← Malta

L.S. 370.30 Regolamenti dwar Ditti ta' Investiment (Organizzazzjoni mill-Ġdid u Stralċ)

INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 1 SUBSIDIARY LEGISLATION 370.30 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) REGULATIONS 18th September, 2015 LEGAL NOTICE 300

2015, as amended by Legal Notice 150

  1. The title

these regulations is the Investment Firms (Reorganisation and Winding-up) Regulations. 2.

(1)The purpose

these regulations is to implement the provisions

Directive 2001⁄24⁄EC

the European Parliament and

the Council

4th April, 2001 on the reorganisation and wi n d in g - u p o f i nv e s t m e n t fi r m s , a s r e n d e r e d a p pl i c a b le to investment firms by Article 117

Directive 2014/59/EU

the European Parliament and

the Council

15th May 2014, establishing a framework for the recovery and resolution

credit institutions and investment firms, and shall be interpreted and applied accordingly. Citation. Purpose.

(2)In the event that there is a conflict between any

these regulations and the provisions

the Directives mentioned in subregulation

(1), the provisions

the Directives shall prevail. 3.

(1)These regulations apply to Maltese investment firms holding an investment services licence issued by the competent authority under the Investment Services Act, which are subject to the requirements

the CRD and the CRR and to their branches located in other Member States or EEA States; and Part IV

these regulations applies to branches present in Malta

investment firms authorized in another Member State or EEA State which are subject to the requirements

the said CRD and CRR. These regulations shall not apply to those branches

investment firms that are situated in a Member State or an EEA State in which they have their head

fices.

(2)The provisions

these regulations shall also apply to the financial institutions, firms and parent undertakings falling within the scope

Directive 2014/59/EU in the event

application

the resolution tools and exercise

the resolution powers provided for in Directive 2014/59/EU

the European Parliament and

the Council.

(3)The provisions

these regulations relating specifically to the branches

an investment firm not having a head

fice within a Member State or an EEA State apply only where such investment firm has branches in at least two States being either a Member State or an EEA State. Scope. Amended by: L.N. 150

  1. Cap.
  2. 2 [ S.L.370.30 S.L. 330.09 Kap.
  3. INVESTMENT FIRMS (REORGANISATION AND WINDING-UP)

(4)Where an investment firm is either under resolution or where the conditions for resolution have been determined by the Resolution Committee to be met, normal insolvency proceedings shall not be commenced except at the initiative

the Resolution Committee, and a decision placing an investment firm into normal insolvency proceedings shall be taken only with the consent

the Resolution Committee as provided for in regulation 86

the Recovery and Resolution Regulations made under the Malta Financial Services Authority Act.

(5)These regulations shall only apply to reorganisation measures or winding-up proceedings adopted immediately after the date

coming into force

these regulations. Interpretation. Amended by: L.N. 150

  1. Cap.
  2. Cap.
  3. Cap.
  4. 4.

(1)requires - PRELIMINARY In these regulations, unless the context otherwise ''the Act'' means the Investment Services Act; ''administrative or judicial authorities'' mean such administrative or judicial authorities

Malta that are competent for the purposes

reorganisation measures or winding-up proceedings; ''administrator'' means a special controller appointed under the Companies Act; or a controller appointed under the Controlled Companies (Procedure for Liquidation) Act; or a competent person appointed under article 15A

(1)(c)

the Act; or any other person or body appointed by the competent authority or the foreign judicial or administrative authority for the purpose

administering reorganisational measures; ''branch'' means a place

business which forms a legally dependent part

an investment firm and which carries out directly a l l o r so m e o f t h e t r a n s a c t i o n s i n h e r e n t i n t h e b u s i n e s s o f investment firms, as defined in point

(17)

Article 4

(1)

the CRR; Cap. 330 ''the BRRD'' means Directive 2014/59/EU

the European Parliament and

the Council

15 May 2014 establishing a framework for the recovery and resolution

credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 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, and Regulations (EU) No 1093/2010 and (EU) No 648/2012,

the European Parliament and

the Council, as amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may be issued thereunder; ''competent authority'' means the Malta Financial Services Authority established by the Malta Financial Services Authority Act, or, as the case may be, the Resolution Committee established by the Malta Financial Services Authority Act with respect to reorganization measures taken pursuant to the BRRD and to the said Act; INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 ''the Court'' means the Civil Court in its contentious jurisdiction in its role as the judicial authority competent for the purposes

reorganisation measures or winding-up proceedings in terms

Parts V and VI

the Companies Act; "the CRD" means Directive 2013/36/EU

the European Parliament and

the Council

26 June 2013 on access to the activity

credit institutions and the prudential supervision

credit institutions and investment firms, amending Directive 2002/ 87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; ''the CRR'' means Regulation (EU) No 575/2013

the European Parliament and

the Council

26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; ''EEA State'' means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2nd May, 1992 as amended by the Protocol signed at Brussels on the 17th March, 1993 and as amended by any subsequent acts; ''European investment firm'' means an investment firm having its head

fice in a Member State or an EEA State, other than Malta; ''financial institution'' shall have the same meaning as that assigned to it in point

(26)

Article 4

(1)

the CRR; ''foreign authority'' means the body or bodies empowered to supervise investment firms by any Member State or EEA State other than Malta; ''head

fice'' means the

fice that serves as the administrative centre

an investment firm responsible for the activities

overall management

the investment firm including its branches; ''home Member State'' means the Member State or EEA State in which an investment firm has been granted authorisation, as defined in point

(43)

Article 4

(1)

the CRR; ''host Member State'' means the Member State or EEA State in which an investment firm has a branch or in which it provides services, as defined in point

(44)

Article 4

(1)

the CRR; ''instrument'' means any instrument, contract or right falling within the Second Schedule to the Act and whether or not issued in Malta; ''investment firm'' means a person as defined in point

(1)

Article 4

(1)

Directive 2004/39/EC, which is subject to the requirements imposed by that Directive, the CRD and the CRR, excluding the following: (

  1. a)credit institutions; (
  2. b)local firms; (
  3. c)firms which are not authorised to provide the ancillary service referred to in point

(1)

Section B

Annex I Cap. 386. 3 4 [ S.L.370.30 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) to Directive 2004/39/EC, which provide only one or more

the investment services and activities listed in points 1, 2, 4 and 5

Section A

Annex I to that Directive, and which are not permitted to hold money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients; ''known creditors'' means creditors where the administrator or liquidator is aware

, or should reasonably be aware

: (

  1. a)the creditor’s identity; (
  2. b)the creditor’s claim or potential claim, and (
  3. c)a recent address where the creditor is likely to receive a communication; Cap. 386. Cap. 383. ''liquidator'' means (
  4. a)in Malta, an individual liquidator or liquidation committee appointed under the provisions

the Companies Act to administer the winding-up

a Maltese investment firm or its branches and includes the

ficial receiver as defined in the Companies Act when acting in the capacity

liquidator and the controller as defined in the Controlled Companies (Procedure for Liquidation) Act when acting in the capacity

liquidator; and (b) in another Member State or EEA State, any person or body duly appointed in accordance with the legislation and procedures

that State, for the purposes

administering winding-up proceedings

a European investment firm or its branches; ''Maltese investment firm” means an investment firm whose home Member State is Malta; ''Member State'' means a member

the European Union; "normal insolvency proceedings" means collective insolvency proceedings which entail the partial or total divestment

a debtor and the appointment

a liquidator or an administrator normally applicable to investment firms under Maltese law and either specific to those investment firms or generally applicable to any natural or legal person; Cap. 386. Cap. 345. ''parent undertaking'' shall have the same meaning as that assigned to it in point

(15)(a)

Article 4

(1)

the CRR; ''the Registrar'' means th e person appointed to act as the Registrar

Companies by the Minister responsible for the registration

companies and other commercial partnerships pursuant to article 400

the Companies Act; ''regulated market'' means a regulated market as defined in article 2

(1)

the Financial Markets Act; INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 ''reorganisation measures'' means measures which are intended to preserve or restore the financial situation

an investment firm and which could affect third parties’ pre-existing rights, including measures involving the possibility

a suspension

payments, suspension

enforcement measures or reduction

claims; those measures include the application

the resolution tools and the exercise

resolution powers provided for in the Recovery and Resolution Regulations; "Resolution Committee" means the committee appointed under article 7B

the Malta Financial Services Authority Act; 5 S.L. 330.09 Cap. 330. ''winding-up proceedings'' means collective proceedings opened and monitored by the administrative or judicial authorities

Malta with the aim

realising assets under the supervision

those authorities, including where the proceedings are terminated by a composition or other, similar measure.

(2)Words and expressions which are also used in the Act have the same meaning as in the Act. PART I REORGANISATION MEASURES 5.
(1)The Court shall, upon receipt

an application made in terms

the Companies Act, and the Act, decide on the implementation

reorganisation measures with respect to a Maltese investment firm including its branches established in host States.

(2)Reorganisation measures adopted by the Court in respect

a Maltese investment firm including its branches in any other host St a t e s h a l l , u n l e s s e x p r e s s l y p r o v i d e d o t h e r w i s e i n t h e s e regulations, be applied in terms

the Companies Act and the Act as appropriate.

(3)Upon reorganisation measures taken pursuant to these regulations becoming effective in Malta they shall be immediately fully effective in any other Member State or EEA State without any further formalities, including formalities as against third parties in any Member State or EEA State, even if the legislation

such host State applicable to such third parties, does not provide for such reorganisation measures, or alternatively makes their implementation subject to conditions which are not fulfilled.

(4)Nothing in these regulations shall prejudice the powers

the competent authority in relation to reorganisation measures with respect to a Maltese investment firm, including its branches established in host States where provided for in article 15A

the Act. 6.

(1)The Court shall, upon receipt

an application for any reorganisation measure, inform the competent authority regarding this request in order to obtain its views on the adoption

such measure and the practical effects which it may have: Provided that where the reorganisation measure involves a company recovery order in terms

the Companies Act, the provisions

article 329B

(3)(d)

the Companies Act shall apply. Adoption

reorganisation measures in Malta. Cap.

  1. Cap.
  2. Cap.
  3. Cap.
  4. Cap.
  5. Information for the competent authority and the foreign authority

the host State. Cap.

  1. 6 [ S.L.370.30 Cap.
  2. Cap.
  3. INVESTMENT FIRMS (REORGANISATION AND WINDING-UP)

(2)Where the court makes a decision, order or appointment

any

the following kinds (a) any compromise or arrangement in terms

article 327

the Companies Act; or (b) a company recovery order and appoints a special controller in accordance with article 329B

the Companies Act, it must immediately inform the competent authority, or cause the competent authority to be informed without delay,

the decision, order or appointment which has been made. S.L. 330.09 Cap. 386. Information for the competent authorities and the foreign authority

the home State. Cap.

  1. Cap.
  2. Cap. 386.

(3)Where the competent authority is informed

a decision, order or appointment in accordance with this regulation it shall, in turn without delay and by any means available, inform the foreign authority, if any,

the decision to adopt reorganisation measures including the practical effects which such a measure may have, if possible before it is adopted or otherwise immediately thereafter: Provided that this sub-regulation shall not apply where regulation 83

the Recovery and Resolution Regulations applies, and accordingly the foreign authority shall be informed by the Resolution Committee in terms

such Regulations.

(4)The duties provided for in this regulation are supplemental to and without prejudice to the duties

the Registrar

Courts in article 329B

(13)(a) to (c)

the Companies Act. 7.

(1)Where, upon receipt

an application, the Court deems it necessary to implement one or more reorganisation measures on a branch

a Maltese investment firm situated in another Member State or an EEA State, the Court shall inform the competent authority regarding this request in order to obtain its views on the adoption

such measure and the practical effects which it may have: Provided that where the reorganisation measure involves a company recovery order in terms

the Companies Act, the provisions

article 329B

(3)(d)

the Companies Act shall apply.

(2)Where the Court makes a decision, order or appointment

any

the following kinds (a) any compromise or arrangement in terms

article 327

the Companies Act; or (b) a company recovery order and appoints a special controller in accordance with article 329B

the Companies Act, it must immediately inform the competent authority, or cause the competent authority to be informed without delay,

the decision, order or appointment which has been made.

(3)Where the competent authority is informed

a decision, order or appointment in accordance with this regulation it shall, in turn without delay and by any means available, inform the foreign au th orit y

t he dec isio n to a dopt reorg anisation measure s including the possible practical effects

such measures. INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30

(4)The duties provided for in sub-regulations
(1)and
(2)are supplemental to and without prejudice to the duties

the Registrar

Courts in article 329B

(13)(a) to (c)

the Companies Act. 8.

(1)Where a decision on reorganisation measures adopted by the Court is subject to a right

redress and its implementation is likely to affect the rights

third parties, upon the Court’s taking such decision, the administrator or any other person appointed by th e C o u r t i n r e l a t i on t o su c h m ea s u r e , sh a l l a t t h e ea r l ie s t opportunity publish an extract from the Court’s decision in - 7 Cap. 386. Publication

Court decision on reorganisation measures in interests

third parties’ right

redress. (

  1. a)the Malta Government Gazette; (
  2. b)any two Maltese newspapers, provided that one extract is published in the English language and the other is published in the Maltese language; (
  3. c)the

ficial Journal

the European Union, provided that third party rights in any host State are capable

being affected by the reorganisation measures; and (d) two national newspapers in each host State, provided that third party rights in the host State are capable

being affected by the reorganisation measures.

(2)The publication made pursuant to sub-regulation
(1)shall at least specify (a) the purpose and legal basis

the Court’s decision taken; (

  1. b)the time limits for lodging requests for redress to the Court; (
  2. c)a clearly understandable indication

the date

expiry

the time limit for lodging requests for redress to the Court; and (d) the details

the Court and that it is competent to hear the grievances

persons stipulated under the Companies Act or any other applicable law. Cap. 386.

(3)The information set out in sub-regulation
(1)shall be published in English or in both English and Maltese as well as, where applicable, in an

ficial language

the host State in which the information is published.

(4)The reorganisation measures apply regardless

the provisions concerning publication set out in sub-regulations

(1)and
(2)and are fully effective against creditors, unless otherwise provided by law or by the administrative or judicial authorities.
(5)The obligation

publication provided for in this regulation is without prejudice to the duties

the special controller as stipulated in article 329B

(7)(c)

the Companies Act. 9.

(1)Where the Companies Act provides that creditors are to be informed

their rights to lodge a claim or to submit observations at a creditors meeting, the administrator shall without delay inform in writing all known creditors, including creditors who have their normal place

residence, domicile or head

fice in another Member State or EEA State, about any Court decision, Cap.

  1. Information to known creditors to enable them to lodge claim or submit observations. Cap.
  2. 8 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 S.L. 330.09 order or appointment in terms

articles 327 or 329B

the Companies Act regarding the commencement

reorganisation procedures as well as details regarding the information requested in this regulation: Provided that this sub-regulation shall not apply where regulation 83

the Recovery and Resolution Regulations applies and accordingly the foreign authority shall be informed by the Resolution Committee in terms

such Regulations.

(2)The information given to creditors shall include at least the following: (
  1. a)that reorganisation measures have commenced in relation to a Maltese investment firm; (
  2. b)the applicable time limits for the reorganisation measures, if any; (
  3. c)the penalties laid down in regards to any time limits, if any; (
  4. d)the body or authority empowered to accept claims or observations in relation to the measures; and Cap. 386. (
  5. e)as to whether creditors whose claims are preferential or secured in rem need to lodge their claims.
(3)In the case

company recovery proceedings the information provided for above shall be supplemental to and without prejudice to the duties

the special controller in article 329B

(7)

the Companies Act. Where the special controller is obliged to advise creditors as to the date and venue

any creditors’ meeting to which they may be entitled to attend, sufficient notice shall be given in terms

article 329B

(7)(b)

the Companies Act.

(4)The information set out in sub-regulation
(2)shall be issued in English or in both English and Maltese. Cap. 386.
(5)A form shall also be used bearing, in all the

ficial languages

the European Union, the heading ''Invitation to lodge a claim. Time limits to be observed.''.

(6)(a) Creditors who have their normal place

residence, domicile or head

fice in another Member State or EEA State shall have the same right to lodge claims or submit observations in terms

Part VI

the Companies Act as creditors with their normal place

residence, domicile or head

fice in the home State in accordance with the procedures laid down in regulation 19. (b) A creditor shall send copies

supporting documents, if any, and shall indicate (a) (b) (c) (d) the nature

the claim; the date on which it arose; the amount

the claim; whether the creditor alleges any preference, security in rem or reservation

title in respect INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30

the claim; and (e) the assets that are covered by the creditor’s security. 10.

(1)Where, upon receipt

an application to adopt a decision on a reorganisation measure in relation to a branch present in Malta

an investment firm having its head

fice outside a Member State or EEA State, the Court shall inform the competent authority regarding this request in order to obtain its views on the adoption

such measure and the practical effects which it may have: Provided that where the reorganisation measure involves a company recovery order in terms

the Companies Act, the provisions

article 329B

(3)(d)

the Companies Act shall apply.

(2)Where the Court makes a decision, order or appointment

any

the following kinds (a) any compromise or arrangement in terms

article 327

the Companies Act; or (b) a company recovery order and appoints a special controller in accordance with article 329B

the Companies Act, Branches

third country investment firms - information foreign authority in other host States. Cap.

  1. Cap.
  2. Cap.
  3. it must immediately inform the competent authority, or cause the competent authority to be informed without delay,

the decision, order or appointment which has been made.

(3)Where the competent authority is informed

a decision, order or appointment in accordance with this regulation, it shall, in turn without delay and by any means available, communicate the information outlined above to the foreign authorities

any other host State in which the investment firm has set up branches which are included on the list referred to in Article 5

Directive 2014⁄65⁄EU.

(4)The administrative or judicial authorities referred to in this regulation shall endeavour to coordinate their actions.
(5)The duties provided for in this regulation are supplemental to and without prejudice to the duties

the Registrar

Courts as stipulated in article 329B

(13)(a) to (c)

the Companies Act. Cap. 386. PART II WINDING-UP PROCEEDINGS 11.

(1)The Court shall, upon receipt

an application in terms

the Companies Act and the Act, decide on opening

winding-up proceedings in respect

a Maltese investment firm, including its branches established in any Member State or EEA State.

(2)The Court’s decision concerning the dissolution and winding-up

a Maltese investment firm including its branches in any host State shall be recognised within the territory

any other Member State or EEA State without any further formalities and shall be effective there as soon as the Court’s decision is effective in Malta. 9 Adoption

winding-up proceedings in Malta. Cap.

  1. Cap.
  2. 10 [ S.L.370.30

(3)INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) (a) The Court shall, upon receipt

an application for any winding-up proceedings, inform the competent authority regarding this request in order to obtain its vi ew s o n the adopt ion

such measures and the practical effects which they may have. Cap. 386. (b) Where the court makes a decision, order or appointment

any

the following kinds (i) a winding-up order under article 219

the Companies Act; or Cap. 386. (ii) the appointment

a provisional administrator under article 228

the Companies Act, it must immediately inform the competent authority, or cause the competent authority to be informed without delay

the decision, order or appointment which has been made. Cap. 386. Cap. 386. Cap. 386. Cap. 386.

(4)Where the competent authority is informed

a decision, order or appointment in accordance with this regulation, the competent authority shall in turn, without delay and by any means available, inform the foreign authority in all Member States or EEA States that the decision, order or appointment has been made and the possible effects that

a decision, order or appointment

that kind may have.

(5)Where an arrangement has been concluded pursuant to article 291

the Companies Act, any person appointed by the Maltese investment firm or creditors shall inform the competent authority

the arrangement which has been approved.

(6)Where a liquidator is appointed as mentioned in article 230

the Companies Act the liquidator must inform the competent authority

his appointment.

(7)In the case

a member’s voluntary winding-up, the liquidator shall in terms

article 272

the Companies Act inform the competent authority if he is

the opinion that the Maltese investment firm will not be able to pay its debts within the period stated in the declaration

solvency.

(8)The duties provided for in this regulation are supplemental to and without prejudice to the duties

the Registrar

Courts in articles 224 and 264

the Companies Act.

(9)Nothing in these regulations shall prejudice the duties and powers

the competent authority in relation to winding-up proceedings with respect to a Maltese investment firm including its branches established in host States, where provided for in the Act. Applicable law in the winding-up

a Maltese investment firm. Cap. 386. 12.

(1)Subject to the exceptions expressly provided for in these regulations, the decision to dissolve and wind up a Maltese investment firm as well as its method

winding-up and dissolution, shall be made in accordance with the general provisions

Part V

the Companies Act.

(2)In relation to a Maltese investment firm, the law

Malta shall be the applicable law and shall determine in particular: (a) the assets subject to administration and the treatment INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 11

assets acquired by the investment firm after the opening

winding-up proceedings; (b) the respective powers

the Maltese investment firm and the liquidator; (c) the conditions under which set-

f may be invoked; (d) the effects

the winding-up proceedings on current contracts to which the Maltese investment firm is party; (e) the effects

the winding-up proceedings brought by individual creditors, with the exception

lawsuits pending as provided for in regulation 34; (f) the claims which are to be lodged against the Maltese investment firm and the treatment

claims arising after the opening

winding-up proceedings; (g) the rules governing the lodging, verification and admission

claims; (h) the rules governing the distribution

proceeds from the realisation

assets, the ranking

claims, the rights

creditors who have obtained partial satisfaction after the opening

the winding-up order by virtue

a right in rem or through set-

f; (i) the conditions for and the effects

the closure

winding-up proceedings, in particular by composition; (j) the rights

creditors after the closure

the winding up proceedings; (

  1. k)who is to bear the cost and expenses incurred in the winding-up proceedings; and (
  2. l)the rules relating to the voidness, voidability or unenforceability

legal acts detrimental to all the creditors. 13.

(1)Before any voluntary winding-up decision is taken by the board

directors or other governing bodies

an investment firm these said governing bodies shall consult the competent authority in the most appropriate form. Consultation with competent authority before voluntary windingup.

(2)The commencement

the voluntary winding-up

an investment firm shall not preclude the adoption

reorganisation measures or the opening

winding-up proceedings by the Court. 14.

(1)Where the Court decides upon the opening

windingup proceedings either in the absence

reorganisation measures or in terms

article 329B

(12)

the Companies Act following the failure

reorganisation measures, the authorisation

the investment firm shall be withdrawn by the competent authority in terms

the provisions

article 7

the Act.

(2)The withdrawal

authorisation provided for in this regulation shall not prevent the person or persons entrusted with the winding-up from carrying on some

the investment firm’s activities insofar as that is necessary or appropriate for the purposes

winding-up: Withdrawal

an investment firm’s authorisation. Cap.

  1. Cap.
  2. 12 [ S.L.370.30 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) Provided that, such activities shall be carried under the supervision

the competent authority. Publication

decision to open winding-up procedures by liquidator or Court. 15.

(1)The liquidator or any other person appointed for this purpose by the Court shall at the earliest opportunity make their decision to open winding-up proceedings public by publishing an extract from the decision ordering the winding-up proceedings in: (
  1. a)the Malta Government Gazette; (
  2. b)any two Maltese newspapers, provided that one extract is published in the English language and the other is published in the Maltese language; (
  3. c)the

ficial Journal

the European Union, provided that third party rights in any host State are capable

being affected by the winding-up proceedings; and (d) two national newspapers in each host State, provided that third party rights in the host State are capable

being affected by the winding-up proceedings.

(2)The publication made pursuant to sub-regulation
(1)(
  1. a)to (
  2. d)shall at least specify: (
  3. a)that winding-up proceedings have commenced in relation to a Maltese investment firm; (
  4. b)the applicable time proceedings, if any; limits for the winding-up (
  5. c)the penalties laid down in regards to any time limits, if any; (
  6. d)the full address

the body or authority empowered to accept claims or observations relating to claims and the other measures laid down; and (e) as to whether creditors whose claims are preferential or secured in rem need lodge their claims.

(3)The information set out in sub-regulation
(1)shall be published in English or in both English and Maltese. Cap. 386. Information to known creditors.
(4)A form shall also be used bearing, in all the

ficial languages

the European Union, the heading ''Invitation to lodge a claim. Time limits to be observed.''.

(5)The duties provided for in this regulation are without prejudice to the duties

the Registrar

Courts in article 401

the Companies Act. 16.

(1)When winding-up proceedings have commenced, the liquidator shall without delay individually inform all known creditors wheresoever resident or domiciled, in writing: (a) that winding-up proceedings have commenced in relation to a Maltese investment firm; (b)

the applicable time limits for the winding-up proceedings, if any; (c)

the penalties laid down in regards to any time limits, if any; INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 (d)

the body or authority empowered to accept claims or observations relating to claims and the other measures laid down; and (e) as to whether creditors whose claims are preferential or secured in rem need lodge their claims.

(2)Where the liquidator shall in terms

the Companies Act advise creditors as to inter alia the date and venue

any creditors meeting to which the addressee may be entitled to attend such notice in sub-regulation

(1)shall be given without prejudice the provisions

article 296

the Companies Act. Cap. 386.

(3)The information set out in sub-regulation
(1)shall be issued in English or in both English and Maltese.
(4)A form shall also be used bearing, in all the

ficial languages

the European Union, the heading ''Invitation to lodge a claim. Time limits to be observed.''. 17.

(1)A liquidator shall send a written report setting out the position in particular as regards the progress

the winding-up once every twelve months, beginning from the date when the liquidator ’s appointment has effect, to every known creditor wheresoever resident or domiciled.

(2)Where the

ficial receiver is acting as a liquidator the first such report to creditors is to contain the information required in terms

article 227

the Companies Act.

(3)The requirement in sub-regulation
(1)does not apply where a liquidator is required by order

the Court to send reports to creditors at intervals which are more frequent than those required by this regulation.

(4)The duties provided for in this regulation are without prejudice to article 234

the Companies Act. 18.

(1)Where an obligation has been honoured for the benefit

an investment firm which is not a legal person and which is the subject

winding-up proceedings opened in another Member State or EEA State when it should have been honoured for the benefit

the liquidator in those proceedings, the person honouring the obligation shall be deemed to have discharged it if he was unaware

the opening

proceedings.

(2)Where such an obligation is honoured before the publication provided for in regulation 15 has been effected, the person honouring the obligation shall be presumed, in the absence

proof to the contrary, to have been unaware

the opening

winding-up proceedings.

(3)Where the obligation is honoured after the publication provided for in regulation 15 has been effected, the person honouring the obligation shall be presumed, in the absence

proof to the contrary, to have been aware

the opening

proceedings. Reports to creditors. Cap. 386. Cap. 386. Honouring

obligations. 13 14 [ S.L.370.30 Right

creditors, etc., to lodge claims. Cap. 386. INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) 19.

(1)Any creditor, including the public authorities

a Member State or a EEA State, being domiciled in or having a normal place

residence or head-

fice in a Member State or EEA State other than Malta, shall have all the rights provided to creditors in Part V

the Companies Act to lodge claims or to submit written observations relating to claims in relation to a Maltese investment firm being wound up.

(2)The claims

any creditor who is domiciled in or having a normal place

residence or head

fice in any Member State or EEA State other than Malta, shall be treated in the same way as any creditor resident or domiciled or having a head

fice in Malta and accorded the same ranking as claims

an equivalent nature which may be lodged by creditors having their domiciles, normal places

residence, or head

fices in Malta.

(3)When lodging a claim a creditor shall send copies

supporting documents, if any, and shall indicate: (a) the nature

the claim; (

  1. b)the date on which it arose and its amount; (
  2. c)whether the creditor alleges preference; (
  3. d)security in rem or reservation

title in respect

the claim; and (e) what assets are covered by the creditor’s security. Cap. 386. Investment firms the head

fices

which are outside the Community. Cap. 386.

(4)Any creditor who is domiciled or having a normal place

residence or head

fice in a Member State or EEA State other than Malta, may lodge claims or submit observations relating to such claim in the

ficial language or one

the

ficial languages

that other Member State or EEA State. In that event, the lodgement

the creditor’s claim or the submission

observations on such claim shall bear the heading ''Lodgement

claim'' or ''Submission

observations relating to claims'' in English or Maltese. In addition, the creditor may be required to provide a translation into English or Maltese

the lodgement

claim or submission

observations relating to claims or

any

the documentation and, or information required in sub-regulation

(3).
(5)The provisions

this regulation are without prejudice to the provisions

article 232

the Companies Act. 20.

(1)Where, upon receipt

an application to adopt a decision or order to commence winding-up procedures

a branch present in Malta

an investment firm having its head

fice situated outside a Member State or EEA State, the Court shall inform the competent authority regarding this request in order to obtain its views on the adoption

such measure and the practical effects which it may have.

(2)Where the Court makes a decision, order or appointment

any

the following kinds (a) a winding-up order under article 219

the Companies Act; or INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 (b) the appointment

a provisional administrator under article 228

the Companies Act, 15 Cap. 386. it must immediately inform the competent authority, or cause the competent authority to be informed without delay

the decision, order or appointment which has been made.

(3)Where the competent authority is informed

a decision, order or appointment in accordance with this regulation, the competent authority shall in turn, without delay and by any means available communicate such information to the foreign authorities

any other host State in which the investment firm has set up branches which are included on the list referred to in Article 5

Directive 2014⁄65⁄EU, and shall inform the foreign authority

the decision to open winding-up procedures and the practical effects

such. The competent authority shall also advise the foreign authority

any other host States that the authorisation

the branch has been withdrawn. PART III PROVISIONS COMMON TO REORGANISATION AND WINDING-UP PROCEEDINGS 21. The effects

a reorganisation measure or winding-up proceedings

an investment firm on employment contracts and employment relationships are determined in accordance with the laws

the Member State or EEA State to which that contract or relationship is subject. 22. The effects

a reorganisation measure or winding-up proceedings

an investment firm on a contract conferring the right to make use

or acquire immovable property situated within the territory

a Member State or EEA State are to be governed in accordance with the law

that Member State or EEA State. 23. Rights

an investment firm in respect

immovable property, a ship or an aircraft subject to registration in a public register shall be governed solely by the law

the Member State or EEA State under the authority

which the register is kept. 24.

(1)The adoption

reorganisation measures or the opening

winding-up proceedings

a Maltese investment firm shall not affect the rights in rem

creditors or third parties in respect

tangible or intangible, movable or immovable assets including both specific assets and collections

indefinite assets as a whole which change from time to time belonging to the investment firm concerned which are situated within the territory

a Member State or EEA State at the time

the opening

such measures or proceedings.

(2)The rights in rem referred to in sub-regulation
(1)shall in particular mean (a) the right to transfer assets or have them transferred and to obtain satisfaction from the proceeds

or the income from those assets, in particular by virtue

a lien, mortgage or hypothec; (b) the exclusive right to have a claim met, in particular a right guaranteed by a lien in respect

the claim or by Employment contracts and relationships. Contracts in connection with immovable property. Registrable rights. Third parties rights in rem. 16 [ S.L.370.30 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) assignment

the claim by way

a guarantee; (c) the right to demand the assets from, and, or to require restitution, by anyone having possession or use

them contrary to the wishes

the party so entitled; (d) a right in rem to the beneficial use

assets.

(3)A right, recorded in a public register and enforceable against third parties, under which a right in rem within the meaning

sub-regulation

(1)may be obtained, is also to be treated as a right in rem for the purposes

this regulation.

(4)Sub-regulation
(1)does not preclude actions for voidness, voidability or unenforceability

legal acts detrimental to creditors referred to in regulation 12

(2)(l). Reservation

title agreement. 25.

(1)The commencement

reorganisation measures or winding-up proceedings in relation to a Maltese investment firm purchasing an asset shall not affect the seller’s rights based on a reservation

title where at the time

the commencement

such measures or proceedings the asset is situated within the territory

another Member State or EEA State.

(2)The commencement

reorganisation or winding-up proceedings against a Maltese investment firm selling an asset, after delivery

the asset, shall not constitute grounds for rescinding or terminating the sale and shall not prevent the purchaser from acquiring title where at the time

the opening

such measure or proceedings the asset sold is situated within the territory

a Member State or EEA State in which such measures or proceedings were commenced.

(3)Sub-regulations
(1)and
(2)do not preclude actions for voidness, voidability or unenforceability

legal acts detrimental to creditors referred to in regulation 12

(2)(l). Creditor’s rights to set

f. 26.

(1)The adoption

reorganisation measures or the opening

winding-up proceedings shall not affect the rights

creditors to demand the set-

f

their claims against the claims

the Maltese investment firm where such a set-

f is permitted by the law

the Member State or EEA State which is applicable to the claim

the Maltese investment firm.

(2)This regulation does not preclude actions for voidness, voidability or unenforceability

legal acts detrimental to creditors referred to in regulation 12

(2)(l). Lex rei sitae. Netting agreements. Cap.
  1. S.L. 330.09
  2. The enforcement

proprietary rights in instruments or other rights in such instruments the existence or transfer

which p r e s u p p o s e s t h e i r r e c o r d i n g i n a r e g i s t e r, a n a c c o u n t o r a centralised deposit system held or located in a Member State or EEA State shall be governed by the law

the Member State or EEA State where the register, account, or centralised deposit system in which those rights are recorded is held or located. 28. Pursuant to the provisions

the Set-

f and Netting on Insolvency Act, and without prejudice to regulations 68 and 71

the Recovery and Resolution Regulations, netting agreements shall INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 be governed by the law

the contract which governs such agreements. 29. Without prejudice to regulations 68 and 71

the Recovery and Resolution Regulations and to regulation 27

these Regulations, repurchase agreements shall be governed solely by the law

the contract which governs such agreements. 30. Without prejudice to regulation 27, transactions carried out in the context

a regulated market are to be governed solely in accordance with the law

the contract which governs such transactions. 31.

(1)The administrator or liquidator’s appointment shall be evidenced by a certified copy

the original decision appointing him or her or by any other certificate issued by the administrative or judicial authority

the home State attesting t o the due appointment

the administrator or liquidator. 17 Repurchase agreements. S.L. 330.09 Regulated markets. Proof

liquidators’ appointment.

(2)A translation into the

ficial language or one

the

ficial languages

the Member State or EEA State within the territory

which the administrator or liquidator wishes to act may be required. No legalisation or other similar formality shall be required.

(3)Administrators and liquidators shall be entitled to exercise within the territory

any Member State or EEA State all the powers which they are entitled to exercise within the territory

the home State. They may also appoint persons to assist or, where appropriate, represent them in the course

the reorganisation measure or winding-up proceedings, in particular in host States and, specifically in order to help overcome any difficulties encountered by creditors in the host State.

(4)In exercising their powers, administrators and liquidators shall comply with the law

the Member State or EEA State within the territory

which they wish to take action, in particular with regard to procedures for the realisation

assets and the provision

information to employees. Those powers may not include the use

force or the right to rule on legal proceedings or disputes. 32.

(1)Regulation 12 shall not apply as regards the rules relating to the voidness, voidability or unenforceability

legal acts detrimental to the creditors as a whole, where the beneficiary

these acts provides proof that: Detrimental acts. (a) the act detrimental to the creditors as a whole is subject to the law

a Member State or EEA State other than the home State, and (b) that law does not allow any means

challenging that act in the case in point.

(2)Where a reorganisation measure decided on by a judicial authority provides for rules relating to the voidness, voidability or unenforceability

legal acts detrimental to the creditors as a whole performed before adoption

the measure, regulation 5

(2)shall not apply in the cases provided for in this regulation. 33. Where, by an act concluded after the adoption

a reorganisation measure or the opening

winding-up proceedings, Protection

third party purchasers. 18 [ S.L.370.30 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) an investment firm disposes, for consideration,

(a) an immovable asset situated within the territory

a Member State or EEA State; (b) a ship or an aircraft subject to registration in a public register kept under the authority

a Member State or EEA State; or (c) instruments or rights in such instruments the existence or transfer

which presupposes their being recorded in a register, an account or a centralised deposit system held or located in a Member State or EEA State, the validity

that act shall be governed by the law

the Member State or EEA State within whose territory the immovable asset is situated or under whose authority the register, account or system is kept, as the case may be. Pending lawsuits. Registration in a public register. 34. The effects

reorganisation measures or winding-up proceedings on a pending lawsuit concerning an asset or a right

which the Maltese investment firm has been divested shall be governed solely in accordance with the law

the Member State or EEA State in which the lawsuit is pending. 35.

(1)In order to secure the rights

interested third parties, an administrator or liquidator may request that a reorganisation measure or the decision to open winding-up proceedings be registered in the registry

companies and any other public register by whatever name kept in Malta or any other Member State or EEA State.

(2)The costs

registration are to be regarded as costs and expenses incurred in the winding-up proceedings or reorganisation measure. Professional secrecy. Cap.

  1. Cap.
  2. S.L. 370.15 S.L. 330.09
  3. All persons required to receive or divulge information in connection with the information or consultation procedures laid down in these regulations shall be bound by professional secrecy, in accordance with the rules and conditions laid down in the Investment Services Act, the Malta Financial Services Authority Act and the Investment Services Act (Supervisory Review) Regulations, with the exception

any judicial authorities to which existing national provisions apply: Provided that this regulation shall not apply where regulation 84

the Recovery and Resolution Regulations applies, and accordingly the confidentiality provisions

such Regulations shall apply. INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 19 PART IV REORGANISATION MEASURES AND WINDING-UP PROCEEDINGS IN RESPECT

EUROPEAN INVESTMENT FIRMS EFFECTIVE IN MALTA 37.

(1)The commencement

a reorganisation measure or winding-up proceedings

a European investment firm has effect in Malta as if it were part

the Companies Act, when such is in relation to: (a) a branch in Malta

a European investment firm; (b) any property or other assets in Malta

the European investment firm; or (c) any debt or liability

such European investment firm.

(2)Subject to sub-regulation
(4), the administrator or liquidator or persons appointed to assist, or where appropriate, represent the administrators and liquidators may exercise in Malta, in relation to a European investment firm which is subject to a reorganisation measure or winding-up proceedings, any function which, pursuant to that measure or order, he is entitled to exercise in relation to a European investment firm.
(3)The appointment

the administrator and liquidator shall be evidenced (a) by a certified copy

the order or decision by a judicial or administrative authority competent in the home State for reorganisation or winding-up proceedings by or under which the administrator or liquidator was appointed; or (b) by any other certificate issued by the judicial or administrative authority which has jurisdiction in relation to a reorganisation measure or winding-up proceedings, and, where necessary accompanied by a certified translation

that order, decision or certificate, as the case may be.

(4)In exercising the functions

the kind mentioned in subregulation

(2), the administrator or the liquidator (a) may not take any action which would constitute an unlawful use

force in Malta; (b) may not rule on any dispute arising from a matter falling within Parts I, II and III

these regulations; and (c) notwithstanding the way in which functions may be exercised in the home State

the European investment firm, shall act in accordance with the laws or rules as to procedure which are effective in Malta. Adoption

reorganisation measures and winding-up proceedings

a European investment firm. Cap. 386. 20 INVESTMENT FIRMS (REORGANISATION AND WINDING-UP) [ S.L.370.30 European investment firms or branches

European investment firms located in Malta. Substituted by: L.N. 150

  1. Cap.
  2. 38.

(1)From the date

coming into force

these r e g u la t i o n s * , t h e C o u r t m a y n o t , i n r e l a ti o n t o a E u r o p e a n investment firm or any branch

a European investment firm (a) make a winding-up order pursuant to article 224

the Companies Act; or (b) adopt reorganisation measures or perform any act ancillary to the adoption

such measures in terms

Part VI

the Companies Act. Cap. 386.

(2)Sub-regulation
(1)(
  1. a)does not prevent (
  2. a)the Court from making a winding-up order after the coming into force

these regulations in relation to a European investment firm or any branch

a European investment firm if (i) a provisional administrator was appointed in relation to the European investment firm before the coming into force

these regulations, and (

  1. ii)the appointment continues in force until immediately before that winding-up order is made; (
  2. b)the winding-up

a European investment firm or any branch

a European investment firm after the coming into force

these regulations pursuant to a windingup order which was made, and has not been discharged, before that date.

(3)Sub-regulation
(1)(b) does not prevent a provisional administrator

a European investment firm or any branch

a European investment firm appointed before the coming into force

these regulations, from acting in relation to such institution after that date. *refers to the coming into force

Legal Notice 150

2016 - 6th May, 2016.

🔗 Għas-sors uffiċjali

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.