European Passport Rights for Investment Firms

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 18,920, 25 ta’ Mejju, 2012 B 1439

Taqsima B

L.N. 174 of 2012

INVESTMENT SERVICES ACT

(CAP. 370)

European Passport Rights for Investment Firms

(Amendment) Regulations, 2012

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister of 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 European Citation and

Passport Rights for Investment Firms (Amendment) Regulations, scope.

2012 and these regulations shall be read and construed as one with the

European Passport Rights for Investment Firms Regulations, S.L. 370.10

hereinafter referred to as the "the principal regulations".

(2) The purpose of these regulations is to transpose Article

6(27)(a) and (b) 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 Directive", and wherever they appear regulation

the principal

in the principal regulations, there shall be substituted the words "the regulations

general

MiFID Directive".

amendment.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

immediately after the definition "core investment

service", there shall be added the following new definition

" "ESMA" means the European Securities and

Markets Authority established by Regulation (EU) No

1095/2010 of the European Parliament and of the Council

of 24 November 2010;";

(b)

the definition "Directive" shall be deleted;

(c)

in the definition "investment firm", for the words

"said Directive", there shall be substituted the words "said

MiFID Directive"; and

(d)

immediately after the definition "Maltese

investment firm", there shall be added the following new

definition

" "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;".

Regulation 12 of the principal regulations shall be

amended as follows

(a)

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

breach of the obligations arising from the provisions Directive",

there shall be substituted the words, "in breach of the

obligations arising from the provisions of the MiFID Directive";

(b)

sub-regulation (4) thereof shall be amended as

follows

(i) for the words "functions of Maltese markets",

wherever they appear in the said sub-regulation, there shall

be substituted the words "functioning of Maltese markets";

and

(ii) immediately after the words "from initiating

any further transactions in Malta.", there shall be added the

words "The competent authority may also choose to refer

the matter to ESMA.";

(c)

sub-regulation (5) thereof shall be substituted by

the following new sub-regulation

"(5) If, despite the measures taken by the

competent authority, the European investment firm persists

in breaching any of the provisions of the Act or any

Investment Services Rules or regulations made thereunder,

the competent authority shall take all the appropriate

measures needed in order to protect investors and the

proper functioning of the Maltese markets. The competent

authority may refer the matter to ESMA."; and

(d)

in sub-regulation (7) thereof, for the words, "shall

inform the European Commission without delay", there shall be

substituted the words "shall inform the Commission of the

European Union and ESMA without delay".

In paragraph 1 of Schedule 2 to the principal regulations, Amends

for the words "this Directive", wherever they appear in such Schedule

the principal

paragraph, there shall be substituted the words "the MiFID regulations.

Directive".

€0.18