2022, as amended by Legal Notices 75
2023 and 152
2025. 1.
these regulations is the Supervisory Consolidation (Investment Firms Directive) Regulations. Citation and scope. Amended by: L.N. 75
2023.
these regulations is to transpose Articles 3, 46, 47, 48, 49, and 55
Directive (EU) 2019/2034
the European Parliament and
the Council
27 November 2019 on the prudential supervision
investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU. 2. requires -
2023; L.N. 152
the IFR; "consolidated basis" shall have the same meaning as that assigned to it in point
the IFR; "consolidated situation" shall have the same meaning as that assigned to it in point
the IFR; "the competent authority" means the Malta Financial Services Authority established by article 3
the Malta Financial Services Authority Act; "consolidating supervisor" shall have the same meaning as that assigned to it in point
the CRR; "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, 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; "CRR" means Regulation (EU) No 575/2013
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) * See Legal Notice 61
the IFR; "EU parent investment holding company" shall have the same meaning as that assigned to "Union parent investment holding company" in point
the IFR; "EU parent mixed financial holding company" shall have the same meaning as that assigned to "Union parent mixed financial holding company" in point
the IFR; "EU investment firm" means a firm as defined in point
MIFID; "European regulatory authority" means an authority which is situated in a country or territory outside Malta that is a Member State and is empowered by law or regulation to supervise investment firms; "financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "financial institution" shall have the same meaning as that assigned to it in point
the IFR: "group supervisor" means a competent authority responsible for the supervision
compliance with the group capital test
EU parent investment firms and investment firms controlled by EU parent investment holding companies or EU parent mixed financial holding companies; "home Member State" shall have the same meaning as that assigned to it in point
the MIFID; "host Member State" shall have the same meaning as that assigned to it in point
the MIFID ; SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) [ S.L. 370.49. 3 "investment firm" means a person who holds an investment services licence issued by the competent authority under the Investment Services Act and which is subject to the requirements
the IFD and IFR; "Member State" means a Member State
the European Union and includes an EEA State; "mixed financial holding company" shall have the same meaning as that assigned to it in point
the IFR; "parent financial holding company in a Member State" shall have the same meaning as that assigned to it in point
the CRR; ''parent institution in Malta" means an institution in Malta which has an institution or a financial institution as a subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary
another institution authorised in Malta, or
a financial holding company or mixed financial holding company set up in Malta; "parent undertaking" shall have the same meaning as that assigned to it in point
the IFR; "participation" shall have the same meaning as that assigned to it in point
the CRR; "Rules" means Rules for investment firms issued by the competent authority in terms
the Investment Services Act; "subsidiary" shall have the same meaning as that assigned to it in point
the IFR; "third country" means a country that is not a Member State; "third country regulatory authority" means an authority which is in a country or territory that is not a Member State and is empowered by law or regulation to supervise investment firms.
compliance with the group capital test: (a) where the parent undertaking is a parent institution in Malta or an EU parent investment firm, licensed in terms
the Act; (b) where the parent
an investment firm licensed in Responsibility
the competent authority for consolidated supervision. Amended by: L.N. 75
2023; L.N. 152
2025. 4 [ S.L. 370.49 SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) terms
the Act is an EU parent investment holding company or an EU parent mixed financial holding company; (c) where two
which is licensed in accordance with the Act, have as their parent the same EU parent investment holding company or the same EU mixed financial holding company which is established in Malta; (d) where two
which is licensed in accordance with the Act, having parent undertakings comprise more than one EU investment holding company or EU mixed financial holding company with head
fices in different Member States and there being an investment firm in each
those Member States, and the investment firm with the largest balance sheet total is that licensed in terms
the Act; and (e) where two
which is licensed in accordance with the Act, having the same EU parent investment holding company or EU parent mixed financial holding company and none
those investment firms have been authorised in the Member State in which the EU parent investment holding company or EU parent mixed financial holding company are set up, and the investment firm licensed in terms
the Act has the largest balance sheet total.
compliance with the group capital test, taking into account the investment firms and the relative importance
their activities in the relevant European Member States, and designate another European regulatory authority to exercise supervision on a consolidated basis or supervision
compliance with the group capital test. In these cases, before taking its decision, the competent authority shall give the EU parent investment holding company, EU parent mixed financial holding company or the investment firm with the largest balance sheet total, as appropriate, an opportunity to state its opinion on that decision. The competent authority shall notify the Commission and the EBA
any such agreement.
supervisors may be established to exercise supervision on a consolidated basis where subsidiaries
an investment firm group headed by an investment firm authorised in a Member State, an EU parent investment holding company, or an EU parent mixed financial holding company, are SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) [ S.L. 370.49. 5 located in a third country.
the tasks referred to in this regulation and to ensure co-ordination and cooperation with relevant third‐country supervisory authorities in particular where this is needed for the purpose
applying point (c)
the first sub-paragraph
the IFR to exchange and update relevant information on the margin model with the supervisory authorities
the qualifying central counterparties (QCCPs). 4.
the Act and any regulations or Rules made thereunder transposing the requirements
the IFD, and by the IFR, the college
supervisors shall provide a framework to the competent authority, as consolidating supervisor to carry out the following tasks: (a) those referred to in regulation 5; (b) the co-ordination
information requests where this is necessary for facilitating supervision on a consolidated basis, in accordance with Article 7
the IFR; (c) the co-ordination
information requests, in cases where several competent authorities
investment firms that are part
the same group need to request either from the competent authority
a clearing member’s home Member State or from the competent authority
the qualifying central counterparties information relating to the margin model and parameters used for the calculation
the margin requirement
the relevant investment firms; (d) the exchange
information between all competent authorities and with the EBA in accordance with Article 21
Regulation (EU) No 1093/2010 and with the ESMA in accordance with Article 21
Regulation (EU) No 1095/2010; (e) reaching an agreement on the voluntary delegation between competent authorities
tasks and responsibilities, where appropriate; (f) increasing the efficiency
supervision by seeking to avoid the unnecessary duplication
supervisory requirements. Functions
the competent authority with respect to supervision on a consolidated basis. Amended by: L.N. 152
Regulation (EU) No 1093/2010 or a situation
adverse developments in markets arises, which potentially jeopardises the market liquidity and the stability
the financial system in any
the Member States where entities
an investment firm group have been authorised and where the competent authority is the group supervisor in accordance with regulation 3
their tasks. [ S.L. 370.49 Notifications in emergency situations. Amended by: L.N. 152
2025. Cap. 330. Establishment
the colleges
supervisors by the consolidating supervisor. 6.
supervisors to facilitate the tasks under Article 48
the IFD as transposed in Maltese legislation and to ensure coordination and cooperation with third-country supervisory authorities in particular where this is needed for the purpose
applying Article 23
the IFR, to exchange and update relevant information on the margin model with the supervisory authorities
qualifying central counterparties (QCCPs).
the college
supervisors: (a) the competent authorities responsible for the supervision
subsidiaries
an investment firm group headed by an EU investment firm, EU parent investment holding company or EU parent mixed financial holding company; (b) where appropriate, third-country supervisory authorities, subject to confidentiality requirements that are equivalent in the opinion
all competent authorities to the requirements established in Section 2
the IFD.
these regulations, it shall establish and manage the colleges
supervisors based on written arrangements referred to in regulation 6, determined after consultation with European regulatory authorities and third country regulatory authorities concerned.
the college and adopt decisions. Such decisions shall take into account the relevance
the supervisory activity to be planned or co-ordinated by the authorities as referred to in regulation
the financial system in the Member States SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) [ S.L. 370.49. 7 concerned and, in particular, in emergency situations, based on the information available at the relevant time.
the college fully informed, in advance,
the organisation
the meetings
the college, about the main issues to be discussed and the activities to be considered and shall also keep all the members
the college fully informed, in a timely manner,
the actions taken in those meetings or the measures carried out.
disagreement between the competent authorities on the functioning
the supervisory colleges, the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19
Regulation (EU) No 1093/ 2010. 7.
sub-regulation
the investment group’s legal structure and the governance structure including organisational structure, covering all regulated entities, non-regulated entities, non-regulated subsidiaries, and the parent undertakings, and
the competent authorities
the regulated entities in the investment firm group; (b) procedures for the collection
information from the investment firms in a group and the verification
that information; (c) any adverse developments in investment firms or in other entities
a group, which could seriously affect the investment firms; (
a specific requirement under Article 39
the IFD. own funds
2025. 8 [ S.L. 370.49 SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) management structure
investment firms in the group, which require the approval or authorisation
the competent authority; and S.L. 370.15. (b) significant penalties or exceptional measures taken by the competent authority, including the imposition
a specific own funds requirement under the Investment Services Act (Supervisory Review) Regulations, and specific own funds requirements imposed in accordance with Article 39
the IFD: Provided that the competent authority shall always consult the group supervisor for the purposes
paragraph (b) and may decide not to consult European regulatory authorities in cases
urgency or where such consultation could jeopardise the effectiveness
its decision. In such cases, the competent authority shall, without delay, inform the European regulatory authorities after taking its decision.
Regulation (EU) No 1093/2010, in any
the following situations: (a) where a European regulatory authority has not communicated essential information in accordance with subregulation
the Act, the parent undertaking
which is an investment firm or a financial holding company or mixed financial holding company, the head
fice
which is established in a third country, is not subject to consolidated supervision, the competent authority shall assess whether the investment firm is subject to consolidated supervision by a third country regulatory authority which is equivalent to that governed by the principles laid down in this regulation and the requirements
Part One
the IFR.
supervision in accordance with Articles 7 or 8
the IFR. Those supervisory techniques shall be decided by the competent authority which would be the group supervisor had the parent undertaking been established in the Union, after consulting the other competent authorities involved. Any measures taken pursuant to this paragraph shall be notified to the other competent authorities involved, to the EBA and to the Commission. SUPERVISORY CONSOLIDATION (INVESTMENT FIRMS DIRECTIVE) [ S.L. 370.49.
an investment holding company or mixed financial holding company in a Member State and apply Articles 7 or 8
the IFR to that investment holding company or mixed financial holding company. 9
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.