Investment Services Act (Exemption)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,661, 9 ta’ Lulju, 2021 B 2193

L.N. 285 of 2021

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Exemption)

(Amendment) Regulations, 2021

IN EXERCISE of the powers conferred by article 12 of the

Investment Services 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:-

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

Services Act (Exemption) (Amendment) Regulations, 2021 and these and

commencement.

regulations shall be read and construed as one with the Investment S.L. 370. 02.

Services Act (Exemption) Regulations, hereinafter referred to as "the

principal regulations".

(2)

The scope of these regulations is, in part, to transpose

(a) Article 1 of Directive (EU) 2020/1504 of the

European Parliament and of the Council of 7 October 2020

amending Directive 2014/65/EU on markets in financial

instruments; and

(b) Article 1(1)(a) of Directive 2021/338 of the European

Parliament and of the Council of 16 February 2021 amending

Directive 2014/65/EU as regards information requirements,

product governance and position limits, and Directives 2013/36/

EU and (EU) 2019/878 as regards their application to investment

firms, to help the recovery from the COVID-19 crisis.

(3)

These regulations shall have the following commencement

dates

(a) regulations 2, 3(d) and 3(e) shall come into force on

10 November 2021; and

(b)

regulation 3(b) shall come into force on 28 February

2022.

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

regulations, for the words "(o) and Article 5(2), of MiFID,," there shall regulation

the principal

be substituted the words "(o), (p) and Article 5(2) of MiFID,".

regulations.

Sub-regulation (1) of regulation 3 of the principal

regulations shall be amended as follows

(a)

paragraph (o) thereof shall be deleted;

(b) the first proviso to paragraph (p) thereof shall be

substituted by the following new proviso

"Provided that

a.

for each of those cases individually and

on an aggregate basis, the activity is ancillary to

their main business, when considered on a group

basis;

b.

those persons are not part of a group the

main business of which is the provision of

investment services within the meaning of MiFID,

the performance of any activity listed in Annex I to

Directive 2013/36/EU, or acting as a market maker

for commodity derivatives;

c.

those persons do not apply a high-

frequency algorithmic trading technique, and

d.

those persons report upon request to the

competent authority the basis on which they have

assessed that their activity under sub-paragraphs (i)

and (ii) is ancillary to their main business:";

(c) in paragraph (z) thereof, for the words "to the said

service; and" there shall be substituted the words "to the

service;"; and

(d) in paragraph (dd) thereof, for the words "Financial

Markets Act." there shall be substituted the words "Financial

Markets Act; and", and immediately therafter there shall be

added the following new paragraph

"(ee) crowdfunding service providers as defined in

paragraph (e) of Article 2(1) of Regulation (EU) 2020/1503

of the European Parliament and of the Council  of 7 October

2020 on European crowdfunding service providers for

business, and amending Regulation (EU) 2017/1129 and

Directive (EU) 2019/1937.".

€0.09