REPRESENTATIVE OFFICES (REQUIREMENTS AND ACTIVITIES) REGULATIONS

REPRESENTATIVE OFFICES

(REQUIREMENTS AND ACTIVITIES)

SUBSIDIARY LEGISLATION 371.04

REPRESENTATIVE OFFICES (REQUIREMENTS

AND ACTIVITIES) REGULATIONS

12th May, 1998

LEGAL NOTICE 113 of 1998.

The title of these regulations is the Representative Offices

(Requirements and Activities) Regulations.

In these regulations, unless the context otherwise requires -

"Act" means the Banking Act;

"competent authority" means the body appointed under article

3(2) of the Act;

"financial undertaking" includes any person undertaking

banking, investment, insurance or any other financial activity;

"representative of office" means an of office established in Malta

by a non-Maltese bank in terms of article 8 of the Act.

(1) The business of a representative of office must be

confined solely to the conduct of purely liaison activities and must

not include the engagement in financial transactions or the

execution of any documents relative thereto, except where

necessary for and incidental to the maintenance of the office in

Malta.

(2) For the purpose of subregulation (1), liaison activities can

take the form of

(a) the provision, upon request, of factual information

relating to the products and services of the bank which

the representative office represents;

(b) the conduct of research work into the economy of

Malta to inform Head Office accordingly;

(c) liaison with Maltese customers of the bank which the

representative office represents;

(d) the undertaking of credit assessments on reports on

Maltese entities for any business with the bank that the

representative office represents.

In undertaking these activities a foreign bank having a

representative office in Malta and the representative office itself

shall comply with any guidelines as may be established by the

competent authority from time to time.

(1)

A representative office must

(a) keep its activities separate from those of any other

undertaking, financial or otherwise, operating in or

from Malta;

(b) have its office distinctly located from the office of any

REPRESENTATIVE OFFICES

(REQUIREMENTS AND ACTIVITIES)

other undertaking whether financial or otherwise;

(c) have its own employees who may not also be

employees, officers or directors of any financial

undertaking operating in or from Malta.

(2) Should a foreign bank with a representative office in Malta

take a significant equity position (of at least 5% as defined in

article 2 of the Act) in any type of a financial undertaking operating

in or form Malta, it should immediately notify in writing the

competent authority.