Investor Compensation Scheme (Amendment) Regulations, 2017

L.N. 230 of 2017

INVESTMENT SERVICES ACT

(CAP. 370)

Investor Compensation Scheme (Amendment) Regulations, 2017

IN EXERCISE of the powers conferred by article 12 (1) of the

Investment Services Act, the Minister responsible for Finance, acting

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

following regulations:-

The title of these regulations is the Investor Compensation

Scheme (Amendment) Regulations, 2017 and they shall be read and

construed as one with the Investor Compensation Scheme Regulations,

hereinafter referred to as "the principal regulations".

Regulation 19 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof, for the words "The

Scheme shall provide", there shall be substituted the words,

"After a determination is made, in terms of regulation 13, the

Scheme shall provide";

(b) sub-regulation (2) thereof shall be renumbered as

sub-regulation (3) thereof;

(c)

immediately after sub-regulation (1) thereof, as

amended, there shall be added the following new sub-regulation

"(2) Notwithstanding the provisions of regulation

17, the Scheme shall also, in accordance with the

provisions of article 26(3)(e) of the Arbiter for Financial

Services Act, settle any judgment or arbitration award for

up to twenty thousand euro (EUR 20,000), in respect of any

civil liability which is obtained by an investor against a

participant with regard to licensed business in respect of

which there is a determination, and such payment shall be

made within ten (10) working days from the day when the

judgement or arbitration award becomes res judicata

Provided that following the settlement of any such

amount by the Scheme, the maximum compensation sum

payable to each investor in terms of regulation 17(1) shall

be reduced by the amount settled by the Scheme in

accordance with this sub-regulation.".

€0.09