing and

settlement< and any other bye-laws of the regulated market which are

applicable to members of the regulated market or to persons having

access to the regulated market in terms of these regulations.

(2) Branches or subsidiaries of European investment firms

referred to in sub-regulation (1) shall comply with the aforementioned

bye-laws on a continuing basis if they are to continue to benefit from

the right of membership of or access to a regulated market, and the bye-

laws of a regulated market shall include provision to this effect.

(3) Persons licensed under the Investment Services Act and

European investment firms referred to in sub-regulation (1) shall also

on a continuous basis comply with the capital adequacy requirements

set out and supervised by the home Member State or EEA State in terms

of Directive 2006#49#EC and with any additional capital adequacy

requirements in respect of matters not covered by the said Directive

which the competent authority may impose.

These regulations shall apply mutatis mutandis to European Credit institutions.

credit institutions within the meaning of regulation 2 and to credit

institutions licensed in terms of the Banking Act.

Regulated markets may also admit as members or participants Other persons that

may be admitted as

persons who satisfy the following requirements>

members or

participants.

(a)

are fit and proper<

(b) have a sufficient level of trading ability and competence<

(c) have, where applicable, adequate organizational

arrangements<

(d) have sufficient resources for the role they are to perform,

taking into account the different financial arrangements that the

regulated market may have established in order to guarantee the

adequate settlement transactions.

The Membership and Access Regulations, 2004 are hereby

being repealed

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