Administrative Penalties, Measures and Investigatory Powers

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 20,757, 24 ta’ Diċembru, 2021

L.N. 491 of 2021

BANKING ACT

(CAP. 371)

Administrative Penalties, Measures and Investigatory Powers

(Amendment) Regulations, 2021

IN EXERCISE of the powers conferred by article 3 of the

Banking Act, the Minister for Finance and Employment, after

consultation with the Malta Financial Services Authority, has made

the following regulations:-

(1) The title of these regulations is the Administrative Citation.

Penalties, Measures and Investigatory Powers (Amendment)

Regulations, 2021, and these regulations shall be read and construed

as one with the Administrative Penalties, Measures and Investigatory S.L. 371.05.

Powers Regulations, hereinafter referred to as "the principal

regulations".

(2) These regulations shall come into force on such date as the

Minister for Finance and Employment may, by notice in the Gazette

establish and a different date or dates may be so established for

different provisions of these regulations.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

sub-regulation (1) thereof shall be amended as

follows

(i) in the definition "the CRD", for the words

"and the prudential supervision of credit institutions and

investment firms" there shall be substituted the words "and

the prudential supervision of credit institutions"; and for

the words "and includes any implementing measures" there

shall be substituted the words "and includes any binding

legal instruments, guidelines and other measures";

(ii) in the definition "the CRR", for the words "on

prudential requirements for credit institutions and

investment firms" there shall be substituted the words "on

prudential requirements for credit institutions"; and for the

words "and includes any implementing measures" there

shall be substituted the words "and includes any binding

legal instruments, guidelines and other measures"; and

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

have the same meaning as in the Act." there shall be substituted

the words "shall have the same meaning as in the Act:", and

immediately thereafter there shall be added the following new

provisos

"Provided that, in accordance with article 2(1A) of

the Act, for the purposes of applying the requirements and

supervisory powers laid down in these regulations on a

consolidated or sub-consolidated basis in accordance with

the Act and any regulations and Banking Rules made or

issued thereunder transposing the CRD, with any binding

legal instruments issued under the CRD and with the CRR,

the terms "parent institution" and "parent undertaking"

shall also include the entities listed in paragraphs (a), (b)

and (c) of article 2(1A) of the Act

Provided further that, for the purposes of applying

the requirements and supervisory powers laid down in

regulations 4(3), 5(1)(a)(i), 6(i), 7(1), (2)(a), (2)(c) and

(2)(d), 10(2)(b), (2)(d) and (3) on a consolidated or sub-

consolidated basis in accordance with the Act and any

regulations and Banking Rules made or issued thereunder

transposing the CRD, with any binding legal instruments

issued under the CRD and with the CRR, the term "credit

institution" shall also include the entities listed in

paragraphs (a), (b) and (c) of article 2(1B) of the Act.".

In regulation 3 of the principal regulations, for the words

"Banking Rules issued thereunder, and the CRR," there shall be

substituted the words "Banking Rules issued thereunder, out of

binding legal instruments issued under the CRD and out of the

Regulation 4 of the principal regulations shall be amended

as follows

(a)

in paragraph (a) of sub-regulation (1) thereof,

immediately after the words "Banking Rules issued thereunder,"

there shall be added the words "and, or any binding legal

instruments issued under the CRD,"; and

(b) in sub-regulation (3) thereof, for the words

"Banking Rules issued thereunder and the CRR,", wherever

they occur, there shall be added the words "Banking Rules

issued thereunder, under any binding legal instruments issued

under the CRD, and under the CRR,".

In sub-regulation (1) of regulation 5 of the principal Amends

regulations, for the words "in the CRD, and the CRR,", there shall be regulation

the principal

substituted the words "in the CRD, in any binding legal instruments regulations.

issued under the CRD and in the CRR,".

Regulation 6 of the principal regulations shall be amended Amends

regulation 6 of

as follows

the principal

regulations.

(a)

immediately after paragraph (a) thereof, there shall

be added the following new paragraph

"(aa) carrying out at least one of the activities

referred to in point (1)(b) of Article 4(1) of the CRR and

meeting the threshold indicated in that Article without

obtaining a licence as a credit institution, in breach of

article 6A of the Act;";

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

be added the following new paragraph

"(e) failing to apply for approval in breach of

article 11B of the Act or any other breach of the

requirements set out in that article,"; and

(c)

for the words "the administrative penalties and other

administrative measures which the administrative penalties"

there shall be substituted the words "the administrative

penalties".

Sub-regulation (1) of regulation 7 of the principal Amends

regulation 7 of

regulations shall be amended as follows

the principal

regulations.

(a)

in paragraph (p) thereof, for the words "not

complying with article 14(2) of the Act to become or remain a

director." there shall be substituted the words "not complying

with article 14(2) and (2A) of the Act to become or remain a

director;"; and

(b) immediately after paragraph (p) thereof, as

amended, there shall be added the following new paragraph

"(q) a parent institution, a parent financial holding

company or a parent mixed financial holding company

fails to take any action that may be required to ensure

compliance with the prudential requirements set out in Part

Three, Four, Six or Seven of the CRR or imposed under

point (a) of Article 104(1) or Article 105 of the CRD on a

consolidated or sub-consolidated basis.".

In sub-regulation (2) of regulation 8 of the principal

regulations, for the words "of articles 7(1)(b), 7B(3), 14(2) and 14(3)

of the Act" there shall be substituted the words "of articles 7(1)(b),

7B(3), and 14(2), (2A) and (3) of the Act".

In sub-regulation (1) of regulation 10 of the principal

regulations, immediately after the words "and Banking Rules issued

thereunder," there shall be added the words "of any binding legal

instrument issued thereunder".

€0.18