FINANCIAL MARKETS ACT (MEMBERSHIP AND ACCESS) REGULATIONS

FINANCIAL MARKETS ACT (MEMBERSHIP AND ACCESS)

SUBSIDIARY LEGISLATION 345.06

FINANCIAL MARKETS ACT (MEMBERSHIP AND

ACCESS) REGULATIONS

1st November, 2007

LEGAL NOTICE 331 of 2007, and by Legal Notices 386 of 2017.

(1) The title of these regulations is the Financial Markets

(Membership and Access) Regulations.

(2) The objective of these regulations is to transpose and

implement article 4(1),(30) and (55), Article 36 and Article 53(3) of

MiFID, as herein defined, and shall be interpreted and applied

accordingly.

(1)

In these regulations, unless the context otherwise

requires

"Act" means the Financial Markets Act and the words and

expressions used shall have the same meaning as is given to them

in the said Act;

"branch" means a place of business which is a part of the

European investment firm, and which has no legal personality and

which provides the services for which the European investment

firm has been authorised all the places of business set up in the

same Member State or EEA State by a European investment firm

with headquarters in another Member State or EEA State shall be

regarded as a single branch;

"competent authority" means the Malta Financial Services

Authority appointed under article 2 of the Act;

"Directive 2013/36/EU" means Directive 2013/36/EU of the

European Parliament and of the Council of 26 June 2013 on access to

the activity of credit institutions and the prudential supervision of

credit institutions and investment firms, as amended from time to time,

and includes any implementing measures that may have been or may

be issued thereunder;

"home Member State or EEA State" means

(a) where the European investment firm is a natural

person, the Member State or EEA State in which the

head office of that person is situated;

(b) where the European investment firm is a legal person,

the Member State or EEA State in which its registered

office is situated; or

(c) if the European investment firm has, under its national

law, no registered office, the Member State or EEA

State in which its head office is situated;

"MiFID" means Directive 2014/65/EU of the European

Parliament and of the Council of 15 May 2014 on markets in

financial instruments as amended from time to time, and includes

any implementing measures that may have been or may be issued

thereunder.

FINANCIAL MARKETS ACT (MEMBERSHIP AND ACCESS)

(2) For the purposes of these regulations, "persons licensed

under the Investment Services Act" shall mean persons licensed to

execute orders on behalf of other persons and, or to deal on own

account in terms of the Schedule to the Investment Services Act.

Persons licensed under the Investment Services Act may

become members of a regulated market and participate in the

clearing and settlement system provided for members of such a

regulated market.

A European investment firm may, either directly or

indirectly, become a member of or have access to a regulated

market established in Malta and participate in the clearing and

settlement system provided for members of such a regulated

market.

(1) European investment firms shall have the right of

membership or have access to any regulated market established in

Malta by means of any one of the following arrangements

(a) directly, by setting up branches in Malta, in terms of

the European Passport Rights for Investment Firms

Regulations; and, or

(b) indirectly, by setting up a subsidiary company in Malta

duly licensed in terms of the Investment Services Act

and regulations issued thereunder, or by acquiring

other investment firms in Malta and which are already

members of any such regulated market or already have

access thereto.

(2) Where a regulated market operates without any requirement

for a physical presence, European investment firms may become

members of or have access to such regulated market on the same

basis as aforesaid without having to be established in Malta.

(3) The arrangements referred to in subregulations (1) and (2)

shall be provided for in the bye-laws of a regulated market.

(1) Persons licensed under the Investment Services Act

and European investment firms which are granted the right of

membership or access to a regulated market in terms of these

regulations shall comply with any applicable bye-laws issued by

the regulated market, including bye-laws relating to the

membership, conduct of business and fees; bye-laws relating to

transactions effected by means of the facilities provided by the

regulated market; requirements and procedures for clearing and

settlement; and any other bye-laws of the regulated market which

are applicable to members of the regulated market or to persons

having access to the regulated market in terms of these regulations.

(2) Branches or subsidiaries of European investment firms

referred to in sub-regulation (1) shall comply with the

aforementioned bye-laws on a continuing basis if they are to

continue to benefit from the right of membership of or access to a

regulated market, and the bye-laws of a regulated market shall

include provision to this effect.

(3)

Persons licensed under the Investment Services Act and

FINANCIAL MARKETS ACT (MEMBERSHIP AND ACCESS)

European investment firms referred to in sub-regulation (1) shall

also on a continuous basis comply with the capital adequacy

requirements set out and supervised by the home Member State or

E E A St at e i n te r m s o f D ir e c tiv e 2 0 1 3 /3 6 /E U a nd wi th a n y

additional capital adequacy requirements in respect of matters not

covered by the said Directive which the competent authority may

impose.

These regulations shall apply mutatis mutandis to

European credit institutions within the meaning of regulation 2 and

to credit institutions licensed in terms of the Banking Act.

Regulated markets may also admit as members or

participants persons who satisfy the following requirements

(a) are fit and proper;

(b) have a sufficient level of trading ability and

competence;

(c) have, where applicable,

adequate

organizational

arrangements;

(d) have sufficient resources for the role they are to

perform, taking into account the different financial

arrangements that the regulated market may have

established in order to guarantee the adequate

settlement transactions.

(1) Where a person falling within the scope of these

regulations fails to comply with any provisions of such regulations

o r a n y r u l e s i s s u e d t h e r eu n d e r f u r t h er i m p l e m en t i n g s u c h

regulations, the competent authority may, by notice in writing and

without recourse to a court hearing, impose on such person an

administrative penalty and other administrative measures in

accordance with the provisions of the Financial Markets Act

(MiFID and MiFI R Administrative Penalties, Measures an d

Investigatory Powers) Regulations, 2017.

(2) A right of appeal to the Financial Services Tribunal shall

lie from the decisions which the competent authority shall take

under these regulations and the provisions of Part VI of the Act

shall mutatis mutandis apply.