Investment Services Act (Capital Adequacy)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 18,910, 4 ta’ Mejju, 2012 B 1145

Taqsima B

L.N. 133 of 2012

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Capital Adequacy)

(Amendment) Regulations, 2012

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:-

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

Services Act (Capital Adequacy) (Amendment) Regulations, 2012 commencement.

and these regulations shall be read and construed as one with the

Investment Services Act (Capital Adequacy) Regulations, hereinafter S.L. 370.15

referred to as "the principal regulations".

(2) The purpose of these regulations is to transpose sub-

articles (3)(a), (4) and (5) of Article 10 of Directive 2010/78/EU of

the European Parliament and of the Council of 24 November 2010

amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/

EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/

EC, 2006/49/EC and 2009/65/EC in respect of the powers of the

European Supervisory Authority (European Banking Authority), the

European Supervisory Authority (European Insurance and

Occupational Pensions Authority) and the European Supervisory

Authority (European Securities and Markets Authority).

In sub-regulation (2) of regulation 1 of the principal Amends

regulations, for the words "The objective of these regulations is to regulation

the principal

implement articles 36 and 38 of the Capital Adequacy Directive", regulations.

there shall be substituted the words, "The objective of these

regulations is to implement the second paragraph of sub-article (1) of

Article 22, and Articles 36 and 38 of the Capital Adequacy

Directive".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

in sub-regulation (1) thereof

(i)

the definition "the Directive" shall be deleted;

and

(ii) immediately after the definition "Capital

Adequacy Directive", there shall be added the following

new definitions

" "EBA" means the European Banking

Authority established by Regulation (EU) No.

1093/2010 of the European Parliament and of the

Council of 24 November 2010;

"MiFID 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."; and

(b) sub-regulation (2) thereof shall be substituted by the

following new sub-regulation

"(2) Words and expressions used in these

regulations which are also used in the Act shall have the

same meaning assigned to them in the Act.".

In regulation 4 of the principal regulations, immediately

after the words, "shall be the Malta Financial Services Authority

established by the Malta Financial Services Authority Act.", there

shall be added the words "The Malta Financial Services Authority

shall inform the EBA and the European Commission that it is the

authority designated in terms of this regulation.".

Regulation 5 of the principal regulations shall be amended as

(a)

in paragraph (b) of sub-regulation (1) thereof, for

the words, "laid down in the Directive", there shall be

substituted the words, "laid down in the Capital Adequacy

Directive"; and

(b) in sub-regulation (2) thereof, for the words, "articles

54 and 58 of the Directive", there shall be substituted the words

"article 54 and 58 of the MiFID Directive".

Immediately after regulation 5 of the principal regulations, Adds new

regulations to

there shall be added the following new regulations

the principal

regulations.

" Cooperation

6. (1) The competent authority

shall cooperate with the EBA for the purposes

with the EBA.

of the Capital

Adequacy Directive, in

accordance with Regulation (EU) No. 1093/

2010 of the European Parliament and of the

Council of the 24 November 2010.

(2) The competent authority shall

without delay provide the EBA with all

information necessary to carry out its duties

under the Capital Adequacy Directive and

under Regulation (EU) No 1093/2010, in

accordance with Article 35 of the said

Regulation.

The competent authority shall

Notifications

by the

notify the EBA, the Council of the European

competent

authority to the

Union, and the European Commission of

EBA, the

those procedures established by the

Council of the

European

competent authority to prevent licence

Union and the

holders from deliberately avoiding the

European

Commission.

additional capital requirements that they

would otherwise incur, on exposures

exceeding the limits laid down in Article

111(1) and (2) of 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), once those exposures have been

maintained for more than ten days, by means

of temporarily transferring the exposures in

question to another company, whether within

the same group or not, and, or by undertaking

artificial transactions to close out the

exposure during the ten day period and create

a new exposure.".

€0.18