European Passport Rights for Credit Institutions

L.N. 57 of 2008

BANKING ACT

(CAP. 371)

European Passport Rights for Credit Institutions

(Amendment) Regulations, 2008

IN exercise of the powers conferred by article 3 (2) (b) of the

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

the advice of the Malta Financial Services Authority, has made the

following regulations

The title of these regulations is the European Passport Citation.

Rights for Credit Institutions (Amendment) Regulations, 2008 and

they shall be read and construed as one with the European Rights

for Credit Institutions Regulations, 2004, hereinafter referred to as L.N. 88 of 2004.

“the principal regulations”.

Regulation 2 of the principal regulations shall be amended Amends regulation

2 of the principal

as follows

regulations.

(a) in the definition “banking directives”, and wherever

they occur in the principal regulations, for the words “banking

directives”, there shall be substituted the words “Banking

Rules”;

(b) in the definition “competent authority”, for the words

“means the Malta Financial Services Authority appointed”, there

shall be substituted the words “means the Authority appointed”;

(c) the definition “Directive” shall be substituted by the

following new definition

“the Directive” means Directive 2006/48/EC of the

European Parliament and of the Council of 14 June 2006

relating to the taking up and pursuit of the business of credit

institutions (recast) as may be amended from time to time

and includes any implementing measures that have been

issued or may be issued thereunder;”;

(d) in the definition “European credit institution” and

wherever they occur in the principal regulations, for the words

“foreign authority”, there shall be substituted the words

“European regulatory authority”;

(e) immediately after the definition “European credit

institution”, there shall be inserted the following new definition

“European regulatory authority” means the body or

bodies designated by a Member State or EEA State

(a) to act as a supervisory authority in relation

to the European credit institution concerned in that

Member State or EEA State within the meaning of

the Directive, or

(b) to carry out the duties provided for in the

Directive in relation to a Maltese credit institution

exercising or proposing to exercise a European right;”;

and

(f) the definitions “foreign authority” and “supervisory

authority” shall be deleted.

In paragraph (a) of sub-regulation (2) of regulation 3 of

Amends regulation

the principal regulations and wherever they occur in the principal

regulations, for the words “supervisory authority”, there shall be

substituted the words “European regulatory authority”.

In sub-regulation (2) of regulation 5 of the principal

Amends regulation

regulations, for the words “within the meaning of Article 27 of the

Directive,”, there shall be substituted the words “within the meaning

of Article 41 of the Directive,”.

Amends regulation

In sub-regulation (1) of regulation 7 of the principal

regulations, for the words “within the meaning of Article 28 as

referred to in sub-article (1) of Article 29 of the Directive.”, there

shall be substituted the words “within the meaning of Article 42 as

referred to in sub-article (1) of Article 43 of the Directive.”.

Part IV of the principal regulations shall be amended as

Renumbers Part IV

follows

(a) Part IV entitled “Part IV – Companies other than

credit institutions” shall be re-numbered as “Part V – Companies

other than credit institutions”; and

(b) regulation 12 thereof shall be re-numbered as

regulation 13.

Immediately after regulation 11 of the principal regulations, Inserts new Part in

the principal

there shall be inserted the following new Part

regulations.

“Part IV – Collaboration between Regulatory Authorities

(1) Where credit institutions that have their

Collaboration

between

head

office in Malta operate in another Member State or

Regulatory

Authorities. EEA State, or where credit institutions have their head

office in another Member State or EEA State and operate

in Malta, the competent authority shall collaborate closely

with the European regulatory authority concerned.

(2) The competent authority shall, in particular,

collaborate with other European regulatory authority where

branches are concerned and it shall supply such European

regulatory authority with all information concerning

(a) the management and ownership of such

credit institutions that is likely to facilitate their

supervision;

(b) the examination of the conditions for their

authorisation; and

(c) all information likely to facilitate the

monitoring of such institutions, in particular with

regard to liquidity, solvency, deposit guarantees, the

limiting of large exposures, administrative and

accounting procedures and internal control

mechanisms.”.

8. Regulation 13, as re-numbered, of the principal regulations Amends regulation

13 as re-numbered

shall be amended as follows

of the principal

regulations.

(a) in paragraph (g) of sub-regulation (1) thereof, for the

words “in accordance with Articles 52 to 56 of the Directive, in

particular for the calculation of the solvency ratio, for the control

of large exposures and for the purposes of the limitation of

holdings provided for in Article 51 of the Directive.”, there shall

be substituted the words “in accordance with Articles 125 to

143 of the Directive, in particular for the calculation of the

capital requirements, for the control of large exposures and for

the purposes of the limitation of holdings provided for in Articles

120 to 122 of the Directive.”; and

(b) in sub-regulation (3) thereof, for the words “in

accordance with sub-article (3) of Article 5 and Articles 16, 17,

26, 28, 29, 30 and 32 of the Directive:”, there shall be substituted

the words “in accordance with sub-article (1) of Article 10, and

Articles 19 to 22, 40, 42 to 52 and 54 of the Directive:”.

9. Part V of the principal regulations shall be amended as

follows

(a) Part V entitled “Applicability provisions” shall be re-

numbered as “Part VI – Applicability provisions”; and

(b) regulation 13 thereof shall be re-numbered as

regulation 14.

10. Part VI of the principal regulations shall be amended as

follows

(a) Part VI entitled “Interpretation” shall be re-numbered

as “Part VII“– Interpretation”; and

(b) regulations 14 and 15 thereof shall be re-numbered

as regulations 15 and 16 respectively.

11. In regulation 15 of the principal regulations, as re-

numbered, for the words “laid down in regulation 12,”, there shall

be substituted the words “laid down in regulation 13,”.

12. The Schedule to the principal regulations shall be

substituted as follows

“SCHEDULE

Annex I to the Directive

LIST OF ACTIVITIES SUBJECT TO MUTUAL

RECOGNITION

1. Acceptance of deposits and other repayable funds

2. Lending

3. Financial Leasing

4. Money transmission services

5. Issuing and administering means of payment (e.g. credit

card, travellers cheques and bankers’ drafts)

6. Guarantees and commitments

7. Trading for own account or for account of customers in

(a) money market instruments (cheques, bills, certificates

of deposit, etc.);

(b)

foreign exchange;

(c)

financial futures and options;

(d)

exchange and interest-rate instruments;

(e)

transferable securities

8. Participation in securities issues and the provision of

services related to such issues

9. Advice to undertakings on capital structure, industrial

strategy and related questions and advice as well as services relating

to mergers and the purchase of undertakings

10. Money broking

11. Portfolio management and advice

12. Safekeeping and administration of securities

Credit reference services

Safe custody services

The services and activities provided for in Section A and Section

B of Schedule I to the European Passport Rights for Investment Firms

Regulations, 2007 when referring to the instruments provided for in

the Section C of the said Schedule are subject to mutual recognition.”.

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

€0.56 (Lm0.24)