Activities by Third-Country Firms) (Amendment) Regulations,

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,774, 27 ta’ Jannar, 2022 B 183

L.N. 21 of 2022

INVESTMENT SERVICES ACT

(CAP. 370)

Investment Services Act (Provision of Investment Services and

Activities by Third-Country Firms) (Amendment) Regulations,

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 (Provision of Investment Services and Activities by and

commencement.

Third-Country Firms) (Amendment) Regulations, 2022, and these

regulations shall be read and construed as one with the Investment S.L. 370.43.

Services Act (Provision of Investment Services and Activities by

Third-Country Firms) Regulations, hereinafter referred to as the

"principal regulations".

(2) The scope of these regulations is to amend Regulations 4,

5, 8 and to add new Regulation 7A within to transpose Article 64 of

Directive (EU) 2019/2034 of the European Parliament and of the

Council of 27 November 2019 on the prudential supervision of

investment firms and amending Directives 2002/87/EC, 2009/65/EC,

201/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU.

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

Minister may by notice in the Gazette establish.

The marginal note of regulation 4 of the principal Amends

regulation 4 of

regulations shall be substituted by the following

the principal

regulations.

"Application for a licence and obligation to provide

information.".

Paragraph (b) of sub-regulation (1) of regulation 5 of the Amends

regulation 5 of

principal regulations shall be substituted by the following

the principal

regulations.

"(b) the branch of the third-country firm will be able to

comply with the provisions referred to in regulation 6 and with

the provisions of regulation 7A.".

Immediately after regulation 7 of the principal regulations,

there shall be added the following new regulation

The branch of the third‐country firm that is

obligations of the

authorised in accordance with regulation 5 shall report

branch of the third-

to the competent authority referred to in regulation 7

the following information on an annual basis

(a) the scale and scope of the services and

activities carried out by the branch in Malta;

(b) for third‐country firms performing the

activity listed in point (3) of Section A of Annex I

to MiFID, their monthly minimum, average and

maximum exposure to EU counterparties;

(c) for third‐country firms providing one

or both of the services listed in point (6) of

Section A of Annex I to MiFID, the total value of

financial instruments originating from EU

counterparties underwritten or placed on a firm

commitment basis over the previous 12 months;

(d) the turnover and the aggregated value

of the assets corresponding to the services and

activities referred to in point (a);

(e) a detailed description of the investor

protection arrangements available to the clients of

the branch, including the rights of those clients

resulting from the investor‐compensation scheme

referred to in paragraph (f) of regulation 3(3);

(f) their risk management policy and

arrangements applied by the branch for the

services and activities referred to in paragraph

(a);

(g) the

governance

arrangements,

including key function holders for the activities of

the branch;

(h) any other information considered by the

competent authority to be necessary to enable

comprehensive monitoring of the activities of the

branch.".

5. Regulation 8 of the principal regulations shall be amended

as follows

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

to the provision of that service or activity.", there shall be

substituted the words "relating to the provision of that service or

activity:", and immediately thereafter there shall be added the

following new proviso

"Without prejudice to intragroup relations, where a

third‐country firm, including through an entity acting on its

behalf or having close links with such third‐country firm or

any other person acting on behalf of such entity, solicits

clients or potential clients in Malta, it shall not be deemed

to be a service provided at the own exclusive initiative of

the client."; and

(b) sub-regulation (2) thereof, shall be substituted by the

following

"(2) An initiative by such clients shall not entitle the

third-country firm to market new categories of investment

products or investment services to that client otherwise

than through the branch, where one is required in

accordance with Maltese law.".

€0.18