Investor Compensation Scheme (Amendment) Regulations, 2025

L.N. 186 of 2025

INVESTMENT SERVICES ACT

(CAP. 370)

Investor Compensation Scheme (Amendment) Regulations, 2025

IN EXERCISE of the powers conferred by article 12(1)(c) 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:-

The title of these regulations is the Investor Compensation Citation.

Scheme (Amendment) Regulations, 2025 and these regulations shall

be read and construed as one with the Investor Compensation Scheme S.L. 370.09.

Regulations, hereinafter referred to as the "principal regulations".

In sub-regulation (4) of regulation 3 of the principal Amends

regulations the words "The legal and judicial representation of the regulation

the principal

Scheme shall vest in the chairperson of the Management Committee:" regulations.

shall be substituted by the words "The legal and judicial representation

of the Scheme shall vest in the chairperson of the Management

Committee or, in the event that another member is designated to carry

out the functions of chairperson in accordance with regulation 5(12),

such legal and judicial representation shall, for the duration of the term

for which he is designated as chairperson, vest in such other member:".

Regulation 5 of the principal regulations shall be amended Amends

regulation 5 of

as follows

the principal

regulations.

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) The Management Committee shall be

appointed by the competent authority and shall consist of

a chairperson and seven (7) other members as follows

(a) two (2) officers performing duties with

the competent authority;

(b) one (1) officer nominated by, and

performing duties with, the Central Bank of Malta;

(c) one (1) person nominated by the

Minister;

(d) one (1) person nominated by an

association or associations or other bodies

representing persons holding a licence under the

Act who participates in, and contributes to the

Scheme in accordance with these regulations, and

which association or associations or other bodies

are recognised for such purpose by the competent

authority. The person nominated shall not be an

officer or employee of, or in any other way hold any

position with, a holder of a licence under the Act

falling within the scope of these regulations;

(e) one (1) person nominated by an

association or associations or other bodies

representing credit institutions who participates in,

and contributes to the Depositor Compensation

Scheme established under the Depositor

Compensation Scheme Regulations, and which

association or associations or other bodies are

recognised for such purpose by the competent

authority. The person nominated shall not be an

officer or employee of, or in any other way hold any

position with, a credit institution falling within the

scope of the Depositor Compensation Scheme in

accordance with the Depositor Compensation

Scheme Regulations;

(f) one (1) officer nominated by, and

performing duties with the Malta Competition and

Consumer Affairs Authority established under

article 3 of the Malta Competition and Consumer

Affairs Authority Act and such person shall

represent the point of view of consumers

Provided that the chairperson of the Management

Committee shall also be an officer performing duties with

the competent authority

Provided further that an officer nominated and

appointed under paragraphs (a), (b) and (f) shall remain a

member of the Committee throughout the term of

appointment only to the extent that such officer continues

to be an officer of the competent authority, the Central

Bank of Malta or the Malta Competition and Consumer

Affairs Authority, as the case may be

Provided further that whenever, for any reason

whatsoever, the associations or other bodies representing

licence holders or credit institutions referred to in

paragraphs (d) and (e) fail to nominate the person they are

required to nominate within the period of time established

by the competent authority, such person shall be

appointed by the competent authority at its discretion.";

(b) in sub-regulation (2) thereof the words "have proven

experience and are qualified in financial services, management,

or possess any other relevant professional or commercial

knowledge and expertise." shall be substituted by the words

"have proven knowledge, expertise and experience in financial

services or management, or otherwise possess any other relevant

professional or commercial knowledge and expertise.";

(c) sub-regulation (3) thereof shall be substituted by the

following new sub-regulation

"(3) A person shall not be eligible for appointment

as a member of the Management Committee in accordance

with sub-regulation (1) if such person has a financial or

other interest as is likely to adversely affect the discharge

by such person of his functions under these regulations. In

addition, the members of the Management Committee

appointed under paragraphs (d) and (e) of sub-regulation

(1) shall serve in their personal capacity and shall not

represent or receive directives or instructions from an

association, entity or other body nominating them, however

the Management Committee may expressly and in writing,

authorise any such member to share specific information

with the said association, entity or other body.";

(d) sub-regulation (11) thereof shall be substituted by the

following new sub-regulation

"(11) For the purpose of the second proviso to sub-

regulation (1), sub-regulation (2), the first sentence of sub-

regulation (3), and sub-regulations (4), (5), (6), (8) and (9),

"member" shall include the chairperson.";

(e) immediately after sub-regulation (11) thereof, as

substituted, there shall be added the following new sub-

regulation

"(12) Where the chairperson is absent or is unable to

exercise the functions and powers of his office, and the

competent authority has not appointed any other person to

act as chairperson during the said period, the other

members of the Management Committee shall designate

one (1) of the said other members to carry out the functions

of the chairperson during such period.".

Sub-regulation (3) of regulation 6 of the principal

regulations shall be substituted by the following new sub-regulation

"(3) For the purposes of being able to exercise its

functions and objectives in accordance with regulation 4,

the Management Committee may, on behalf of the

Scheme, after consulting with the competent authority,

take out insurance policies, borrow or otherwise incur

indebtedness and obtain funding guarantees, as it may

consider appropriate to establish additional sources of

funding for the Scheme. For the purposes of this sub-

regulation, the term "guarantees" shall include guarantees

obtained from credit institutions construed in accordance

with item 4 of the First Schedule to the Banking Act.".

Sub-regulation (3) of regulation 9 of the principal

regulations shall be substituted by the following new sub-regulation

"(3) The Management Committee shall only hold the

meeting if at least five (5) members are present, which members

shall include the chairperson or, in his absence, the person

designated to carry out the function of chairperson in accordance

with regulation 5(12).".

Immediately after regulation 36 of the principal

regulations, there shall be added the following new regulation

37. Notwithstanding the provisions of regulation

5(4), the term of office of the members of the

termination of

Management Committee sitting on the said Committee on

2nd September 2025, shall be deemed to be terminated on

the said date.".

€0.36