MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       1
CHAPTER 330
Substituted by:
XIII.1994.2.
Amended by:
XVII. 2002.103.MALTA FINANCIAL SERVICES AUTHORITY ACT
To establish an Authority for Financial Services from within Malta, to
regulate such activities and to provide for matters ancillary or incidentalthereto or connected therewith.
20th January, 1989;
30th June, 1989
ACT XXXIV of 1988 , as amended by Act XV of 1989 ; Legal Notice 167
of 1989 ; Legal Notice 79 of 1990 ; Act XXXI of 1990 ; Legal Notice 183 of
1990 ; Acts XIII of 1994 , XXV of 1995 , XVII of 2002 , IV of 2003 , XIII of
2004 , XII of 2006 , XX of 2007 ; Legal Notice 424 of 2007 ; Acts III of 2009 ,
II , XIX of 2010, X of 2011; Legal Notice 426 of 2012 ; Acts XX of 2013 ,
XXII of 2014 , XXI of 2015 , XVI, XXXI of 2017 , VI of 2018, VIII of 2019.
XXVI of 2019 , V of 2020 , VIII of 2020 and LXII of 2020 and XII of 2021 ,
Legal Notice 225 of 2021,  Acts XL VI, LXXI of 2021 and LXXII of 2021.
Short title. 
Amended by:
XIII. 1994.2;XVII. 2002.103.1. The short title of this Act is the Malta Financial Services
Authority Act.
Interpretation.
Amended by:
 XV . 1989.2;XXXI. 1990. 2;XIII. 1994.3;XX. 1994.4.Substituted by:XVII. 2002.105.
Amended by:
IV . 2003.16;XX. 2007.3;XIX. 2010.3;XXI. 2015.3;XVI. 2017.42;XXXI. 2017.3;VI. 2018.2;VIII.2019.2;XLVI.2021.3.2. In this Act unless the context otherwise requires:
''Authority'' means the Malta Financial Services Authority
established by article 3;
"Audit Committee" means the Committee established by article
12A;
''Board of Governors'' means the Board of Governors of the
Authority established by article 6;
"the BRRD" means Directive 2014/59/EU of the European
Parliament and of the Council of 15 May 2014 establishing aframework for the recovery and resolution of credit institution s and
investment firms and amending Council Directive 82/891/EEC, andDirectives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC,2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, andRegulations (EU) No. 1093/2010 and (EU) No. 648/2012, of theEuropean Parliament and of the Council, as amended from time totime, and includes any implementing measures, implementingtechnical standards, regulatory technical standards, guidelines  and
similar measures that have been or may be issued thereunder;
"Chief Executive Officer" means the Officer responsible for the
overall performance of the Authority and the implementation of its
objectives, strategy, and of policies as set by the Board of Go vernors.
The Chief Executive Officer shall be appointed by the Board of
Governors. The Chief Executive Officer shall be a non-voting me mber
of the Board of Governors;
"Chief Officer" means the Officer responsible for a Directorate ;
"Directorate" means a section of the Authority, established by the
Board of Governors in terms of article 5, made up of a number o f units
and functions;
"
Disclosure Regulation" means Regulation (EU) 2019/2088 of the
 2        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
European Parliament and of the Council of 27 November 2019 on
sustainability‐related disclosures in the financial services se ctor, as
amended from time to time, and includes any binding legalinstruments, guidelines and other measures that have been or ma y be
issued thereunder;
"Executive Committee" means the Committee appointed in terms of
article 9;
"Enforcement Decisions Committee" means the sub-committee of th e
Executive Committee established by article 11;
''financial year'' means a period of twelve months beginning on
the 1st day of January and endi ng on the 31st day of December o f
each year;
''financial services'' means the business of credit and financi al
institutions, the business of insurance and the activities ofinsurance intermediaries, the provision of investment services and
collective investment schemes, pensions and retirement funds,regulated markets, central securities depositories and such oth er
areas of activity or services as may be placed under the superv isory
and regulatory competence of the Authority by the Minister or b y
any other law;
"General Counsel" means the Officer leading the Directorate for
Legal and International Relations;
"institution" means a credit institution or an investment firm;
"internal audit" means an independent, objective assurance and
consulting activity designed to add value and improve theoperations of the Authority;
"local regulated market" means a regulated market authorized un der
the Financial Markets Act;
"
MiFID" means Directive 2014/65/EU of the European
Parliament and of the Council of 15 May 2014 on markets infinancial instruments and amending Directive 2002/92/EC andDirective 2011/61/EU, as amended from time to time, and include s
any implementing measures that have been or may be issuedthereunder;
"Minister" means the Minister responsible for the regulation of
Financial Services;
''person'' includes any entity corporate or unincorporated whic h
may hold a licence or other authorisation issued by the Authori ty or
which falls within the supervisory or regulatory authority of t he
Authority;
''prescribed'' means prescribed under this Act, or any regulations or
Rules issued thereunder;
"Taxonomy Regulation" means Regulation (EU) 2020/852 of the
European Parliament and of the Council of 18 June 2020 on theestablishment of a framework to facilitate sustainable investme nt, and
amending Regulation (EU) 2019/2088, as amended from time to tim e,
and includes any binding legal instruments, guidelines and othe r
measures that have been or may be issued thereunder.
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       3
Added by 
XXVI.2019.78.2A. In this Act and in any regulations made thereunder, if there is
any conflict between the English and Maltese texts, the English  text
shall prevail.
Establishment of 
the Authority.
Amended by:
XIII.1994.5.Substituted by:XVII. 2002.106.
Amended by:
XXVI.2019.79.3. (1) There shall be an authority, to be called the Malta
Financial Services Authority.
(2) The Authority shall be a body corporate having a distinct
legal personality and capable of entering into contracts, ofacquiring and disposing of property of any kind for the purpose s of
its functions under this Act or any other law, of suing and of being
sued, and of doing all such things and entering into all transa ctions
as are incidental to or conducive to the exercise or performanc e of
its functions aforesaid.
(3) Save as expressly provided for in this Act or in any other
Act administered by the Authority, the Authority shall act
independently and shall not seek or take instructions from any other
body or person.
Cap. 601.(4) The provisions of article 77 of the Public Finance
Management Act shall not apply to the Authority.
Functions of the 
Authority.
Amended by:
XIII.1994.6.Substituted by:XVII. 2002.106.
Amended by:
XX. 2007.4;XIX. 2010.4;XX. 2013.20;
XXI. 2015.4;
VIII.2019.3;XVII.2019.80;LXII.2020.2;XLVI.2021.4.4.(1) Without prejudice to any other power or function
conferred to it by this Act or any other law, it shall be the f unction
of the Authority:
(a) to regulate, monitor and supervise financial services in
Malta;
(b) to promote financial market integrity and the legitimate
expectations of consumers of financial services, topromote fair competition practices and consumer choice infinancial services and to complement the Central Bank ofMalta in its role to ensure the stability of the financialsystem;
(c) to monitor and keep under review trading and business
practices relating to the supply of financial services toprivate and other persons, and to provide relevantinformation and guidance to the public;
(d) to monitor the working and enforcement of laws that
directly or indirectly affect consumer of financialservices in Malta, and to undertake or commissionsuch study, research or investigation which it maydeem necessary in this regard;
(e) to advise the Government generally on the formulation
of policies in the field of financial services, and tomake recommendations to Government on actionwhich in the opinion of the Authority would beexpedient in relation to matters falling within theregulatory and supervisory functions of the Authority;
(f) to investigate allegations of practices and activities
detrimental to consumers of financial services, andgenerally to keep under review trading practicesrelating to the provision of financial services and to
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identify, and take measures to suppress and prevent,
any practices which may be unfair, harmful orotherwise detrimental to consumers of financialservices;
(g) to ensure high standards of conduct and management
throughout the financial system;
(gA) to provide and foster further training, knowledge and
education on all matters relating to financial services;
(h) to perform such other functions or duties as may be
assigned to it under this Act or any other law.
(1A)  Without prejudice to the functions of the Authority under
this or any other law, it shall also be the function of the Aut hority:
(a) to promote and safeguard the integrity of local
regulated markets; 
(b) to ensure investor confidence in local regulated
markets;
(c) to ensure that all the participants of local regulated
markets are responsible for their decisions and actions;and
(d) to ensure that any measures imposed upon any person
in accordance with this Act or any other law, whererelevant, are imposed in accordance with the principleof proportionality.
(1B) Without prejudice to the functions of the Authority under
this or any other law, it shall also be the function of the Aut hority
to monitor the compliance:
(a) of financial market participants and financial advisers,
as defined in Article 2 of the 
Disclosure Regulation ,
with the requirements of the said Regulation; and
(b) of financial market participants, as defined in Article 2 of
the Taxonomy Regulation, with the requirements ofArticles 5, 6 and 7 of the said Regulation.
(2) For the better performance of its functions, the Authority
shall collaborate with other local and foreign bodies, Governme nt
departments, international organisations, with the European Securities
and Markets Authority (ESMA), the European Banking Authority(EBA), the European Insurance and Occupational Pensions Authori ty
(EIOPA), colleges of supervisors , the European Systemic Risk Bo ard
(ESRB), the European Central Bank (ECB), the Single ResolutionBoard (SRB) and other entities which exercise regulatory, super visory,
registration or licensing functions and powers under any law in Malta
or abroad or which are otherwise engaged in overseeing ormonitoring areas or activities in the financial services sector  and
the registration of commercial partnerships, and to makearrangements for the mutual exchange of information and for oth er
forms of assistance in regulatory and supervisory matters.
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       5
(3) The Authority shall have the power to impose such fees as
may be prescribed, and to levy charges in respect of any reques t,
application or other matter that may be submitted to it under t his or
any other Act including the fees and charges in respect of anypermission, licence, authorisation, exemption or other benefit,  as
well as fees and charges in respect of its regulatory, supervis ory or
investigative functions under this or any other law, including the
Authority’s function to provide training, knowledge and educati on on
all matters relating to financial services.
Cap. 460.(4) In exercising its functions and powers assigned to it under
this Act or any other Act, the Authority shall be obliged to ha ve
regard to Malta’s international commitments including itsobligations under the Treaty within the meaning of the 
European
Union Act. In this Act, ''Malta’s international commitments'' shall
mean Malta’s commitments, responsibilities and obligations aris ing
out of membership of the European Union and membership of, oraffiliation to, or relationship with, any international, global  or
regional organisations or grouping of countries or out of any t reaty,
convention or other international agreement, however called,whether bilateral, multilateral including Memoranda ofUnderstanding, to which Malta is a party.
Licence considered 
to be a concession.
Added by:
XIX. 2010.5.4A. The granting of a licence is a concession and a revocable
privilege, and no holder thereof shall be deemed to have acquir ed
any vested rights therein or thereunder. The burden of proving the
licence holder’s qualifications to hold a licence shall rest at  all
times on the licence holder. In this sub-article, licence inclu des and
applies to any licence and authorisation, however designated,issued by the Authority under any legislation for whoseadministration it is responsible.
The Authority.
Amended by: 
XV . 1989. 3; XIII.1994.8.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.16;VIII.2019.4.5.(1) The main organs of the Authority are the Board of
Governors, the Executive Committee and Directorates as may beestablished by the Board of Governors from time to time.
(2) It shall be the duty of the organs of the Authority to provi de
the Board of Governors with all such information as may berequired for the proper performance of its functions and inparticular to enable it to ensure that its policies are being p roperly
carried out.
The Board of 
Governors.
Amended by: 
XIII.1994.9.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.10;X. 2011.3;VI. 2018.3;XII.2021.8.6.(1) The Board of Governors shall establish the policies to
be pursued by the Authority. In determining such policies the B oard
of Governors shall follow such policy guidelines as may be set out
by Government. The Board of Go vernors shall also be responsible
for advising the Government as provided in article 4.
(2) The Board of Governors shall consist of the following:
(a) a Chairman, appointed by the Prime Minister acting on
the advice of the Cabinet of Ministers;
(b) the Chief Executive Officer; 
(c) five members or more, appointed by the Prime
Minister from among persons who have distinguishedthemselves in business, financial activities, the
 6        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
professions, the public services or academic affairs
and who in his opinion are able to represent the pointsof view of the industry and consumers of financialservices. 
The Board of Governors shall choose a deputy Chairman
from amongst its members.
(3) A person shall not be eligible to be appointed as Chairman
or as a member of the Board of Governors or of any other organ of
the Authority, or to hold any office with the Authority, if he is the
holder of a licence or other authorisation issued by the Author ity or
otherwise falls under the regulatory or supervisory functions o f the
Authority, or is a director, an officer or employee of such hol der or
other such person.
(4) Where the Chairman is absent or is unable to exercise the
functions and powers of his office and the Prime Minister has n ot
appointed another person to act as chairman during the period o f
absence or disability the remaining members of the Board ofGovernors shall designate one of the other members of the Board  to
carry out the functions of the chairman during each period.
(5) The Chairman and the members of the Board of Governors
shall hold office for such term, being a period of not more tha n five
years, as may be specified in the letter of appointment, and sh all be
eligible for reappointment; and s hall receive such remuneration  as
the Minister may from time to time, determine.
(6) ( a) Without prejudice to the provisions of sub-article (3) a
person shall not be eligible to be appointed or to holdoffice as Chairman or as a member of the Board ofGovernors if he - 
(i) is a member of the House of Representatives; or
(ii) is legally incapacitated or interdicted; or
(iii) has been declared bankrupt or has made a
composition or arrangement with his creditors;or
(iv) has contravened any provision made by or under
any law appearing to be designed for protectingmembers of the public against financial loss dueto dishonesty, incompetence or malpracticeconcerned in the provision of financial servicesor in the management of companies; or
(v) has engaged in any business practice appearing
to the Prime Minister to be deceitful oroppressive or otherwise improper (whetherunlawful or otherwise) or which otherwisereflects discredit on his method of conductingbusiness or professional activities; or
(vi) has engaged in or been associated with any other
business practice or otherwise conductedhimself in such a manner as to cast doubt on hiscompetence or soundness of judgement; or
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       7
(vii) has a financial or other interest as is likely to
prejudicially affect the discharge by him of hisfunctions; or
(viii) is otherwise not a fit and proper person to hold
that office.
(b) In determining whether a person is a fit and proper
person, the Prime Minister shall have regard to thatperson’s probity, to his competence and soundness ofjudgement for fulfilling the responsibilities of thatoffice, to the diligence with which he is fulfilling or islikely to fulfil those responsibilities and to whether theinterests of any person are, or are likely to be, in anyway threatened by his holding that office.
(c) Any person whom the Prime Minister has appointed or
proposes to appoint as a member of the Board ofGovernors shall, whenever requested by the PrimeMinister to do so, furnish to him such information asthe Prime Minister considers necessary for theperformance of his duties under paragraphs ( a) and
(b).
(d) A member of the Board may be relieved of office by
the Prime Minister on the ground of inability toperform the functions of his office, whether due toinfirmity of mind or of body, or of misbehaviour; andfor the purposes of this paragraph repeated andunjustified non-attendance of meetings may be deemedto amount to misbehaviour.
(e) Any member of the Board of Governors, may resign
his office by letter addressed to the Prime Minister.
(f) The appointment of any person as a member of the
Board of Governors and the termination of office orresignation of any such person including the reason for
such termination or resignation, as applicable, shall benotified in the Gazette.
Meetings of the 
Board of Governors.
Amended by: 
XIII.1994.10.Substituted by:
XVII. 2002.106.
Amended by:
VI. 2018.4;XVII.2019.81.7.(1) The Board of Governors shall meet as often as may be
necessary or expedient but in any case not less frequently than  once
every three months. The meetings shall be convened by theChairman either on his own initiative or on the written request  of
any three members.
(2) The Board of Governors may act notwithstanding any
vacancy amongst its members provided there is a quorumconsisting of not less than three members present at the meetin g.
(3) The meetings of the Board of Governors shall be chaired by
the Chairman or in his absence by the deputy Chairman, or by amember elected for the particular meeting by the other memberspresent at the meeting.
(4) Decisions of the Board of Governors shall be taken by a
majority of votes of the members present, and the Chairman orother person chairing the meeting shall have an original vote a nd in
 8        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
the event of an equality of votes a second or casting vote.
(5) ( a) The Board of Governors shall designate a person to act
as Secretary to the Board of Governors for such periodand as the Board of Governors shall deem appropriate.
(b) It shall be the duty of the Secretary to make the
necessary preparations for the meetings of the Boardof Governors and to keep minutes of those meetings.
(6) Any participation in the proceedings of the Board of
Governors by a person not entitled so to do, shall not invalida te the
proceedings.
(7) Subject to the foregoing provisions of this article, the Boa rd
of Governors may regulate its own proceedings.
(8) The Board may invite any person and may require any
officer or employee of the Authority to attend a meeting of theBoard of Governors and to take part in the discussions.
The functions 
and powers of the Board of GovernorsSubstituted by:XLVI.2021.5.
Amended by:
LXXI.2021.3.7A. (1) Without prejudice to the functions and powers of the
Board of Governors under this Act or any other law, the Board o f
Governors shall be responsible for the approval of prospectuses  and
admissibility to listing.
(2) The Board of Governors may, from time to time, delegate in
writing any of its functions and powers under sub-article (1), on such
matters and subject to such conditions and modalities as may bespecified in the delegation, subject to the terms and duration as
determined by the Board of Governors, to the Executive Committe e,
the Chief Executive Officer or one or more of the members of th e
Executive Committee, any one or more of the sub-committeesestablished by the Executive Committee, or a function or unit o f the
Authority, as may be specified.
The Resolution 
Authority and the 
Resolution Committee.
Added by:
XXI. 2015.5.
Amended by:
VIII.2019.6.7B. (1) The Board of Governors shall also act as the
Resolution Authority, which shall be the authority appointed fo r the
purposes of Article 3 of the BRRD .
(2) The Resolution Authority shall appoint a Resolution Committe e
which shall have all the powers assigned to the Resolution Auth ority
under the BRRD. The composition, powers and functions of the
Resolution Committee shall be governed by the provisions set ou t
in the First Schedule and in terms of any regulations madehereunder. The Resolution Authority and the Resolution Committe e
shall be operationally independent and shall act independently of
each other and of the Executive Committee.
Recovery and 
Resolution Rules.
Added by:
XXI. 2015.5.7C. For the better carrying out and implementation of the
provisions of the First Schedule and the BRRD, the Authority,
through the Resolution Committee, may, from time to time, issueand publish Recovery and Resolution Rules which shall be bindin g
on institutions and others as may be specified therein. Such Ru les
may lay down additional requirements and conditions in relation  to
the recovery and resolution of institutions, the conduct of the ir
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       9
business, their responsibilities, and any other matters as the
Resolution Committee may consider appropriate.
Legal and judicial 
representation.
Amended by: 
XIII.1994.11.Substituted by:XVII. 2002.106.
Amended by:
VI. 2018.5.8. The legal and judicial representation of the Authority shall
vest in the Chief Executive Officer, or in such other person as  the
Board of Governors may determine for any specific case or class  of
cases:
Provided that the Board of Governors may from time to
time appoint any one or more of its members, or any one or more  of
the officers or employees of the Authority, to appear in the na me
and on behalf of the Authority in any judicial proceedings or o n any
act, contract, instrument or other document whatsoever, or in a ny
class or category thereof.
The Executive 
Committee
Amended by: 
XV .1989.4;XIII.1994.12,13.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.16;XIX. 2010.7;VI. 2018.6.Substituted by:VIII.2019.7.
Amended by:
XLVI.2021.6.9. (1) The Executive Committee shall be responsible for the
implementation of the strategy and policies of the Authority, f or the
approval of regulation, for the approval of and for the issuing  of
licences and other authorisations, and for the monitoring andsupervision of persons and other entities licensed or authorise d by
the Authority in the financial services sector, for the enforce ment
of the regulatory framework in the financial services sector, f or
carrying out the day-to-day management and the finances of the
Authority including human resources and ancillary services, and
for the general coordination of the Authority’s administrativeaffairs.
(2) The Executive Committee may from time to time delegate
in writing its functions and powers, on such matters and subjec t to
such conditions and modalities as may be specified in thedelegation, subject to the terms and dur ation as determined by the
Executive Committee, to the Chief Executive Officer or one or more
of the members of the Executive Committee, any one or more of t he
sub-committees established by the Executive Committee or a function
or unit of the Authority, as may be specified. Any decisions so made
shall be approved by the Board of Governors and subsequently ma de
public on the website of the Authority.
(3) The Executive Committee shall also be responsible for
establishing and empowering sub-committees, units and functions .
The Executive Committee shall determine the respective remits o f
the sub-committees, units and functions.
(4) The Executive Committee shall consist of the Chief
Executive Officer, who shall preside thereat, the General Couns el,
and of each of the Chief Officers responsible respectively forsupervision, enforcement, corporate services, operations, strat egy,
policy and innovation, and for any other aspect falling within the
remit of the Authority as may be determined by the Board ofGovernors.
(5) The Executive Committee shall designate one of the
officers of the Authority, engaged in any of its functions ment ioned
in sub-article (1), to act as Secretary to the Executive Commit tee
for such period and under such terms as the Executive Committeeshall deem appropriate.
(6) It shall be the duty of the Secretary to make the necessary
 10        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
preparations for the meetings of the Executive Committee and to
keep minutes of those meetings.
(7) The provisions of article 7, in so far as applicable, shall
apply to the meetings of the Executive Committee as they apply to
the meetings of the Board of Governors.
(8) The Executive Committee may from time to time make
internal arrangements to authorize one or more of the seniorofficers, responsible for the approval of and for the issuing o f
licences and other authorisations, to sign a licence, category of
licences or any other form of authorisation as it may deemappropriate.
The Supervisory 
Council.
Amended by: 
XIII.1994.12,14.Substituted by:XVII. 2002.106.
Amended by:
XIX. 2010.8.10. Deleted by VIII of 2019
The Enforcement 
Decisions Committee.
Amended by: 
XV .1989. 5; XXXI. 1990. 3; XIII.1994.12.
Substituted by:
XVII. 2002.106.
Amended by:
XIX. 2010.9.Substituted by:VIII.2019.10.
Amended by:
LXII.2020.3.11. (1) The Enforcement Decisions Committee shall decide
or take such action as it considers appropriate, promptly andwithout delay, in relation to any recommendation for enforcemen t
action brought before it by the Chief Officer responsible forEnforcement or any other official from the Directorate responsi ble
for enforcement:
Provided that the Executive Committee may take any
enforcement action itself if: 
(a) it considers that, in the particular case, the action
proposed should occur before it is practicable orpossible to convene the Enforcement DecisionsCommittee; or 
(b) it considers that, in the particular case, an urgent
decision on the proposed action is necessary to protect
the interests of consumers. 
(2) The members of the Enforcement Decisions Committee
shall be appointed by the Board of Governors.
(3) The Executive Committee may, after seeking the approval of the
Board of Governors, establish a detailed remit for the Enforcem ent
Decisions Committee and may also establish that certain enforce ment
action, which it does not deem to be material, may be taken by the Chief
Officer responsible for enforcement.
(4) The Enforcement Decisions Committee shall be composed
of a chairman and two (2) other members appointed by the Board of
Governors for such term, being a period of not more than three (3)
years, as may be specified in the letter of appointment, and sh all be
eligible for reappointment; and s hall receive such remuneration  as
the Authority may from time to time determine. 
(5) The chairman of the Enforcement Decisions Committee
shall be an advocate who for a period of, or periods amounting in
the aggregate to, not less than seven (7) years has served as a n
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       11
advocate in Malta or served as a judge or magistrate in Malta, or
partly so practiced and partly so served, and who in the opinio n of
the Board of Governors possesses the necessary expertise andexperience in the business or regulation of financial services,  or in
finance.
(6) The members of the Enforcement Decisions Committee
shall be persons who in the opinion of the Board of Governorspossess the necessary expertise and experience in the business or
regulation of financial services, or in finance.
(7) For the better carrying out of its functions, and before
arriving at any decision, the Enforcement Decisions Committeemay decide to hear any person in relation to any matter beingconsidered by the said Committee.
(8) Before arriving at a decision, the Enforcement Decisions
Committee shall serve written notice of the decision it propose s to
take on the persons being the subject of the recommendation forenforcement action being considered by the said Committee,setting out the reasons for its proposed decisions. Such notice  shall
also specify therein the period in which the person upon whom t he
notice is served shall be entitled to make representations in w riting
to the Enforcement Decisions Committee as to why the proposeddecision should not be taken, in accordance with the relevantprovisions of the Acts administered by the Authority:
Provided that the Enforcement Decisions Committee may,
where it decides that the matter is urgent, take the final deci sion
prior to the expiration of the period stated in the notice.
(9) The Executive Committee, with the approval of the Board
of Governors, may make rules governing the procedure forconducting any hearings that may take place before theEnforcement Decisions Committee.
(10) The Board of Governors shall designate one of the officers
of the Authority, engaged in any of its functions mentioned inarticle 9(1), to act as Secretary to the Enforcement DecisionsCommittee for such period and under such terms as the Board ofGovernors shall deem appropriate.
(11) It shall be the duty of the Secretary to make the necessar y
preparations for the meetings of the Enforcement DecisionsCommittee and to keep minutes of those meetings. 
(12) The Enforcement Decisions Committee shall report to the
Board of Governors on the progress made in its area ofcompetence:
Provided that the Enforcement Decisions Committee shall
be independent of the Executive Committee and the Board ofGovernors, and shall act independently of them. 
(13) The provisions of article 7, in so far as applicable, shal l
apply to the meetings of the Enforcement Decisions Committee asthey apply to the meetings of the Board of Governors.
(14) The provisions of paragraphs (a), (b), (d) and (e) of arti cle 6(6)
 12        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
shall, as far as applicable, mutatis mutandis, apply to the office of the
chairman and members of the Enforcement Decisions Committee.
The Enforcement 
Directorate
Amended by: 
XIII.1994.12,16.Substituted by:XVII. 2002.106;VIII.2019.10.12. (1) It shall be the function of the Enforcement Directorate
to:
(a) deal with enforcement:
(i) under the provisions of this Act or any other Act
administered by the Authority, or of anyregulations or rules made thereunder; or
(ii) in relation to any of the conditions imposed in a
licence or other authorisation; or 
(iii) in relation to any administrative measure or
penalty imposed by the Authority in terms ofthis Act or any other Act administered by the
Authority, or of any regulations or rules made
thereunder;
(b) investigate any referrals made to it by any other organ
of the Authority; 
(c) conduct investigations in relation to any enforcement
action;
(d) make recommendations for any enforcement action to
the Enforcement Decisions Committee established inarticle 11; 
(e) implement any decision of the Enforcement Decisions
Committee, including the making of appropriatearrangements for such purpose;
(f) assist, as applicable, in the conduct of proceedings
before the Financial Services Tribunal in relation tosuch enforcement action;
(g) carry out such other duties as may be assigned to it by
the Executive Committee.
(2) The Enforcement Directorate shall, for the purpose of
discharging its functions, have all the powers vested in the
Authority under this Act or any other Act administered by theAuthority.
(3) The Enforcement Directorate shall be composed of the
Chief Officer responsible for enforcement, and such number ofofficers and employees as may be  required for the proper exerci se
of its functions.
Audit Committee.
Added by:
XXXI. 2017.4.
Amended by:
VIII.2019.11.12A.  (1) It shall be the function of the Audit Committee to:
(a) determine whether the governance, controls and risk
management processes of the Authority inimplementing agreed policies and strategies across theactivities of the Authority are adequate, effective andfunctioning;
(b) determine the Internal Audit Unit’s remit and role;
(c) evaluate the performance of the Internal Audit Unit set
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       13
out under article 12B;
(d) carry out such other functions as may be assigned to it
by the Board of Governors.
(2)  In carrying out its functions the Audit Committee shall
have all powers necessary to enable it to perform its functionsproperly, and the provisions of sub-articles (4) and (5) of art icle
12B shall, mutatis mutandis , apply to the Audit Committee.
(3) In carrying out its functions under sub-article (1)( b), the
Audit Committee shall consult the Chief Executive Officer regarding
new tasks and the processes applied throughout the activities o f the
Authority to ensure full coverage of the activities of the Auth ority
by the Internal Audit Unit. In so far as its functions under su b-
article (1)( c) are concerned, the Audit Committee shall take into
consideration the internal audit plan and any audit qualityassurance assessment reports.
(4) The Audit Committee shall be composed of a Chairman and
two other members appointed by the Board of Governors, for suchterm, being a period of not more than three years, as may bespecified in the letter of appointment, and shall be eligible f or
reappointment; and shall receive such remuneration as the
Authority may from time to time, determine.
(5) The Authority shall consult the Audit Committee before
appointing one or more suitable officers to perform the functio ns of
Director and Deputy Director within the Internal Audit Unit.
(6) The Audit Committee shall report to the Board of
Governors on the progress made in its area of competence and onthe progress made by the Internal Audit Unit.
(7) The Audit Committee shall be independent of the Board of
Governors, and shall act independently of it.
(8)  The Audit Committee shall designate one of the officers of
the Authority as its Secretary for such period and under such t erms
as the Board of Governors shall deem appropriate.
(9)  The provisions of article 7 shall, as far as applicable,
mutatis mutandis  apply to the meetings of the Audit Committee,
and the provisions of paragraphs ( a), (b), (d) and ( e) of article 6(6)
shall, as far as applicable, mutatis mutandis  apply to the office of
the Chairman and the members of such Committee.
Internal Audit 
Unit.
Added by:
XXXI. 2017.5.12B.  (1) It shall be the function of the Internal Audit Unit to
examine, evaluate and report upon the adequacy and effectivenes s
of the governance, internal control and risk management process es
of the Authority. To this effect, in addition to any other obje ctives
that may be assigned to it by the Board of Governors or the Aud it
Committee within the purposes of this article, the Internal Aud it
Unit shall determine that:
 14        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
(a) adequate internal controls are in place and operating
effectively and efficiently;
(b) risks are appropriately identified and managed;
(c) interaction with the various units of the Authority
occurs as needed;
(d) financial, managerial and operating information is
accurate, reliable, integral and timely;
(e) the actions of officers and employees of the Authority
are in compliance with the policies and procedures ofthe Authority, and applicable laws and regulations;
(f) resources are acquired economically, used efficiently,
and adequately protected;
(g) plans and objectives of the Authority are achieved or
are being implemented as planned;
(h) quality and continuous improvement are fostered in
the control processes of the Authority;
(i) significant regulatory issues impacting on the
Authority are recognised and addressed appropriately.
(2) The Internal Audit Unit shall be composed of the Director
of the Unit, and any number of employees as may be required inorder to carry out its functions properly.
(3) In carrying out its functions, the Internal Audit Unit shal l,
as appropriate, apply international best practice guidance andstandards and shall adhere to internationally accepted principl es of
ethics for internal auditors.
(4) For the better performance of its functions, the Internal
Audit Unit may audit all parts of the Authority, and shall have  full,
complete unrestricted access to any records, files, physicalproperties, electronic data, and personnel of the Authority rel evant
to the performance of an audit.
(5) Officers or employees of the Authority shall fully cooperat e
with the Internal Audit Unit in the exercise of its functions.
(6) The Internal Audit Unit shall report to the Audit Committee
on the progress made in its area of competence.
Officers and 
employees of the 
Authority.
Amended by: 
XIII.1994.17.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.16;XIX. 2010.10;XVI. 2017.43;VIII.2019.12.13. (1) The Authority may appoint a General Counsel, Chief
Officers, Heads, Deputy Heads and such other officers and emplo yees
as it may consider necessary for the efficient discharge of its  functions,
powers and duties under this Act or any other law. The appointm ent of
the General Counsel and Chief Officers shall be made by the Chi ef
Executive Officer in consultation with the Board of Governors. The
appointment of officers and other employees of the Authority ot her
than the General Counsel and the Chief Officers shall be made b y the
Executive Committee on such terms and conditions as the Board o f
Governors may establish.
Cap. 9. (2) For the purposes of the Criminal Code  and of any provision
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       15
of penal nature in any other law, the members of the Authority,  and
every officer or employee thereof, shall be deemed to be publicofficers.
Dissemination of 
information.
Amended by: 
XIII.1994.18.Substituted by:XVII. 2002.106.14. (1) The Authority shall arrange for the dissemination in
such form and manner as it considers appropriate of suchinformation and advice as it may consider expedient to give thepublic about matters relating to the exercise of its functions under
this Act or any other enactment.
(2) In arranging for the publication of any such information or
advice, the Authority shall have regard to the duty of professi onal
secrecy and, as far as practicable shall refrain from publishin g any
matter which relates to the private affairs of an individual, w here
the publication of that matter would or might, in the opinion o f the
Authority, seriously and prejudicially affect the interest of t hat
individual.
Compensation 
schemes.
Amended by: 
XIII.1994.19.Substituted by:XVII. 2002.106.15. Without prejudice to any provisions of other laws, the
Minister may, acting on the advice of the Authority, makeregulations to establish, co-ordinate, amalgamate and otherwiseregulate compensation schemes or sub-schemes or other similararrangements in the financial services sector:
(a) for the provision of compensation where licence
holders, or categories thereof, are unable to satisfytheir obligations towards depositors, investors, policy-holders or other claimants in respect of any liabilityincurred by them in connection with the carrying outof any activity in regard to which they are licensed orotherwise authorized, and 
(b) for the provisions of compensation arising out of or in
connection with any other liability as may beprescribed, and to regulate the management and thefinancing of any such schemes or arrangements forcompensation and the contributions and levies to bepaid thereto, and such regulations may make differentprovision for different classes of licence holders andclaimants.
Powers of the 
Authority.
Substituted by: XIII.1994.20;XVII. 2002.106.
Amended by:
IV . 2003.11;XII. 2006.57;XX. 2007.5;L.N. 424 of 2007;III. 2009.9;XIX. 2010.11;X. 2011.4;XX. 2013.21;XXII. 2014.14;XXVI.2019.82;V .2020.3;XLVI.2021.7.16.(1)(a) Without prejudice to any other function and power
under this or any other law,  the Authority shall, in the
exercise of its functions and powers under this Act,have the right to reasonable access and entry to anybusiness premises and, or offices of a licence holder,access to any relevant documentation and, or records of alicence holder, or of any other person who appears to bein possession of relevant documentation and, or records,including access to any telephonic or other records andaccess to any other information relating or pertainingto the activities licensed or authorised by the Authorityor otherwise falling under its supervisory or regulatoryfunctions. The Authority shall also have the right toissue orders for the freezing of funds and, or otherassets including bank accounts in the name of the
 16        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
licence holder or any other third party or parties as
may be indicated and for such time and under suchconditions as the Authority may set out in writing. Theorder may also prohibit a licence holder fromtransferring, disposing or losing possession of anysuch funds or assets. These orders may also be issuedat the request of a foreign enforcement or supervisoryauthority.
(b) The directors and managers, by whatever name
designated, or any other persons who are or have beenin charge of the operations or activities falling underthe supervisory or regulatory functions of the
Authority shall assist and shall collaborate with theAuthority in order to enable it to discharge its
functions, and shall collate and transmit without anyundue delay such information and documentation asthe Authority may reasonably request from time totime.
(c) The Authority may exercise the powers under this
article notwithstanding articles 17A and 17B and anyprovision as may be contained in any other law.
(2) The Authority may , for the better carrying out of the
provisions of this Act or any other Act administered by it, fro m time
to time:
(a) issue and publish Rules regulating the procedures and
duties of persons licensed or authorised by it, or fallingunder its regulatory or supervisory functions. Such Rulesmay:
(i) lay down additional requirements and conditions in
relation to activities of such persons, the conductof their business, their relations with customers,the public and other parties, their responsibilitiesto the Authority , reporting requirements, financialresources, capital adequacy and relatedrequirements, and any other matters as the
Authority may consider appropriate;
(ii)  provide for the returns, statements and notices to
be made or given for any purposes in regard towhich the Authority exercises supervisory orregulatory functions under this Act or any other
Act, and the form and contents thereof; and
(iii) prescribe the information that such persons are to
submit to the Authority:
Provided that such Rules shall be binding on all
licence holders and others as may be specifiedtherein;
(b) issue a directive in writing requiring a person to do or to
refrain from doing any act, including such prohibitions,restrictions and conditions as may be specified in thedirective; and any person to whom or to which the noticeis given shall obey, comply with and otherwise give
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       17
effect to any such directive within the time and in the
manner stated in the directive;
(c) appoint a qualified person or otherwise require a person
to appoint a qualified person, whenever it deems itnecessary or expedient, to carry out such tasks under suchterms and conditions as the Authority may direct. All feesand expenses to be charged by the qualified person inrelation to, or incidental to such appointment, shall bepaid by the person in relation to whom the qualifiedperson is appointed, unless determined otherwise by the
Authority. The Authority may issue Rules or guidelines
laying down the procedures and requirements relating tosuch appointment; and such Rules may also lay down thepowers, duties and obligations of the qualified person.
(2A) ( a) Without prejudice to the powers conferred to the
Authority under this Act or any other law, the Authority may
appoint a skilled person to assist it in the fulfilment of any of its
functions under this Act or any other law. 
(b) Where a skilled person is appointed in terms of this
sub-article, the following provisions shall apply:
(i) any person appointed as a skilled person shall be
a person who, in the opinion of the ExecutiveCommittee, possesses the expertise necessary toprovide the assistance required by the Authorityin terms of his  appointment;
(ii) the person in relation to whom the skilled person
is appointed shall co-operate with the skilledperson and provide any information anddocumentation, as may be required, by suchskilled person in the fulfilment of hisappointment;
(iii) where such skilled person is appointed in
relation to a particular person, the Authority mayrequire such person to pay all fees and expensescharged by the skilled person;
(iv) the Authority may require the skilled person,
inter alia , to provide it with a report relating to
the assistance provided to the Authority in termsof his appointment; and
(v) a report drawn up by the skilled person in terms
of sub-paragraph (iv) and endorsed by the
Authority in writing, shall for all purposes have
the same effect as a document drawn up by the
Authority:
Provided that where a skilled person is
appointed to draw up an independent report, thisprovision shall not apply with respect to suchindependent report.
(3) Without prejudice to any other powers that may be exercised
by the Authority in terms of this Act or of any other law, wher e any
 18        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
person contravenes or fails to comply with any provision of thi s Act or
any other Act administered by the Authority, with any regulatio ns or
Rules issued thereunder, with any of the provisions of the Disclosure
Regulation, with any of the provisions of Articles 5, 6 or 7 of the
Taxonomy Regulation, with any of the conditions imposed in a li cence
issued by the Authority or with any directives issued by the Au thority,
the Authority may by notice in writing and without recourse to a court
hearing impose on any such person an administrative penalty whi ch
may not exceed one hundred and fifty thousand euro (€150,000) f or
each infringement or failure to comply, as the case may be.
Cap. 12.(4) Where a notice as referred to in sub-article (3) or as refer red to
in any other Act administered by the Authority or in any regula tions or
Rules issued thereunder, has not been appealed, or where such notice
has been appealed, within fifteen days of the determination by the
Tribunal of such appeal, the administrative penalty as containe d in
the notice or as reduced or increased by the decision of the Tr ibunal
shall be due to the Authority. Upon the service of a copy of the notice
or the decision, as the case may be, by means of a judicial act on the
person indicated in the notice or decision, the said notice ordecision shall constitute an executive title for all effects an d
purposes of Title VII of Part I of Book Second of the 
Code of
Organization and Civil Procedure .
(5) The right of the Authority to obtain information from a
person who holds or has held a licence or other authorization, or
from any of the officials or employees of such person, shall no t be
restricted, obstructed or precluded in any manner. Any gagging or
similar confidentiality obligation or other restrictive conditi on
arising from the legal or contractual relationship between suchperson and his officials or employees shall be, in so far as it  is
contrary to these provisions and impedes or restricts the right  of the
Authority to receive information required in the pursuance of i ts
regulatory functions and duties arising under this or any other  Act,
null and void.
(6) In furtherance of sub-article (5), the following provisions
shall apply:
(a) any person who holds or has formerly held a license or
other authorization from the Authority, and theofficials and employees thereof shall, upon a writtenrequest by the Authority, promptly provide the
Authority with any information that it may require as
provided in sub-article (5), and may not raise anycontractual gagging restriction or similar prohibitionor other confidentiality obligation arising or alleged toarise under contract law or otherwise refuse to complywith such a request of the Authority;
(b) no action for breach of contract and no disciplinary
measure may be taken, directly or indirectly, by aperson against any of its officials or employees forproviding the Authority with any information requiredby the Authority as provided in sub-article (5); and anycontractual or disciplinary measure contrary to thisprovision shall be null and void;
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       19
(c) for the purposes of this article:
(i) "information" shall include explanations and
other forms of assistance; and
(ii) "employees" and "officials" shall include former
employees and officials.
(7) Notwithstanding any provision as may be contained in any
other law for whose administration the Authority is responsible  and
where circumstances so warrant, the Authority may issuereprimands, warnings or take other similar disciplinary sanctio ns or
measures of whatever type as may be deemed warranted by thecircumstances and the nature and seriousness of the breach andwrongdoing.
(8) Any administrative or disciplinary sanction or measure, of
whatever type, including reprimands or warnings, imposed ordecided by the Authority under any law for whose administration  it
is responsible, shall be published in such medium and in suchmanner and for such duration as may be deemed warranted by thecircumstances and the nature and seriousness of the breach orwrongdoing. The Board of Governors may from time to timeestablish policies and guidelines regarding the publication ofadministrative sanctions and disciplinary measures.
Criminal sanctions 
and criminal investigations concerning breaches of provisions transposing MiFID.
Added by:
XXXI. 2017.7.16A. (1) The Authority shall, on an annual basis, contact the
office of the Attorney General and the Commissioner of Police a nd
seek information about any criminal sanctions imposed for anybreaches of any provisions of any Act or regulations transposin g
MiFID. The office of the Attorney General and the Commissioner
of Police shall co-operate with the Authority and shall, whererelevant, send the Authority a copy of the final judgement inrelation to any criminal sanctions imposed. The Authority shallsubmit such copy of the final judgement to the European Securit ies
and Markets Authority (ESMA).
(2) The Authority shall, on an annual basis, contact the office  of
the Attorney General and the Commissioner of Police and ask foranonymised and aggregated data regarding all criminal investiga tions
undertaken and all criminal sanctions imposed for any breaches of any
provisions of any Act or regulations transposing 
MiFID. The
Authority shall forward such information to the European Securi ties
and Markets Authority (ESMA).
Exchange of 
information.
Amended by: 
XIII.1994.21.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.12;XX. 2007.6;XIX. 2010.12;X. 2011.5;XX. 2013.22;V .2020.4;LXII.2020.4.17. (1) Other than for the proper discharge of their duties or
functions under this or any other Act, or as may be otherwiseprovided in any other law, the members of the Board of Governor s
or of any other organ of the Authority, and the officers andemployees of the Authority shall treat any information acquired  in
the discharge of their duties as confidential, and shall not, d irectly
or indirectly, disclose such information to any other person, e xcept
with the consent of the person who had divulged the information .
For the purposes of this sub-article, "employees" and "official s"
shall include former employees and officials.
(2) Notwithstanding the foregoing provisions of this article, the
 20        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
Authority may, pursuant to a written request, disclose informat ion
to:
(a) an overseas regulatory authority or body carrying out
similar or equivalent functions in order to assist thesame in matters related to the regulation andsupervision of financial services and the registration ofcommercial partnerships;
(b) local or overseas enforcement or regulatory authorities,
bodies or other entities, or a network or groupingcomprising such local or overseas enforcement orregulatory authorities, bodies or other entities, or both,for the purpose of preventing, detecting, investigating orprosecuting the commission of acts that amount to or arelikely to amount to a criminal offence under any law or toan offence or breach of a regulatory nature, whether inMalta or overseas;
(c) any other body or authority formed or established
under Maltese law on matters in respect of which suchbody or authority may have a regulatory, supervisory,judicial, registration or licensing function in terms of
law:
Provided that the Authority shall disclose the requested
information where required or requested to do so within the ter ms
of Malta’s international commitments, or where so required with in
the terms of understanding assumed in bilateral or multilateralagreements for the exchange of information and other forms ofcollaboration, including a request arising under a Memorandum o f
Understanding concluded with the Authority.
(3) The obligation of professional secrecy shall not prevent the
Authority from exchanging or transmittingconfidential informati on to
the European Central Bank (ECB), the European Securities andMarkets Authority (ESMA), the European Banking Authority (EBA),the European Insurance and Occupational Pensions Authority(EIOPA), colleges of supervisors or to the European Systemic Ri sk
Board (ESRB), subject to conditions and restrictions emanating from
European Union legislation.
(4) Information divulged to the Authority under conditions of
confidentiality in pursuance to a request within the terms of abilateral or multilateral agreement, memorandum of understandin g
or other similar document or arrangement for the exchange ofinformation or for any other form of collaboration with anyauthority, body or other entity as provided for in this article  shall be
treated as confidential and no Court or Tribunal may order thedisclosure of such information unless the prior written approva l of
any such authority, body or other entity is obtained.
Attachment orders.
Added by:
XX. 2007.7.
Amended by:
L.N. 424 of 2007;VIII.2020.84.17A. (1) Where, upon information received from the Authority,
the Attorney General has reasonable cause to suspect that a per son
(hereinafter referred to as "the suspect") is guilty of a breac h of this
Act or of any other Act, the Attorney General may apply to the
Criminal Court for an order (hereinafter referred to as an
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       21
"attachment order") -
(a) attaching in the hands of such persons (hereinafter
referred to as "the garnishees") as are mentioned in theapplication all moneys and other movable property dueor pertaining or belonging to the suspect;
(b) requiring the garnishee to declare in writing to the
Attorney General, not later than twenty-four hours
from the time of service of the order, the nature andsource of all money and other movable property soattached; and
(c) prohibiting the suspect from transferring or otherwise
disposing of any movable or immovable property.
(2) Before making an attachment order, the Criminal Court
may require hearing the Attorney General in chambers and shall not
make such order unless it concurs with the Attorney General tha t
there is reasonable cause as provided in sub-article (1).
Cap. 12.(3) The provisions of article 381(1)( a), (b) and ( e) and of
article 382(1) of the Code of Organization and Civil Procedure
shall, mutatis mutandis , apply to the attachment order.
(4) An attachment order shall be served on the garnishee and
on the suspect by an officer of the Executive Police not below the
rank of inspector.
(5) An attachment order shall, unless it is revoked earlier by
the Attorney General by notice in writing served on the suspect  and
on the garnishee in the manner provided for in sub-article (4),  cease
to be operative on the expir ation of six (6) months from the date on
which it is made; and the court shall not make another attachme nt
order with respect to that suspect unless it is satisfied thatsubstantially new information with regard to the breach of this  Act
is available:
Provided that the said period of six (6) months shall be held in
abeyance for such time as the suspect is away from Malta and th e
Attorney General informs of this fact the garnishee by notice i n
writing served in the manner provided for in sub-article (4).
(6) Where an attachment order has been made or applied for,
whosoever, knowing or suspecting that the attachment order hasbeen so made or applied for, makes any disclosure likely toprejudice the effectiveness of the said order or any investigat ion
connected with it shall be guilty of an offence and shall, onconviction, be liable to a fine ( multa ) not exceeding eleven
thousand and six hundred and forty-six euro and eighty-seven ce nts
(11,646.87) or to imprisonment not exceeding twelve months, or to
both such fine and imprisonment:
Provided that in proceedings for an offence under this sub-
article, it shall be a defence for the accused to prove that he  did not
know or suspect that the disclosure was likely to prejudice theinvestigation or the effectiveness of the attachment order.
 22        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
Freezing of funds.
Added by:
XX. 2007.7.
Amended by:
L.N. 424 of 2007;L.N. 426 of 2012.17B. (1) ( a) Where a person (hereinafter referred to as "the
person charged or accused") has been charged with a criminaloffence, the Attorney General may apply to the Criminal Court f or
an order (hereinafter referred to as a "freezing order") -
(i) attaching in the hands of third parties all moneys and
other movable property due or pertaining to the personcharged or accused; and
(ii) prohibiting the person charged or accused from
transferring, pledging, hypothecating or otherwisedisposing of any movable or immovable property:
Provided that the Criminal Court shall in such order
determine what moneys may be paid to or received by the personcharged or accused during the subsistence of such order, specif ying
the sources, manner and other modalities of payment, includingsalary, wages, pension and social security benefits payable to the
person charged or accused, to allow him and his family a decentliving in the amount, where the means permit, of thirteen thous and
and nine hundred and seventy-six euro and twenty-four cents(13,976.24) every year:
Provided further that the Criminal Court may also -
(i) authorise the payment of debts which are due by the
person charged or accused to bona fide  creditors and
which were contracted before such order was made;and
(ii) on good grounds authorise the person charged or
accused to transfer movable or immovable property.
(b) Any addressee shall promptly comply with any
written order issued by the Criminal Court in accordance with t he
provisions of this article with regards to such funds and asset s.
(2) A freezing order shall -
(a) become operative and binding on all third parties
immediately it is made, and the Registrar of the Courtshall cause a notice thereof to be published withoutdelay in the Gazette, and shall also cause a copythereof to be registered in the Public Registry inrespect of immovable property; and
(b) remain in force until the final determination of the
administrative or criminal proceedings against theperson charged, as the case may be.
(3) The Criminal Court may for particular circumstances vary
such freezing order, and the provisions of the foregoing sub-ar ticles
shall apply to such order as so varied.
(4) To the extent possible, a freezing order shall contain the
name and surname of the person charged, his profession, trade o r
other status, father’s name, mother’s name and maiden surname,place of birth and place of residence and number of a legally v alid
identification document, if any.
(5) Where any money is or becomes due to the person charged
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       23
from any person while such order is in force, such money shall,
unless otherwise directed in the freezing order, be deposited i n a
bank to the credit of the person charged.
(6) When such freezing order ceases to be in force as provided
in sub-article (2)( b), the Registrar of the Court shall cause a notice
to that effect to be published in the Gazette, and shall enter in the
Public Registry a note of cancellation of the registration of t hat
order.
(7) The Authority shall liaise with the Attorney General on
matters arising under this article and article 17A and may exch ange
information, subject to the obligation of professional secrecy.
(8) Any person who acts in contravention of a court order
mentioned in sub-article (1) shall be guilty of an offence and shall,
on conviction, be liable to a fine ( multa ) not exceeding eleven
thousand and six hundred and forty-six euro and eighty-seven ce nts
(11,646.87), or to imprisonment for a period not exceeding twel ve
months, or to both such fine an d imprisonment, and the court ma y
order the person so found guilty to deposit in a bank to the cr edit of
the accused the amount of moneys or the value of other movableproperty paid or delivered in contravention of that court order .
Communications 
with the Central Bank of Malta and other bodies.
Amended by: 
XIII.1994.21.Substituted by:XVII. 2002.106.
Amended by:
XIII. 2004.69;
XX. 2013.23.
Cap. 204.18. (1) The Central Bank of Malta and the Authority shall on
request exchange information in their possession which isnecessary for the discharge by the Central Bank of its duties u nder
the Central Bank of Malta Act, and by the Authority under this Act
or any other law.
(2) The Authority may, subject to such conditions it may deem
fit to impose and to such procedures as may be applicableaccording to law, disclose i nformation to overseas central banks, the
European System of Central Banks, the European Central Bank andother authorities responsible for monetary policy and, whereappropriate to other overseas public authorities responsible fo r
overseeing payment systems, where such information relates and is
connected to their respective functions in terms of law.
Consideration of 
complaints.
Amended by: 
XIII.1994.21.Substituted by:XVII. 2002.106.19. (1) The Authority may investigate any matter which:
(a) relates to the functions exercisable by the Authority
under this Act or any law, and 
(b) is the subject of a representation (other than one
appearing to the Authority to be frivolous) made to the
Authority by or on behalf of a person appearing to theAuthority to have an interest in that matter.
(2) Where the Authority has investigated any matter under this
article, it shall prepare a report on that matter and (subject to any
obligation with respect to professional secrecy) shall send a c opy of
any such report to such of the following persons as it thinksappropriate, that is to say:
(a) any person to whom the report refers or who appears to
the Authority to have an interest in the matter to which
the report relates;
 24        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
(b) any person whose functions under any enactment
appear to the Authority to be exercisable in relation tothat matter;
(c) any person who appears to the Authority to be a person
who ought to take account of the report in determining
how to act in relation to that matter.
Appointment of 
Consumer Complaints Manager.Substituted by:XVII. 2002.106.
Amended by:
XX. 2007.8;XVI. 2017.44.20. Deleted by Act XVI. 2017.44.
Power to make 
regulations.
Added by:
XX. 2007.10.
Amended by:
II. 2010.3;X. 2011.6;V .2020.5;
XLVI.2021.8.20A.  (1) The Minister, acting on the advice of the Authority,
may make regulations to transpose, implement and give effect to .
the provisions and requirements of Directives, Regulations and any
other legislative measures of the European Union requiringtransposition and, or implementation, as they may be amendedfrom time to time, including any implementing measures that hav e
been or may be issued thereunder and relating to licence holder s and
others as may be specified therein; regulations made under thisparagraph, and strictly related to transposition or implementat ion as
aforesaid, may provide that any provision of this Act or of any  other
law shall not apply to matters falling under the regulations, a nd that in
so far as any of the provisions of the regulations are inconsis tent with
the provisions of this Act or of any other law, said provisions  in any
such regulations shall prevail.
(2) The Minister, acting on the advice of the Authority, may
make regulations to give better effect to the provisions of thi s Act,
and without prejudice to the generality of the foregoing may, b y
such regulations, prescribe anything that is to be or which may  be
prescribed and provide for any matter consequential, incidental  to
or connected with any of the above matters.
Added by:
XLVI.2021.8.(2A)  The Minister, acting on the advice of the Authority, may m ake
regulations to impose such fees and charges in respect of any r equest,
application or other matter that may be submitted to the Author ity
under this or any other Act, including the fees and charges in respect of
any permission, licence, authorisation, exemption or other bene fit, as
well as any fees and charges in respect of the Authority’s regu latory,
supervisory or investigative functions under this or any other law,
including the Authority’s function to provide training, knowled ge and
education on all matters relating to financial services.
(3) Where regulations have been made in terms of this article,
the Authority may issue Rules for the better carrying out of, a nd to
better implement, the provisions of the regulations.
(4) Regulations made under this article may impose:
(a) administrative penalties which may not exceed one
hundred and fifty thousand euro (€150,000) for each
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       25
infringement or failure to comply, as the case may be;
(b) punishments or other penalties in respect of any
offence, not exceeding a fine ( multa ) of one hundred
and fifty thousand euro (€150,000) or imprisonmentfor a term not exceeding one year, or both such fineand imprisonment; and
(c) administrative penalties and fines higher than one
hundred and fifty thousand euro (€150,000), wheredeemed necessary or appropriate for any contraventionof or failure of compliance with any EU Directive orEU Regulation or of any regulations made under thisarticle to transpose or to give effect to any EUDirective or EU Regulation.
Distance selling 
arrangements.
Added by:
IV . 2003.13.
Amended by:
XX. 2007.9.20B. The Minister may, acting on the advice of the Authority,
make regulations to regulate distance selling arrangements inrelation to financial services and the conclusion of agreementswhere the consumer and other purchasers and the provider of theservice are at a distance from each other, and for this purpose  to set
out the form and procedure for concluding such distance sellingagreements, to provide for the inclusion or exclusion of partic ular
terms and conditions, to establish a cooling-off period forconsumers, to lay down thresholds and exemptions, and to establ ish
minimum consumer rights, and to introduce measures to makeoffers for such agreements more transparent and informative, an d
to regulate any other aspect of distance selling.
Financial 
conglomerates.
Added by:
XIII. 2004.70.
Amended by:
XX. 2007.9;X. 2011.7.20C. (1) The Minister may, acting on the advice of the
Authority, make regulations for the transposition of Directive 2002/
87/EC of the European Parliament and of the Council of 16
December 2002 and to provide for the supplementary supervisionof credit institutions, financial institutions, insurance under takings
and investment firms in a financial conglomerate, and to otherw ise
regulate the supervision of financial conglomerates and financi al
groups with crosssectoral financial activities.
(2) Regulations made by the Minister in virtue of sub-article
(1) shall, in particular and without prejudice to the authority  vested
in the Minister by the said sub-article -
(a) provide for the appointment of a co-ordinator
responsible for coordination and examination ofsupplementary supervision, for the assessment of thefinancial situation of a group, including solvencyrequirements, risk concentration and intra-grouptransactions, and the means for obtaining from theentities within a financial group and from other
overseas regulatory authorities, the information
necessary for the performance of this supplementarysupervision and may provide for consultation and thesharing and exchange of information with overseas
regulatory authorities, as may be necessary;
(b) provide for the establishment and imposition of
administrative penalties or other measures for the
 26        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
contravention of any of the regulations, and to provide
for appeals therefrom to the Financial Services
Tribunal.
Power to make 
regulations in relation to the Resolution 
Authority and the 
Resolution Committee.
Added by:
XXI. 2015.7.20D.  (1) The Minister, acting on the advice of the Resolution
Authority, may make regulations for the following purposes:
(a) to transpose, implement, and, or give effect to the
requirements of the BRRD ;
(b) to better implement the provisions of the First
Schedule;
(c) to provide for powers and functions of the Resolution
Committee;
(d) to establish and impose administrative penalties and
other administrative measures on institutions or othersas may be specified therein;
(e)  to prescribe that a breach of any regulations made
under this Act may amount to a criminal offence asmay be specified, and for this purpose such regulationsmay impose punishments in respect of any breach, notexceeding a fine ( multa ) of two million euro
(€2,000,000) or imprisonment for a term not exceedingthree years, or both such fine and imprisonment.
(2) Where regulations have been made in terms of this article,
the Authority, through the Resolution Committee, may issueRecovery and Resolution Rules within the meaning of article 7Cfor the better carrying out of, and to better implement, theprovisions of the regulations.
Transparency of 
securities financing transactions and of re-use, and benchmarks.
Added by:
XXXI. 2017.9.20E.  The Minister may, acting on the advice of the Authority,
make regulations for the following purposes:
(a) to implement and, or give effect to:
(i)  the requirements of Regulation  (EU) 2016/1011
of the European Parliament and of the Councilof 8 June 2016 on indices used as benchmarks infinancial instruments and financial contracts orto measure the performance of investment fundsand amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No. 596/2014, andto otherwise regulate the supervision ofsupervised entities within the meaning ofRegulation (EU) 2016/1011; and
(ii) the requirements of Regulation (EU) 2015/2365
of the European Parliament and of the Councilof 25 November 2015 on transparency ofsecurities financing transactions and of re-useand amending Regulation (EU) No. 648/2012,and to otherwise regulate the supervision offinancial counterparties and non-financialcounterparties within the meaning of Regulation(EU) 2015/2365;
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       27
(b) where regulations have been made in terms of this
article, the Authority may issue Rules for the bettercarrying out of, and to better implement, theprovisions of the regulations;
(c) to establish and impose administrative penalties and
other administrative measures as may be specifiedtherein for the purposes of implementing Regulation(EU) 2016/1011 and Regulation (EU) No 2015/2365and to provide for appeals therefrom to the FinancialServices Tribunal.
Language of 
regulations.
Added by:
XIII. 2004.70.
Amended by:
XX. 2007.9.Re-numbered by:XXI. 2015.6;XXXI. 2017.8.20F. Regulations which are required to be issued by the Minister
upon the advice of the Authority or after consultation therewit h
under any Act in respect of which the Authority has been appoin ted
as the competent authority, may be made in the English languageonly.
Financial Services 
Tribunal.Amended by: 
XIII.1994.21.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.14;XX. 2007.11;L.N. 424 of 2007;XIX. 2010.13;X. 2011.8;LXII.2020.5;L.N. 225 of 2021;XLVI.2021.9.21. (1) There shall be a tribunal to be called ''The Financial
Services Tribunal'', in this Act also referred to as ''the Trib unal'',
which shall exercise and perform the functions and powersassigned to it by law.
(2) The Tribunal shall consist of a chairman and two other
members appointed by the Minister.
(2A)  The Minister shall appoint a number of substitute members,
which number shall lie within the discretion of the Minister bu t shall
not be less than two (2), according to necessity, from time to time, and
which substitute members shall satisfy the criteria according t o sub-
articles(3) or (4), and sub-articles (5), (6) and (7) shall app ly. In case of
a vacancy in the composition of the Tribunal or for the reasons
contemplated in article 10A, or due to indisposition of any mem ber of
the Tribunal, including the Chairman, the Minister shall appoin t a
substitute member according to the rota, and who satisfies therequisites of the vacancy according to sub-articles (3) or (4),  as the
case may be.
(3) The chairman shall be an advocate who for a period of, or
periods amounting in the aggregate to, not less than twelve yea rs
has served as an advocate in Malta or served as a magistrate inMalta, or partly so practised and partly so served.
(4) Subject to any other provision in any other law related to
the composition of the Tribunal or to the qualifications of itsmembers, the two other members mentioned of the Tribunal shallbe persons who in the opinion of the Minister possess the neces sary
expertise and experience in the business or regulation of finan cial
services, or finance.
(5) The chairman and the other members of the Tribunal shall
hold office for a period of three years, shall be eligible for re-
appointment and may not be removed during their term of officeexcept on grounds of proved inability to perform the functions of
their office whether arising fro m infirmity of body or mind or any
other cause, or proved misbehaviour.
 28        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
(6) The chairman and other members of the Tribunal shall
receive such remuneration as may be determined in their instrum ent
of appointment.
(7) The remuneration referred to in sub-article (6) shall not be
altered during the tenure of office of a member by whom it isreceivable, except for such changes as may from time to time berequired to preserve at all times during the tenure of theappointment the proportion of the remuneration to the salary of  a
judge of the superior courts, as existed on the date of theappointment.
(8) An appeal within the terms of sub-article (9) to the Tribuna l
shall be made in writing explaining clearly the grounds for theappeal by not later than thirty days from the date the decision  or act
in question has been notified to the aggrieved person, and thecompetent authority shall have thirty (30) days from the date w hen it
was served by the Tribunal with the appeal in question to file its reply.
Added by:
XLVI.2021.9.(8A)  The Tribunal shall proceed to deal with any matter before  it
with utmost urgency and shall give its decision without delay.
(9) The question for the determination of the Tribunal shall be
whether, for the reasons adduced by the appellant - 
(a) the competent authority has, in its decision wrongly
applied any of the provisions of this Act, or any
regulations issued thereunder;
(b) the decision of the competent authority constitutes an
abuse of discretion or is manifestly unfair:
Provided that the discretion of the competent authority may
not, so long as it has been exercised properly, be queried by t he
Tribunal:
Provided further that no appeal shall lie from any decision
imposing a penalty not exceeding two hundred and thirty-two eur o
and ninety-four cents (€232.94) and from any reprimand, warningor other similar disciplinary sanction or measure.
(9A) The Tribunal shall also determine whether, for the reasons
adduced by the appellant:
(a) the Resolution Committee has, in its decision, wrongly
applied any of the provisions of this Act or anyregulations issued thereunder; or
(b) the decision of the Resolution Committee constitutes
an abuse of discretion or is manifestly unfair:
Provided that, with respect to an appeal from a decision of
the Resolution Committee to take a crisis management measure, t he
Tribunal shall use the complex economic assessments of the fact s
carried out by the Resolution Committee as a basis for its ownassessment of that decision:
Provided further, that the complex nature of such economic
assessments shall not prevent the Tribunal from examining wheth er
the evidence relied on by the Resolution Committee is factuallyaccurate, reliable and consistent, and whether that evidence
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       29
contains all relevant information which should be taken into
account in order to assess a complex situation, and whether it is
capable of substantiating the conclusions drawn therefrom.
(10) The Tribunal shall hold its sittings in public unless havin g
regard to the nature of the matter before it, the Tribunal deem s it fit
and proper to conduct the proceedings or any part thereof behin d
closed doors; in any such case the decision of the Tribunal sha ll
always be delivered in public.
(10A)  The Chairman or other members of the Tribunal may be
challenged or may abstain from sitting in a case in those circu mstances
that would disqualify a judge in a civil lawsuit, and in such c ase the
Chairman or member shall be substituted by another memberappointed by the Minister in terms of sub-article (2A): 
Cap. 403. Provided that for the purposes of the Insurance Business Act,
such member is to be replaced by another member who shall have the
knowledge and experience required in terms of article 57(1) of the
Insurance Business Act.
(11) The Tribunal shall have the power to summon witnesses
and to administer the oath thereto, and to appoint any expert o r
experts as it may deem necessary for the determination of the c ase
before it.
(12) ( a) All evidence must be relevant to the matter in issue
between the parties.
(b) In all cases the Tribunal shall require the best evidence
that the party may be able to produce.
(c) The Tribunal shall disallow any evidence which it
considers to be irrelevant or superfluous, or which itdoes not consider to be the best which the party canproduce.
(13) Upon the hearing of an appeal, made to it under any law, th e
Tribunal shall have the power -
(a) to confirm, annul or vary the decision of the competent
authority or the Resolution Committee under therelevant law and to give directions within its powersunder this Act or any other law to the said competent
authority or the Resolution Committee to implement thedecision of the Tribunal;
(b) to require the production of any document or other
information;
(c) to order the payment of costs and expenses by any
party to the appeal.
(14) An appeal on a question of law only from a decision of the
Tribunal shall lie to the Court of Appeal. An appeal shall be m ade
by not later than twenty days from the date of the decision of the
Tribunal. In the determination of such an appeal, the Court of
Appeal shall have all the powers of the Tribunal to make orders .
(15) The Minister may make regulations governing the
 30        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
procedure and fees for bringing and conducting appeals before t he
Tribunal, provided that in the absence of such regulations and
subject to the rules of natural justice, the Tribunal shall reg ulate its
own procedure.
(16) The Minister responsible for Justice may by regulations
made under this sub-article establish the fees payable in the r egistry
of the court in relation to the filing of judicial acts in conn ection
with appeals to the Court of Appeal under this article:
Cap. 12.Provided that until such fees are so established by the
Minister, the fees contained in Schedule A to the Code of
Organization and Civil Procedure  shall apply.
(17) An appeal made under this article shall not suspend the
operation of any decision or directive from which the appeal ismade:
Provided that a decision to cancel a licence shall not
become operative until the expiration of the period within whic h an
appeal lies under this article and, if an appeal is made within  such
period, the decision shall become operative on the date of thedecision of the Tribunal dismissing the appeal or the date on w hich
the appeal is abandoned;
Provided further that, with respect to a decision of the
Resolution Committee to take a crisis management measure:
(a) the lodging of an appeal from such decision shall not
entail any automatic suspension of the effects of thechallenged decision; and
(b) the decision of the Resolution Committee shall be
immediately enforceable and it shall give rise to arebuttable presumption that a suspension of itsenforcement would be against the public interest.
(18) In this article, "competent authority" refers to the Authority
under this Act and under any other law for the purposes of whic h it is
appointed as the competent authority.
Financial 
provisions.XV .1989.6: XXXI.1990.4; XIII.1994.21,22.Substituted by:XVII. 2002.106.
Amended by:
VI. 2018.7.22. The revenue of the Authority shall consist of:
(a) income derived in respect of licences, authorisations
and registrations and other fees or charges payableunder this Act or any other law in respect of which the
Authority exercises registration, supervisory,
regulatory or similar functions;
(b) rents, interest and profits accruing from property,
deposits and other assets of the Authority;
(c) any sums required by the Authority for carrying out any
of its functions under this Act shall be paid to the
Authority out of the Consolidated Fund and shall be a
charge on such Fund by virtue of this Act and withoutfurther appropriation;
(d) any other money receivable or received by the
Authority.
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       31
Estimates and 
expenditure.
Amended by: 
XV .1989.7; XXXI. 1990.5; XIII.1994.23.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.16;VI. 2018.8.23. (1) The Executive Committee shall cause to be prepared in
respect of each financial year and shall not later than six wee ks
after the end of the previous financial year prepare for adopti on by
the Board of Governors, within six weeks of presentation with o r
without amendments, estimates of the income and expenditure ofthe Authority for that financial year.
(2) In the preparation of such estimates the Authority shall tak e
account of any funds and other moneys that may be due to be pai d to it
out of the Consolidated Fund during the relevant financial year  by
virtue of this Act, and shall endeavour to ensure that the tota l revenues
of the Authority are at least sufficient to meet all sums prope rly
chargeable to its income and expenditure account, including, bu t,
without prejudice to the generality of that expression, depreci ation.
(3) The estimates shall be made out in such form and shall
contain such information and such comparisons with previous yea rs
as the Board of Governors may direct.
(4) Notwithstanding the provisions of sub-article (1), if in res pect
of any financial year, it is found that the amount approved by the
Board of Governors is not sufficient or a need has arisen forexpenditure for a purpose not provided for in the estimates, th e
Executive Committee may adopt supplementary estimates for appro val
by the Board of Governors and for the consideration by the Hous e
after examination by the committee as aforesaid in sub-article (5).
(5) Such estimates shall be examined by a committee of the House
appointed for this purpose, which shall report thereon forconsideration to the House.
(6) The sum or sums referred to in the previous sub-articles sh all
be determined by resolution of the House after considering theestimates prepared by the Authority and the report thereon by t he
committee to the House.
Other powers of 
the Authority.
Amended by: 
XV . 1989.8;XXXI. 1990.6; XIII.1994.21,24.|Substituted by:XVII. 2002.106.24. (1) The Authority may:
(a) hold accounts with any bank;
(b) invest any of its liquid assets in short and medium term
first class securities as approved by the Board ofGovernors;
(c) acquire, purchase, lease or dispose of any movable or
immovable property required for the conduct of itsbusiness or for any purposes ancillary or incidental tothe performance of its functions under this Act.
(2) For the purpose of carrying out of its functions under this
Act, the Authority may, with the approval in writing of the
Minister, borrow or raise money in such manner, from such perso n,
body or authority, and under such conditions as the Minister, m ay
in writing approve.
 32        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
Advances by the 
Government. Substituted by: XIII.1994.20.
Amended by:
XVII. 2002.106;IV . 2003.16.25. The Minister may make advances to the Authority of such
sums as he may consider to be required by the Authority forcarrying out any of its functions under this Act, and may make such
advances on such terms and conditions as he may deemappropriate. Any such advances may be made by the Minister outof the Consolidated Fund, and without further appropriation oth er
than this Act, by warrant under his hand authorising the Accoun tant
General to make such advances.
Determination and 
allocation of profits. 
Amended by: 
XIII.1994.21;XVII. 2002.106;IV . 2003.15, 16XVI. 2017.45.26. (1) The Authority shall establish a Reserve Fund to which
the surplus for the year established in the Audited IncomeStatement shall be appropriated:
Provided that the said fund shall not at any time exceed the
equivalent of the Operational Expenses registered in the preced ing
financial year as disclosed in the Audited Financial Statements .
(2) The surplus funds of the Authority for each financial year
shall be determined after the Authority meets all currentexpenditure for that year and after making such provisions,including provisions for contingencies, as it deems fit, and th e
appropriation referred to in sub-article (1).
(3) After the allocations referred to in sub-articles (1) and (2 )
have been made, the remainder of the surplus funds shall be pai d to
the Government.
Accounts and 
audit.
Amended by: 
XV .1989.10; XIII.1994.21, 27.Substituted by:XVII. 2002.106.27. (1) The Authority shall cause to be kept proper books of
accounts and other records in respect of its operations and sha ll
cause to be prepared a statement of accounts in respect of eachfinancial year.
(2) The accounts of the Authority shall be audited by auditors
appointed by the Board of Governors from among persons who arequalified to be appointed as auditors of a company.
Authority’s 
reporting duties to the House.
Amended by: 
XV .1989.11; 
XXXI.1990.8; 
XIII.1994.21.Substituted by:XVII. 2002.106.
Amended by:
XIX. 2010.14;
V .2020.6.28. The Authority shall, as soon as may be but not later than six
months after the close of each financial year, transmit to the House,
through the Minister, a copy of its annual accounts certified b y the
auditors together with a report on its activities during the pr evious
year.
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       33
Exemption from 
liability.
Amended by: 
XV .1989.12; XXXI.1990.9; XIII.1994.21.Substituted by:XVII. 2002.106.
Amended by:
IV . 2003.16.Substituted by:XIX. 2010.15.
Amended by:
XXI. 2015.8.Substituted by:V .2020.29.29. (1) The Authority, including the members of the Board
of Governors when acting in any function assigned to the Board under
any provision of this Act, any body or other organ, including a ny
committee or sub-committee, established under this Act, and anymember or officer of that body or organ, and the officers and e mployees
of the Authority, shall not be liable in damages for anything d one or
omitted to be done in the dischar ge or purported discharge of a ny such
function or otherwise in the exercise of their official duties,  unless the
act or omission is shown to have been done or omitted to be don e, as
the case may be, through wilful misconduct.
(2) For the purposes of this provision, the phrase "this Act" sh all
include any other Act administered by the Authority and anyregulations or Rules made thereunder.
Exemption from 
taxes.
Amended by: 
XV .1989.13; XIII.1994.28.Substituted by:XVII. 2002.106.30. The Authority shall be exempt from any liability for the
payment of income tax, duty on transfers and documents, andcustoms and excise duty, under any law for the time being in fo rce.
Transitory 
provisions and construction of 
references.
Added by:
VIII.2019.15.31. (1) Any decision taken by the Co-ordination Committee,
the Supervisory Council and the Board of Management andResources, prior to the date of entry into force of this articl e, shall
continue to apply:
Provided that, for purposes of this article, the term
"decision" shall, in the case of the Supervisory Council, inclu de
licences issued, approvals and authorisations granted, andregulatory action taken.
(2) Any reference in any law to the Director General or Chief
Operations Officer of the Authority shall be read and construed  as a
reference to the Chief Executive Officer of the Authority as sodefined in article 2.
(3) Any reference in any law to the Co-ordination Committee,
the Supervisory Council, or the Board of Management andResources shall be read and construed as a reference to theExecutive Committee and shall include a reference to any sub-committees, directorates, functions or units established under this
Act, as the case may require.
 34        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
Added by:
XXI. 2015.9.
Amended by:
LXII.2020.6.
LXXI.2021.4;LXXII.2021.3.FIRST SCHEDULE
RECOVERY AND RESOLUTION
Article 7B.
Interpretation.
1. (1) In this Schedule, unless the context otherwise requires:
"the CRR" means Regulation (EU) No. 575/2013 of the
European Parliament and of the Council of 26 June 2013 onprudential requirements for credit institutions and investment firms
and amending Regulation (EU) No. 648/2012, as amended fromtime to time, and includes any implementing measures that havebeen or may be issued thereunder;
"the 
CRD" 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 creditinstitutions, amending Directive 2002/87/EC and repealing Direc tives
2006/48/EC and 2006/49/EC, as amended from time to time, andincludes any implementing measures that have been or may be iss ued
thereunder;
"European resolution authority" means an authority which is
situated in a country or territory outside Malta that is in a M ember
State or an EEA State, and which exercises any functioncorresponding to the functions of the Resolution Committee unde r
this Act and the Recovery and Resolution Regulations;
"investment firm" means an investment firm as defined in point
(2) of Article 4(1) of the 
CRR, that is subject to the initial capital
requirement laid down in Article 28(2) of the CRD ;
"resolution" means the structuring of a credit institution or
investment firm through the application of a resolution measure  or
measures in order to achieve one or more of the objectives refe rred
to in paragraph 3(2);
"resolution measures" means one or more of the following:
(a) sale of business;
(b) bridge institutions;
(c) asset separation; and
(d) bail in;
"resolution powers" means the powers conferred on the
Resolution Committee in terms of the Recovery and ResolutionRegulations;
"third-country resolution authority" means an authority in a
country or territory that is not a Member State or EEA State wh ich
is responsible for carrying out functions comparable or equival ent
to those of the Resolution Committee pursuant to this Act.
(2) Words and expressions used in this Schedule, but which are
not defined herein, shall be interpreted within the meaning of the
BRRD .
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       35
The Resolution Committee.
2. (1) The Resolution Committee shall ensure full and
complete adherence to the requirements and obligations prescrib ed
by regulations made under this Act, either directly or incollaboration with European and third-country resolutionauthorities, and may, for such purposes, exercise any of its po wers
under this Act and any regulations made thereunder.
(2) The Resolution Committee shall be composed of three
persons, who shall be a person appointed by the Central Bank ofMalta, a person appointed by the Authority, and a person appoin ted
by the Ministry responsible for Finance, who have distinguishedthemselves in banking and financial related matters or have therelevant experience in financial supervision, regulation, resol ution
and insolvency of institutions.
(3) The appointment of such persons shall be for such term,
being a period of not more than three years, as may be specifie d in
the letter of appointment, and shall be eligible for reappointm ent
for a maximum period of two terms or otherwise for a maximumperiod of six years, whichever is the higher. Such persons shal l
receive such remuneration as the  Authority may from time to tim e
determine.
(4) The provisions of article 6(3) to (6) of the Act shall, as f ar as
applicable, mutatis mutandis  apply to the eligibility, term of office,
termination and resignation of the Resolution Committee.
The objectives of the Resolution Committee.
3. (1) In discharging its general functions, the Resolution
Committee shall, as far as is reasonably possible, act in a waywhich:
(a) is compatible with the resolution objectives; and
(b) minimises the cost of resolution and avoids the
destruction of value of the institution.
(2) The resolution objectives of the Resolution Committee are:
(a) safeguarding the continuity of critical functions;
(b) minimising risks to financial stability;
(c) protecting public funds by reducing reliance on
extraordinary public financial support;
(d) protecting depositors and investors;
(e) protecting clients’ funds and clients’ assets.
(3) ( a) The Resolution Committee shall have the power to
require the full assistance and collaboration of anyinstitution, as may be necessary to enable it to fulfil itsfunctions under this Schedule.
(b) Any institution as may be required by the Resolution
Committee to provide its assistance and collaboration
 36        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
in terms of sub-paragraph (3)( a) shall comply with
such request fully, without delay and in such detail asmay be required.
Functions and powers of the Resolution Committee.
4. (1) Without prejudice to any other function or power
conferred to it by this Act or any other law or regulations, it  shall
be the function of the Resolution Committee to:
(a) review and decide upon the recommendations made to
it by the Resolution Unit established in terms of thisSchedule, in relation to resolution decisions;
(b) liaise and consult, on matters relating to budgets and
resources, with the Authority;
(c) exchange information, where necessary, with the
Authority;
(d) carry out such other functions which are assigned to it
by this Act or any regulations made thereunder;
(e) apply resolution measures when an institution is
failing or is likely to fail;
(f) cooperate closely with and consult the Authority in the
preparation, planning and application of resolution
decisions, and in all other instances where any suchcooperation or consultation is required by the 
CRD , by
the BRRD  or by the CRR ;
(g) cooperate closely with and consult authorities, both local
or overseas, in order to coordinate resolution measures toprotect financial stability in all affected Member Statesand EEA States and, when a cross-border group is failingor likely to fail, to achieve the most effective outcome forthe group as a whole, and in all other instances where anysuch cooperation or consultation is required by the 
CRD ,
by the BRRD  or by the CRR .
(h) cooperate with European resolution authorities and
third country resolution authorities on matters relatingto resolution;
(i) set up a resolution financing arrangement through
mandatory contributions from institutions;
(j) communicate to the Resolution Authority its resolution
decisions which necessitate implementation;
(k) implement the resolution decisions mentioned under
point ( j); 
(l) assist the Resolution Authority on any matter falling
under this Part, on which the Resolution Authorityseeks assistance.
(2) In carrying out its general functions, the Resolution
Committee shall:
(a) ensure that no conflict of interest may arise with the
supervisory functions of the Authority;
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       37
(b) seek the approval in writing of the Minister, after
informing the Resolution Authority and the CentralBank of Malta, prior to taking any decisions that mayhave a direct fiscal impact or which have systemicimplications;
(c) notify the Minister, after having informed the
Resolution Authority, of any decisions taken by itpursuant to this Act.
(3) The Resolution Committee shall have all the powers that
are necessary to enable it to perform its functions under thisparagraph and to ensure the effective implementation of the pro visions
of the 
BRRD .
(4) The Resolution Committee shall also have the power to:
(a) collect the contributions from institutions towards the
resolution financing arrangements;
(b) determine the administrative penalties payable by
institutions for failure to comply with the decisionsaddressed to them;
(c) impose administrative penalties on any person whose
conduct, in the opinion of the Resolution Committee,amounts to a breach of any of the provisions of this
Act or any regulations or Rules issued thereunder
transposing the 
BRRD ;
(d) impose an administrative penalty on any person who
has failed to comply with a directive issued by theResolution Committee under this Act or anyregulations or Rules issued thereunder transposing the
BRRD ; and
(e) publish, collect and recover any administrative penalties
imposed by it in terms of this paragraph.
(5) ( a) In exercising its power under sub-paragraphs (4)( c) and
(d), the Resolution Committee may, by notice in
writing and without recourse to a court hearing,impose on such person an administrative penalty of:
(i) up to twice the amount of the benefit derived
from the breach, where that benefit can bedetermined;
(ii) in the case of a natural person, up to five million
euro (€5,000,000); or
(iii) in the case of a legal person, up to 10% of the
total annual net turnover of the undertaking inthe preceding business year including the grossincome consisting of interest receivable andsimilar income, income from shares and othervariable or fixed-yield securities, andcommissions or fees receivable in accordancewith Article 316 of the 
CRR . In the case of a
subsidiary of a parent undertaking, the relevant
turnover shall be turnover resulting from the
 38        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
consolidated accounts of the ultimate parent
undertaking in the preceding business year.
(b) Where the Resolution Committee decides to impose an
administrative penalty, it shall notify the person onwhom the penalty is being imposed by means of anotice in writing.
(c) Where the person upon whom the notice referred to in
point ( b) is served:
(i) fails to pay to the Resolution Committee the
amount of the administrative penalty within aperiod of thirty days from the service of thenotice, and fails to appeal from the decision ofthe Resolution Committee to the Court of CivilJurisdiction; or
(ii) appeals to the Court of Civil Jurisdiction and
fails within a period of fifteen days from thedecision of the said Court to pay theadministrative penalty as confirmed or as variedby that Court;
then, in every case, the amount of the administrative
penalty, as originally imposed or as reduced orincreased, as the case may be, shall be due to theResolution Committee as a civil debt, and theprovisions of point ( d) shall apply.
(d) A notice as is referred to in point ( b), or the decision of
the Court of Civil Jurisdiction, as the case may be,shall upon the service by judicial act of a copy thereofon the person indicated in the notice, constitute anexecutive title for all effects and purposes of Title VIIof Part I of Book Second of the Code of Organizationand Civil Procedure.
(6) The imposition by the Resolution Committee of an
administrative penalty in terms of this article shall be withou t
prejudice to any other consequences of the act or omission of t he
offender under civil or criminal law:
Provided that in all cases where the Resolution Committee
imposes an administrative penalty in respect of anything done o r
omitted to be done by any person and such act or omission alsoconstitutes a criminal offence, no proceedings may be taken orcontinued against the said person in respect of such criminaloffence.
(7) The Resolution Committee shall designate an official
forming part of the Resolution Unit to act as a secretary for s uch
period of time and under such terms as the Resolution Committeeshall deem appropriate.
(8) The Resolution Committee may invite any person and may
require any officer of the Resolution Unit or of the Authority to
attend a meeting of the Resolution Committee and to take part i n
the discussion.
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       39
Publication of administrative penalties.
5. (1) The Authority shall publish, on its official website and
in any other media as it considers appropriate, any administrat ive
penalty or penalties for any breaches of the provisions of the BRRD
imposed by the Resolution Commit tee under the provisions of thi s
Act and of any regulations made or Rules issued thereunder. Suc h
publications shall include information on the type and nature o f the
breach and the identity of the person on whom the administrativ e
penalty is imposed, without undue delay after that person isinformed of those penalties:
Provided that in cases where an appeal has been filed by
the person on whom such administrative penalty or penalties hav e
been imposed, the Authority shall, without undue delay, alsopublish on its official website and in any other media as it co nsiders
appropriate, information on the status of the appeal and theoutcome thereof.
(2) The Authority shall publish the administrative penalties for
any breaches of the provisions of the 
BRRD, imposed by the
Resolution Committee under the provisions of this Act and of an y
regulations made or Rules issued thereunder, on an anonymousbasis, in any of the following circumstances:
(a) where the administrative penalty is imposed on a
natural person and, following an obligatory priorassessment, publication of personal data is found to bedisproportionate;
(b) where publication would jeopardise the stability of
financial markets or an on-going criminalinvestigation;
(c) where publication would cause, insofar as can be
determined, disproportionate damage to theinstitutions, to the entities referred to in point ( b), (c)
or (d) of Article 1(1) of the 
BRRD  or to the natural
persons involved:
Provided that publication on an anonymous basis in any
such circumstances shall be an exceptional measure which needs to
be justified by a detailed report compiled by the ResolutionCommittee:
Provided further that where the circumstances referred to
in this sub-article are likely to cease within a reasonable per iod of
time, publication under this article may be postponed for such a
period of time.
(3) Information published in terms of this article shall remain
on the official website of the Authority for a period of not le ss than
five years. Personal data shall be retained on the official web site of
the Authority and in any other media it considers appropriate o nly
for the period necessary, in accordance with the provisions ofMaltese legislation on data protection.
Power to recover debt.
 40        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
6. The Resolution Committee may bring proceedings before
the Court of Civil Jurisdiction to recover as a debt an amount of
administrative penalty  due to it under this Part.
Power to issue directives.
7. (1) Without prejudice to any of the powers conferred in
this Act, the Resolution Committee may, whenever it deemsnecessary, give, by notice in writing, such directives as it ma y deem
appropriate in the circumstances in order to carry out the func tions
and duties prescribed by this Act, and any regulations made orRules issued thereunder transposing the 
BRRD .
(2) The power to give directives under this article shall includ e
the power to vary, alter, add to or withdraw any directive, as well as
the power to issue new or further directives.
(3) Any person to whom a notice is given in accordance with
sub-paragraph (1) shall obey, comply with and otherwise giveeffect to any such directive within the time and in the manner stated
in the directive.
(4) Where the Resolution Committee is satisfied that the
circumstances so warrant, it may at any time make public anydirective which it has issued in terms of this paragraph.
The Resolution Unit
8. (1) There shall be a Resolution Unit which shall carry out
the functions assigned to it under this Act, and as may be assi gned
to it by the Resolution Committee.
(2) The Resolution Unit shall periodically report to the
Resolution Committee on the activities and developments within its
area of competence.
(3) The Resolution Unit shall be composed of the Director of
the Office, and any number of employees as may be required inorder to carry out its functions properly.
(4) It shall be the function of the Resolution Unit to:
(a) assess whether an institution is failing or is likely to
fail, after consulting the Authority;
(b) draw up resolution plans, after consulting the
Authority, on how to deal with financial stress or
failure of institutions, including at group level;
(c) carry out resolvability assessment of institutions;
(d) cooperate, liaise and exchange information, as
necessary, with the Units respectively responsible forsupervision of credit institutions and investment firmswithin the Authority.
Remedies for a wrongful decision or action.
9. Where it is necessary to protect the interests of third parti es
acting in good faith who have acquired shares, other instrument s of
ownership, assets, rights or liabilities of an institution unde r
            MALTA FINANCIAL SERVICES AUTHORITY      [CAP. 330.       41
resolution by virtue of the use of resolution tools or exercise  of
resolution powers by the Resolution Committee, the annulment of  a
decision of the Resolution Committee shall not affect anysubsequent administrative acts or transactions concluded by theResolution Committee which were based on the annulled decision.In that case, remedies for a wrongful decision or action by theResolution Committee shall be limited to compensation for the l oss
suffered by the applicant as a result of the decision or act.
Issuing of precautionary warrant.10. Notwithstanding any other law, no precautionary warrant
or other order under any other law shall be issued by any Court  or
Tribunal restraining the Resolution Committee from taking any
action, including a crisis prevention measure or a crisismanagement measure, under this Act, or under any regulationsissued thereunder or any other law.
Functions and powers of the Authority.
11. (1) In addition to the powers assigned to the Authority
under this Act, the Banking Act, and the Investment Services Ac t,
the Authority shall have the power to:
(a) determine the administrative penalties payable by
institutions for failure to comply with any decisionsissued by the Authority and addressed to them;
(b) impose administrative penalties on any person whose
conduct, in the opinion of the Authority, amounts to abreach of any of those provisions of this Act or anyregulations or Rules issued thereunder transposing the
BRRD  in which an institution has an obligation
towards the Authority;
(c) impose an administrative penalty on any person who
has failed to comply with a directive issued by the
Authority under this Act or any regulations or Rules
issued thereunder transposing the BRRD ;
(d) publish, collect and recover any administrative
penalties imposed by it in terms of this paragraph:
Provided that in exercising the powers listed in sub-
paragraphs ( a) to ( d), the provisions of paragraphs
4(5), 4(6) and 5 of this Schedule shall apply mutatis
mutandis , and provided further that any reference to
''the Resolution Committee'' shall be deemed to be areference to ''the Authority'', and any reference to ''theCourt of Civil Jurisdiction'' or ''the Court'' shall bedeemed to be references to ''the Tribunal'';
(e) issue, by notice in writing, such directives on any
person as it may deem appropriate in thecircumstances in order to carry out the functions andduties prescribed by this Act and any regulations orRules issued thereunder transposing the 
BRRD , and in
exercising such power, the provisions of paragraph 7of this Schedule shall apply mutatis mutandis , and any
 42        CAP. 330. ]               MALTA FINANCIAL SERVICES AUTHORITY
reference to ''the Resolution Committee'' shall be
deemed to be a reference to ''the Authority''; and
(f) bring proceedings before the Court of Civil
Jurisdiction to recover as a debt an amount ofadministrative penalty due to it under this Schedule.
(2) The Authority shall have all the powers that are necessary
to enable it to perform its functions under this paragraph to e nsure
the effective implementation of the provisions of the 
BRRD
imposing rights and obligations on competent authorities, and,accordingly the powers of the Authority in terms of this paragr aph
shall be interpreted and applied in accordance with the provisi ons
of the 
BRRD .