of four hundred and sixty-six thousand euro (€466,000) or imprisonment for a term not exceeding four years, or both such fine and imprisonment; (c) administrative penalties higher than one hundred and fifty thousand euro (€150,000), and fines higher than four hundred and sixty-six thousand euro (€466,000), where deemed necessary or appropriate for any contravention of, or failure of compliance with, any EU Directive or EU Regulation or any regulations made under this article to transpose or to give effect to any EU Directive or Regulation; (d) administrative penalties in the form of a fixed penalty, a daily penalty, or both.
\n
(4)Regulations made under this article may prescribe administrative penalties and fines as provided for in sub-article (3)(c), for any breach of any provision of the Act or of any regulations issued under this article or for any breach of any Covered Bonds Rules, transposing and, or implementing any EU Directive or Regulation.
\n
(5)Where regulations have been issued in terms of this article, the competent authority may issue Covered Bonds Rules for the better carrying out, and to better implement, the provisions of the regulations.
\n
Claims and privileged claims.
\n
Added by:
\n
IX.2023.5.
\n
S.L. 345.27.
\n
Art. 31I
\n
Covered bond investors and counterparties of derivative contracts that comply with regulation 8 of the Financial Markets Act (Covered Bonds) Regulations shall be entitled to the following:
\n
F I NANCIAL MAR KET S (a) a claim against the credit institution issuing the covered bonds; (b) in the case of the insolvency or resolution of the credit institution issuing the covered bonds, a privileged claim against the principal and any accrued and future interest on cover assets; (c) in the case of the insolvency of the credit institution issuing the covered bonds and in the event that the privileged claim referred to in paragraph (b) cannot be fully satisfied, a claim against the insolvency estate of that credit institution, which ranks pari passu with the claims of the credit institution’s ordinary unsecured creditors determined in accordance with the applicable laws in force in Malta at the time governing the ranking in normal insolvency proceedings:
\n
Provided that the claims referred to in this sub-article shall be limited to the full payment obligations attached to the covered bonds.
\n
(2)Credit institutions issuing covered bonds shall ensure that covered bond investors and counterparties of derivative contracts that comply with regulation 8 of the Financial Markets Act (Covered Bonds) Regulations, are entitled to the claims referred to in sub-article
\n
(1), subject to the conditions laid down in regulation 68(7) of the Recovery and Resolution Regulations.
\n
S.L. 345.27.
\n
S.L. 330.09.
\n
(3)Without prejudice to sub-article (4), the Minister, acting on the advice of the competent authority, may make, amend or revoke regulations to give effect to the provisions of sub-articles (1) and (2).
\n
(4)The competent authority may issue Covered Bonds Rules for the better implementation of sub-articles (1) and (2).
\n
PART V
\n
REGULATORY AND INVESTIGATORY POWERS
\n
Art. 32
\n
32.(1) The competent authority may, by notice in writing, require (i) any regulated market or central securities depository; (ii) any person who holds or held a licence under the Investment Services Act, or who appears to be or to have been acting as a licence holder thereunder; (iii) any person who is or was an officer, employee or agent of a regulated market or central securities depository, or any other person who is or was involved in the operations of a regulated market or central securities depository;
\n
Power to require information.
\n
Added by:
\n
XVII. 2002.122.
\n
Amended by:
\n
IV. 2005.30;
\n
XX. 2007.14, 37.
\n
XXXI. 2017.35;
\n
XLVI.2021.41;
\n
LXXI.2021.9;
\n
IX.2023.6;
\n
XI.2025.13.
\n
F I N AN C I A L M A RKE TS (iv) (v) (va) any person who is or was carrying on, or who appears to be or have been carrying on any activity in connection with quoted financial instruments; any auditor of a trading venue or data reporting services provider who appears to be in possession of relevant information; any data reporting services provider; (vb) any sponsor or any person who is or was an officer, employee or agent of such sponsor; (vi) any issuer, offeror or person asking for admission to listing and, or trading on a regulated market, and any person that controls them or is controlled by them; (via) any credit institution issuing covered bonds, which is licensed in terms of the Banking Act, or any person who is or was an officer, employee or agent of such a credit institution or any person that controls such a credit institution; and, or (vii) any other person who appears to be in possession of relevant information, to do all or any of the following (a) to furnish to the competent authority, at such time and place and in such form as it may specify, such information and documentation as it may require, including the power to require existing telephone and existing data traffic records; (b) to furnish to the competent authority any information or documentation as it may require verified in such manner as it may specify; (c) to attend before the competent authority, or before a person appointed by it, at such time and place as it may specify, to answer questions and provide such information and documentation as it may require; (d) to give the competent authority any assistance which it may require and which that person is reasonably able to give.
\n
(2)Without prejudice to anything which the competent authority may require under sub-article (1), all information in respect of listed financial instruments held on the Register of the Central Securities Depository shall be freely accessible to the competent authority.
\n
(3)The competent authority may take copies of any documents furnished, provided or to which it has access under this article.
\n
F I NANCIAL MAR KET S
\n
Art. 33
\n
33.(1) The competent authority may, whenever it deems it necessary or expedient, appoint an inspector or inspectors to investigate and report on the affairs of any persons referred to in article 32(1)(i) to (vii).
\n
(2)An inspector appointed under sub-article (1) (a) may, if he thinks it necessary or expedient for the purposes of an investigation, investigate the affairs of any person mentioned in sub-article (1);
\n
Appointment of inspectors.
\n
Substituted by:
\n
XVII. 2002.123.
\n
Amended by:
\n
XX. 2007.38;
\n
XLVI.2021.42;
\n
LXXI.2021.10;
\n
XI.2025.14. (b) shall have and may exercise all the powers, conferred on the competent authority by article 32, and any requirement made by him shall be deemed to be and have the same force and effect as a requirement of the competent authority; (c) may, and if so directed by the competent authority shall, make interim reports and on the conclusion of his investigation shall make a final report to the competent authority.
\n
(3)In appointing an inspector or inspectors under sub-article
\n
(1)the competent authority may direct that the investigation shall be carried out within such time and shall be confined to such specific or general matters as the competent authority may deem fit.
\n
(4)For the purposes of this article inspectors may include an advocate, a person authorised to carry on the profession of accountant or auditor in terms of the Accountancy Profession Act, or a person considered by the competent authority as possessing suitable expertise to exercise such function.
\n
(5)The competent authority shall have power to order that all expenses of, and incidental to, an investigation pursuant to this article be paid by the persons concerned.
\n
Art. 34
\n
34.(1) Any officer, employee or agent of the competent authority, on producing, if required, evidence of his authority, may enter premises occupied by a person on whom a notice has been served under article 32 or whose affairs are being investigated under article 33, for the purpose of obtaining therefrom the information or documents required by that notice, or otherwise for the purpose of the investigation, and of exercising any of the powers conferred by the said articles.
\n
(2)Where any officer, employee or agent of the competent authority has cause to believe that if such notice as is referred to in sub-article (1) were served it would not be complied with or that any docum ents to which it could relate would be removed, tampered with or destroyed, such officer, employee or agent may, on producing, if required, evidence of his authority, enter any premises referred to in sub-article (1) for the purpose of obtaining therefrom any information or documents specified in the authority, being information or documents that could have been required under such notice as is referred to in sub-article (1).
\n
(3)For the purposes of any action taken under the provisions of this article, the competent authority may request the assistance of Right of entry.
\n
Added by:
\n
XVII. 2002.124.
\n
F I N AN C I A L M A RKE TS the Commissioner of Police, who may for such purpose exercise such powers as are vested in him by law.
\n
Grounds for decision.
\n
Added by:
\n
XX. 2007.39;
\n
Amended by:
\n
IX.2023.7.
\n
Art. 34A
\n
34A. Any decision taken under this Act by the competent authority in terms of any provisions of this Act or any regulations or Financial Market Rules, Capital Markets Rules or Covered Bonds Rules issued thereunder, shall state the grounds on which such a decision has been based.
\n
No enquiries to be made into the affairs of any person trading on a regulated market.
\n
Substituted by:
\n
XXVI. 2002.125.
\n
Amended by:
\n
IV. 2005.30;
\n
XX. 2007.14, 40;
\n
XLVI.2021.44.;
\n
IX.2023.8.
\n
Art. 35
\n
35.Nothing in this Act or any regulations made thereunder, or in any bye-laws of a trading venue shall authorise the Minister,the competent authority, any trading venue or any person whomsoever to enquire or cause an enquiry to be made into the affairs of any person except for the purpose of ensuring compliance with the provisions of the Prospectus Regulation, this Act and any regulations or Financial Market Rules, Capital Markets Rules or Covered Bonds Rules made thereunder, the bye-laws of the trading venue concerned and t he Prevention of F inancial Markets Abuse Act or any regulations made thereunder.
\n
Report on market abuse.
\n
Added by:
\n
XVII. 2002.126.
\n
Substituted by:
\n
IV. 2005.30.
\n
Amended by:
\n
XX. 2007.14, 41.
\n
XXXI. 2017.36;
\n
IX.2023.8.
\n
Art. 36
\n
36.Where any trading venue suspects that there may exist circumstances to indicate that any violation of the provisions of the Prevention of Financial Markets Abuse Act may have been committed, is being committed or is likely in the circumstances to be committed, it shall without undue delay report such suspicion to the competent authority.
\n
Co-operation with European regulatory authorities.
\n
Added by:
\n
XVII. 2002.126.
\n
Amended by:
\n
IV. 2003.20;
\n
XX. 2007.42;
\n
XLVI.2021.45.
\n
Art. 37
\n
37.(1) The competent authority shall act as the contact point in terms of and for the purposes of sub-article (1) of Article 79 of MiFID.
\n
(2)The competent authority shall cooperate with other European regulatory authorities whenever necessary for the purpose of carrying out its duties under MiFID and, or MiFIR. It shall render the necessary assistance to other European regulatory authorities, in particular by exchanging information and cooperating in any investigatory or supervisory function. In terms of MiFID and, or MiFIR, the competent authority may use its powers for the purposes of cooperation even in cases where the conduct under investigation does not constitute an infringement of any provisions of this Act, regulations or Financial Market Rules issued thereunder:
\n
Provided that the competent authority may, at its own discretion, also cooperate with other European regulatory authorities with respect to facilitating the recovery of fines.
\n
(3)Upon receipt of a request from European regulatory authorities designated as contact points within the individual Member States or EEA States under sub-article (1) of Article 79 of MiFID, the competent authority shall immediately take the necessary measures in order to gather the information required for the carrying out of their duties pursuant to MiFIR or MiFID. If the competent authority is not able to supply the required information immediately, it shall notify the requesting European regulatory F I NANCIAL MAR KET S authority of the reasons.
\n
(4)At the time of communicating information to the European regulatory authorities, whether designated as contact points or not, the competent authority may stipulate that the information must not be disclosed without its express agreement, in which case such information may be exchanged solely for the purposes for which the competent authority had given its agreement.
\n
(5)Where a European regulatory authority exchanging information with the competent authority stipulates at the time of communication of the information that such information must not be disclosed without its express agreement, such information may be used by the competent authority solely for the purposes for which the European regulatory authority would have given its agreement.
\n
(6)Information received by the competent authority from contact points in the other Member States or EEA States may be transmitted to other bodies or natural or legal persons, provided that: (a) the express agreement of the contact points which disclosed the information is obtained; and (b) the information is used solely for the purposes for which the contact points gave their agreement:
\n
Provided further that in duly justified circumstances the competent authority can transmit information to other bodies or natural or legal persons without satisfying the conditions in paragraphs (a) and (b), in which case the competent authority shall immediately inform the contact point that sent the information.
\n
(7)Where the competent authority receives confidential information from contact points in the other Member States or EEA States or from overseas regulatory authorities under article 37C, or when other bodies or natural or legal persons receive confidential information from the competent authority, they may only use such confidential information in the course of their duties, in particular: (a) to monitor the proper functioning of trading venues within the meaning of MiFID; (b) to impose penalties or adopt other administrative measures and to consider representations received in their regard; (c) in appeals under this Act.
\n
(8)Without prejudice to the powers of the competent authority under this Act or any other law, where the competent authority has good reason to suspect that acts contrary to the provisions of MiFID or MiFIR are being or have been carried out on the territory of another Member State or EEA State by entities not subject to its supervision, it shall notify the European regulatory authority of the other Member State or EEA State and ESMA in as specific a manner as possible.
\n
(9)Where the information in the possession of the competent authority had originated from a European regulatory authority or an F I N AN C I A L M A RKE TS overseas regulatory authority, it may not be disclosed to a European regulatory authority or to any other third party without the express agreement of the European regulatory authority or the overseas regulatory authority which had transmitted it and, where appropriate, solely for the purposes for which that authority had given its agreement.
\n
(10)Where a European regulatory authority suspects that acts carried out by entities not subject to its supervision and which are contrary to the provisions of MiFID or MiFIR are being or have been carried out in Malta and notifies the competent authority to this effect, the competent authority shall take appropriate action.
\n
The competent authority shall inform the notifying European regulatory authority and ESMA of the outcome of any such action and, to the extent possible, of significant interim developments:
\n
Provided that any such action taken by the competent authority shall be without prejudice to the powers and functions of the European regulatory authority that has forwarded the information.
\n
(11)The competent authority may exercise the following powers at the request of or for the purposes of assisting a European regulatory authority: (a) the powers of inquiry under article 32; (b) the power to appoint inspectors under articles 33 and 36; (c) the powers to issue directives under article 39K; (d) the powers of entry under article 34; (e) the power to communicate to the European regulatory authority information which is in the possession of the competent authority, whether or not as a result of the exercise of any of the above powers.
\n
Added by:
\n
XXXI. 2017.36.
\n
(12)In relation to emission allowances, the competent authority shall cooperate with public bodies competent for the oversight of spot and auction markets and the European regulatory authorities, registry administrators and other public bodies charged with the supervision of compliance under Directive 2003/87/EC in order to ensure that they can acquire a consolidated overview of emission allowances markets.
\n
Added by:
\n
XXXI. 2017.36.
\n
(13)In relation to agricultural commodity derivatives, the competent authority shall report to and cooperate with public bodies competent for the oversight, administration and regulation of physical agricultural markets under Regulation (EU) No. 1308/ 2013.
\n
Added by:
\n
XXXI. 2017.36.
\n
(14)The competent authority shall consult with the European regulatory authority of the Member State or EEA State responsible for the supervision of credit institutions or insurance undertakings prior to granting an authorisation to a market operator which is: (a) a subsidiary of a credit institution or insurance undertaking authorised in the Union; or F I NANCIAL MAR KET S (b) a subsidiary of the parent undertaking of a credit institution or insurance undertaking authorised in the Union; or (c) controlled by the same person, whether natural or legal, who controls a credit institution or insurance undertaking authorised in the Union.
\n
(15)The competent authority and the European regulatory authorities referred to in sub-article (14) shall in particular consult each other when assessing the suitability of the shareholders or members and the reputation and experience of persons who effectively direct the business involved in the management of another entity of the same group. They shall exchange all information regarding the suitability of shareholders or members and the reputation and experience of persons who effectively direct the business that is of relevance to the other European regulatory authorities involved, for the granting of an authorisation as well as for the ongoing assessment of compliance with operating conditions.
\n
Added by:
\n
XXXI. 2017.36.
\n
(16)Where Malta is the host Member State of a regulated market and the competent authority has clear and demonstrable grounds for believing that such regulated market infringes the obligations arising from the provisions adopted pursuant to MiFID, it shall refer those findings to the European regulatory authority of the home Member State of the regulated market.
\n
Added by:
\n
XXXI. 2017.36.
\n
(17)Where, despite the measures taken by the European regulatory authority of the home Member State or because such measures prove inadequate, that regulated market persists in acting in a manner that is clearly prejudicial to the interests of Maltese investors or the orderly functioning of markets, the competent authority shall, after informing the European regulatory authority of the home Member State, take all the appropriate measures needed in order to protect investors and the proper functioning of the markets, which shall include the possibility of preventing that regulated market from making their arrangements available to r e m o t e m e m b e r s o r p a r t i c i p a n t s e s t a b l i sh e d i n M a l t a . T h e competent authority may refer the matter to ESMA which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No. 1095/2010.
\n
Added by:
\n
XXXI. 2017.36.
\n
(18)Any measure adopted pursuant to sub-article (16) involving sanctions or restrictions on the activities of a regulated market shall be properly justified and communicated to the regulated market concerned.
\n
Added by:
\n
XXXI. 2017.36.
\n
Art. 37A
\n
37A. (1) The competent authority may request the co-operation of a European regulatory authority in supervisory functions or for on-site verifications or investigations, and a European regulatory authority may likewise request the co-operation of the competent authority in the performance of its supervisory functions or in verifications or investigations.
\n
Co-operation in supervisory functions, onsite verifications or investigations.
\n
Added by:
\n
XX. 2007.43.
\n
(2)In the exercise of such co-operation between the competent authority and European regulatory authorities the provisions of article 17A of the Investment Services Act shall apply mutatis F I N AN C I A L M A RKE TS mutandis.
\n
Refusal to cooperate.
\n
Added by:
\n
XX. 2007.43.
\n
Amended by:
\n
XXXI. 2017.37.
\n
Co-operation with overseas regulatory authorities.
\n
Added by:
\n
XX. 2007.43.
\n
Amended by:
\n
III. 2009.15;
\n
XXXI. 2017.38.
\n
Art. 37B
\n
37B. The competent authority may refuse to act on a request for co-operation in carrying out supervisory functions, on-site verifications or investigations in terms of article 37A or to exchange information with European regulatory authorities designated as contact points under Article 79(1) of MiFID, in the circumstances laid down in article 17B of the Investment Services Act.
\n
Art. 37C
\n
37C. (1) Co-operation agreements with overseas regulatory authorities or other authorities, bodies and natural or legal persons in a country that is not a Member State or EEA State may be entered into only if the information disclosed is subject to guarantees of professional secrecy at least equivalent to those required under article 38. Such exchange of information must be intended for the performance of the functions of those overseas regulatory authorities or other authorities, bodies and natural or legal persons:
\n
Provided that the transfer of personal data to countries that are not Member States or EEA States shall be in accordance with the provisions of Chapter IV of Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data.
\n
(2)In the conclusion of co-operation agreements providing for the exchange of information with overseas regulatory authorities, other authorities or with bodies and natural or legal persons in countries that are not Member States or EEA States, the provisions of article 17D(2) of the Investment Services Act shall apply mutatis mutandis.
\n
(3)Where the information in the possession of the competent authority had originated from a European regulatory authority or an overseas regulatory authority, it may not be disclosed to an overseas regulatory authority or to any other third party without the express agreement of the European regulatory authority or the overseas regulatory authority which had transmitted it and, where appropriate, solely for the purposes for which that authority had given its agreement.
\n
Added by:
\n
XXXI. 2017.38.
\n
(4)Without prejudice to the foregoing provisions of this article, at the request of, or for the purposes of assisting an overseas regulatory authority, the competent authority may exercise the powers listed in article 17(11) of the Investment Services Act, and for the purposes of this sub-article the words \"European regulatory authority\" shall be read as \"overseas regulatory authority\".
\n
(5)The competent authority may also conclude cooperation agreements providing for the exchange of information with overseas regulatory authorities, bodies and natural or legal persons responsible for one or more of the following: (a) the supervision of credit institutions, other financial F I NANCIAL MAR KET S institutions, insurance undertakings supervision of financial markets; and the (b) the liquidation and bankruptcy of investment firms and other similar procedures; (c) the carrying out of statutory audits of the accounts of investment firms and other financial institutions, credit institutions and insurance undertakings, in the performance of their supervisory functions, or which administer compensation schemes, in the performance of their functions; (d) oversight of the bodies involved in the liquidation and bankruptcy of investment firms and other similar procedures; (e) oversight of persons charged with carrying out statutory audits of the accounts of insurance undertakings, credit institutions, investment firms and other financial institutions; (f) oversight of persons active on emission allowance markets for the purpose of ensuring a consolidated overview of financial and spot markets; (g) oversight of persons active on agricultural commodity derivatives markets for the purpose of ensuring a consolidated overview of financial and spot markets.
\n
Art. 37D
\n
37D. The competent authority may refer to ESMA situations where a request relating to one of the following has been rejected or has not been acted upon within a reasonable time:
\n
Binding mediation.
\n
Added by:
\n
XXXI. 2017.39. (a) to exchange information as provided for in article 37; or (b) to carry out a supervisory activity, an on-the-spot verification, or an investigation, as provided for in article 37A.
\n
Art. 37E
\n
37E. (1) The competent authority shall cooperate closely with the authorities performing the general supervision of credit institutions in accordance with relevant European Union law applicable to those institutions and, in the event of the resolution of a credit institution issuing covered bonds, with the Resolution Committee or the relevant European resolution authority, as applicable.
\n
(2)The competent authority shall cooperate closely with authorities in other Member States responsible for covered bond public supervision in terms of Article 18(2) of the CBD, including by providing the said authorities with any information which is relevant for the exercise of their supervisory tasks under the provisions of their national law transposing the CBD.
\n
(3)For the purposes of sub-article (2), the competent authority shall communicate: (a) all relevant information at the request of an Co-operation obligations in relation to covered bond public supervision.
\n
Added by:
\n
IX.2023.10.
\n
F I N AN C I A L M A RKE TS authority in another Member State responsible for covered bond public supervision in terms of Article 18(2) of the CBD; and (b) on its own initiative, any essential information to authorities in other Member States responsible for covered bond public supervision in terms of Article 18(2) of the CBD.
\n
(4)The competent authority shall cooperate with the EBA or, where relevant, the ESMA, for the purposes of the CBD.
\n
(5)In the event of the resolution of a credit institution issuing covered bonds, the competent authority shall cooperate with the Resolution Committee or the relevant European resolution authority, as applicable, in order to ensure that the rights and interests of the covered bonds investors are preserved, including at least by verifying the continuous and sound management of the covered bond programme during the period of the resolution process.
\n
(6)By 8th July 2024, the competent authority shall transmit to the European Commission information on the following: (a) developments regarding the number of approvals to issue covered bonds; (b) developments regarding the number of covered bonds issued in compliance with Part IV bis and any regulations and Covered Bonds Rules issued thereunder and in accordance with Article 129 of the CRR; (c) developments regarding the assets collateralising the issue of covered bonds; (d) developments overcollateralisation; regarding the level of (e) cross-border investments in covered bonds, including inward investment from, and outward investment to, third-countries; (f) developments regarding the issue of covered bonds with extendable maturity structures; (g) developments regarding the risks and benefits of the use of exposures as referred to in Article 129(1) of the CRR; (h) the functioning of covered bond markets.
\n
(7)For the purposes of this article, information shall be regarded as essential if it could materially influence the assessment of the issue of covered bonds in another Member State.
\n
F I NANCIAL MAR KET S
\n
Art. 38
\n
38.(1) Trading venues, central securities depositories, credit institutions issuing covered bonds, the competent authority, the competent authority, their respective members, officers, employees or agents, as well as auditors, inspectors and experts, as the case may be, engaged in terms and for the purposes of any of the provisions of this Act (a) shall deal with all documents and other information relating to the relevant trading venue or to dealings therewith or therein, or to the issue of covered bonds or to dealings thereof, or otherwise obtained for the purposes of, or pursuant to, any of the provisions of this Act or of any regulations made thereunder and not yet officially divulged, as confidential and protected by the duty of professional secrecy, and shall not disclose the same to any other person;
\n
Confidentiality of information.
\n
Substituted by:
\n
XVII. 2002.127.
\n
Amended by:
\n
IV. 2003.21;
\n
IV. 2005.30.
\n
Substituted by:
\n
XX. 2007.44.
\n
Amended by:
\n
L.N. 424 of 2007;
\n
X. 2011.18;
\n
XLVI.2021.46;
\n
IX.2023.11. (b) are prohibited from using such documents and information and all other matters which are confidential and protected by the duty of professional secrecy and which come to their knowledge by virtue of their position, in order to secure any advantage for themselves or for any third parties whether such third parties are connected or not with the financial instruments market.
\n
(2)Article 26 of the Investment Services Act shall apply mutatis mutandis to trading venues, credit institutions issuing covered bonds, the competent authority, their respective members, officers, employees or agents, as well as auditors, inspectors and experts engaged for the purposes of any of the provisions of this Act, bound by the obligation of confidentiality in terms of sub-article
\n
(1).
\n
(3)Any person who acts in contravention of this article shall, without prejudice to the provisions of the Prevention of Financial Markets Abuse Act, be guilty of an offence against this Act, and shall on conviction be liable to a fine (multa) of twelve thousand euro (€12,000) or to a term of imprisonment not exceeding two years or to both such fine and imprisonment.
\n
(4)Any person other than those mentioned in sub-articles (1) and (2) who acquires any documents or any other information to which the said sub-articles relate and who uses such documents or information, with intent to secure advantage either for himself or any other person, shall, without prejudice to the Prevention of Financial Markets Abuse Act, be guilty of an offence against this Act and shall on conviction be liable to the same penalty established for an offence against the provisions of this article.
\n
Art. 39
\n
39.(1) If, on an application by the competent authority made to the Civil Court, First Hall, the said court is satisfied: (a) that there is reasonable likelihood that a person will contravene any of the provisions of this Act, the regulations made thereunder or the bye-laws of a regulated market or will contravene or fail to comply Powers of the Court to make certain orders.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
XX. 2007.14, 45;
\n
IX.2023.12.
\n
F I N AN C I A L M A RKE TS with any obligation, requirement, Financial Market Rule, Capital Markets Rule, Covered Bonds Rule, directive or order made or given under any of the provisions of this Act, the regulations made thereunder or the bye-laws of a regulated market; or (b) that a person has contravened any such provision or has contravened or failed to comply with any such obligation, requirement, directive, Financial Market Rule, Capital Markets Rule, Covered Bonds Rule or order and that there is a reasonable likelihood that the contravention will continue or be repeated, the court may give such orders as it may deem appropriate to restrain the contravention.
\n
(2)If, on an application by the competent authority made to the Civil Court, First Hall, the said court is satisfied (a) that a person has contravened any of the provisions of this Act, the regulations made thereunder, the bye-laws of a regulated market or any obligation, requirement, Financial Market Rule, Capital Markets Rule, Covered Bonds Rule, directive or order made or given under any of the provisions of this Act or under the bye-laws of a regulated market; and (b) that there are steps which could be taken for remedying the contravention, the court may give such orders as it may deem appropriate to require that person and any other person who appears to the court to have been knowingly concerned in the contravention, to take such steps as the court may direct to remedy it or to mitigate its effect, as appropriate.
\n
(3)If, on an application by the Competent Authority made to the First Hall Civil Court, the court is satisfied (a) that a person has contravened any of the provisions of this Act, the regulations made thereunder, the bye-laws of a regulated market or any obligation, requirement, Financial Market Rule, Capital Markets Rule, Covered Bonds Rule, directive or order made or given under any of the provisions of this Act, the regulations made thereunder or the bye-laws of a regulated market; or (b) that any person has been knowingly concerned in the contravention, it may make an order restraining him from disposing of, or otherwise dealing with, any assets of his which it is satisfied he is reasonably likely to dispose of or otherwise deal with.
\n
(4)If, on an application made under sub-article (1), the court is further satisfied that (a) profits have accrued to any person as a result of the contravention; or (b) an investor has suffered loss or has been otherwise F I NANCIAL MAR KET S adversely affected as a result of that contravention, the court may order the person responsible for the contravention to pay into court such sum as appears to it to be just having regard to the extent of the profit, loss or adverse effect as aforesaid, and order such sum to be paid out as the court may direct to the persons who have entered into transactions as a result of which profits have a c c r u e d o r l o s s e s o r ad v e r s e e ffe cts have b ee n s u ff ere d a s aforesaid.
\n
(5)For the purposes of this article the court may order the production by any person of such accounts and the provision of such information, and verified in such manner, as the court may deem appropriate.
\n
(6)The First Hall Civil Court shall after hearing the person or persons mentioned in this article and the competent authority determine an application made under this section with urgency.
\n
(7)The provisions of this article shall be without prejudice to any right of any aggrieved person to bring proceedings directly in respect of any right such person may otherwise have independently of the competent authority.
\n
(8)The provisions of this article shall be without prejudice to the right of any person to demand the issue of any precautionary act under Title VI of Book Third of the Code of Organization and Civil Procedure.
\n
Art. 39A
\n
Without prejudice to any other powers conferred to it by this Act or any other law, where the competent authority is satisfied that a person’s conduct amounts to a breach of any of the provisions of
\n
Part III, or any regulations, or Capital Markets Rules issued
\n
thereunder, or that a person has contravened or failed to comply with any condition, obligation, requirement or directives made or given by the competent authority under any of the provisions of this Act or any regulations or Capital Markets Rules issued thereunder, including failure to co-operate in an investigation, the competent authority may by notice in writing and without recourse to a court hearing impose on such person an administrative penalty which may not exceed one hundred and fifty thousand euro (€150,000) for each breach or failure to comply, as the case may be, or any other administrative measure, as it may deem necessary.
\n
Administrative penalties and other measures.
\n
Substituted by:
\n
XLVI.2021.47.
\n
Amended by:
\n
XI.2025.15.
\n
(2)Administrative penalties that may be imposed by the competent authority, may be imposed in the form of a fixed penalty, a daily penalty, or both:
\n
Provided that the administrative penalties imposed by the competent authority in accordance with this article shall be effective, proportionate and dissuasive.
\n
(3)The provisions of article 16(4) of the Malta Financial Services Authority Act shall apply mutatis mutandis with respect to any administrative penalty imposed by the competent authority under sub- F I N AN C I A L M A RKE TS article (1).
\n
(4)The imposition by the competent authority of an administrative penalty or any other administrative measure in terms of this article shall be without prejudice to any other consequence emanating from the act or omission of the offender under civil or criminal law:
\n
Provided that in all cases where the competent authority imposes an administrative penalty in respect of anything done or omitted to be done by any person, and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.
\n
Administrative penalties and other measures for breaches relating to transparency obligations.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
LXXI.2021.11;
\n
XI.2025.16.
\n
Art. 39B
\n
Notwithstanding the provisions of article 39A, the competent authority may impose administrative penalties and other administrative measures as mentioned in sub-article (2), where it considers that: (a) an issuer has failed to make public, in a correct and complete manner and within the required time limit, any regulated information as required in this Act and the Capital Market Rules; or (b) any other person subject to the Capital Markets Rules has failed to notify, within the required time limit, the acquisition or disposal of a major holding in accordance with the Capital Markets Rules.
\n
(2)Notwithstanding the provisions of article 39A, the competent authority shall have the power to impose the following administrative penalties and other administrative measures for the breaches indicated in sub-article (1): (a) a public statement indicating the natural person or the legal entity responsible and the nature of the breach; (b) an order requiring the natural person or the legal entity responsible to cease the conduct constituting the breach and to desist from any repetition of that conduct; (c) in the case of a legal entity, administrative penalties of: (i) up to ten million euro (€10,000,000), or up to 5% of the total annual turnover according to the last available annual accounts approved by the management body; where the legal entity is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts pursuant to Directive 2013/ 34/EU, the relevant total turnover shall be the total annual turnover or the corresponding type of income pursuant to the relevant accounting Directives according to the last available F I NANCIAL MAR KET S (ii) consolidated annual accounts approved by the management body of the ultimate parent undertaking; or up to twice the amount of the profits gained or any losses avoided because of the breach, where those can be determined, whichever is higher; (d) in the case of a natural person, administrative penalties of: (i) (ii) up to two million euro (€ 2,000,000); or up to twice the amount of the profits gained or any losses avoided because of the breach, where those can be determined, whichever is higher.
\n
(3)Without prejudice to the provisions of sub-article (2), the competent authority may suspend the exercise of voting rights attached to shares in the event of any breach as referred to in subarticle (1)(a).
\n
(4)The administrative penalties and other administrative measures taken by the competent authority in terms of this article shall be effective, proportionate and dissuasive.
\n
Art. 39C
\n
Notwithstanding the provisions of article 39A, the competent authority may impose administrative penalties and other administrative measures as mentioned in sub-article (2), where it considers that: (a) a person’s conduct amounts to a breach of Article 3, Article 5, Article 6, Article 7(1) to (11), Article 8, Article 9, Article 10, Article 11(1) and (3), Article 14(1) and (2), Article 15(1), Article 16(1), (2) and (3), Article 17, Article 18, Article 19(1) to (3), Article 20(1), Article 21(1) to (4) and (7) to (11), Article 22(2) to (5), Article 23 (1), (2), (3) and (5), and, or Article 27 of the Prospectus Regulation; and, or (b) a person has failed to co-operate or comply in an investigation or with an inspection or request covered by Article 32.
\n
(2)Notwithstanding the provisions of article 19, the competent authority shall have the power to impose the following administrative penalties and other administrative measures for the breaches indicated in sub-article (1): (a) a public statement indicating the natural person or the legal entity responsible and the nature of the breach; (b) an order requiring the natural person or legal entity Administrative penalties and other measures for breaches of the Prospectus Regulation .
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
LXXI.2021.12.
\n
F I N AN C I A L M A RKE TS responsible to cease the conduct constituting the breach; (c) maximum administrative penalties of twice the amount of any profits gained or losses avoided because of the breach in cases where they can be determined; (d) in the case of a legal person, maximum administrative pecuniary sanctions of up to five million euro (€ 5,000,000), or up to 3% of the total annual turnover of that legal person, according to the last applicable financial statements approved by the management body; where the legal person is a parent undertaking or a subsidiary of a parent undertaking which is required to prepare consolidated financial accounts in accordance with Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income in accordance with the relevant European Union law in the area of accounting according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking; (e) in the case of a natural person, administrative pecuniary sanctions of up to seven hundred thousand euro (€700,000).
\n
(3)The administrative penalties and other measures taken by the competent authority in terms of this article shall be effective, proportionate and dissuasive.
\n
Administrative penalties and other administrative measures in relation to covered bonds.
\n
Added by:
\n
IX.2023.13.
\n
39CA. (1) Without prejudice to the powers of the competent authority under this Act or any other law, where the competent authority is satisfied that a person’s conduct amounts to a breach of any of the provisions of Part IV bis or any regulations or Covered Bonds Rules issued thereunder, or that a person has contravened or failed to comply with any condition, obligation, requirement or directives made or given by the competent authority under any of the provisions of this Act or any regulations or Covered Bonds Rules issued thereunder, including failure to co-operate in an investigation, the competent authority may, by notice in writing and without recourse to a court hearing, impose on such person an administrative penalty which may not exceed one hundred and fifty thousand euro (€150,000) for each breach or failure to comply, as the case may be and, or any other administrative measure, as it may deem necessary.
\n
(2)Without prejudice to the generality of sub-article (1), the competent authority may impose administrative penalties and other administrative measures in at least the following circumstances: (a) a credit institution has acquired an approval for a covered bond programme by means of false statements or other irregular means;
\n
F I NANCIAL MAR KET S (b) a credit institution no longer fulfils the conditions under which approval for a covered bond programme was granted; (c) a credit institution issues covered bonds without obtaining the approval of the competent authority in accordance with articles 31D and 31E; (d) a credit institution issuing covered bonds fails to meet the requirements set out in article 31I and in regulation 108(1) of the Recovery and Resolution Regulations; (e) a credit institution issues covered bonds that do not comply with article 31I and with regulation 68(7) of the Recovery and Resolution Regulations; (f) a credit institution issues covered bonds that are not collateralised in accordance with regulation 3 of the Financial Markets Act (Covered Bonds) Regulations; (g) a credit institution issues covered bonds that are collateralised by assets located outside the European Union in breach of regulation 4 of the Financial Markets Act (Covered Bonds) Regulations;
\n
S.L. 330.09.
\n
S.L. 330.09.
\n
S.L. 345.27.
\n
S.L. 345.27. (h) a credit institution collateralises covered bonds in an intragroup pooled covered bond structure in breach of regulation 5 of the Financial Markets Act (Covered Bonds) Regulations;
\n
S.L. 345.27. (i) a credit institution issuing covered bonds fails to fulfil the conditions for joint funding laid down in regulation 6 of the Financial Markets Act (Covered Bonds) Regulations;
\n
S.L. 345.27. (j) a credit institution issuing covered bonds fails to meet the requirements of composition of the cover pool laid down in regulation 7 of the Financial Markets Act (Covered Bonds) Regulations; (k) a credit institution issuing covered bonds fails to meet the requirements regarding derivative contracts in the cover pool laid down in regulation 8 of the Financial Markets Act (Covered Bonds) Regulations; (l) a credit institution issuing covered bonds fails to comply with the requirements of the segregation of cover assets in accordance with regulation 9 of the Financial Markets Act (Covered Bonds) Regulations;
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
S.L. 345.27.
\n
F I N AN C I A L M A RKE TS (m) a credit institution issuing covered bonds fails to report information or provides incomplete or inaccurate information in breach of regulation 11 of the Financial Markets Act (Covered Bonds) Regulations; (n) a credit institution issuing covered bonds repeatedly or persistently fails to maintain a cover pool liquidity buffer in breach of regulation 13 of the Financial Markets Act (Covered Bonds) Regulations; (o) a credit institution that issues covered bonds with extendable maturity structures fails to fulfil the conditions for extendable maturity structures laid down in regulation 14 of the Financial Markets Act (Covered Bonds) Regulations; (p) a credit institution issuing covered bonds fails to report information or provides incomplete or inaccurate information on its obligations in breach of the requirements on reporting set out in regulation 15(3) of the Financial Markets Act (Covered Bonds) Regulations; (q) where it has been determined that a credit institution issuing covered bonds has committed a serious, repeated or systematic breach, or a combination thereof, of the Prevention of Money Laundering Act, of any regulations made thereunder or of any procedures or guidance issued in terms of any such regulations; and, or (r) a credit institution issuing covered bonds fails to cooperate with the competent authority.
\n
(3)Without prejudice to the generality of sub-article (1), the administrative measures referred to therein shall include at least the following: (a) a withdrawal of an approval for a covered bond programme; (b) a public statement which indicates the identity of the natural or legal person and the nature of the breach in accordance with article 39GA; (c) an order requiring the natural or legal person to cease the conduct and to desist from a repetition of that conduct; and, or (d) a directive issued in terms of article 39K.
\n
(4)Any administrative penalties and other administrative measures imposed by the competent authority in terms of this article shall be effective, proportionate and dissuasive.
\n
F I NANCIAL MAR KET S
\n
(5)The competent authority shall ensure that any administrative penalties and other administrative measures imposed by it in terms of this article are effectively implemented.
\n
(6)When determining the type of administrative penalties or other administrative measures and the amount of administrative penalties to be imposed, the competent authority shall take into account the following circumstances, where relevant: (a) the gravity and the duration of the breach; (b) the degree of responsibility of the natural or legal person responsible for the breach; (c) the financial strength of the natural or legal person responsible for the breach, including by reference to the total turnover of the legal person or the annual income of the natural person; (d) the importance of profits gained or losses avoided because of the breach by the natural or legal person responsible for the breach, insofar as those profits or losses can be determined; (e) the losses caused to third parties by the breach, insofar as those losses can be determined; (f) the level of cooperation by the natural or legal person responsible for the breach with the competent authority; (g) any previous breaches by the natural or legal person responsible for the breach; (h) the breach. any actual or potential systemic consequences of
\n
(7)Without prejudice to sub-article (1), where the provisions of
\n
Part IV bis, or any regulations or Covered Bonds Rules issued
\n
thereunder, apply to legal persons, the administrative penalties and other administrative measures referred to in this article may also be imposed by the competent authority on members of the board of directors of any such legal person and on other individuals who under national law are responsible for the breach.
\n
(8)Administrative penalties that may be imposed by the competent authority under this article, may be imposed in the form of a fixed penalty, a daily penalty, or both.
\n
(9)The imposition by the competent authority of an administrative penalty in terms of this article shall be without prejudice to any other consequences of the act or omission of the F I N AN C I A L M A RKE TS offender under civil or criminal law:
\n
Provided that in all cases where the competent authority imposes an administrative penalty in respect of anything done or omitted to be done by any person and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.
\n
Administrative penalties and other measures in respect of members of a legal entity.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
IX.2023.14.
\n
Art. 39D
\n
39D. Where obligations imposed in terms of the Prospectus Regulation, this Act or any regulations or Capital Markets Rules issued thereunder, apply to the issuer or to any other legal entity, in the event of a breach of any provision thereof, administrative penalties and other measures can also be imposed, subject to the conditions laid down in national law, on the members of the administrative, management or supervisory bodies of the legal entity concerned, and on other individuals who are responsible for the breach under national law:
\n
Provided that this article shall not apply to breaches of any of the provisions of Part IV bis or any regulations or Covered Bonds Rules issued thereunder.
\n
Relevant circumstances.
\n
Added by:
\n
XLVI. 2021.48.
\n
Amended by:
\n
IX.2023.15.
\n
Art. 39E
\n
39E. In the case of administrative penalties or measures imposed by the competent authority in accordance with the provisions of this Act, the competent authority shall take into account all relevant circumstances, including where appropriate: (a) the gravity and the duration of the breach; (b) the degree of responsibility of the natural person or legal entity responsible; (c) the financial strength of the natural person or legal entity responsible, for example as indicated by the total turnover of the legal entity responsible or the annual income of the natural person responsible; (d) the importance of any profits gained or losses avoided by the natural person or legal entity responsible, in so far as they can be determined; (e) any losses sustained by third parties as a result of the breach, in so far as they can be determined; (f) the level of co-operation of the natural person or the legal entity responsible with the competent authority; (g) previous breaches by the natural person or legal entity responsible; (h) the impact of the breach on retail investors’ interests; (i) measures taken subsequent to the breach by the person responsible for the breach to prevent its repetition:
\n
Provided that this article shall not apply to administrative penalties and administrative measures imposed in terms of article 39CA.
\n
F I NANCIAL MAR KET S
\n
Art. 39F
\n
If the competent authority proposes to impose an administrative penalty on any person under any of the provisions of this Act, it shall give such person a notice in writing of its intention to do so, setting out the reasons for the decision it proposes to take.
\n
(2)Every notice given under sub-article (1), shall state that the recipient of the notice may, within fifteen (15) days from the service thereof, make representations in writing to the competent authority giving reasons why the proposed decision should not be taken, and the competent authority shall consider any representation so made before arriving at a final decision.
\n
Notice of administrative penalties.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
LXXI.2021.13.
\n
(3)The competent authority shall as soon as practicable notify its final decision in writing to any person to whom notice is to be given under sub-article (1).
\n
39FA. (1) If the competent authority proposes to impose an administrative penalty or any other administrative measure on any person in terms of article 39CA, it shall give such person a notice in writing of its intention to do so, setting out the reasons for the decision it proposes to take and specifying a period, being a period of not less than forty-eight (48) hours and not longer than thirty (30) calendar days, in which the recipient of the notice may make representations in writing to the competent authority giving reasons why the proposed decision should not be taken, and the competent authority shall consider any representation so made before arriving at a final decision:
\n
Notice of administrative penalties and measures in relation to covered bonds.
\n
Added by:
\n
IX.2023.16.
\n
Provided that the competent authority shall not be required to notify its intention to impose an administrative measure which is not an administrative penalty where urgent action is necessary to prevent significant losses to third parties or significant damage to the financial system:
\n
Provided further that, where the competent authority does not notify its intention to impose an administrative measure in terms of this sub-article, the person concerned shall, as soon as possible after the adoption of the administrative measure, be given the opportunity to make representations in writing to the competent authority giving reasons why the decision should not have been taken, and where necessary, that measure shall be revised.
\n
(2)The competent authority shall as soon as practicable notify its decision in writing to any person on whom an administrative penalty or an administrative measure has been imposed in terms of article 39CA. Any such decision shall be reasoned.
\n
Art. 39G
\n
The competent authority shall publish any decision imposing an administrative penalty or any other measure on its website immediately after the person subject to that decision has been informed of that decision.
\n
Publication of decisions.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
IX.2023.17;
\n
XI.2025.17.
\n
F I N AN C I A L M A RKE TS
\n
(2)The information published pursuant to sub-article (1), shall specify the type and nature of the breach, the identity of the person subject to the decision and any other information which the competent authority deems relevant.
\n
(3)The provisions of sub-articles (1) and (2) shall not apply to decisions of the competent authority imposing measures that are of an investigatory nature.
\n
(4)Where the competent authority considers, following a caseby-case assessment, that the publication of the identity of the legal person subject to the decision, or the personal data of a natural person, would be disproportionate, or where such publication would jeopardise an ongoing investigation or the stability of the financial markets, the competent authority shall: (a) defer publication of the decision until the reasons for that deferral cease to exist; or (b) publish the decision on an anonymous basis where such publication ensures effective protection of the personal data concerned and, where appropriate, postpone publication of the relevant data for a reasonable period of time where it is foreseeable that the reasons for anonymous publication will cease to exist during that period; or (c) not publish the decision in the event that the competent authority is of the opinion that publication in accordance with paragraphs (a) or (b) will be insufficient to ensure: (i) (ii) that the stability of financial markets is not jeopardised; or the proportionality of the publication of such decisions with regard to measures which are deemed to be of a minor nature.
\n
(5)Where the decision is subject to an appeal before a national judicial, administrative or other authority, the competent authority shall also publish immediately on its website such information and any subsequent information on the outcome of such an appeal. Any decision annulling a decision of the competent authority to impose an administrative penalty or any other administrative measure shall also be published.
\n
(6)Any decision that is published in accordance with this article shall remain accessible on the website of the competent authority for a period of at least five (5) years after its publication;
\n
Provided that personal data contained in any such decision shall be retained on the website of the competent authority for the period which is necessary, in accordance with the applicable data protection legislation.
\n
F I NANCIAL MAR KET S
\n
(7)This article shall not apply to administrative penalties and administrative measures imposed in terms of article 39CA.
\n
39GA. (1) The competent authority shall publish any decision imposing an administrative penalty or any other administrative measure in terms of article 39CA on its official website without undue delay after the person on whom the administrative penalty or administrative measure was imposed has been informed of that decision as well as of its publication on the official website of the competent authority.
\n
(2)The information published pursuant to sub-article (1) shall include information on the type and nature of the breach and the identity of the natural or legal person on whom the administrative penalty or administrative measure is imposed.
\n
(3)Notwithstanding the provisions of sub-articles (1) and (2), any decision imposing an administrative penalty or any other administrative measure in terms of article 39CA shall, in any of the following circumstances, be published on an anonymous basis and in accordance with Maltese law: (a) where the administrative penalty or administrative measure is imposed on a natural person and the publication of personal data is found to be disproportionate; (b) where the publication would jeopardise the stability of financial markets or an ongoing criminal investigation; (c) where publication would cause, insofar as it can be determined, disproportionate damage to the credit institutions or natural persons involved:
\n
Provided that in such cases the publication of the relevant data may be postponed.
\n
(4)Where the decision to impose an administrative penalty or any other administrative measure is subject to appeal before a national judicial, administrative or other authority, the competent authority shall, without undue delay, also publish on its official website information on the status of the appeal and on the outcome thereof.
\n
Any decision annulling a decision of the competent authority to impose an administrative penalty or any other administrative measure shall also be published.
\n
(5)Any decision that is published in accordance with this article shall remain on the official website of the competent authority for a period of at least five (5) years from the date of its publication:
\n
Provided that personal data contained in any such decision Publication of administrative penalties and administrative measures in relation to covered bonds.
\n
Added by:
\n
IX.2023.18.
\n
F I N AN C I A L M A RKE TS shall only be retained on the official website of the competent authority for the period which is necessary in accordance with the applicable data protection legislation. Such a retention period shall be determined taking into account the limitation periods provided for under Maltese law, but shall in no case be longer than ten (10) years.
\n
(6)The competent authority shall inform the EBA of any administrative penalties and other administrative measures imposed in terms of article 39CA, including, where relevant, any appeal in relation thereto and the outcome thereof.
\n
(7)The competent authority shall, from time to time, contact the Office of the Attorney General and the Commissioner of Police and seek information about any criminal punishments that may have been imposed for any breaches of any provisions of Part IV bis or any regulations or Covered Bonds Rules issued thereunder. The Commissioner of Police and, or, the Office of the Attorney General, as applicable, shall cooperate and shall provide their reply to the competent authority in a timely manner, thereby providing any information and details of the final judgement as necessary and shall, where relevant, send the competent authority a copy of the final judgement in relation to any such criminal punishments imposed. The competent authority shall submit said information and details and, where relevant, any such copies of final judgements, to the EBA.
\n
(8)The provisions of this article shall apply notwithstanding the provisions of article 41A.
\n
Suspension and removal of listed financial instruments from trading on an authorized regulated market.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
IX.2023.19.
\n
Art. 39H
\n
Without prejudice to any other powers conferred to it by this Act or any other law, the competent authority may: (a) suspend, or require the suspension, of listed financial instruments from listing and, or trading on an authorized regulated market for a maximum of ten (10) consecutive working days on any single occasion; and (b) remove, or require the removal of listed financial instruments from listing and, or trading on an authorized regulated market:
\n
Provided that where the competent authority suspends or removes, or requires the suspension or removal, from listing and, or trading of a listed financial instrument in terms of this sub-article, it shall also suspend or remove, or require the suspension or removal from listing and, or trading on that authorized regulated market, the derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to that listed financial instrument where the suspension or removal of such derivatives is necessary to support the objectives of the suspension or removal of the underlying listed financial instrument:
\n
F I NANCIAL MAR KET S Provided further that where the competent authority suspends or requires the suspension from listing and, or trading of a listed financial instrument in terms of this sub-article, the obligations set out in this Act, and any regulations or Capital Markets Rules or Covered Bonds Rules issued thereunder in relation to listed financial instruments shall continue to apply with respect to the listed financial instrument which was suspended.
\n
(2)Without prejudice to sub-article (1), a market operator operating an authorized regulated market may suspend or remove listed financial instruments from trading on the authorized regulated market operated thereby if such listed financial instruments no longer comply with any bye-laws of the authorized regulated market, unless such suspension or removal would be likely to cause significant damage to the investors’ interests or the orderly functioning of the market.
\n
(3)A market operator of an authorized regulated market that suspends or removes from trading a listed financial instrument in terms of sub-article (2), shall also suspend or remove from trading on that authorized regulated market the derivatives as referred to in points
\n
(4)to (10) of Section C of Annex I to MiFID that relate or are referenced to that listed financial instrument where the suspension or removal of such derivatives is necessary to support the objectives of the suspension or removal of the underlying financial instrument.
\n
(4)Where a market operator operating an authorized regulated market suspends or removes financial instruments and any related derivatives in accordance with the provisions of sub-articles (2) and
\n
(3), that market operator shall promptly make its decision public and notify the competent authority thereof, as well as provide it with any relevant information in relation thereto.
\n
(5)Where a market operator operating an authorized regulated market suspends or removes from trading on that authorized regulated market a listed financial instrument and any related derivatives in accordance with the provisions of this article, the competent authority shall require other authorized regulated markets, MTFs, OTFs and systematic internalisers, which fall under its jurisdiction and trade the same financial instrument or derivatives as referred to in points (4) to
\n
(10)of Section C of Annex I to MiFID that relate or are referenced to the listed financial instrument so suspended or removed, to also suspend or remove that listed financial instrument or derivatives from trading, where the suspension or removal is due to suspected market abuse, a take-over bid, or the non-disclosure of inside information about the issuer or financial instrument infringing Articles 7 and 17 of Regulation (EU) No. 596/2014, except where such suspension or removal could cause significant damage to the investors’ interests or the orderly functioning of the market:
\n
F I N AN C I A L M A RKE TS Provided that the competent authority shall immediately make public and communicate to ESMA and the European regulatory authorities of the other Member States or EEA States such a decision.
\n
(6)Where the competent authority receives a notification from a European regulatory authority of another Member State or EEA State in accordance with the fourth paragraph of Article 32(2) of MiFID, it shall require other authorized regulated markets, MTFs, OTFs and systematic internalisers, which fall under its jurisdiction and trade the same financial instrument or derivatives as referred to in points (4) to
\n
(10)of Section C of Annex I to MiFID that relate or are referenced to the financial instrument suspended or removed by the foreign regulated market, to also suspend or remove that financial instrument or derivatives from trading, where the suspension or removal is due to suspected market abuse, a takeover bid, or the non-disclosure of inside information about the issuer or financial instrument infringing Articles 7 and 17 of Regulation (EU) No. 596/2014, except where such suspension or removal could cause significant damage to the investors’ interests or the orderly functioning of the market:
\n
Provided that the competent authority shall communicate its decision to ESMA and the European regulatory authorities of the other Member States or EEA States, including an explanation if the decision was not to suspend or remove from trading the financial instrument or derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to the financial instrument suspended or removed by the foreign regulated market.
\n
(7)Sub-articles (2) to (6) shall also apply when the suspension from trading of a financial instrument or any related derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to those financial instruments suspended by a regulated market is lifted.
\n
(8)The notification requirements set out in sub-articles (2) to
\n
(6)shall also apply in the case where the decision to suspend or remove from trading a listed financial instrument or any related derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to that listed financial instrument is taken by the competent authority in accordance with the provisions of this article.
\n
Suspension and removal of financial instruments from trading on an MTF or an OTF.
\n
Added by:
\n
XLVI.2021.48.
\n
Amended by:
\n
IX.2023.20.
\n
Art. 39I
\n
39I. (1) Without prejudice to any other powers conferred to it by this Act or any other law, the competent authority may: (a) suspend, or require the suspension of, financial instruments from trading on an MTF or an OTF for a maximum of ten (10) consecutive working days on any single occasion: and (b) to remove, or require the removal of, financial F I NANCIAL MAR KET S instruments from trading on an MTF or an OTF:
\n
Provided that where the competent authority suspends or removes, or requires the suspension or removal, from trading a financial instrument in terms of this sub-article, it shall also suspend or remove, or require the suspension or removal, from trading on that MTF or OTF the derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate, or are referenced to that financial instrument where the suspension or removal of such derivatives is necessary to support the objectives of the suspension or removal of the underlying financial instrument:
\n
Provided further that where the competent authority suspends or requires the suspension from trading of a financial instrument in terms of this subarticle, the obligations set out in this Act and any regulations or Capital Markets Rules or Covered Bonds Rules issued thereunder in relation to financial instruments shall continue to apply with respect to the financial instrument which was suspended.
\n
(2)Without prejudice to sub-article (1), a market operator or an investment firm operating an MTF or an OTF may suspend or remove financial instruments from trading on the MTF or OTF operated thereby if such financial instruments no longer comply with the byelaws of the MTF or OTF, unless such suspension or removal would be likely to cause significant damage to the investors’ interests or the orderly functioning of the market.
\n
(3)A market operator or investment firm operating an MTF or an OTF that suspends or removes from trading a financial instrument in terms of sub-article (2), shall also suspend or remove from trading on that MTF or OTF the derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to that financial instrument where the suspension or removal of such derivatives is necessary to support the objectives of the suspension or removal of the underlying financial instrument.
\n
(4)Where a market operator or investment firm operating an MTF or OTF suspends or removes financial instruments and any related derivatives in accordance with the provisions of sub-articles (2) and (3), that market operator shall promptly make its decision public and notify the competent authority thereof, as well as provide it with any relevant information in relation thereto.
\n
(5)Where a market operator or investment firm operating an MTF or an OTF suspends or removes from trading on that MTF or OTF a financial instrument and any related derivatives in accordance with the provisions of this article, the competent authority shall require other authorized regulated markets, MTFs, OTFs and systematic internalisers, which fall under its jurisdiction and trade the same F I N AN C I A L M A RKE TS financial instrument or derivatives as referred to in points (4) to (10) of
\n
Section C of Annex I to MiFID that relate or are referenced to the
\n
financial instrument so suspended or removed, to also suspend or remove that financial instrument or derivatives from trading, where the suspension or removal is due to suspected market abuse, a take-over bid or the non-disclosure of inside information about the issuer or financial instrument infringing Articles 7 and 17 of Regulation (EU) No. 596/2014, except where such suspension or removal could cause significant damage to the investors’ interests or the orderly functioning of the market:
\n
Provided that the competent authority shall immediately make public and communicate to ESMA and the European regulatory authorities of the other Member States or EEA States such a decision.
\n
(6)Where the competent authority receives a notification from a European regulatory authority of another Member State or EEA State in accordance with the third paragraph of Article 32(2) of MiFID, it shall require other authorized regulated markets, MTFs, OTFs and systematic internalisers, which fall under its jurisdiction and trade the same financial instrument or derivatives as referred to in points (4) to
\n
(10)of Section C of Annex I to MiFID that relate or are referenced to the financial instrument suspended or removed by the foreign MTF or OTF, to also suspend or remove that financial instrument or derivatives from trading, where the suspension or removal is due to suspected market abuse, a take-over bid or the non-disclosure of inside information about the issuer or financial instrument infringing Articles 7 and 17 of Regulation (EU) No. 596/2014, except where such suspension or removal could cause significant damage to the investors’ interests or the orderly functioning of the market:
\n
Provided that the competent authority shall communicate its decision to ESMA and the European regulatory authorities of the other Member States or EEA States, including an explanation if the decision was not to suspend or remove from trading the financial instrument or derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to the financial instrument suspended or removed by the foreign MTF or OTF.
\n
(7)Sub-articles (2) to (6) shall also apply when the suspension from trading of a financial instrument and any related derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate or are referenced to these financial instruments suspended by an MTF or an OTF is lifted.
\n
(8)The notification requirements set out in sub-articles (2) to
\n
(6)shall also apply in the case where the decision to suspend or remove from trading a financial instrument and any related derivatives as referred to in points (4) to (10) of Section C of Annex I to MiFID that relate, or are referenced to that financial instrument is taken by the F I NANCIAL MAR KET S competent authority in accordance with the provisions of this article.
\n
Art. 39J
\n
Where the competent authority proposes to remove or requires the removal of a listed financial instrument from listing on an authorized regulated market, it must give the issuer of such financial instrument written notice thereof.
\n
(2)A notice given in terms of sub-article (1) shall:
\n
Notice of suspension or removal of listed financial instruments.
\n
Added by:
\n
XLVI.2021.48. (a) provide details in relation to the proposed removal of the listed financial instrument from listing on an authorized regulated market; (b) state the competent authority’s reason for the proposed removal of such listed financial instrument from listing on an authorized regulated market, provided that the interest of an authorized regulated market, the general public or the investors shall constitute sufficient reason therefor; (c) inform the issuer of such listed financial instrument that he may make representations to the competent authority within such period as may be specified in the notice; and (d) specify the period within which the proposed removal of such listed financial instrument from listing on an authorized regulated market would take effect.
\n
(3)The competent authority may extend the period within which representations may be made to it.
\n
(4)If, having considered any representations made to it by the issuer of the listed financial instruments, the competent authority decides to remove a listed financial instrument from listing on an authorized regulated market, the competent authority shall give the issuer of such listed financial instrument written notice of its decision.
\n
(5)The removal of a listed financial instrument from listing on an authorized regulated market shall take effect on such date as may be specified in the notice under sub-article (4).
\n
Art. 39K
\n
39K. (1) Without prejudice to any of the powers conferred on it under this Act, the competent authority may, whenever it deems it necessary, give by notice in writing, such directives as it may deem appropriate in the circumstances; and any person to whom, or to which the notice is given shall obey, comply with and otherwise give effect to any such directive within the time and in the manner stated in the directive or subsequent directives.
\n
(2)The power to issue directives under this article shall also include the power to vary, alter, add to or withdraw any directive, as well as the power to issue subsequent new directives.
\n
Power to issue directives.
\n
Added by:
\n
XLVI.2021.48.
\n
Appointment of a special administrator.
\n
Added by:
\n
IX.2023.21.
\n
S.L. 330.09.
\n
F I N AN C I A L M A RKE TS
\n
(3)Where the competent authority is satisfied that the circumstances so warrant, it may at any time make public any directive it has given under any of the provisions of this article.
\n
Art. 39L
\n
39L. (1) In the event of the insolvency or resolution of a credit institution issuing covered bonds, which is licensed in terms of the Banking Act, or when such credit institution has been determined to be failing or likely to fail pursuant to regulation 32(1) of the R e c o v e r y a n d R e s o l u t i o n R e g u l a t i o n s o r, i n e x c e p t i o n a l circumstances, where the competent authority determines that the proper functioning of that credit institution is seriously at risk, the competent authority may appoint a special administrator to ensure that the rights and interests of the covered bonds investors are preserved, including at least by verifying the continuous and sound management of the covered bond programme during the period of the resolution process:
\n
Provided that, without prejudice to any other powers conferred on the competent authority under this Act or any other applicable law, the competent authority shall have the power to order the credit institution to pay the remuneration due to the special administrator, including all expenses that may have been incurred by such special administrator.
\n
(2)The competent authority shall issue Covered Bonds Rules laying down the tasks and responsibilities of the special administrator at least in relation to: (a) the discharge of the liabilities attached to the covered bonds; (b) the management and realisation of cover assets, including their transfer together with covered bond liabilities to another credit institution issuing covered bonds; (c) the legal transactions necessary for the proper administration of the cover pool, for the ongoing monitoring of the coverage of liabilities attached to the covered bonds, for the initiation of proceedings in order to bring assets back into the cover pool and for the transferral of the remaining assets to the insolvency estate of the credit institution which issued the covered bonds after all covered bond liabilities have been discharged:
\n
Provided that for the purposes of paragraph (c), the special administrator shall be allowed to operate, in the case of the insolvency of the credit institution issuing the covered bonds, under the authorisation held by that credit institution, subject to the same operational requirements.
\n
(3)The competent authority, the special administrator appointed in terms of sub-article (1) and the Resolution Committee shall, for the F I NANCIAL MAR KET S purposes of the insolvency or resolution process of the credit institution issuing covered bonds, coordinate and exchange information among each other.
\n
Art. 40
\n
40.(1) Any person who contravenes or fails to comply with any of the provisions of article 32 or of any court order made under article 39 or fails to comply with any condition, obligation, requirement, order, directive, Financial Market Rule, Capital Markets Rule or Covered Bonds Rule or regulations made, provided for or given under any of the provisions of this Act shall be guilty of an offence under this Act.
\n
Offences.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
XX. 2007.14, 47;
\n
IX.2023.22.
\n
(2)Any person who knowingly or recklessly gives the competent authority, any person appointed by it under article 32(1)(c) or any inspector appointed under article 33, information which is false or misleading shall be guilty of an offence.
\n
(3)Any person who removes, destroys, conceals or fraudulently alters any book, document or other paper, including information stored in electronic format, which is or is likely to be relevant to a request for information or documentation or an inspection or an investigation in terms of this Act, shall be guilty of an offence.
\n
(4)Any person who obstructs a person exercising rights conferred by this Act shall be guilty of an offence under this Act.
\n
Art. 41
\n
41.(1) A person guilty of an offence under the provisions of section 40 shall be liable on conviction to a four hundred and sixtysix thousand euro (€466,000) or to a term of imprisonment not exceeding four years, or to both such fine and imprisonment.
\n
(2)No proceedings for an offence under this Act shall be commenced without the consent of the Attorney General.
\n
Criminal proceedings.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
L.N. 424 of 2007;
\n
X. 2011.20.
\n
(3)The provisions of this Act shall not affect any criminal proceedings that may be competent under any other law.
\n
Art. 41A
\n
41A. If it appears to the competent authority or the competent authority that a person has contravened any of the provisions of this Act or of any regulations made under this Act or has contravened or failed to comply with any condition, obligation, requirement, Financial Market Rules, Capital Markets Rules or directives made or given under any of the provisions of this Act, the competent authority or the competent authority may publish a statement to that effect indicating the natural person or the legal entity responsible and the nature of the breach, and, or impose an order requiring the natural person or legal entity responsible to cease the conduct constituting the breach and to desist from any repetition of that conduct.
\n
Art. 41B
\n
41B. (Deleted by XLVI. 2021.50).
\n
PART VI
\n
FINANCIAL SERVICES TRIBUNAL Issue of public statement.
\n
Added by:
\n
XX. 2007.48.
\n
Amended by:
\n
XIX. 2016.12;
\n
XLVI.2021.49.
\n
Appeal against decision of the Listing Authority.
\n
Added by:
\n
XIX. 2016.13;
\n
Amended by:
\n
XLVI.2021.50.
\n
Appeals to the Tribunal.
\n
Substituted by:
\n
XLVI.2021.51.
\n
Amended by:
\n
IX.2023.23;
\n
XI.2025.18.
\n
F I N AN C I A L M A RKE TS
\n
Art. 42
\n
(1)Any person who is aggrieved by a decision of the competent authority: (a) to refuse a prospectus or admissibility to listing; (b) to refuse to grant an approval for a covered bond programme; (c) to refuse an application for authorisation to provide the services of a regulated market in or from within Malta; (d) to suspend or remove listed financial instruments from listing and, or from trading on a trading venue; (e) to refuse an application for authorisation to act as a central securities depository; (f) to revoke an authorisation to act as a central securities depository when this is revoked by the competent authority in terms of article 27 of this Act; (g) concerning the expenses of and incidental to an investigation under article 33; (h) to issue a directive; (i) to impose an administrative penalty or any other administrative measures; (j) to withdraw an approval for a a covered bond programme; (k) to refuse an application for registration of a sponsor; or (l) to cancel or suspend the registration of a sponsor, may appeal against such decision to the Tribunal within such period and under such conditions as are established under article 21 of the Malta Financial Services Authority Act.
\n
(2)Without prejudice to sub-article (1), any person who is aggrieved by the competent authority’s failure to take a decision in respect of: (a) an application for the approval of a prospectus or a request for changes or supplementary information within the time limits set out in Article 20(2), (3) and
\n
(6)of the Prospectus Regulation in respect of that application; (b) an application for authorisation to act as a central securities depository which contains all the information required under the provisions in force within six (6) months of its submission; or (c) any application for the approval of a covered bond programme, may appeal against such failure to decide to the Tribunal within such period and under such conditions as are established under article 21 of the Malta Financial Services Authority Act.
\n
F I NANCIAL MAR KET S
\n
(3)Any person who is aggrieved by a decision of a market operator operating an authorized regulated market, an MTF or an OTF to suspend or remove financial instruments or listed financial instruments, as applicable, from trading on the authorized regulated market, MTF or OTF operated thereby may appeal against such decision to the Tribunal within such period and under such conditions as are established under article 21 of the Malta Financial Services Authority Act.
\n
(4)The provisions of sub-articles (1) to (3) shall be without prejudice to the right of any person who is aggrieved by a decision or failure to decide of the competent authority or market operator of an authorized regulated market to appeal there from in accordance with any regulations issued under this Act.
\n
Art. 43
\n
An appeal against a decision of the competent authority or a market operator of an authorized regulated market shall not suspend the operation of that decision:
\n
Provided that a decision of the competent authority or a market operator operating an authorized regulated market to remove listed financial instruments from listing and, or trading, as applicable, on an authorised regulated market, or a decision of the competent authority to withdraw an approval for a covered bond programme, shall not become operative until the expiration of the period within which an appeal lies under this article and, if an appeal is filed within such period, the decision shall become operative on the date of the decision of the Tribunal dismissing the appeal or on the date on which the appeal is abandoned.
\n
Art. 44
\n
44.Subject to articles 42 and 43 of this Act, the provisions of article 21 of the Malta Financial Services Authority Act shall apply mutatis mutandis to appeals that may be brought before the Tribunal under this article.
\n
PART VII
\n
MISCELLANEOUS
\n
Art. 45
\n
45.(1) Quoted financial instruments may be traded outside the regulated market on which they are listed, or admitted to a multilateral trading facility or admitted to an Organised Trading Facility:
\n
Provided that, for the purposes of this sub-article, the term \"admitted\" shall mean admitted to listing following an admission process approved by the Multilateral Trading Facility or Organised Trading Facility, or admitted to listing and trading following an admission process approved by the Multilateral Trading Facility or Organised Trading Facility.
\n
(2)The Minister may make regulations to establish conditions and procedures under which quoted financial instruments may be Operation of a decision.
\n
Substituted by:
\n
XLVI.2021.52.
\n
Amended by:
\n
IX.2023.24.
\n
Applicability of article 21 of the Malta Financial Services Authority Act .
\n
Added by:
\n
XXVII. 2002.128.
\n
Substituted by:
\n
XX. 2007.51.
\n
Amended by:
\n
XLVI.2021.53.
\n
Trading outside regulated markets.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
IV. 2005.30.
\n
Substituted by:
\n
XX. 2007.52.
\n
Amended by:
\n
XIX. 2016.14.
\n
F I N AN C I A L M A RKE TS traded outside the regulated markets on which such quoted financial instruments are listed and other than by means of facilities provided by any such regulated markets.
\n
Transfer of financial instruments.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
IV. 2005.30.
\n
Art. 46
\n
46.Notwithstanding the provisions of any other law, the transfer of quoted financial instruments in quoted companies need not be made by an instrument in writing.
\n
Powers of the Resolution Committee.
\n
Added by:
\n
XLVI.2021.54.
\n
Amended by:
\n
IX.2023.25.
\n
Art. 46A
\n
46A. The provisions of this Act and any regulations or Capital Markets Rules or Covered Bonds Rules issued thereunder shall be without prejudice to the powers of the Resolution Committee under the Malta Financial Services Authority Act, any regulations issued thereunder and any other applicable law.
\n
Civil Code.
\n
Added by:
\n
XXVII. 2002.128.
\n
Amended by:
\n
IV. 2005.30;
\n
XX. 2007.53.
\n
Art. 47
\n
47.The provisions of article 1966(3) and (4) of the Civil Code shall not apply with respect to quoted financial instruments and the privilege referred to in Title XXI of Part II of Book Second of the said Code shall arise where the pledge has been duly registered with a regulated market in accordance with the bye-laws.
\n
Temporary suspension of listed financial instruments from listing and, or trading on an authorized regulated market.
\n
Substituted by:
\n
XVII. 2002.129.
\n
Amended by:
\n
IV. 2005.30;
\n
XX. 2007.14;
\n
XLVI.2021.55.
\n
Art. 48
\n
48.(1) Without prejudice to the provisions of article 39I the competent authority shall have the power to suspend temporarily the listing and, or trading of listed financial instruments on any authorized regulated market if in its opinion, the orderly transaction of business is being prevented, or is likely to be prevented because of the occurrence of: (a) any emergency or natural disaster; (b) any economic, financial or political crisis; or (c) any other event which disrupts trading.
\n
(2)The Minister may recommend to the competent authority the temporary suspension of the listing and, or trading of listed financial instruments on any authorized regulated market if he is of the opinion that the orderly transaction of business of a regulated market is being disrupted because of any of the occurrences referred to in sub-article (1)(a), (b) or (c) which in the opinion of the Minister merits such temporary suspension.
\n
(3)The competent authority may order that for such time as it may determine no trading of any kind may be transacted in one or more specified financial instruments of quoted companies if it has reasons to believe that this would be in the interest of the regulated market concerned, the public or investors generally:
\n
Provided that a temporary suspension ordered by the competent authority under this article may not be of more than t h i r t y d a y s i n a p e r i o d of t h r e e m o n t h s u n l e s s s uc h l o ng e r suspension is approved by the Minister.
\n
(4)No transaction may be executed at any time in the event of the temporary suspension of listing and, or trading under this article.
\n
Any transaction so executed in contravention of this sub-article shall F I NANCIAL MAR KET S be invalid.
\n
Art. 49
\n
49.(1) The Minister, acting on the advice of the competent authority, may make regulations: (a) to give effect to the provisions of this Act, including regulations for the better regulation of central securities depositories, data reporting services providers, credit rating agencies and regulated markets and, or the admissibility to listing of financial instruments thereon and to provide for the direct or indirect membership of, or access to, regulated markets within the terms of and in line with Malta’s international commitments; (b) to govern the transfer of ownership and, or delivery of financial instruments quoted on a regulated market, clearing and settlement of transactions effected on a regulated market, payment in respect of the transfer of financial instruments quoted on a regulated market, pledging of financial instruments quoted on a regulated market; (c) to regulate the application of article 50 to regulated markets and to commercial partnerships other than companies; (ca) to regulate the activities of sponsors appointed with respect to applications for admissibility to listing of securities on a local regulated market, including the appointment and registration of such sponsors, the cancellation or suspension of such registration, and any requirements, restrictions and conditions in relation thereto, and to regulate anything that is incidental to, or connected with any such matters; (d) to regulate the transposition, implementation and giving effect to the provisions, requirements, obligations and commitments relating to regulation of credit rating agencies, data reporting services providers, regulated markets and, or the admissibility to listing of financial instruments thereon arising out of membership of, affiliation to or relationship with international or regional organisations or groupings of countries or out of any treaty, convention or other international agreement whether bilateral, regional or multilateral, to which Malta is a party; (e) to transpose, implement and give effect to the provisions and requirements of Directives, Regulations and any other legislative measures of the European Union requiring transposition and, or implementation, as they may be amended from time to time, including any implementing measures that have been or may be issued thereunder and including those relating to licence holders, credit rating agencies, regulated markets, commodities markets, central counterparties, central securities depositaries, data reporting services providers, Power to make regulations.
\n
Added by:
\n
XVII. 2002.130.
\n
Substituted by:
\n
IV. 2003.22.
\n
Amended by:
\n
IV. 2005.30;
\n
XX. 2007.14, 54;
\n
XIX. 2010.26;
\n
XX. 2013.33;
\n
XXXI. 2017.42;
\n
XLVI.2021.56;
\n
LXXI.2021.14;
\n
XI.2025.19.
\n
F I N AN C I A L M A RKE TS market making, short selling, transactions in OTC derivatives, trade repositories and, or the admissibility to listing of financial instruments thereon and others as may be specified therein or to any other matter falling within the terms of this Act; regulations made under this paragraph, and strictly related to transposition or implementation as aforesaid, may provide that any provision of this Act or of any other law shall not apply to matters falling under the regulations, and that in so far as any of the provisions of the regulations are inconsistent with the provisions of this Act or of any other law, such provisions in any such regulations shall prevail; (f) to regulate the operation and, or registration of central counterparties operating in or from Malta; and, or (g) to exempt any person from any one or more of the provisions of this Act and any regulations issued thereunder, subject to such variations, additions, adaptations and modifications as may be prescribed, and subject to such conditions or other requirements, including other forms of authorisation and notification procedures, as may be prescribed.
\n
(2)Regulations made under this article, may be made subject to such exemptions or conditions as may be specified therein, may make different provision for different cases, circumstances or purposes and may give to the competent authority such powers of adaptation of the regulations as may also be so specified.
\n
Added by:
\n
XXXI. 2017.42. (2A) Regulations made under this article may impose: (a) administrative penalties which may not exceed one hundred and fifty thousand euro (€150,000) for each infringement or failure to comply, as the case may be; (b) punishments or other penalties in respect of any contravention or failure to comply not exceeding a fine (multa) of four hundred and sixty-six thousand euro (€466,000) or to a term of imprisonment not exceeding four years, or to both such fine and imprisonment; (c) administrative penalties and fines higher than one hundred and fifty thousand euro (€150,000), and fines higher than four hundred and sixty-six thousand euro (€466,000), where deemed necessary or appropriate for any contravention of or failure of compliance with any EU Directive or EU Regulation or of any regulations made under this article to transpose or to give effect to any EU Directive or EU Regulation.
\n
Added by:
\n
XXXI. 2017.42. (2B) Regulations made under this article may prescribe penalties and fines as provided for in sub-article (2A)(c), for any breach of any provision of the Act or for any breach of any Financial Market Rules, transposing and, or implementing any EU Directive or EU Regulation.
\n
(3)Where regulations have been issued in terms of this article, the competent authority may issue Financial Market Rules within F I NANCIAL MAR KET S the meaning of article 4 of this Act for the better carrying out and to better implement the provisions of the regulations.
\n
Art. 50
\n
50.Notwithstanding anything contained in the Duty on Documents and Transfers Act, or in any Act replacing that Act, no duty shall be payable in accordance with that Act in respect of any transfer of any financial instruments of a quoted company, or the transfer of any financial instruments of the Government or any body corporate established by law, where such transfer is made either on a regulated market or outside the regulated market on which they are listed in terms of article 45 or on a regulated multilateral system or an equivalent regulated market or multilateral system in a non-Member State or non-EEA State.
\n
Exemptions from duty on documents.
\n
Amended by:
\n
V. 1992.5;
\n
XVI. 1994.14;
\n
XVII. 2002.110;
\n
131;
\n
IV. 2005.30.
\n
Substituted by:
\n
XX. 2007.55.
\n
Amended by:
\n
XIX. 2010.27.
\n
Art. 51
\n
51.(1) An order for the payment of expenses of and incidental to, an investigation under article 33(5) shall constitute an executive title within the meaning and for the purposes of Title VII of Part I of Book Second of the Code of Organization and Civil Procedure.
\n
Executive title.
\n
Added by:
\n
XVII. 2002.132.
\n
Amended by:
\n
XX. 2007.56.
\n
(2)If all or any of the amount payable under an order under article 33(5) is outstanding at the end of the specified period, the Competent Authority may proceed to enforce payment after two days from the service on the debtor of an intimation for payment made by means of a judicial act.
\n
Art. 52
\n
52.Deleted by Act V.2020.12.
\n
Exclusion of liability.
\n
Added by:
\n
XVII. 2002.132.
\n
Amended by:
\n
XX. 2007.57.
\n
Art. 53
\n
53.Repealed by Act IX.2023.26.
\n
Objective.
\n
Added by:
\n
XX. 2007.58.
\n
Art. 54
\n
(1)Covered bonds issued before 8th July 2022 that comply with the requirements laid down in the relevant provisions of the Investment Services Rules, as applicable on the date of their issue, shall not be subject to the requirements set out in article 31D and in article 31I(2) with respect to the conditions laid down in regulation 68(7) of the Recovery and Resolution Regulations, but may continue to be referred to as covered bonds in accordance with this Act until their maturity.
\n
(2)The competent authority shall monitor the compliance of covered bonds issued before 8th July 2022 with the requirements laid down in the relevant provisions of the Investment Services Rules, as applicable on the date of their issue, as well as with the requirements of Part IV bis and any regulations and Covered Bonds Rules issued thereunder, insofar as they are applicable in accordance with subarticle (1).
\n
(3)Sub-articles (1) and (2) shall apply to tap issues of covered bonds for which the opening of the International Security Identification Number (ISIN) is before 8th July 2022 for up to twenty- Transitional measures.
\n
Added by:
\n
IX.2023.27.
\n
S.L. 330.09.
\n
F I N AN C I A L M A RKE TS four (24) months after that date, provided that those issues comply with all the following requirements: (a) the maturity date of the covered bond is before 8th July 2027; (b) the total issue size of tap issues made after 8th July 2022 does not exceed twice the total issue size of the covered bonds outstanding on that date; (c) the total issue size of the covered bond at maturity does not exceed six billion euro (€6,000,000,000); (d) the collateral assets are located in Malta. ---------------------------------Transitory provision - Act XX of 2007 .
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Transitory provisions.
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155.(1) With effect from such date * as the Minister may by order establish, hereinafter \"the operative date\", the Malta Stock Exchange plc shall continue in the personality of the Malta Stock Exchange established under Part IV of the Financial Markets Act prior to the repeal of such Part by this Act; and subject to the exclusion of the property described in subarticle (3), the Malta Stock Exchange plc shall accordingly succeed to all its assets, rights, liabilities and obligations, including the recognition order issued to the Malta Stock Exchange in terms of Part II of the Financial Markets Act, which, unless specifically cancelled or repealed, shall remain in force until the operative date.
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(2)With effect from the operative date: (a) the competent authority shall issue in favour of the Malta Stock Exchange plc an authorisation in terms of Part II of the Financial Markets Act. Upon the issue of such authorisation, the recognition order referred to in sub-article (1) shall automatically lapse; (b) the Malta Stock Exchange plc shall be deemed to have satisfied the requirements of Part IV of the Financial Markets Act and the competent authority shall issue an authorisation in its favour with effect from such date.
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(3)All authorisations, decisions, licenses, warrants, approvals, notices and other acts or commitments made or taken by the Malta Stock Exchange, including any membership or admission to the official list and any other recognised list and any Council Notice or bye-laws, as well as agreements, contracts of employment and relative staff appointments and conditions, shall as from the operative date be deemed to have been made or taken and assumed by the Malta Stock Exchange plc, and shall, unless specifically cancelled or repealed, remain in force accordingly, with such modifications and adaptations as are strictly necessary to implement fully and correctly the succession and devolution of the business and the rights and obligations as aforesaid of the Malta Stock Exchange to and in favour of the Malta Stock Exchange plc in terms of this Part.
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(4)The immovable property and rights relating thereto as described in the Schedule to this Part shall devolve to the Land Department or another entity whose shares are wholly owned by Government which shall within one month from the operative date cause a declaratory public deed to be published containing a detailed description of the allocation and the devolution in its favour of and of its succession to the immovable property and rights relating thereto which prior to the operative date were vested in *1st November, 2007 - see Legal Notice 319 of 2007.
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F I NANCIAL MAR KET S the Malta Stock Exchange, subject to the provisions of this Part, and a note thereon shall be duly enrolled at the Public Registry and the Land Registry, as the case may be.
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(5)The succession, as from the operative date, of the assets, rights, liabilities and obligations in favour of Malta Stock Exchange plc and the Land Department or another entity whose shares are wholly owned by Government, as the case may be, described in this Part, shall be valid and effective even as regards third parties by operation of law without the need for any other formality, other than the public deed and notes required under this article, and shall be exempt from the payment of income tax, duty on documents and other fiscal charges, notwithstanding any other provision of law.
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(6)Unless the context otherwise requires, any reference in any law to the Malta Stock Exchange shall after the operative date be deemed to be a reference to the Malta Stock Exchange plc; and any reference to the Council, a member of the Council or any officer or employee of the Malta Stock Exchange shall after the operative date be deemed to be a reference to the Board of Directors, a director of the company and to officers or employees of the company, respectively.
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SCHEDULE (Article 155) The immovable property devolving in favour of the MSE (Holdings) Limited consisting of offices and premises known as the \"Malta Stock Exchange\" or \"Bor\\a ta’ Malta\", with all the buildings and improvements thereon, including all rights and appurtenances relating thereto, formerly known as the \"Post Office Central Mailing Room\", formerly also known as the \"Barrakka Garrison Church\", situated at Castille Place, Valletta, without an official number, together with its surrounding garden, measuring approximately one thousand one hundred and thirty square metres (1130m 2 ) and is bounded altogether on the North-East and the North-West by Castille Place and the South-East by the Upper Barrakka Gardens, as better described in the emphyteutical lease between the Malta St o c k E x c h a n g e a n d t h e L a n d s Au th o r i t y ac t i n g o n b e h a l f of t h e Government of Malta, signed on the 11 December 2007 in the acts of Vincent Miceli, Notary Public in Malta at the Lands Department.
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Amended by:
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XXVII.2017.82