FINANCIAL MARKETS ACT (CSDR ADMINISTRATIVEPENALTIES, MEASURES AND INVESTIGATORY POWERS) REGULATIONS

FINANCIAL MARKETS ACT (CSDR

ADMINISTRATIVE PENALTIES, MEASURES AND

INVESTIGATORY POWERS)

SUBSIDIARY LEGISLATION 345.26

FINANCIAL MARKETS ACT (CSDR

ADMINISTRATIVEPENALTIES, MEASURES AND

INVESTIGATORY POWERS) REGULATIONS

3rd January, 2018

LEGAL NOTICE 407 of 2017.

(1)

The title of these regulations is the Financial

Markets Act (CSDR Administrative Penalties, Measures and

Investigatory Powers) Regulations.

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

63 of the CSDR, as herein defined and these regulations shall be

interpreted and applied accordingly.

(1)

In these regulations, unless the context otherwise

requires -

"the Act" means the Financial Markets Act;

"competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority Act;

"CSDR" means Regulation (EU) No 909/2014 of the

European Parliament and of the Council of the 23 July 2014 on

improving securities settlement in the European Union and on central

securities depositories and amending Directives 98/26/EC and 2014/

65/EU and Regulation (EU) No 236/2012, as may be amended from

time to time, and includes any implementing measures that have been

or may be issued thereunder.

(2) Words and expressions which are also used in the Act

shall have the same meaning as in the Act.

The competent authority shall exercise its supervisory

powers and its powers to impose penalties, in such a way as to ensure

full and complete adherence to the requirements and obligations

arising out of the Act and any regulations and Financial Market Rules

issued thereunder and the CSDR, either directly or in collaboration

with European regulatory authorities and with overseas regulatory

authorities, in terms of law as warranted by the relevant

circumstances and shall take all measures necessary to ensure that

such administrative penalties are implemented.

Without prejudice to article 39A of the Act, to any

regulations made under the Act and to the supervisory powers of the

competent authority referred in regulation 3, the competent authority

shall impose administrative penalties and other administrative

measures for breaches of the CSDR and, or where any person

contravenes or fails to comply with any provision of Part IV of the

Act.

FINANCIAL MARKETS ACT (CSDR

ADMINISTRATIVE PENALTIES, MEASURES AND

INVESTIGATORY POWERS)

Where any person contravenes or fails to comply with

the provisions of Part IV of the Act, or of any rules or regulations

implementing the CSDR made under the Act, or with any provisions

of the CSDR, the competent authority may, by notice in writing and

without recourse to a court hearing impose the following penalties

(a)

a public statement which indicates the person

responsible for the infringement and the nature of the

infringement;

(b)

an order requiring the person responsible for the

infringement to cease the conduct and to desist from a

repetition of that conduct;

(c)

withdrawal of authorisation in accordance with

article 27 of the Act;

(d)

a temporary or, for repeated serious

infringements, a permanent ban against any member of the

institution’s management body or any other natural person,

who is held responsible, from exercising management

functions in the institution;

(e)

maximum administrative pecuniary sanctions of

at least twice the amounts of the profit gained as a result of an

infringement where those amounts can be determined;

(f)

in respect of a natural person, maximum

administrative pecuniary sanctions of five million euro

(€5,000,000);

(g)

in the case of legal person, maximum

administrative pecuniary sanctions of twenty million euro

(€20,000,000) or up to 10% of the total annual turnover of the

legal person according to the last available accounts approved

by the management body; where the legal person is a parent

undertaking or a subsidiary of the parent undertaking which

has to prepare consolidated financial accounts according to

Directive 2013/34/EU, the relevant total annual turnover shall

be the total annual turnover or the corresponding type of

income according to the relevant Accounting Directives

according to the last available consolidated accounts approved

by the management body of the ultimate parent undertaking.

Subject to the provisions of the Act, any person in

respect of whom a decision is taken by the competent authority under

these regulations may appeal to the Financial Services Tribunal in

terms of article 42 of the Act.