European Passport Rights for Credit Institutions

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

L.N. 492 of 2021

BANKING ACT

(CAP. 371)

European Passport Rights for Credit Institutions

(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 European Citation.

Passport Rights for Credit Institutions (Amendment) Regulations,

2021, and these regulations shall be read and construed as one with

the European Passport Rights for Credit Institutions Regulations, S.L. 371.11

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

(iii) the definition

"mixed

activity

holding

company" shall be deleted;

(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 term "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 3(6), 4(5), 8(1), (2) and (3), 10(9), 11(6), 12(1)

and (3), 16(1) and (2)(a) 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.".

Regulation 5 of the principal regulations shall be

substituted by the following

"5.

A European credit institution which

is seeking to appoint tied agents in Malta in

exercise of a European passport right and in

terms of the MiFID, shall be subject to the

requirements of the Investment Services Act

(Tied Agents) Regulations.".

Regulation 14 of the principal regulations shall be

amended as follows

(a)

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

immediately after the words "which transpose the requirements

of the CRD," there shall be added the words "with any binding

legal instruments issued under the CRD";

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

immediately after the words "transposing the requirements of

the CRD," there shall be added the words "with any binding

legal instruments issued under the CRD"; and

(c)

in sub-regulation (8) thereof, immediately after the

words "transposing the requirements of the CRD," there shall be

added the words "or of any binding legal instruments issued

under the CRD".

Sub-regulation (1) of regulation 15 of the principal Amends

regulation 15 of

regulations shall be amended as follows

the principal

regulations.

(a)

in paragraph (a) thereof, immediately after the

words "transposing the CRD," there shall be added the words

"with any binding legal instruments issued under the CRD"; and

(b) in paragraph (b) thereof, immediately after the

words "transposing the CRD," there shall be added the words

"with any binding legal instruments issued under the CRD".

Regulation 17 of the principal regulations shall be Amends

regulation 17 of

amended as follows

the principal

regulations.

the chapeau of sub-regulation (1) shall be

(a)

substituted by the following

"A company may exercise a European passport

right in accordance with Articles 35, with the exclusion of

the second paragraph of sub-article (3) thereof, 36(1), (2)

and (3), 39(1) and (2) and 40 to 46 of the CRD provided

the following conditions are fulfilled:";

(b) in sub-regulation (7) thereof, for the words "referred

to in point (1) and in points (3) to (23) of Article 2(5) of the

CRD" there shall be substituted the words "referred to in points

(3) to (24) of Article 2(5) of the CRD"; and

(c)

immediately after sub-regulation (8) thereof, there

shall be added the following new sub-regulation

"(9) For the purposes of this regulation, the term

"company" shall mean an undertaking other than an

institution and other than a pure industrial holding

company, the principal activity of which is to acquire

holdings or to pursue one or more of the activities listed in

points 2 to 12 and point 15 of Annex I to the CRD,

including a financial holding company, a mixed financial

holding company, a payment institution and an asset

management company, but excluding insurance holding

companies and mixed-activity insurance holding

companies as defined in points (f) and (g) of Article 212(1)

of Directive 2009/138/EC.".

Paragraph 4 of the Schedule to the principal regulations

shall be substituted by the following

"4. Payment services as defined in Article 4(3) of

Directive (EU) 2015/2366;".

€0.18