Investment Services Act (Exemption)

L.N. 59 of 2010

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Exemption)

(Amendment) Regulations, 2010

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister for Finance, the Economy and

Investment acting on the advice of the Malta Financial Services

Authority has made the following regulations:-

The title of these regulations is the Investment Services Citation.

Act (Exemption) (Amendment) Regulations, 2010 and they shall be

read and construed as one with the Investment Services Act S.L. 370.02

(Exemption) Regulations, hereinafter referred to as "the principal

regulations".

Sub-regulation (1) of regulation 3 of the principal Amends

regulation 3 of

regulations shall be amended as follows

the principal

regulations.

(a)

for paragraph (d) thereof there shall be substituted

the following

"(d) a person who deals on own account in terms

of paragraph 3 of the First Schedule to the Act, and does

not provide any other investment services, unless such

person dealing on own account is a market maker or deals

on own account outside a regulated market or a

multilateral trading facility on an organized, frequent and

systematic basis by providing a system accessible to third

parties in order to engage in dealings with them;"; and

(b) immediately after sub-paragraph (iii) of paragraph

(h) thereof, there shall be added the following new sub-

paragraph

"(iv) providing the services of acting as trustee or

custodian in terms of paragraph 5(c) of the First Schedule

to the Act, in relation to a collective investment scheme

licensed under the Act which does not qualify as a

Professional Investor Fund in terms of the Investment

Services Rules, provided that

(a) such person is authorised in a Member

State or EEA State to provide the services of

custodian to collective investment schemes and

considered by the competent authority to be of

sufficient standing and repute and is either -

(i)

authorised in a Member State or

EEA State as a credit institution under

Directives 2006/48/EC and 2006/49/EC of

the European Parliament and of the Council

of the 14 June 2006 relating to the taking up

and pursuit of the business of credit

institutions; or

(ii) forms part of a group of

companies which also includes an entity

which is authorised as a credit institution

under Directives 2006/48/EC and 2006/49/

EC of the European Parliament and of the

Council of the 14 June 2006 relating to the

taking up and pursuit of the business of

credit institutions and satisfies any additional

criteria which may be set by the competent

authority; and

(b) the collective investment scheme to

which such person acts as trustee or custodian is of

the closed ended type;".