INVESTMENT SERVICES ACT (INVESTMENT ADVERTISEMENTS AND PROSPECTUS EXEMPTION) REGULATIONS

INVESTMENT SERVICES ACT (INVESTMENT

ADVERTISEMENTS AND PROSPECTUS EXEMPTION)

SUBSIDIARY LEGISLATION 370.08

INVESTMENT SERVICES ACT

(INVESTMENT ADVERTISEMENTS AND

PROSPECTUS EXEMPTION) REGULATIONS

7th October, 2008

LEGAL NOTICE 250 of 2008.

(1) The title of these regulations is the Investment Services

Act (Investment Advertisements and Prospectus Exemption)

Regulations.

(2) The objective of these regulations is partly to implement

the relevant provisions of the Directive, and the regulations shall

be interpreted and applied accordingly.

In these regulations, unless the context otherwise requires -

"Act" means the Investment Services Act;

"competent authority" means the competent authority under the

Act;

"the Directive" means Directive 2003/71/EC of the European

Parliament and of the Council of 4 November, 2003 on the

prospectus to be published when securities are offered to the public

or admitted to trading and amending Directive 2001/34/EC, as may

be amended from time to time, and includes any implementing

measures that have been or may be issued thereunder;

"European based closed-ended scheme" means a collective

investment scheme within the meaning of article 2 of the Act

established in a Member State or EEA State or set up by contract or

otherwise under European law, which is closed-ended and which is

covered by the Directive;

"investment advertisement" has the same meaning assigned to it

in article 2 of the Act;

"prospectus" has the same meaning assigned to it in article 2 of

the Act.

The provisions of article 11 of the Act shall not apply to

(a) any investment advertisement or prospectus issued or

caused to be issued by

(i) the Government of Malta; or

(ii) the Central Bank of Malta; or

(iii) any international organization the members of

which include Malta; or

INVESTMENT SERVICES ACT (INVESTMENT

ADVERTISEMENTS AND PROSPECTUS EXEMPTION)

(b) any investment advertisement issued or caused to be

issued by any person who by regulations made under

the Act is exempt from the requirement of an

investment services licence, including a European

investment firm providing services in Malta, within

the meaning of regulation 4 of the European Passport

Rights for Investment Firms Regulations, provided

that the investment advertisement strictly relates to

matters in respect of which such person or firm is

exempt;

(c) any investment advertisement issued or caused to be

issued solely to

(i) licence holders; or

(ii) a person whose ordinary business involves the

acquisition and disposal of instruments of the

same kind as the instruments to which the

investment advertisement relates; or

(iii) a person whose ordinary business involves the

acquisition and disposal of property of the same

kind as the property, or a substantial part of the

property, to which the collective investment

scheme in the investment advertisement relates;

or

(iv) a person who by regulation under the Act is

exempt from the requirement of an investment

services licence provided that the investment

advertisement relates to matters in respect of

which such person is exempt;

(d) any prospectus, including supplements thereto, issued

by a European based closed-ended scheme, drawn up

in compliance with the requirements of the Directive.

The provisions of article 11(b) of the Act shall not apply to

investment advertisements contained in a publication published and

circulated principally outside Malta, or in a sound or television

broadcast transmitted principally for reception outside Malta, or

any other communication using any other medium, originating

outside Malta, unless the investment advertisement is directed to

persons in Malta, or is otherwise intended to be made available to

persons in Malta not being persons falling within the scope of

regulation 3(b)

Provided that the exemption described in this regulation

shall not apply where the advertisement is issued, broadcast or

transmitted by

(a) a licence holder or;

(b) a licence holder in exercise of a European right within

the meaning of regulation 10 of the European Passport

Rights for Investment Firms Regulations.