Depositor Compensation Scheme (Amendment) Regulations, 2019

L.N. 43 of 2019

BANKING ACT

(CAP. 371)

Depositor Compensation Scheme (Amendment) Regulations, 2019

IN EXERCISE of the powers conferred by article 28A of the

Banking Act, the Minister responsible for the regulation of financial

services, acting on the advice of the Malta Financial Services

Authority, has made the following regulations

The title of these regulations is the Depositor Citation.

Compensation Scheme (Amendment) Regulations, 2019 and they shall

be read and construed as one with the Depositor Compensation

Scheme Regulations, hereinafter referred to as ''the principal S.L. 371.09.

regulations''.

Sub-regulation (2) of regulation 9 of the principal Amends

regulation 9 of

regulations shall be amended as follows

the principal

regulations.

(a) in paragraph (l) thereof, for the words, ''in a non-

Member State.'', there shall be substituted the words, ''in a non-

Member State;''; and

(b) immediately after paragraph (l) thereof, as amended,

there shall be inserted the following new paragraph

''(m) electronic money and funds received in

exchange for electronic money in accordance with

Directive 2009/110/EC of the European Parliament and of

the Council on the taking up, pursuit and prudential

supervision of the business of electronic money

institution.''.

The proviso to sub-regulation (2) of regulation 23 of the Amends

regulation 23 of

principal regulations shall be amended as follows

the principal

regulations

(a) paragraph (c) thereof shall be renumbered as

paragraph (f); and

(b) immediately after paragraph (b) thereof, there shall

be added the following new paragraphs

''(c) if the available financial means have been

reduced to a level which is more than two-thirds of such

target level, the regular contribution shall be set at a level

allowing such target level to be reached within four years;

(d) subject to the overriding provision of regulation

23(3), but notwithstanding the maximum portion of a

Compensation Contribution which by reference to the

relative financial year can be provided as payment

commitment in regulation 25(8), where the available

financial means of the Scheme have been reduced on

account of the Scheme having paid compensation to

depositors under Part III of these regulations, the Scheme

may provide in its absolute discretion that the payment of

contributions by members under paragraphs (a), (b) and, or

(c), as the case may be, be provided in whole or in part to

the Scheme by means of a payment commitment;

(e) the payment of contributions under paragraph

(a) and paragraph (b) and, or paragraph (c) shall be

determined by the Scheme in accordance with regulation

25(3).''.

In sub-regulation 10 of regulation 25 of the principal

regulations, for the words, ''ceases to be licensed in Malta for any

reason whatsoever.'', there shall be substituted the words, ''ceases to be

licensed in Malta for any reason whatsoever

Provided that when a member ceases to be licensed on

account of a merger with or acquisition by another member, the

Scheme may, at its discretion, either

(a)

demand payment of the payment commitment; or

(b) require that the payment commitment is transferred to

the other member which has acquired the member who has

ceased to be licensed in Malta or with which the latter member

has merged.''.

In sub-regulation (4) of regulation 29 of the principal

regulations, for the words ''If a member ceases to be a member'', there

shall be substituted the words ''If a member ceases, for any reason, to

be a member''.

€0.18