Recovery and Resolution (Amendment) Regulations, 2023

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 21,169, 22 ta’ Diċembru, 2023

Taqsima B

L.N. 300 of 2023

MALTA FINANCIAL SERVICES AUTHORITY ACT

(CAP. 330)

Recovery and Resolution (Amendment) Regulations, 2023

IN EXERCISE of the powers conferred by article 20A and 20D

of the Malta Financial Services Authority Act, the Minister

responsible for the regulation of financial services, acting on the

advice of the Malta Financial Services Authority and of the Resolution

Authority, has made the following regulations

(1)

The title of these regulations is the Recovery and Citation and

Resolution (Amendment) Regulations, 2023 and they shall be read and Scope.

construed as one with the Recovery and Resolution Regulations,

hereinafter referred to as the the "principal regulations."

(2) The purpose of these regulations is to implement Article 93

of Regulation (EU) 2021/23 of the European Parliament and of the

Council of 16 December 2020 on a framework for the recovery and

resolution of central counterparties and amending Regulations (EU)

No 1095/2010, (EU) No 648/2012, (EU) No 600/2014, (EU) No 806/

2014 and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC,

2007/36/EC, 2014/59/EU and (EU) 2017/1132, to transpose the

relevant provisions of Article 1 of Directive (EU) 2019/879 of the

European Parliament and of the Council of 20 May 2019 amending

Directive 2014/59/EU as regards the loss-absorbing and

recapitalisation capacity of credit institutions and investment firms and

Directive 98/26/EC, and transpose Article 3(9) of Directive (EU)

2019/2162 of the European Parliament and of the Council of 27

November 2019 on the issue of covered bonds and covered bond

public supervision and amending Directives 2009/65/EC and 2014/59/

EU.

2 .

Immediately after sub-regulation (3) of regulation 1 of the Amends

principal regulations, there shall be added the following new sub- regulation

the principal

regulation

regulations.

"(4) These regulations shall not apply to entities that are

also authorised in accordance with Article 14 of Regulation (EU)

No 648/2012.".

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

regulations, immediately after the definition "the Authority" there regulation

the principal

shall be added the following new definition

regulations.

""automatic acceleration" means a situation in which a

covered bond automatically becomes immediately due and

payable upon the insolvency or resolution of the issuer and in

respect of which the covered bond investors have an enforceable

claim for repayment at a time earlier than the original maturity

date;".

The proviso to sub-regulation (9) of regulation 33B of the

principal regulations shall be substituted by the following

"Provided that, such powers shall be exercised in

accordance with the scope, duration and conditions provided for

in the relevant Maltese legislation.

Provided further that, the conditions provided for in

this regulation shall be without prejudice to the conditions

related to such power of suspension payment or delivery

obligations.".

The proviso to sub-regulation (1) of regulation 44A of the

principal regulations shall be substituted by the following

"Provided that and notwithstanding the provision of

any other law, the conditions set out in paragraphs (a) to (c) shall

apply to sellers of Additional Tier 1 instruments and Tier 2

instruments when the said instruments are sold to a retail client

as defined in point (11) of Article 4(1) of Directive 2014/65/

EU.";

In sub-regulation (5) of regulation 45I of the principal

regulations, the words "regulation 45M." shall be substituted by the

words "regulation 45L.";

In sub-regulation (2) of regulation 48 of the principal

regulations, the words "eligible liabilities", wherever they occur, shall

be substituted by the words "bail-inable liabilities";".

In paragraph (d) of sub-regulation (2) of regulation 55 of

the principal regulations, the words "provided in regulation 73, when

applying write-down and conversion powers to eligible liabilities.",

shall be substituted by the words "regulation 44(3) amounts to more

than 10 % of that class, it shall immediately assess the impact of that

particular fact on the resolvability of that institution or entity,

including the impact on the resolvability resulting from the risk of

breaching the creditor safeguards provided in regulation 73 when

applying write-down and conversion powers to eligible liabilities.".

€0.09