Investment Firms (Reorganisation and Winding-Up)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,569, 6 ta’ Mejju, 2016

L.N. 150 of 2016

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Firms (Reorganisation and Winding-Up)

(Amendment) Regulations, 2016

IN exercise of the powers conferred by article 12 of the

Investment Services Act, the Minister for Finance, acting on the

advice of the Malta Financial Services Authority, has made the

following regulations:-

The title of these regulations is the Investment Firms Citation and

(Reorganisation and Winding-up) (Amendment) Regulations 2016, scope.

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

Investment Firms (Reorganisation and Winding-Up) Regulations, S.L. 370.30

hereinafter referred to as "the principal regulations".

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a)

sub-regulation (4) thereof shall be renumbered as

sub-regulation (5); and

(b) immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulation

"(4) Where an investment firm is either

under resolution or where the conditions for

resolution have been determined by the

Resolution Committee to be met, normal

insolvency proceedings shall not be commenced

except at the initiative of the Resolution

Committee, and a decision placing an

investment firm into normal insolvency

proceedings shall be taken only with the consent

of the Resolution Committee as provided for in

regulation 86 of the Recovery and Resolution

Regulations made under the Malta Financial

Services Authority Act.".

Sub-regulation (1) of regulation 4 of the principal Amends

regulation 4 of

regulations shall be amended as follows

the principal

regulations.

(a) immediately after the definition "Member State",

there shall be added the following new definition

" "normal insolvency proceedings" means

collective insolvency proceedings which entail the partial

or total divestment of a debtor and the appointment of a

liquidator or an administrator normally applicable to

investment firms under Maltese law and either specific to

those investment firms or generally applicable to any

natural or legal person;"; and

(b) immediately after the definition "reorganisation

measures", there shall be added the following new definition

" "Resolution Committee" means the

committee appointed under article 7B of the

Malta Financial Services Authority Act;".

Regulation 38 of the principal regulations shall be

substituted by the following

" European

38. (1)

From the date of coming into

investment

force of these regulations, the Court may not, in

firms or

relation to a European investment firm or any

branches of

European

branch of a European investment firm -

investment

firms located in

(a)

make a winding-up order

Malta.

pursuant to article 224 of the Companies

Act; or

(b) adopt reorganisation measures

or perform any act ancillary to the adoption

of such measures in terms of Part VI of the

Companies Act.

(2) Sub-regulation (1)(a) does not

prevent -

(a)

the Court from making a

winding-up order after the coming into

force of these regulations in relation to a

European investment firm or any branch of

a European investment firm if -

(i) a

provisional

administrator was appointed in

relation to the European investment

firm before the coming into force of

these regulations, and

(ii) the

appointment

continues in force until immediately

before that winding-up order is made;

(b) the winding-up of a European

investment firm or any branch of a

European investment firm after the coming

into force of these regulations pursuant to a

winding-up order which was made, and has

not been discharged, before that date.

(3) Sub-regulation (1)(b) does not

prevent a provisional administrator of a

European investment firm or any branch of a

European investment firm appointed before the

coming into force of these regulations, from

acting in relation to such institution after that

date.".

B

€0.18