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Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,774, 27 ta’ Jannar , 2022
Taqsima  B
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L.N. 21 of 2022
INVESTMENT SERVICES ACT
(CAP. 370)
Investment Services Act (Provision of Investment Services and 
Activities by Third-Country Firms) (Amendment) Regulations, 
2022
IN EXERCISE of the powers conferred by article 12 of the
Investment Services Act, the Minister responsible for the regulation of
Financial Services, acting on the advice of the Malta Financial
Services Authority, has made the following regulations:
Citation, scope 
and commencement.
S.L. 370.43.1. (1) The title of these regulations is the Investment
Services Act (Provision of Investment Services and Activities b y
Third-Country Firms) (Amendment) Regulations, 2022, and these
regulations shall be read and construed as one with the Investm ent
Services Act (Provision of Investment Services and Activities b y
Third-Country Firms) Regulations, hereinafter referred to as th e
"principal regulations ".
(2) The scope of these regulations is to amend Regulations 4,
5, 8 and to add new Regulation 7A within to transpose Article 64 ofDirective (EU) 2019/2034 of the European Parliament and of the
Council of 27 November 2019 on the prudential supervision of
investment firms and amending Directives 2002/87/EC, 2009/65/EC ,
201/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU.
(3) These regulations shall come into force on such date as the
Minister may by notice in the Gazette establish.
Amends 
regulation 4 of 
the principal regulations.2. The marginal note of regulation 4 of the principal
regulations shall be substituted by the following:
"Application for a licence and obligation to provide
information. ".
Amends regulation 5 of 
the principal 
regulations.3. Paragraph (b) of sub-regulation (1) of regulation 5 of the
principal regulations shall be substituted by the following:
"(b) the branch of the third-c ountry firm will be able to
comply with the provisions referred to in regulation 6 and with
the provisions of regulation 7A. ".
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Addition of 
regulation 7A to 
the principal regulations.4. Immediately after regulation 7 of the principal regulations,
there shall be added the following new regulation:
Amends 
regulation 8 of the 
principal 
regulations.5. Regulation 8 of the principal regulations shall be amended
as follows:
(a) in sub-regulation (1) thereof, for the words "relating
to the provision of that service or activity. ", there shall be"Reporting 
obligations of the 
branch of the third-
country firm.7A. The branch of the third‐country firm that is
authorised in accordance with regulation 5 shall report
to the competent authority referred to in regulation 7the following information on an annual basis: 
(a) the scale and scope of the services and
activities carried out by the branch in Malta; 
(b) for third‐country firms performing the
activity listed in point (3) of Section A of Annex I
to MiFID, their monthly minimum, average and
maximum exposure to EU counterparties; 
(c) for third‐country firms providing one
or both of the services listed in point (6) ofSection A of Annex I to MiFID, the total value of
financial instruments originating from EU
counterparties underwritten or placed on a firmcommitment basis over the previous 12 months; 
(d) the turnover and the aggregated value
of the assets corresponding to the services and
activities referred to in point (a); 
(e) a detailed description of the investor
protection arrangements ava ilable to the clients of
the branch, including the rights of those clients
resulting from the investor‐compensation scheme
referred to in paragraph (f) of regulation 3(3);
(f) their risk management policy and
arrangements applied by the branch for the
services and activities referred to in paragraph(a); 
(g) the governance arrangements,
including key function holders for the activities ofthe branch; 
(h) any other information considered by the
competent authority to be necessary to enablecomprehensive monitoring of the activities of the
branch.
".
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substituted the words "relating to the provision of that service or
activity: ", and immediately thereafter there shall be added the
following new proviso:
"Without prejudice to intragroup relations, where a
third‐country firm, including through an entity acting on its
behalf or having close links with such third‐country firm orany other person acting on behalf of such entity, solicits
clients or potential clients in Malta, it shall not be deemed
to be a service provided at the own exclusive initiative of
the client.
"; and
(b) sub-regulation (2) thereof, shall be substituted by the
following:
"(2) An initiative by such clie nts shall not entitle the
third-country firm to market new categories of investment
products or investment services to that client otherwise
than through the branch, where one is required in
accordance with Maltese law. ".
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Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
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