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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. 30 of 2022
INVESTMENT SERVICES ACT
(CAP. 370)
Investment Services Act (Supervisory Review) (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:
Title and 
commencement.
S.L. 370.15.1. (1) The title of these regulations is the Investment Services
Act (Supervisory Review) (Amendment) Regulations, 2022, and the se
regulations shall be read and construed as one with the Investm ent
Services Act (Supervisory Review) Regulations, hereinafter referred
to as the "principal regulations".
(2) These regulations shall come into force on such date as the
Minister may establish by notice in the Gazette.
Amends 
regulation 1 of 
the principal regulations.2. Sub-regulation (2) of regulation 1 of the principal
regulations shall be substituted as follows:
(2) The purpose of these regulations is to transpose articles 3
(in part), 4(1), 6, 7, 50, 52, 53(2), 56, 57, 58(1), 58 (3), 59, 60, 61,
74(4), 75(1), 75(3), 77(2), 78(2), 78(3), 78(4), 78(5), 86(3), 91(6),91(11), 97, 98, 99, 100 to 105 inclusive, 107, 110, 143, 144, 151, 157,
159, 159a of the CRD.
Amends 
regulation 9 of 
the principal 
regulations3. Sub-regulation (1) of regulation 9 of the principal
regulations shall be substituted as follows:
"(1) The competent authority shall collect the information
disclosed publicly by investment firms in relation to points (g),
(h) and (i) of Article 450(1) of the CRR as well as the
information provided by investment firms on the gender pay gap
and shall use that information to benchmark remuneration trendsand practices. The competent authority shall provide this
information to the EBA.".
Amends 
regulation 11 of the principal 
regulations.4. Regulation 11 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof, shall be substituted by the
following:
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"(1) The competent authority shall, taking into
account the technical criteria set out in Schedule I, review
the arrangements, strategies, processes and mechanismsimplemented by investment firms to comply with the CRR,
the Act, regulations or Investment Services Rules issued
thereunder and evaluate:
(a) risks to which investment firms are or
might be exposed; and
(b) risks revealed by stress testing taking into
account the nature, scale and complexity of aninvestment firm’s activities.";
(b) Immediately after sub-regulation (4) thereof, there
shall be added the following new proviso:
"Provided that when conducting the review and
evaluation referred to in sub-regulation (1), the competent
authority shall apply the principle of proportionality in
accordance with the criteria disclosed pursuant toRegulation 21(1)(c).";
(c) immediately after sub-regulation (4), as amended,
there shall be added the following new sub-regulation:
"(4A)The competent authority may tailor the
methodologies for the application of the review andevaluation referred to in sub-regulation (1) to take intoaccount investment firms with a similar risk profile, such as
similar business models or geographical location of
exposures. Such tailored methodologies may include risk-oriented benchmarks and quantitative indicators, shall
allow for due consideration of the specific risks that each
investment firm may be exposed to, and shall not affect theinstitution-specific nature of measures imposed in
accordance with paragraph 1 of Schedule III: 
Provided that where the competent authority
uses tailored methodologies pursuant to this paragraph, itshall notify the EBA.
(d) immediately after sub-regulation (5) thereof, there
shall be added the following new sub-regulation:
"(6) Where a review, in particular the evaluation of
governance arrangements, the business model, or the
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activities of an investment firm, gives the competent
authority reasonable grounds to suspect that, in connection
with that investment firm, money laundering or terroristfinancing is being or has been committed or attempted, or
there is increased risk thereof, the competent authority shall
immediately notify the EBA and the authority or body thatsupervises the investment  firm in accordance with
Directive (EU) 2015/849 and is competent for ensuringcompliance with the said Directive. In the event of
potential increased risk of money laundering or terrorist
financing, the competent authority and the authority orbody that supervises the inve stment firm in accordance
with Directive (EU) 2015/849 and is competent forensuring compliance with the said Directive shall liaise andnotify their common assessment immediately to the EBA.
The competent authority shall take the necessary measures,
as it deems appropriate, in accordance with the CRD astransposed in Maltese Law.".
Deletes 
regulation 17 of 
the principal regulations.5. Regulation 17 of the principal regulations shall be deleted.
Amends 
regulation 18 of 
the principal regulations.6. Sub-regulation 18(d) of the principal regulations shall be
deleted.
Amends 
regulation 21 of 
the principal regulations.7. Paragraph (b) of sub-regulation (1) of regulation 21 of the
principal regulations shall be substituted by the following:
"(b) the general criteria and methodologies it uses in the
review and evaluation pursuant to regulation 11, including the
criteria for applying the principle of proportionality as refer red to
in regulation 11(4);".
Adds a new 
regulation to the 
principal 
regulations.8. Immediately after regulation 28 of the principal regulations
there shall be added the following new regulation:
"Transitory 
provision.29. (1) Parent financial holding companies and
parent mixed financial holding companies already existing
on 27 June 2019 shall apply for approval in accordance
with Article 10CA of the I nvestment Services Act by 28
June 2021. If a financial holding company or mixed
financial holding company fails to apply for approval by
28 June 2021, appropriate measures shall be taken
pursuant to Article 10CA(6) o f the Investment Services
Act.
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Substitutes 
Schedule I 
annexed to the 
principal regulations.9. Schedule I annexed to the principal regulations shall be
substituted by the following:
"SCHEDULE I
SUPERVISORY REVIEW AND EV ALUATION
(Regulation 11)
(1) In addition to credit, market and operational risks, the
review and evaluation performed by the competent authority pursuant
to regulation 11 shall include at least:
(a) the results of the stress test carried out in accordance
with Article 177 of the CRR by investment firms applying aninternal ratings based approach to calculate their credit risk-
weighted exposure;
(b) the exposure to and management of concentration
risk by investment firms including their compliance with theInvestment Services Rules transposing the requirements of the
CRD and the requirements set out in Part Four of the CRR;
(c) the robustness, suitability and manner of application
of the policies and pr ocedures implemented by investment firms
for the management of the residual risk associated with the use
of recognised credit risk mitigation techniques;
(d) the extent to which the own funds held by an
investment firm in respect of assets which it has securitised a re
adequate having regard to the economic substance of the
transaction, including the degree of risk transfer achieved;
(e) the exposure to, measurement and management of
liquidity risk by investment firms including the development ofalternative scenario analyses, the management of risk mitigants(in particular the level, composition and quality of liquidity
buffers) and effective contingency plans;(2) During the transitional period referred to in the
previous sub-regulation, the competent authority shall
have all the necessary supervisory powers conferred on it
by the CRD as transposed in Maltese Law with regard to
financial holding companies or mixed financial holdingcompanies subject to approval in accordance with Article
10CA of the Investment Services Act for the purposes of
consolidated supervision.".
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(f) the impact of diversifi cation effects and how such
effects are factored into the risk measurement system;
(g) the results of stress tests carried out by investment
firms using an internal model to  calculate market risk own funds
requirements under Part Three, Title IV of Chapter 5 of the CRR ;
(h) the geographical location of investment firm’s
exposures;
(i) the business model of  the investment firm;
(2) For the purposes of point (e) of paragraph 1 of this
Schedule, the competent authority shall regularly carry out a
comprehensive assessme nt of the overall li quidity risk management by
investment firms and promote the development of sound internal
methodologies. In its review, the competent authority shall hav e regard
to the role played by investment firms in the financial markets. The
competent authority shall also duly consider the potential impa ct of
their decisions on the stability of the financial system in all  other
Member States concerned.
(3) The competent authority shall monitor whether an
investment firm has provided implicit support to a securitisation. If aninvestment firm is found to have provided implicit support on morethan one occasion the competent authority shall take appropriat e
measures reflective of the increased expectation that it will p rovide
future support to its securitisation thus failing to achieve a significanttransfer of risk.
(4) For the purposes of the determination to be made under
regulation 11(3), the competent authority shall consider whether thevaluation adjustments taken for positions or portfolios in the trading
book, as set out in Article 105 of the CRR, enable the investme nt firm
to sell or hedge out its positi ons within a short period without incurring
material losses under normal market conditions.
(5) (1) The review and evaluati on performed by the competent
authority shall include the exposure of investment firms to the  interest
rate risk arising from non-trading activities. 
(2) The supervisory powers shal l be exercised at least in the
following cases:
(a) where an investment firm’s economic value of equity
as referred to in Article 84(1) of the CRD as transposed inMaltese Law declines by more than 15% of its Tier 1 capital as a
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result of a sudden and unexpected change in interest rates as s et
out in any of the six supervisory shock scenarios applied to
interest rates; 
(b) where an investment firm’s net interest income
referred to in Article 84(1) of the CRD as transposed in Maltes e
Law experiences a large decline as a result of a sudden andunexpected change in interest rates as set out in any of the tw o
supervisory shock scenarios applied to interest rates.
(3) Notwithstanding sub-paragraph (2) of paragraph (5), the
competent authority shall not be obliged to exercise supervisor y
powers where it considers, based on the review and evaluation referredto in this paragraph, that the investment firm’s management of interest
rate risk arising from non-trading book activities is adequate and thatthe investment firm is not excessively exposed to interest rate  risk
arising from non-trading book activities. 
(4) For the purpose of this paragraph, the term "supervisory
powers" means the powers referred to in paragraph 1 of Schedule  III or
the power to specify modelling and parametric assumptions, othe r than
those identified by the EBA pursuant to point (b) of paragraph 5a of
Article 98 of the CRD as transposed in Maltese Law, to be refle cted by
investment firms in their calculation of the economic value of equity
under Article 84(1) of the CRD as transposed in Maltese Law.
(5) The review and evaluation performed by the competent
authority shall include the exposure of investment firms to the risk of
excessive leverage as reflected by indicators of excessive leve rage,
including the leverage ratio determined in accordance with Arti cle 429
of the CRR. In determining the adequacy of the leverage ratio o f
investment firms and of the arrangements, strategies, processes and
mechanisms implemented by investment firms to manage the risk o f
excessive leverage, the competent  authority shall take into account the
business model of those investment firms.
(6) The review and evaluation conducted by the competent
authority shall include governance arrangements of investment f irms,
their corporate culture and values, and the ability of members of the
management body to perform their duties. In conducting that rev iew
and evaluation, the competent authority shall, at least, have access to
agendas and supporting documents for meetings of the management
body and its committees, and the results of the internal or externalevaluation of performance of the management body. "B 253
Amends 
Schedule II 
annexed to the principal 
regulations.10. Sub-regulation (2) of Schedule II annexed to the principal
regulations shall be substituted by the following:
"(2) Supervisory examination programmes shall include
the following investment firms:
(a) investment firms for which the results of the
stress tests referred to in points (a) and (g) of paragraph (1)
of Schedule I and regulation 14, or the outcome of the
supervisory review and evaluation process under regulation11, indicate significant risks to their on going financial
soundness or indicate breaches of the Act, and any
regulations and rules issued thereunder transposing therequirements of the CRD and of the CRR;
 (b) any other investment firm which the competent
authority may deem necessary.".
Amends 
Schedule III annexed to the 
principal 
regulations.11. Schedule III annexed to the principal regulations shall be
substituted by the following:
SCHEDULE III
SUPERVISORY POWERS
(Regulations 11, 16, paragraphs (4) and (5) of Schedule I and 
regulation 15(4))
(1) For the purposes of regulations 11, 16 and paragraphs (4)
and (5) of Schedule I, regulation 15(4), and the application of the
CRR, the competent authority shal l have at least the following powers:
(a) to require investment firms to have additional own
funds in excess of the requirements set out in the CRR under th e
conditions set out in paragraphs 3 to 7 of this Schedule;
(b) to require the reinforcement of the arrangements,
processes, mechanisms and strategies implemented inaccordance with Articles 73 and 74 of the CRD as transposed inMaltese Law;
(c) to require investment firms to present a plan to
restore compliance with supervisory requirements pursuant tothe Act, regulations or Investment Services Rules issued
thereunder, and to the CRR and set a deadline for its
implementation, including improvements to that plan regardingthe scope and the deadline;
(d) to require investment firms to apply a specific
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Amends 
Schedule II 
annexed to the principal 
regulations.10. Sub-regulation (2) of Schedule II annexed to the principal
regulations shall be substituted by the following:
"(2) Supervisory examination programmes shall include
the following investment firms:
(a) investment firms for which the results of the
stress tests referred to in points (a) and (g) of paragraph (1)
of Schedule I and regulation 14, or the outcome of the
supervisory review and evaluation process under regulation11, indicate significant risks to their on going financial
soundness or indicate breaches of the Act, and any
regulations and rules issued thereunder transposing therequirements of the CRD and of the CRR;
 (b) any other investment firm which the competent
authority may deem necessary.".
Amends 
Schedule III annexed to the 
principal 
regulations.11. Schedule III annexed to the principal regulations shall be
substituted by the following:
SCHEDULE III
SUPERVISORY POWERS
(Regulations 11, 16, paragraphs (4) and (5) of Schedule I and 
regulation 15(4))
(1) For the purposes of regulations 11, 16 and paragraphs (4)
and (5) of Schedule I, regulation 15(4), and the application of the
CRR, the competent authority shal l have at least the following powers:
(a) to require investment firms to have additional own
funds in excess of the requirements set out in the CRR under th e
conditions set out in paragraphs 3 to 7 of this Schedule;
(b) to require the reinforcement of the arrangements,
processes, mechanisms and strategies implemented inaccordance with Articles 73 and 74 of the CRD as transposed inMaltese Law;
(c) to require investment firms to present a plan to
restore compliance with supervisory requirements pursuant tothe Act, regulations or Investment Services Rules issued
thereunder, and to the CRR and set a deadline for its
implementation, including improvements to that plan regardingthe scope and the deadline;
(d) to require investment firms to apply a specific
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provisioning policy or treatment of assets in terms of own fund s
requirements;
(e) to restrict or limit the business, operations or network
of institutions or to request the divestment of activities that  pose
excessive risks to the soundness of an investment firm;
(f) to require the reduction of the risk inherent in the
activities, products and systems of investment firms, including
outsourced activities;
(g) to require investment firms to limit variable
remuneration as a percentage of net revenues where it is
inconsistent with the maintenance of a sound capital base;
(h) to require investment firms to use net profits to
strengthen own funds;
(i) to restrict or prohibit distributions or interest
payments by an investment firm to shareholders, members or
holders of Additional Tier 1 instruments within the meaning of
the CRR, where the prohibition does not constitute an event ofdefault of the investment firm;
(j) to impose additional or more frequent reporting
requirements, including reporting on own funds, liquidity andleverage;
(k) to impose specific liquidity requirements, including
restrictions on maturity mismatches between assets andliabilities;
(l) to require additional disclosures.
(2) (1) For the purpose of paragraph 1(j) of this Schedule,
the competent authority may only impose additional or more frequent
reporting requirements on investment firms where the relevant
requirement is appropriate and proportionate with regard to thepurpose for which the information is required and where the
information requested is not duplicative. 
(2) For the purposes of regulations 11 to 16, any additional
information that may be required from investment firms shall bedeemed as duplicative where the same, or substantially the same ,
information has already been otherwise reported to the competent
authority or may be produced by the competent authority. 
(3) The competent authority sh all not require an investment
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firm to report additional information where it has previously received
it in a different format or level of granularity and that different format
or granularity does not prevent the competent authority fromproducing information of the sam e quality and reliability as that
produced on the basis of the additional information that would beotherwise reported. 
(3) (1) The competent authority shall impose the additional
own funds requirement referred to in paragraph 1(a) of this Sch edule
where, on the basis of the reviews carried out in accordance wi th
regulations 11 and 15, it determines any of the following situations foran individual investment firm: 
(a) the investment f irm is exposed to risks or elements of
risk that are not covered or sufficiently covered, as specified  in
paragraph 4 of this Schedule, by the own funds requirements setout in Parts Three, Four and Seven of the CRR and in Chapter 2
of Regulation (EU) No. 2017/2402;
(b) the investment firm does not meet the requirements
set out in Articles 73 and 74 of the CRD as transposed in theInvestment Services Rules or in Article 393 of the CRR and it i s
unlikely that other supervisory measures would be sufficient to
ensure that those requirements can be met within an appropriate
time frame;
(c) the adjustments referred to in paragraph (4) of
Schedule I are deemed to be insufficient to enable the investmentfirm to sell or hedge out its positions within a short period
without incurring material losses under normal marketconditions;
(d) the evaluation carried out in accordance with
regulation 15(4) reveals that the non-compliance with therequirements for the application of the permitted approach shal l
likely lead to inadequate own funds requirements;
(e) the investment firm repeatedly fails to establish or
maintain an adequate level of additional own funds to cover the
guidance communicated in accordance with paragraph 10 of this
Schedule;
(f) other institution-specifi c situations deemed by the
competent authority to raise material supervisory concerns.
(2) The competent authority shall only impose the additional
own funds requirement referred to in paragraph 1(a) of this Sch edule
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to cover the risks incurred by individual investment firms due to their
activities, including those reflect ing the impact of certain ec onomic
and market developments on the risk profile of an individual
investment firm.
(4) (1) For the purpose of paragraph 3(1)(a) of this Schedule,
risks or elements of risk shall only be considered as not cover ed or
sufficiently covered by the own funds requirements set out in P arts
Three, Four and Seven of the CRR and in Chapter 2 of Regulation(EU) No. 2017/2402 where the amounts, types and distribution of
capital considered adequate by the competent authority, taking into
account the supervisory review of the assessment carried out by
investment firms in accordance with the first paragraph of Article 73
of the CRD as transposed in Malt ese Law are higher than the own
funds requirements set out in Parts Three, Four and Seven of th e CRR
and in Chapter 2 of Regulation (EU) No. 2017/2402.
(2) For the purpose of the first sub-paragraph, the competent
authority shall assess, taking into account the risk profile of  each
individual investment firm, the risks to which the investment f irm is
exposed, including:
(a) institution-specific risks or elements of such risks that
are explicitly excluded from or not explicitly addressed by theown funds requirements set out in Parts Three, Four and Seven
of the CRR and in Chapter 2 of Regulation (EU) No. 2017/2402; 
(b) institution-specific risks or elements of such risks
likely to be underestimated despite compliance with theapplicable requirements set out in Parts Three, Four and Seven of
the CRR and in Chapter 2 of Regulation (EU) No. 2017/2402. 
(3) To the extent that risks or e lements of risk are subject to
transitional arrangements or grandfathering provisions laid dow n in
the CRD and transposed in Maltese Law or in the CRR, they shall not
be considered risks or elements of such risks likely to be
underestimated despite compliance with the applicable requirementsset out in Parts Three, Four and Seven of the CRR and in Chapte r 2 of
Regulation (EU) No. 2017/2402.
(4) For the purposes of sub-paragraph (1), the capital
considered adequate shall cover all risks or elements of risks identified
as material pursuant to the asse ssment laid down in sub-paragraph (2)
that are not covered or not sufficiently covered by the own fundsrequirements set out in Parts Three, Four and Seven of the CRR and in
Chapter 2 of Regulation (EU) No. 2017/2402. 
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(5) Interest rate risk arising from non-trad ing book positions
may be considered material at least in the cases referred to in
paragraph 5 of Schedule I, unle ss the competent authority, in
performing the review and evaluation, come to the conclusion th at the
investment firm’s management of interest rate risk arising from non-trading book activities is adequate and that the investment fir m is not
excessively exposed to interest rate risk arisi ng from non-trad ing book
activities.
(5) (1) Where additional own funds are required to address
risks other than the risk of excessive leverage not sufficiently coveredby point (d) of Article 92(1) of the CRR, t he competent authori ty shall
determine the level of additional own funds required under paragraph
3(a) of this Schedule as the dif ference between the capital considered
adequate pursuant to paragraph 4 of this Schedule and the relev ant
own funds requirements set out in Parts Three, Four and Seven o f
Regulation (EU) No. 575/2013 and in  Chapter 2 of Regulation (EU )
No. 2017/2402.
(2) Where additional own funds are required to address the risk
of excessive leverage not sufficiently covered by point (d) of Article
92(1) of the CRR, the competent authority shall determine the level ofthe additional own funds required under paragraph 3(a) of this
Schedule as the difference betw een the capital considered adequ ate
pursuant to paragraph 4 of this Schedule and the relevant own funds
requirements set out in Parts Three, Four and Seven of the CRR.
(6) (1) The investment firm shall meet the additional own
funds requirement imposed by the competent authority underparagraph 1(a) of this Schedule to address risks other than the  risk of
excessive leverage with own funds that satisfy the followingconditions:
(a) at least three quarters of the additional own funds
requirement shall be met with Tier 1 capital;
(b) at least three quarters of the Tier 1 capital referred to
in point (a) shall be composed of Common Equity Tier 1 capital.  
(2) By way of derogation from the first sub-paragraph (1), the
competent authority may require t he investment firm to meet its
additional own funds requirement with a higher portion of Tier 1
capital or Common Equity Tier 1 capital, where necessary, and h aving
regard to the specific circumstances of the investment firm. 
(3) Own funds that are used to meet the additional own funds
requirement referred to in paragraph 1(a) of this Schedule impo sed by
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the competent authority to address the risk of excessive levera ge not
sufficiently covered by point (d) of Article 92(1) of the CRR shall not
be used to meet any of the following:
(a) the own funds requirement set out in point (d) of
Article 92(1) of the CRR; 
(b) the combined buffer requirement;
(c) the guidance on additional own funds referred to in
paragraph 10 of this Schedule where that guidance addresses the
risks other than the risk of excessive leverage. 
   (4) Own funds that are used to meet the additional own funds
requirement referred to in paragraph 1(a) of this Schedule impo sed
by the competent authority to address the risk of excessive lev erage
not sufficiently covered by point (d) of Article 92(1) of the C RR
shall not be used to meet any of the following:
(a) the own funds requirement set out in point (d) of
Article 92(1) of the CRR;
(b) the leverage ratio buffer requirement referred to in
Article 92(1a) of the CRR;
(c) the guidance on additional own funds referred to in
paragraph 10 of this Schedule, where that guidance addressesrisks of excessive leverage. 
(7) The competent authority shall duly justify in writing to
each investment firm the decision to impose an additional own fundsrequirement under paragraph 1(a) of this Schedule. That justifi cation
shall include, in the case set out in paragraph 3(e) of this Schedule, aspecific statement of the reasons for which the imposition of guidanceon additional own funds is no longer considered sufficient. 
(8) Pursuant to the strategies and processes referred to in
Article 73 of the CRD as transposed in Maltese Law, investment firms
shall set their internal capital at an adequate level of own fu nds that is
sufficient to cover all the risks that an investment firm is exposed toand to ensure that the investment firm’s own funds can absorbpotential losses resulting from stress scenarios, including tho se
identified under the supervisory stress test referred to in regulation 14.
(9) (1)  The competent authorit y shall regularly review the
level of the internal capital set by each investment firm in accordance
with paragraph 8 of this Schedule as part of the reviews and
evaluations performed in accordance with regulation 11(1) and 15(1).
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(2) Pursuant to that review, the competent authority shall
determine for each investment firm the overall level of own funds it
considers appropriate.
(10) (1) The competent authority shall communicate its
guidance on additional own funds to investment firms.   
(2) The guidance on additional own funds shall be the own
funds exceeding the relevant amount of own funds required pursu ant
to Parts Three, Four and Seven of the CRR, Chapter 12 of Regulation(EU) No. 2017/2402, paragraph 1(a) of this Schedule and Article
128(6) of the CRD as transposed in Maltese Law or pursuant to A rticle
92(1a) of the CRR as relevant, wh ich are required to reach the overall
level of own funds considered appropriate by the competent authoritypursuant to paragraph 9 of this Schedule. 
(11) The competent authority’s guidance on additional own
funds pursuant to paragraph 10 of this Schedule shall be institution-specific. The guidance may cover risks addressed by the additio nal
own funds requirement imposed pursuant to paragraph 1(a) of thi s
Schedule.
(12) (1) Own funds that are used to meet the guidance on
additional own funds communicated in accordance with paragraph 10
of this Schedule to address risks other than the risk of excess ive
leverage shall not be used to meet any of the following:
(a) the own funds requirements set out in points (a), (b)
and (c) of Article 92(1) of the CRR;
(b) the requirement laid down i n paragraphs 3 to 7 of this
Schedule imposed by the competent authority to address risksother than the risk of excessive leverage and the combined buff er
requirement.
(2) Own funds that are used to meet the guidance on additional
own funds communicated in accordance with paragraph 10 of this
Schedule to address the risk of excessive leverage shall not be used to
meet the own funds requirement set out in point (d) of Article 92(1) ofthe CRR, the requirement laid down in paragraphs 3 to 7 of this
Schedule imposed by the competent authority to address the risk of
excessive leverage and the leverage ratio buffer requirement referredto in Article 92(1a) of the CRR.
(13) Failure to meet the guidance referred to in paragraph 10 of
this Schedule where an investment  firm meets the relevant own f unds
requirements set out in Parts Three, Four and Seven of the CRR and in
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Chapter 2 of Regulation (EU) No. 2017/2402, the relevant additional
own funds requirement referred to in paragraph 1(a) of this Schedule
and, as relevant, the combined buffer requirement or the levera ge ratio
buffer requirement referred to in Article 92(1a) of the CRR shall not
trigger the restrictions referred to in Article 141 or 141b of the CRD as
transposed in the Investment Services Rules. 
(14) The competent authority shall notify the Resolution
Committee of the additional own funds requirement imposed oninvestment firms pursuant to paragraph 1(a) of this Schedule and of
any guidance on additional own funds communicated to investment
firms in accordance with paragraph 10 of this Schedule. 
Amendments to 
Schedule V annexed to the 
principal 
regulations. 12. Schedule V annexed to the principal regulations shall be
amended as follows:
(1) immediately after paragr aph (18) of this Schedule
there shall be added the following new paragraph:
"(19) Authorities responsible for supervising the
obliged entities listed in points (1) and (2) of Article 2(1) of
Directive (EU) 2015/849 on the prevention of the use of the
financial system for the purposes of money laundering or
terrorist financing of the European Parliament and of theCouncil for compliance with the said Directive.".
(2) Immediately after paragra ph (19) of the Schedule, as
added, there shall be added the following new paragraph:
"(20) (1) Notwithstanding Articles 26(1) and 17(7) of the
Investment Services Act, the competent authority may, subject t o
the conditions set out in sub-paragraphs 2, 3 and 4 of thisparagraph, transmit or share certain information with the
following:
(a) the International Monetary Fund and the World
Bank, for the purposes of assessments for the Financial
Sector Assessment Program;
(b) the Bank for International Settlements, for the
purposes of quantitative impact studies;
(c) the Financial Stability Board, for the purposes
of its surveillance function.
(2) The competent authority may only share confidential
information following an explicit request by the relevant body,  where
at least the following conditions are met:
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(a) the request is duly justified in light of the specific
tasks performed by the requesting body in accordance with its
statutory mandate;
(b) the request is sufficiently precise as to the nature,
scope and format of the required information, and the means ofits disclosure or transmission;
(c) the requested information is strictly necessary for the
performance of the specific tasks of the requesting body anddoes not go beyond the statutory tasks conferred on the
requesting body;
(d) the information is transmitted or disclosed
exclusively to the persons directly involved in the performanceof the specific task;
(e) the persons having access to the information are
subject to professional secrecy requirements at least equivalen t
to those referred to in Article 26(1) of the Investment Service s
Act.
(3) Where the request is made by any of the entities referred to
in sub-paragraph 1, the competent authority may only transmit
aggregate or anonymised information and may only share otherinformation at the premises of the competent authority.
(4) To the extent that the disclosure of information involves
processing of personal data, any processing of personal data by therequesting body shall comply with the requirements laid down in
Regulation (EU) 2016/679 of the E uropean Parliament and of the
Council."
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Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
Mitbugħ fl-Istamperija tal-Gvern fuq karta FSC — Printed at the Government Printing Press on FSC certified paper
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