Investment Services Act (Licence and Other Fees) Regulations,

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,360, 30 ta’ Diçembru, 2008

L.N. 359 of 2008

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 Minister of Finance, the Economy and Investment,

after consultation with the Malta Financial Services Authority, has made

the following regulations>

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

commencement.

Act (Licence and Other Fees) Regulations, 2008.

L.N. 425 of 2007.

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

January. 2009 and shall apply to fees falling due on or after the said

date. Nothing in these regulations shall be deemed to affect the liability

in respect of any fees due under the Investment Services Act (Licence

and Other Fees) Regulations, 2007 prior to the coming into force of

these regulations.

(1) In these regulations, unless the context otherwise 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<

“the competent authority” means the Malta Financial Services

Authority appointed under sub-article 2A of the Act<

“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<

“revenue” means the net revenue which shall be calculated

in the following manner - the gross revenue indicated in the annual

audited financial statements and that is derived from activities for

which an investment services license was issued in terms of article

3 of the Act, less any commissions that are directly related to the

acquisition of the said gross revenue, paid or payable to third

parties<

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

the Appointment of Tied Agents Regulations, 2007.

L.N. 327 of 2007.

(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 the following fees as and other fees.

applicable>

(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 by the competent authority,

of an investment services licence, the Licence Fee established in

the Third Column of the said Schedule<

(c) annually, upon the submission of the annual audited

financial statements by investment services licence holders , the

Supervisory Fee established in the Fourth Column of the said

Schedule<

(d) on the date of the granting of a collective investment

scheme licence, recognition, registration or authorisation, the

Supervisory Fee established in the Fourth Column of the said

Schedule by the holders of such licence, recognition, registration

or authorisation<

(e) annually, upon the anniversary of such date as is

mentioned in paragraph (c), the same annual fee established in the

Fourth Column of the said Schedule shall be payable by the persons

referred to in (c) above.

(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.425 of

2007. Regulations, 2007 are hereby repealed.

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