FINANCIAL MARKETS ACT (COVERED BONDS) REGULATIONS (coveredbonds)

SUBSIDIARY LEGISLATION 345.27

FINANCIAL MARKETS ACT (COVERED BONDS)

REGULATIONS

14th March 2023

LEGAL NOTICE 59 of 2023, as amended by Legal Notice 13 of

2024.

(1)

The title of these regulations is the Financial

Markets Act (Covered Bonds) Regulations.

(2)

The scope of these regulations is to transpose Articles 2,

3, 6 to 17, both inclusive, 21, 26, 27 and, in part, 30 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/

(3)

These regulations shall apply to covered bonds issued by

credit institutions licensed in terms of the Banking Act.

(1)

In these regulations, unless the context otherwise

requires

"the Act" means the Financial Markets Act;

"collateral assets" means physical assets and assets in the

form of exposures that secure cover assets;

"cover assets" means assets included in a cover pool;

"cover pool" means a clearly defined set of assets

securing the payment obligations attached to covered bonds that

are segregated from other assets held by the credit institution

issuing the covered bonds;

"covered bond" means a debt obligation that is issued by

a credit institution in accordance with the provisions of the Act,

these regulations, regulations 68(7) and 108(1) of the Recovery

and Resolution Regulations, and of any Covered Bonds Rules

issued under the Act or under these regulations, and that is

secured by cover assets to which covered bond investors have

direct recourse as preferred creditors;

"covered bond programme" means the structural features

of a covered bonds issue that are determined by the provisions

of the Act, these regulations, any Covered Bonds Rules issued

under the Act and under these regulations, the provisions of the

Recovery and Resolution Regulations transposing the CBD and

by contractual terms and conditions, in accordance with the

approval granted to the credit institution issuing the covered

bonds;

FINANCIAL MARKETS ACT (COVERED BONDS)

"covered bond public supervision" means the supervision

of covered bond programmes ensuring compliance with, and

the enforcement of, the requirements applicable to the issue of

covered bonds;

"credit institution" means a credit institution as defined

in point (1) of Article 4(1) of the CRR;

"Directive 2009/65/EC" means Directive 2009/65/EC of

the European Parliament and of the Council of 13 July 2009 on

the coordination of laws, regulations and administrative

provisions relating to undertakings for collective investment in

transferable securities (UCITS), as amended from time to time,

and includes any implementing measures that have been or may

be issued thereunder;

"director" shall have the same meaning as that assigned

to it in article 2(1) of the Banking Act;

"the EBA" means the European Banking Authority

established by Regulation (EU) No 1093/2010 of the European

Parliament and of the Council of 24 November 2010

establishing a European Supervisory Authority (European

Banking Authority), amending Decision No 716/2009/EC and

repealing Commission Decision 2009/78/EC, as amended from

time to time;

"extendable maturity structure" means a mechanism

which provides for the possibility of extending the scheduled

maturity of covered bonds for a pre-determined period of time

and in the event that a specific trigger occurs;

"group" means a group as defined in point (138) of

Article 4(1) of the CRR;

"Investment Services Rules" means Rules issued by the

competent authority under the Investment Services Act;

"market value" means, for the purposes of immovable

property, market value as defined in point (76) of Article 4(1) of

the CRR;

"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;

"mortgage lending value" means, for the purposes of

immovable property, the mortgage lending value as defined in

point (74) of Article 4(1) of the CRR;

"net liquidity outflow" means all payment outflows

falling due on one day, including principal and interest

payments and payments under derivative contracts of the

covered bond programme, net of all payment inflows falling

due on the same day for claims related to the cover assets;

"overcollateralisation" means the entirety of the

statutory, contractual or voluntary level of collateral that

exceeds the coverage requirement set out in regulation 12;

"primary assets" means dominant cover assets that

determine the nature of the cover pool;

"public undertakings" means public undertakings as

defined in point (b) of Article 2 of Commission Directive 2006/

111/EC on the transparency of financial relations between

Member States and public undertakings as well as on financial

transparency within certain undertakings, as amended from

time to time;

"resolution" shall have the same meaning as that

assigned to it in regulation 2(1) of the Recovery and Resolution

Regulations;

"segregation" means the actions performed by a credit

institution issuing covered bonds to identify cover assets and

put them legally beyond the reach of creditors other than

covered bond investors and counterparties of derivative

contracts;

"special administrator" means the person or entity

appointed to administrate a covered bond programme in the

event of the insolvency of a credit institution issuing covered

bonds under that programme, or when such credit institution

has been determined to be failing or likely to fail pursuant to

regulation 32(1) of the Recovery and Resolution Regulations

or, in exceptional circumstances, where the competent authority

determines that the proper functioning of that credit institution

is seriously at risk;

"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

FINANCIAL MARKETS ACT (COVERED BONDS)

mortgage and public sector lending and which is not permitted

to take deposits, but which takes other repayable funds from the

public;

"substitution assets" means cover assets that contribute to

the coverage requirements, other than primary assets.

(2)

Words and expressions used in these regulations which

are also used in the Act but which are not defined herein, shall have

the same meaning assigned to them in the Act.

(1)

Covered bonds issued by a credit institution shall

at all times be secured by

(a)

assets that are eligible pursuant to Article 129(1)

of the CRR, provided that the credit institution issuing the

covered bonds meets the requirements of paragraphs 1a to 3 of

Article 129 of the CRR;

(b)

high-quality cover assets that ensure that the

credit institution issuing the covered bonds has a claim for

payment as set out in sub-regulation (2) and are secured by

collateral assets as set out in sub-regulation (3); or

(c)

assets in the form of loans to, or guaranteed by,

public undertakings, subject to sub-regulation (4).

(2)

The claim for payment referred to in sub-regulation

(1)(b) shall be subject to the following legal requirements

(a)

the asset represents a claim for payment of monies

that has a minimum value that is determinable at all times, that

is legally valid and enforceable, that is not subject to conditions

other than the condition that the claim matures at a future date,

and that is secured by a mortgage, charge, pledge, lien or other

guarantee;

(b)

the mortgage, charge, pledge, lien or other

guarantee securing the claim for payment is enforceable;

(c)

all legal requirements for establishing the

mortgage, charge, pledge, lien or guarantee securing the claim

for payment have been fulfilled;

(d)

the mortgage, charge, pledge, lien or guarantee

securing the claim for payment enables the credit institution

issuing the covered bonds to recover the value of the claim

without undue delay

Provided that credit institutions issuing covered bonds

shall assess the enforceability of claims for payment and the ability to

realise collateral assets before including them in the cover pool.

(3)

The collateral assets referred to in sub-regulation (1)(b)

shall meet one of the following requirements

(a)

for physical collateral assets, the existance of

valuation standards that are generally accepted among experts

and that are appropriate for the physical collateral asset

concerned and a public register exists that records ownership of

and claims on those physical collateral assets; or

(b)

for assets in the form of exposures, the safety and

soundness of the exposure counterparty is implied by tax-

raising powers or by being subject to ongoing public

supervision of the counterparty"s operational soundness and

financial solvability

Provided that, physical collateral assets referred to in

paragraph (a) shall contribute to coverage of liabilities attached to the

covered bond up to the lesser of the principal amount of the mortgages,

charges, pledges, liens or other guarantees that are combined with any

prior mortgages, charges, pledges, liens or other guarantees and 70%

of the value of those physical collateral assets

Provided further that, physical collateral assets referred

to in paragraph (a) which secure assets as referred to in sub-regulation

(1)(a) shall not be required to comply with the limit of 70% or with the

limits of Article 129(1) of the CRR.

(4)

For the purposes of sub-regulation (1)(c), covered bonds

secured by loans to or guaranteed by public undertakings as primary

assets shall be subject to a minimum level of 10% of

overcollateralisation and subject to all the following conditions

(a)

the public undertakings provide essential public

services on the basis of a licence, a concession contract or other

form of entrustment granted by a public authority;

(b)

the public undertakings are subject to public

supervision;

(c)

the public undertakings have sufficient revenue

generating powers, which are ensured by the fact of such public

undertakings

(i)

having adequate flexibility to collect and to

increase fees, charges and receivables for the service

provided in order to ensure their financial soundness and

solvability;

(ii)

receiving sufficient grants on a statutory

basis in order to ensure their financial soundness and

solvability in exchange for providing essential public

services; or

(iii) having entered into a profit and loss

transfer agreement with a public authority.

(5)

The competent authority shall issue Covered Bonds

Rules on the methodology and process for the valuation of physical

collateral assets which secure assets as referred to in sub-regulations

(1)(a) and (1)(b). Such Covered Bonds Rules shall ensure at least the

following

(a)

for each physical collateral asset, that a current

valuation at or at less than market value or mortgage lending

value exists at the moment of inclusion of the cover asset in the

cover pool;

(b)

that the valuation is carried out by a valuer who

possesses the necessary qualifications, ability and experience;

and

(c)

that the valuer is independent from the credit

decision process, does not take into account speculative

elements in the assessment of the value of the physical

collateral asset, and documents the value of the physical

collateral asset in a transparent and clear manner.

(6)

Credit institutions issuing covered bonds shall have in

place procedures to monitor that the physical collateral assets which

secure assets as referred to in sub-regulations (1)(a) and (1)(b) are

adequately insured against the risk of damage and that the insurance

claim is segregated in accordance with regulation 9.

(7)

Credit institutions issuing covered bonds shall document

the cover assets referred to in sub-regulations (1)(a) and (1)(b) and the

compliance of their lending policies with the provisions of this

regulation.

(8)

The competent authority shall issue Covered Bonds

Rules to ensure risk diversification in the cover pool in relation to

granularity and material concentration for assets not eligible under

sub-regulation (1)(a).

(1) Credit institutions issuing covered bonds may include

assets in the cover pool which are secured by collateral assets located

outside the Union provided that such credit institutions verify that such

collateral assets meet all the requirements set out in regulation 3.

(2)

Collateral assets located outside the Union shall offer a

level of security similar to that of collateral assets located in the Union

and the realisation of such collateral assets shall be legally enforceable

in a manner which is equivalent in effect to the realisation of collateral

assets located in the Union.

(3)

The competent authority may issue Covered Bonds Rules

for the purposes of carrying into effect and, or implementing the

provisions of this regulation and, without prejudice to the generality of

the foregoing, such Covered Bonds Rules may lay down the

requirements and conditions relating to the inclusion of assets in the

cover pool that are secured by collateral assets located outside the

Union.

The competent authority may issue Covered Bonds Rules

regarding the use of intragroup pooled covered bond structures under

which covered bonds issued by a credit institution that belongs to a

group (hereinafter referred to in these regulations as "internally issued

covered bonds") are used as cover assets for the external issue of

covered bonds by another credit institution that belongs to the same

group (hereinafter referred to in these regulations as "externally issued

covered bonds"). Those Covered Bonds Rules shall include at least the

following requirements

(a)

the requirement for the internally issued covered

bonds to be sold to the credit institution issuing the externally

issued covered bonds;

(b)

the requirement for the internally issued covered

bonds to be used as cover assets in the cover pool for the

externally issued covered bonds and to be recorded on the

balance sheet of the credit institution issuing the externally

issued covered bonds;

(c)

the requirement for the cover pool for the

externally issued covered bonds to contain only internally

issued covered bonds issued by a single credit institution within

the group;

(d)

the requirement for the credit institution issuing

the externally issued covered bonds to sell such covered bonds

to covered bond investors outside the group;

(e)

the requirement for both the internally and

externally issued covered bonds to qualify for credit quality

step 1 as referred to in Part Three, Title II, Chapter 2 of the

CRR at the time of issue and to be secured by eligible cover

assets as referred to in regulation 3

Provided that, for the purposes of this paragraph, the

competent authority may allow covered bonds that qualify for credit

quality step 2 as referred to in Part Three, Title II, Chapter 2 of the

CRR following a change that results in a lower credit quality step of

the covered bonds, to continue to be part of an intragroup pooled

covered bond structure, provided that the competent authority

concludes that the change in credit quality step is not due to a breach

of the requirements for approval as set out in article 31D(3) of the Act

Provided further that, the competent authority shall

subsequently notify the EBA of any such decision;

(f)

in the case of cross-border intragroup pooled

covered bond structures, the requirement for the cover assets of

the internally issued covered bonds to comply with the

eligibility and coverage requirements of the externally issued

covered bonds.

(1)

Eligible cover assets which were originated by a

credit institution and have been purchased by a credit institution

issuing covered bonds may be used as cover assets for the issue of

covered bonds

Provided that in the event of such purchases, the credit

institution purchasing the eligible cover assets shall ensure that the

requirements of regulations 3 and 9 are satisfied.

(2)

Without prejudice to the proviso to sub-regulation (1),

transfers by way of financial collateral arrangement pursuant to the

Financial Collateral Arrangements Regulations shall be allowed.

(3)

Without prejudice to the proviso to sub-regulation (1),

credit institutions may also use as cover assets, assets which were

originated by an undertaking that is not a credit institution

Provided that, the credit institution issuing the covered

bonds shall either assess the credit-granting standards of the

undertaking which originated the cover assets, or performs itself a

thorough assessment of the borrower"s creditworthiness.

The competent authority shall issue Covered Bonds

Rules on the composition of cover pools. Such Rules shall ensure

investor protection and shall, where relevant, set the conditions for the

inclusion by credit institutions issuing covered bonds of primary assets

that have differing characteristics in terms of structural features,

lifetime or risk profile in the cover pool.

(1)

Derivative contracts may only be included in the

cover pool where the following requirements are met

(a)

the derivative contracts are included in the cover

pool exclusively for risk hedging purposes, their volume is

adjusted in the case of a reduction in the hedged risk and they

are removed when the hedged risk ceases to exist;

(b)

the

derivative

contracts

are

sufficiently

documented;

(c)

the derivative contracts

are

segregated

in

accordance with regulation 9;

(d)

the derivative contracts cannot be terminated upon

the insolvency or resolution of the credit institution that issued

the covered bonds;

(e)

the derivative contracts comply with the Covered

Bonds Rules issued in terms of sub-regulation (2)

Provided that, the competent authority may, for the

purposes of ensuring investor protection, issue Covered Bonds Rules

to establish additional requirements that need to be met in order for

derivative contracts to be included in the cover pool.

(2)

For the purposes of ensuring compliance with the

requirements listed in sub-regulation (1) or any other additional

requirements as may be established by the competent authority in

Covered Bonds Rules, the competent authority shall issue Covered

Bonds Rules for derivative contracts in the cover pool, which shall

specify

(a)

the

eligibility

criteria

for

the

hedging

counterparties;

(b)

the necessary documentation to be provided in

relation to derivative contracts.

(1) The competent authority shall issue Covered Bonds

Rules regulating the segregation of cover assets. Such Rules shall

include at least the following requirements

(a)

the requirement for all cover assets, to be

identifiable by the credit institution issuing the covered bonds

at all times;

(b)

the requirement for all cover assets to be subject

to legally binding and enforceable segregation by the credit

institution issuing the covered bonds; and

(c)

the requirement for all cover assets to be protected

from any third party claims and for no cover asset to form part

of the insolvency estate of the credit institution issuing the

covered bonds until the privileged claim referred to in article

31I(1)(b) of the Act and in regulation 108(1) of the Recovery

and Resolution Regulations has been satisfied

Provided that, for the purposes of this sub-regulation,

cover assets shall include any collateral received in connection with

derivative contract positions.

(2)

The segregation of cover assets referred to in sub-

regulation (1) shall also apply in the case of insolvency or resolution of

the credit institution issuing covered bonds.

(1) Credit institutions issuing covered bonds shall

appoint a cover pool monitor to perform ongoing monitoring of the

cover pool with regard to the requirements set out in regulations 3 to 9,

both inclusive, and 11 to 14, both inclusive.

(2)

For the purposes of sub-regulation (1), the competent

authority shall issue Covered Bonds Rules which shall lay down

requirements in relation to at least the following matters

(a)

the appointment and dismissal of the cover pool

monitor;

(b)

any eligibility criteria for the cover pool monitor;

(c)

the role and duties of the cover pool monitor,

including in the case of the insolvency or resolution of the

credit institution issuing the covered bonds;

(d)

the obligation to report to the competent authority;

(e)

the right of access to information necessary for the

performance of the cover pool monitor"s duties.

(3)

The cover pool monitor shall be separate and

independent from the credit institution issuing the covered bonds and

from that credit institution"s auditor

Provided that, it shall be permissible for a cover pool

monitor not to be separate from the credit institution (hereinafter

referred to in these regulations as an "internal cover pool monitor")

where

(a)

the internal cover pool monitor is independent

from the credit decision process of the credit institution issuing

the covered bonds;

(b)

without prejudice to sub-regulation (2)(a), the

internal cover pool monitor cannot be removed from that

function as cover pool monitor without the prior approval of the

board of directors of the credit institution issuing the covered

bonds; and

(c)

where necessary, the internal cover pool monitor

has direct access to the board of directors.

(4)

The competent authority shall inform the EBA about the

requirement set out in sub-regulation (1).

(1)

Credit institutions issuing covered bonds shall

provide information on their covered bond programmes that is

sufficiently detailed to allow investors to assess the profile and risks of

that programme and to carry out their due diligence, as may be further

specified by means of Covered Bond Rules issued by the competent

authority.

(2)

The information referred to in sub-regulation (1) shall

include the following minimum portfolio information

(a)

the value of the cover pool and outstanding

covered bonds;

(b)

a list of the International Securities Identification

Numbers (hereinafter in these regulations referred to as

"ISINs") for all covered bond issues under that programme, to

which an ISIN has been attributed;

(c)

the geographical distribution and type of cover

assets, their loan size and valuation method;

(d)

details in relation to market risk, including interest

rate risk and currency risk, and credit and liquidity risks;

(e)

the maturity structure of cover assets and covered

bonds, including an overview of the maturity extension triggers

if applicable;

(f)

the levels of required and available coverage, and

the levels of statutory, contractual and voluntary

overcollateralisation; and

(g)

the percentage of loans where a default is

considered to have occurred pursuant to Article 178 of the CRR

and in any case where the loans are more than 90 days due

Provided that, for externally issued covered bonds under

intragroup pooled covered bond structures as referred to in regulation

5, the information referred to in this sub-regulation and in any Covered

Bonds Rules issued in terms of sub-regulation (1), or a link thereto,

shall be provided to investors in respect of all internally issued covered

bonds of the group

Provided further that, such information shall be provided

to investors at least on an aggregated basis.

(3)

The competent authority may issue Covered Bonds Rules

specifying any additional information to be provided by credit

institutions issuing covered bonds to investors.

(4)

Credit institutions issuing covered bonds shall provide to

investors the information referred to in this regulation and in any

Covered Bonds Rules issued by the competent authority in terms of

sub-regulation (3) at least on a quarterly basis.

(5)

Credit institutions issuing covered bonds shall publish on

their website the information referred to in this regulation and in any

Covered Bonds Rules issued by the competent authority in terms of

sub-regulation (3)

Provided that credit institutions issuing covered bonds

shall not be required to publish such information on paper.

(1)

Credit institutions issuing covered bonds shall

ensure that such covered bond programmes comply at all times with

the coverage requirements laid down in this regulation and with any

additional coverage requirements that may be established by the

competent authority in Covered Bonds Rules.

(2)

All liabilities of the covered bonds shall be covered by

claims for payment attached to the cover assets. These liabilities shall

include

(a)

the obligations for the payment of the principal

amount of outstanding covered bonds;

(b)

the obligations for the payment of any interest on

outstanding covered bonds;

(c)

the payment obligations attached to derivative

contracts held in accordance with regulation 8; and

(d)

the expected costs related to maintenance and

administration for the winding-down of the covered bond

programme.

(3)

The following cover assets shall be considered to

contribute to the coverage requirement

(a)

primary assets;

(b)

substitution assets;

(c)

liquid assets held in accordance with regulation

13; and

(d)

claims for payment attached to derivative

contracts held in accordance with regulation 8

Provided that, uncollateralised claims where a default is

considered to have occurred pursuant to Article 178 of the CRR shall

not contribute to the coverage requirement.

(4)

The competent authority shall, for the purposes of sub-

regulation (2)(c) and sub-regulation (3)(d), issue Covered Bonds Rules

on the valuation of derivative contracts.

(5)

The calculation of the required coverage shall ensure that

the aggregate principal amount of all cover assets is equal to or

exceeds the aggregate principal amount of outstanding covered bonds.

The competent authority shall issue Covered Bonds Rules on the

calculation of any interest payable in respect of outstanding covered

bonds and interest receivable in respect of cover assets, which shall

reflect sound prudential principles in accordance with applicable

accounting standards.

(6)

Credit institutions shall ensure that the calculation of

cover assets and liabilities is based on the same methodology.

(1) A credit institution issuing covered bonds shall

maintain at all times a cover pool liquidity buffer composed of liquid

assets available to cover the net liquidity outflow of the covered bond

programme. The cover pool liquidity buffer shall cover the maximum

cumulative net liquidity outflow over the next 180 days.

(2)

The cover pool liquidity buffer referred to in sub-

regulation (1) shall consist of the following types of assets, segregated

in accordance with regulation 9

(a)

assets qualifying as level 1, level 2A or level 2B

assets pursuant to the applicable delegated regulation adopted

pursuant to Article 460 of the CRR, that are valued in

accordance with that delegated regulation, and are not issued by

the credit institution issuing the covered bonds itself, its parent

undertaking, other than a public sector entity that is not a credit

institution, its subsidiary or another subsidiary of its parent

undertaking or by a securitisation special purpose entity with

which the credit institution has close links;

(b)

short-term exposures to credit institutions that

qualify for credit quality step 1 or 2, or short-term deposits to

credit institutions that qualify for credit quality step 1, 2 or 3, in

accordance with point (c) of Article 129(1) of the CRR

Provided that, uncollateralised claims from exposures

considered in default pursuant to Article 178 of the CRR shall not be

used to contribute to the cover pool liquidity buffer.

(3)

Where credit institutions issuing covered bonds are

subject to liquidity requirements set out in other Union legal acts that

result in an overlap with the cover pool liquidity buffer, the provisions

of sub-regulations (1) and (2) shall not be applicable for the period

provided for in those Union legal acts, and until such time that an

amendment to those Union legal acts to eliminate the overlap becomes

applicable. The competent authority shall inform the European

Commission and the EBA of this provision.

(4)

Without prejudice to regulation 14, the calculation of the

principal for extendable maturity structures may be based on the final

maturity date in accordance with the contractual terms and conditions

of the covered bond.

FINANCIAL MARKETS ACT (COVERED BONDS)

(1)

Credit institutions may issue covered bonds with

extendable maturity structures where investor protection is ensured by

at least the following

(a)

the maturity can only be extended subject to

objective triggers, and not at the discretion of the credit

institution issuing the covered bonds;

(b)

the maturity extension triggers are specified in the

contractual terms and conditions of the covered bond;

(c)

the information provided to investors about the

maturity structure is sufficient to enable them to determine the

risk of the covered bond, and includes a detailed description of

(i)

the maturity extension triggers;

(ii)

the consequences for a maturity extension

of the insolvency or resolution of the credit institution

issuing the covered bonds;

(iii) the role of the competent authority and,

where relevant, of the special administrator with regard

to the maturity extension;

(d)

the final maturity date of the covered bond is at all

times determinable;

(e)

in the event of the insolvency or resolution of the

credit institution issuing the covered bonds, maturity extensions

do not affect the ranking of covered bond investors or invert the

sequencing of the covered bond programme"s original maturity

schedule;

(f)

the maturity extension does not change the

structural features of the covered bonds regarding dual recourse

in terms of article 31I(1) of the Act and regulation 108(1) of

the Recovery and Resolution Regulations, and bankruptcy

remoteness as referred to in regulation 68(7) of the Recovery

and Resolution Regulations

Provided that, the competent authority shall issue

Covered Bonds Rules specifying the objective triggers referred to in

this sub-regulation

Provided further that, covered bonds with extendable

maturity structures may only be issued by the special administrator

referred to in Article 39L of the Act and subject to the objective

triggers specified in Covered Bonds Rules.

(2)

The competent authority shall notify the EBA of this

provision.

(1)

Credit institutions issuing covered bonds shall

submit to the competent authority the information set out in sub-

regulation (3) as well as any other information and, or documentation

as the competent authority may require. The competent authority may

issue Covered Bonds Rules establishing any other information and, or

documentation which credit institutions issuing covered bonds are

required to submit to the competent authority. The information and, or

documentation referred to in this sub-regulation shall be submitted to

the competent authority on a regular basis as well as at the request of

the competent authority.

(2)

Information and documentation which credit institutions

are required to submit to the competent authority in terms of sub-

regulation (1) or in terms of any Covered Bonds Rules issued under

sub-regulation (1), shall be submitted in such form and at such periods

as the competent authority shall establish in Covered Bonds Rules or

at such periods as the competent authority may require in writing.

(3)

The information referred to in sub-regulation (1) shall

include at least the following

(a)

the eligibility of assets and cover

pool

requirements in accordance with regulations 3 to 8;

(b)

the segregation of cover assets in accordance with

regulation 9;

(c)

where applicable, the functioning of the cover

pool monitor in accordance with regulation 10;

(d)

the coverage requirements in accordance with

regulation 12;

(e)

the cover pool liquidity buffer in accordance with

regulation 13; and

(f)

where applicable, the conditions for extendable

maturity structures in accordance with regulation 14.

(4)

In the event of the insolvency or resolution of a credit

institution issuing covered bonds, such a credit institution shall submit

to the competent authority such information and, or documentation as

the competent authority shall establish in Covered Bonds Rules. Such

information shall include at least the information referred to in sub-

regulation (3).

(1) The competent authority shall publish on its official

website the following information

(a)

the texts of the national laws, regulations,

administrative rules and general guidance adopted in relation to

the issue of covered bonds;

(b)

the list of credit institutions approved to issue

covered bonds; and

(c)

the list of covered bonds that are entitled to use

the label "European Covered Bond" and the list of covered

bonds that are entitled to use the label "European Covered Bond

(Premium)".

(2)

The competent authority shall ensure that the information

published in accordance with sub-regulation (1) is sufficient to enable

a meaningful comparison of the approaches adopted by the authorities

in different Member States designated pursuant to Article 18(2) of the

CBD and shall be updated to take account of any changes.

(3)

The competent authority shall notify the EBA on an

annual basis of the list of credit institutions referred to in point (b) of

sub-regulation (1) and the lists of covered bonds referred to in point (c)

of sub-regulation (1).

(1)

The competent authority shall ensure that the label

"European Covered Bond" and its official translation in all official

languages of the Union is used only for covered bonds which meet the

requirements laid down in the Act, in these regulations and in any

Covered Bonds Rules issued under the Act or under these regulations.

(2)

The competent authority shall ensure that the label

"European Covered Bond (Premium)" and its official translation in all

official languages of the Union is used only for covered bonds which

meet the requirements laid down in the provisions of the Act, these

regulations and of any Covered Bonds Rules issued under the Act or

under these regulations and which meet the requirements of Article

129 of the CRR.

(1)

Covered bonds issued before 8 July 2022 that

comply with the requirements laid down in the relevant provisions of

the Investment Services Rules, as applicable on the date of their issue,

shall not be subject to the requirements set out in regulations 3 to 9,

both inclusive, 12, 13, and 14 but may continue to be referred to as

covered bonds in accordance with the Act and these regulations until

their maturity.

(2)

The competent authority shall monitor the compliance of

covered bonds issued before 8 July 2022 with

(a)

the requirements laid down in the relevant

provisions of the Investment Services Rules, as applicable on

the date of their issue; and

(b)

the requirements of the Act, these regulations or

any Covered Bonds Rules issued under the Act or under these

regulations, insofar as they are applicable in accordance with

sub-regulation (1).

(3)

Sub-regulations (1) and (2) shall also apply to tap issues

of covered bonds for which the opening of the ISIN is before 8 July

2022 for up to 24 months after that date, provided that such issues

comply with all the following requirements

(a)

the maturity date of the covered bond is before 8

July 2027;

(b)

the total issue size of tap issues made after 8 July

2022 does not exceed twice the total issue size of the covered

bonds outstanding on that date;

(c)

the total issue size of the covered bond at maturity

does not exceed EUR 6,000,000,000;

(d)

the collateral assets are located in Malta.