Regulations, 2024

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 21,185, 26 ta’ Jannar, 2024

L.N. 13 of 2024

FINANCIAL MARKETS ACT

(CAP. 345)

Financial Markets Act (Covered Bonds) (Amendment)

Regulations, 2024

IN EXERCISE of the powers conferred by articles 31H and

49(1)(e) of the Financial Markets 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 Financial Markets Title and scope.

Act (Covered Bonds) (Amendment) Regulations, 2024 and these

regulations shall be read and construed as one with the Financial S.L.345.27.

Markets Act (Covered Bonds) Regulations, hereinafter referred to as

the "principal regulations".

(2)

The scope of these regulations is to transpose in part

Article 3 of the 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.

Sub-regulation (1) of regulation 2 of the principal Amends

regulation 2 of

regulations shall be amended as follows

the principal

regulations.

(a)

immediately after the definition "market value",

there shall be added the following new definition

" "match funding requirements" means rules

requiring that the cash flows between liabilities and assets

falling due, be matched by ensuring in contractual terms

and conditions that payments from borrowers and

counterparties of derivative contracts fall due before

payments are made to covered bond investors and to the

counterparties of derivative contracts, that the amounts

received are at least equal in value to the payments to be

made to covered bond investors and to counterparties of

derivative contracts, and that the amounts received from

borrowers and counterparties of derivative contracts are

included in the cover pool in accordance with regulation

13(2) until the payments become due to the covered bond

investors and counterparties of derivative contracts;" and

(b) immediately

after

the

definition

"special

administrator", there shall be added the following new

definition

"specialised mortgage credit institution" means a

credit institution which funds loans solely or mainly

through the issue of covered bonds, which is permitted by

law only to carry out mortgage and public sector lending

and which is not permitted to take deposits, but which takes

other repayable funds from the public;".

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