Obsah (6)

Article 2Article 3Article 23Article 24Article 27Article 29

ACT AN ACT to provide for the establishment

a framework for crowdfunding service providers for business and the requirements for the provision

crowdfunding services, for the organisation, authorisation and supervision

crowdfunding service providers, for the operation

crowdfunding platforms as well as for transparency and marketing communications in relation to the provision

crowdfunding services in the European Union. 14th July, 2023 ACT XXV

2023, as amended by Act XI

2025. ARRANGEMENT

THE ACT Part I Part II Part III Part IV Part V Part VI Preliminary Authorisation Requirements Ongoing Obligations Regulatory and Investigatory Powers Cooperation with Other Authorities Appeals, Sanctions and Confidentiality Articles 1-4 5 - 11 12 - 15 16 - 26 27 - 30 31 - 34 PART I PRELIMINARY 1.

this Act is the Crowdfunding Service Providers Act. Short title, applicability and purpose.

this Act is to implement the relevant provisions

the ECSP Regulation as herein defined, and they shall be interpreted and applied accordingly. 2. requires:

Article 2

the ECSP Regulation; "client" shall have the same meaning as that assigned to it in paragraph (g)

Article 2

the ECSP Regulation; "competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act;   CROWDFUNDING SERVICE PROVIDERS "crowdfunding

fer" shall have the same meaning as that assigned to it in paragraph (f)

Article 2

the ECSP Regulation; "crowdfunding platform" shall have the same meaning as that assigned to it in paragraph (d)

Article 2

the ECSP Regulation; "crowdfunding project" shall have the same meaning as that assigned to it in paragraph (l)

Article 2

the ECSP Regulation; "crowdfunding service provider" shall have the same meaning as that assigned to it in paragraph (e)

Article 2

the ECSP Regulation; "crowdfunding service" shall have the same meaning as that assigned to it in paragraph (a)

Article 2

the ECSP Regulation; "ECSP Regulation" means Regulation (EU) 2020/1503

the European Parliament and

the Council

7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may be issued thereunder; "ESMA" means the European Securities and Markets Authority, established by Regulation (EU) No 1095/2010

the European Parliament and

the Council

24 November 2010; "European regulatory authority" means the body or bodies designated by a Member State or EEA State other than Malta in accordance with Article 29

the ECSP Regulation to carry out the functions and duties provided for in the ECSP Regulation; "individual portfolio management

loans" shall have the same meaning as that assigned to it in paragraph (c)

Article 2

the ECSP Regulation; "investor" shall have the same meaning as that assigned to it in paragraph (i)

Article 2

the ECSP Regulation; "loan" shall have the same meaning as that assigned to it in paragraph (b)

Article 2

the ECSP Regulation; "management body" means the body or bodies

a CROWDFUNDING SERVICE PROVIDERS licence holder which are appointed in accordance with national law and are empowered to set the strategy, objectives and overall direction

the licence holder, and oversee and monitor management decision making, and includes the persons who effectively direct the business

the licence holder; "marketing communications" shall have the same meaning as that assigned to it in paragraph (o)

Article 2

the ECSP Regulation; "the Minister" means the Minister responsible for the regulation

financial services; "overseas regulatory authority" means an authority in a country or territory outside Malta that is not a Member State or EEA State which exercises any regulatory or supervisory function in relation to financial services corresponding to a function

the competent authority as defined in the Malta Financial Services Authority Act; "project owner" shall have the same meaning as that assigned to it in paragraph (h)

Article 2

the ECSP Regulation; "qualifying shareholding" means a direct or indirect holding in a company which represents ten per centum (10%) or more

the share capital or

the voting rights referred to in Articles 9 and 10

Directive 2004/109/EC

the European Parliament and

the Council

the 15 December 2004 on the harmonization

transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/ 34/EC taking into account the conditions regarding the aggregation thereof laid in that Directive, or which makes it possible to exercise a significant influence over the management

the company in which that holding subsists, and "qualifying shareholder" shall be construed accordingly; "Regulation (EU) No 1095/2010" means Regulation (EU) No 1095/2010

the European Parliament and

the Council

24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may be issued thereunder; "Rules" means Rules issued by the competent authority         CROWDFUNDING SERVICE PROVIDERS in accordance with this Act; "transferable securities" shall have the same meaning as that assigned to it in paragraph (m)

Article 2

the ECSP Regulation;   "working days" means days which shall not include Saturdays and the days referred to in the National Holidays and other Public Holidays Act.

this Act and any regulations or Rules issued thereunder shall not apply to: (a) crowdfunding services that are provided to project owners that are consumers, as defined in point (a)

Article 3

Directive 2008/48/EC

the European Parliament and

the Council

23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC; (

1. b)other services related to a crowdfunding service and that are provided in accordance with national law; (
2. c)crowdfunding

fers with a consideration

more than five million euro (€5,000,000), which shall be calculated over a period

twelve

: (i) the total consideration

fers

transferable securities and admitted instruments for crowdfunding purposes and amounts raised by means

loans through a crowdfunding platform by a particular project owner; and (ii) the total consideration

fers to the public

transferable securities made by the project owner referred to in sub-paragraph (i) in its capacity as an

feror pursuant to the exemption under Article 1

Regulation (EU) 2017/1129

the European Parliament and

the Council

14 June 2017 on the prospectus to be published when securities are

fered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC. CROWDFUNDING SERVICE PROVIDERS 4.

the ECSP Regulation, this Act and any regulations and Rules issued thereunder. Competent authority.

the ECSP Regulation. PART II AUTHORISATION REQUIREMENTS 5.

the ECSP Regulation, no crowdfunding services shall be provided in Malta unless they are provided by a legal person which is duly authorised by the competent authority or any European regulatory authority as a crowdfunding services provider. Authorisation as a crowdfunding service provider.

crowdfunding services in the following situations:    (a) for project owners that in respect

loans facilitated by the crowdfunding service provider accept funds from investors; or (b) for investors that grant loans to project owners facilitated by the crowdfunding service provider: Provided that this sub-article shall not apply where a crowdfunding service provider, a project owner or an investor is authorised as a credit institution in accordance with Article 8

Directive 2013/36/EU

the European Parliament and

the Council

26 June 2013 on access to the activity

credit institutions and the prudential supervision

credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/ EC and 2006/49/EC. 6.

the ECSP Regulation. Application for authorisation. CROWDFUNDING SERVICE PROVIDERS

receipt

the application referred to in sub-article

such refusal, shall return the submitted documents to the prospective crowdfunding service provider.

receipt

a complete application, assess whether the prospective crowdfunding service provider complies with the requirements set out in the ECSP Regulation, and in this Act and any regulations and Rules issued thereunder, and shall adopt a fully reasoned decision granting or refusing to grant authorisation as a crowdfunding service provider: Provided that the assessment to be carried out in terms

this sub-article shall take into account the nature, scale and complexity

the crowdfunding services that the prospective crowdfunding service provider intends to provide.

its decision to grant or refuse to grant authorisation as a crowdfunding service provider within three

the date

the said decision.

all holders

an authorisation as a crowdfunding service provider which shall be publicly available. This register shall also specify the crowdfunding services which every crowdfunding service provider is authorised to provide and shall be updated on a regular basis. Scope

authorisation. 7.

article 6 shall specify the crowdfunding services which the crowdfunding service CROWDFUNDING SERVICE PROVIDERS provider is authorised to provide.

the authorisation granted to it under article 6 shall submit a request for the extension

its authorisation to the competent authority by complementing and updating the information referred to in article 6

an authorisation made in terms

this sub-article shall be processed in accordance with Article 12

the ECSP Regulation. 8.

the prospective crowdfunding service provider may pose a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration

the interest

its clients and the integrity

the market. Refusal

authorisation.

ficers are fit and proper persons to provide crowdfunding services; (c) without prejudice to paragraph (b), it is satisfied that the members

the management body

the applicant are

sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their functions as such with the applicant; and (d) the applicant has its registered

fice and, or its head

fice in Malta. 9.

the date

granting

the authorisation; (b) the crowdfunding service provider has expressly renounced its authorisation; Withdrawal

authorisation. CROWDFUNDING SERVICE PROVIDERS (c) the crowdfunding service provider has not provided crowdfunding services for nine

existing contracts that are the result

initial matching

business funding interests through the use

its crowdfunding platform; (

1. d)the crowdfunding service provider has obtained its authorisation by irregular means, including making false statements in its application for authorisation; (
2. e)the crowdfunding service provider no longer meets the conditions under which the authorisation was granted or in any other circumstances where the competent authority would have been precluded from issuing an authorisation, or entitled to refuse to grant such authorisation, under the ECSP Regulation or this Act; (
3. f)the crowdfunding service provider has seriously infringed any provisions

the ECSP Regulation, this Act and, or any regulations or Rules issued thereunder; (g) the competent authority has been furnished by or on behalf

the crowdfunding service provider with information which is false, inaccurate or misleading; (h) the competent authority considers it desirable to withdraw the authorisation

the crowdfunding service provider for the protection

investors and the general public, and the reputation

Malta taking into account Malta’s international commitments; and, or (i) the crowdfunding service provider is either declared bankrupt, or goes into liquidation, or makes a composition with its creditors, or is otherwise dissolved.

the Financial Institutions Act and it, or its managers, employees or third parties acting on its behalf, have infringed the provisions

Directive (EU) 2015/849

the European Parliament and

the Council

20 May 2015 on the prevention

the use

the financial system for the purposes

money laundering or terrorist financing, amending Regulation (EU) No 648/2012

the European Parliament and

the Council, and repealing Directive 2005/60/EC

the European Parliament and

the Council and Commission Directive 2006/70/EC, as transposed CROWDFUNDING SERVICE PROVIDERS in national law, in respect

money laundering or terrorist financing; or (b) where the crowdfunding service provider or a third party acting on its behalf has its licence allowing for the provision

payment services as defined in article 2

the Financial Institutions Act or investment services as defined in article 2

the Investment Services Act has been withdrawn or cancelled, as applicable, and that crowdfunding service provider or third party has failed to remedy the situation within forty

proposed refusal, variation, or withdrawal

an authorisation.

a crowdfunding service provider; or (b) vary any condition to which the licence is subject or to impose a condition thereon, it shall give the prospective crowdfunding service provider or the crowdfunding service provider, as applicable, notice in writing

its intention to do so, while setting out the reasons for the decision it proposes to take.

the notice may, within such reasonable period after the service thereof as may be stated in the notice, 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.

article 6, the competent authority shall as soon as practicable notify its final decision in writing to any

the persons to whom notice is to be given under subarticle

the Member States and, or EEA States in which the crowdfunding service provider intends to provide crowdfunding services; (b) the identity

the natural and legal persons responsible for the provision

the crowdfunding services in those Member States and, or EEA States; Cross-border provision

crowdfunding services. CROWDFUNDING SERVICE PROVIDERS (c) the starting date

the intended provision

the crowdfunding services by the crowdfunding service provider; and (d) a list

any other activities provided by the crowdfunding service provider not covered by the ECSP Regulation.

receipt

the information referred to in sub-article

the Member States and, or EEA States in which the crowdfunding service provider intends to provide crowdfunding services as referred to in sub-article

the communication referred to in sub-article

such crowdfunding service provider, shall provide the competent authority with details

any changes in the information provided under the ECSP Regulation, this Act, or any regulations or Rules issued thereunder as soon as such crowdfunding service provider or such person becomes aware

such changes. Responsibility for the key investment information sheet. 13.

its administrative, management or supervisory bodies, as the case may be, shall be responsible for the information to be provided in the key investment information sheet in terms

Article 23

the ECSP Regulation and the translation

the said information.

sub-article

Article 24

the ECSP Regulation and the translation

the said information. CROWDFUNDING SERVICE PROVIDERS

sub-article

loans. 15. Where a crowdfunding service provider disseminates, in terms

Article 27

the ECSP Regulation, marketing communications about its services, it shall comply with relevant requirements as may be specified in Rules issued for these purposes. Marketing communica-tions. PART IV REGULATORY AND INVESTIGATORY POWERS 16.

the competent authority, may make regulations to give effect to the provisions

this Act, and without prejudice to the generality

the foregoing may, by such regulations, in particular, do any

the following: (a) provide for and regulate the payment by any person or body, as the case may be,

authorisation or other fees and such other charges payable to the competent authority in respect

any matter provided for, by or under this Act or any regulations made under this article, as may be prescribed; (b) exempt any person, service or activity from any one or more

the provisions

this Act, subject to such variations, additions, adaptations and modifications as may be prescribed and subject to such conditions or other requirements, including other forms

authorisation and notification procedures, as may be prescribed; (c) transpose, implement and give effect to the provisions and requirements

the ECSP Regulation; (d) transpose, implement and give effect to the provisions and requirements

European Union Directives, European Union Regulations and any other legislative measures

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 relating to authorised persons and others as may be specified therein; regulations made under this paragraph, and strictly related to transposition or Minister’s power to make regulations. Amended by: XI.2025.46. CROWDFUNDING SERVICE PROVIDERS implementation as aforesaid, may provide that any provision

this Act or

any other law shall not apply to matters falling under the regulations, and that in so far as any

the provisions

the regulations are inconsistent with the provisions

this Act or

any other law, such provisions in any such regulations shall prevail; (e) assign powers and functions to the competent authority for the purposes

this Act; (f) to provide for the exercise

powers and the performance

functions assigned to the competent authority under this Act; (g) provide for any matter relating to the operation

a contingency fund which may be established by a crowdfunding service provider for its activity related to the individual portfolio management

loans; (

1. h)prescribed; prescribe anything that is to be or which may be (
2. i)provide for and regulate the payment by any person

authorisation or other fees and such other charges payable to the competent authority in respect

any matter provided for, by or under the ECSP Regulation, this Act or any regulations made or Rules issued thereunder, including the fees and charges in respect

any permission, licence, authorisation, exemption or other benefit, as well as any fees and charges in respect

the competent authority’s regulatory, supervisory or investigative functions under the ECSP Regulation, this Act or any regulations made or Rules issued thereunder, as may be prescribed; (j) provide for the establishment and imposition

administrative penalties and other administrative measures on crowdfunding service providers or others as may be specified therein; (k) prescribe that a breach

any regulations made under this Act may amount to a criminal

fence as may be specified, and such regulations may impose punishments in respect

any breach, consisting

a fine (multa) not exceeding five hundred thousand euro (€500,000) or imprisonment for a term not exceeding three

a natural person; and a fine (multa) not exceeding eight hundred thousand euro (€800,000) in the case

a legal person; and a higher fine (multa) may be imposed on such natural or legal person, as the case may be, where deemed necessary or appropriate for any breach or failure

compliance with any EU Directive or EU CROWDFUNDING SERVICE PROVIDERS Regulation or with any regulations made under this article to transpose or to give effect to any EU Directive or EU Regulation; and (l) provide for any matter incidental to or connected with any

the above.

adaptation

the regulations as may also be so specified.

this article, the competent authority may issue Rules for the better carrying out

, and implementation

the provisions

the regulations.

such regulations, may be published in the English language only.

any

the powers assigned under this article shall be subject to any obligations or rights arising from Malta’s international commitments. 17.

sub-article

the competent authority, their activities, the conduct

their business, their relations with customers, the public and other parties, their responsibilities to the competent authority, reporting requirements, financial and other resources, and related requirements, and any other matters as the competent authority may consider appropriate; (

1. b)provide for the statements and notices that shall be made or given for any purposes in regard to which the competent authority exercises supervisory or regulatory functions, and the form and contents thereof; (
2. c)prescribe the information that such persons are to submit to the competent authority; Power to issue Rules. CROWDFUNDING SERVICE PROVIDERS (
3. d)transpose, implement and give effect to the provisions and requirements

the ECSP Regulation; (e) transpose, implement and give effect to the provisions and requirements

European Union Directives, European Union Regulations and any other legislative measures

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 relating to authorised persons and others as may be specified therein; and, or (f) regulate any matter that is incidental to or connected with any

the matters mentioned above as the competent authority may consider appropriate in the performance

its functions.

adaptation

the Rules, as may also be so specified. Powers

the competent authority. Amended by: XI.2025.47. 18.

fer for a maximum

ten

the provisions

the ECSP Regulation, this Act and any regulations or Rules issued thereunder have been infringed; (b) to prohibit or suspend marketing communications, or to require a crowdfunding service provider or a third party designated to perform functions in relation to the provision

crowdfunding services to cease or suspend marketing communications, for a maximum

ten

the provisions

the ECSP Regulation, this Act and any regulations or Rules issued thereunder have been infringed; (c) to prohibit a crowdfunding

fer where the competent authority finds that any

the provisions

the ECSP Regulation, this Act or any regulations made or Rules issued thereunder have been infringed or where there are reasonable grounds for suspecting that they would be infringed; (d) to suspend, or to require a crowdfunding service provider to suspend, the provision

crowdfunding services CROWDFUNDING SERVICE PROVIDERS for a maximum

ten

the provisions

the ECSP Regulation, this Act and any regulations or Rules issued thereunder have been infringed; (e) to prohibit the provision

crowdfunding services where the competent authority finds that any

the provisions

the ECSP Regulation, this Act and any regulations or Rules issued thereunder have been infringed; (f) to make public the fact that a crowdfunding service provider or a third party designated to perform functions in relation to the provision

crowdfunding services is failing to comply with its obligations; (g) to disclose, or to require a crowdfunding service provider or a third party designated to perform functions in relation to the provision

crowdfunding services to disclose, all material information which may have an effect on the provision

the crowdfunding service in order to ensure investor protection or the smooth operation

the market; (h) to suspend, or to require a crowdfunding service provider or a third party designated to perform functions in relation to the provision

crowdfunding services to suspend, the provision

crowdfunding services where the competent authority considers that the crowdfunding service provider’s situation is such that the provision

the crowdfunding service would be detrimental to investors’ interests; (i) to transfer existing contracts to another crowdfunding service provider in cases where a crowdfunding service provider’s authorisation is withdrawn in accordance with article 9

the clients and the receiving crowdfunding service provider: Provided that the crowdfunding service provider to which the existing contracts are transferred in accordance with this paragraph shall be authorised by the competent authority to provide crowdfunding services; and, or (j) to make an application to the court for the dissolution and winding up by the court

a crowdfunding service provider where it appears to the competent authority that a crowdfunding service provider should be dissolved and wound up by the court for the reason set out in article 214

the Companies Act, and where the court accedes to the application the relevant provisions

the Companies Act in relation to the dissolution and winding up by the court and any other applicable provisions

any other        CROWDFUNDING SERVICE PROVIDERS law shall apply.

the powers

the competent authority under this article shall be proportionate, duly justified and taken in accordance with article 24. Power to require information. 19.

crowdfunding services, and the natural or legal persons that control them or are controlled by them; (ii) the auditors and managers

crowdfunding service providers and third parties designated to perform functions in relation to the provision

crowdfunding services; and, or (iii) any other person who appears to be in possession

relevant information, to do all or any

the following: (

1. 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; (
2. b)to furnish to the competent authority any information or documentation as it may require verified in such manner as it may specify; (
3. 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; (
4. d)to give the competent authority any assistance which it may require and which that person is reasonably able to give.

information imposed by contract or by any legislative, regulatory or administrative provision, and shall not be subject to liability

any kind related to the provision

such information. CROWDFUNDING SERVICE PROVIDERS

any documents furnished, provided or to which it has access under this article.

his knowledge, that information or documentation is found, and the competent authority may require any person, whether indicated as aforesaid or not, who appears to it to be in possession

that information or documentation, to provide it.

any requirement under this article may be used in evidence against the person making the statement or providing the documentation as well as against any person to whom they relate.

this article shall not apply to information or documentation which is privileged in accordance with the provisions

article 642

the Criminal Code.   

carrying out his functions under his appointment, have all the powers conferred on the competent authority by this article and a requirement imposed by him shall be deemed to be and have the same force and effect as a requirement

the competent authority. 20.

any persons referred to in article 19

an investigation, investigate the affairs

any person mentioned in sub-article

the competent authority; (c) may, and if so directed by the competent authority shall, make interim reports and on the conclusion

his investigation shall make a final report to the competent authority.

this article, inspectors may include an advocate, a person authorised to carry on the profession

accountant or auditor in terms

the Accountancy Profession Act, or a person considered by the competent authority as possessing suitable expertise to exercise such function.

, and incidental to, an investigation carried out pursuant to this article be paid by the person referred to in sub-article

entry. 21.

ficer, employee or agent

the competent authority, on producing, if required, evidence

his authority, shall have the power to enter any premises occupied by a person on whom a notice has been served in terms

article 19 or whose affairs are being investigated in terms

article 20, for the purpose

obtaining therefrom the information or documents required by that notice, or otherwise for the purpose

carrying out on-site inspections or investigations, and

exercising any

the powers conferred by the said articles.

ficer, employee or agent

the competent authority has cause to believe that if such notice as is referred to in sub-article

ficer, employee or agent shall have the power, on producing, if required, evidence

his authority, to enter any premises referred to in sub-article

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

any action taken under the provisions

this article, the competent authority may request the assistance

the Commissioner

Police, who may for such purpose exercise such powers as are vested in him by law. Power to issue directives. 22.

this Act: CROWDFUNDING SERVICE PROVIDERS Provided further that any directive given in terms

this article shall, unless the competent authority otherwise directs, continue to apply even when a licence holder, for whatever reason, ceases to hold a licence granted in terms

this Act.

any

the provisions

the ECSP Regulation, this Act or any regulations or Rules issued thereunder; or (b) a person has contravened or failed to comply with any condition, obligation, requirement or directives made or given by the competent authority under any

the provisions

the ECSP Regulation, this Act or any regulations or Rules issued thereunder, including failure to co-operate with an investigation or an inspection or any request made by the competent authority under article 19.

such infringement; (b) an order requiring the natural or legal person to cease the conduct constituting the infringement and to desist from a repetition

that conduct; (c) a ban preventing any member

the management body

the legal person responsible for the infringement, or any other natural person held responsible for the infringement, from exercising management functions in crowdfunding service providers; (d) administrative penalties which shall not exceed twice the amount

the benefit derived from the infringement where that benefit can be determined, even if it exceeds the maximum amounts set out in paragraph (e); Administrative penalties and other measures. CROWDFUNDING SERVICE PROVIDERS (e) in the case

a legal person, administrative penalties which shall not exceed five hundred thousand euro (€500,000), or

up to five per centum (5%)

the total annual turnover

that legal person according to the last available financial statements approved by the management body: Provided that where the legal person is a parent undertaking or a subsidiary

a parent undertaking which is required to prepare consolidated financial statements in accordance with Directive 2013/34/EU

the European Parliament and

the Council

26 June 2013 on the annual financial statements, consolidated financial statements and related reports

certain types

undertakings, amending Directive 2006/43/EC

the European Parliament and

the Council and repealing Council Directives 78/660/EEC and 83/ 349/EEC, the relevant total annual turnover shall be the total annual turnover or the corresponding type

income in accordance with the relevant Union law in the area

accounting according to the last available consolidated financial statements approved by the management body

the ultimate parent undertaking; (f) in the case

a natural person, administrative penalties which shall not exceed five hundred thousand euro (€500,000).

a fixed penalty, a daily penalty, or both.

this article shall be effective, proportionate, dissuasive and duly justified.  

article 16

the Malta Financial Services Authority Act shall apply mutatis mutandis with respect to any administrative penalty imposed by the competent authority under this article.

this article, where obligations imposed in terms

the ECSP Regulation, this Act or any regulations or Rules issued thereunder, apply to a legal person, in the event

an infringement

any provision thereof, administrative penalties and other measures may also be imposed, subject to the conditions laid down in national law, on the members

the administrative, management or supervisory bodies

the legal entity concerned, and on other individuals who are responsible for the infringement under national law.

an CROWDFUNDING SERVICE PROVIDERS administrative penalty or any other administrative measure in terms

this article shall be without prejudice to any other consequence emanating from the act or omission

the

fender in terms

civil or criminal law: Provided that in all cases where the competent authority imposes an administrative penalty in respect

anything done or omitted to be done by any person, and such act or omission also constitutes a criminal

fence, no proceedings may be taken or continued against the said person in respect

such criminal

fence. 24. In the case

administrative penalties or other measures imposed by the competent authority in accordance with the provisions

this Act, the competent authority shall take into account the extent to which the infringement is intentional or results from negligence and all other relevant circumstances, including, where appropriate: (a) Relevant circumstances. the gravity and the duration

the infringement; (b) the degree

responsibility

the natural or legal person responsible for the infringement; (c) the financial strength

the natural or legal person responsible for the infringement, as indicated by the total turnover

the responsible legal person or the annual income and net assets

the responsible natural person; (d) the importance

profits gained or losses avoided by the natural or legal person responsible for the infringement, insofar as these can be determined; (

1. e)the losses for third parties caused by the infringement, insofar as these can be determined; (
2. f)the level

cooperation

the natural or legal person responsible for the infringement with the competent authority, without prejudice to the need to ensure disgorgement

profits gained or losses avoided by that person; (

1. g)previous infringements by the natural or legal person responsible for the infringement; and (
2. h)interests. the impact

the infringement on investors’ 25.

its intention to do so, setting out the reasons for the decision it proposes to take. Notice

administrative penalties and other measures. CROWDFUNDING SERVICE PROVIDERS

the notice may, within such reasonable period after the service thereof, as may be specified in the notice, 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.

decisions. Amended by: XI.2025.48. 26.

the ECSP Regulation, this Act or any regulations or Rules issued thereunder, on its website immediately after the person subject to that decision has been informed

that decision.

the breach, the identity

the person subject to the decision and any other information which the competent authority deems relevant.

sub-articles

the competent authority imposing measures that are

an investigatory nature.

the identity

the legal person subject to the decision, or the identity or personal data

a natural person, would be disproportionate, or where such publication may jeopardise an ongoing investigation, the competent authority shall: (a) defer the publication

the decision to impose a penalty or a measure until the moment where the reasons for non publication cease to exist; (b) publish the decision to impose a penalty or a measure on an anonymous basis in a manner which is in conformity with national law, where such anonymous publication ensures an effective protection

the personal data concerned: Provided that, in this case, the publication

the relevant data may be deferred for a reasonable period where it is foreseen that within that period the reasons for anonymous publication shall cease to exist; (

1. c)not publish the decision to impose a penalty or CROWDFUNDING SERVICE PROVIDERS measure in the event that the options laid down in paragraphs (
2. a)and (
3. b)are considered to be insufficient to ensure the proportionality

the publication

such a decision with regard to measures which are deemed to be

a minor nature.

such an appeal. Any decision annulling a decision

the competent authority to impose an administrative penalty or any other administrative measure shall also be published.

the competent authority for a period

at least five

the competent authority only for the period which is necessary, in accordance with the applicable data protection legislation. PART V COOPERATION WITH OTHER AUTHORITIES 27.

and for the purposes

Article 29

the ECSP Regulation.

carrying out its duties and exercising its powers under the ECSP Regulation. It shall render the necessary assistance to other European regulatory authorities, in particular by exchanging information and cooperating in any investigatory, supervisory or enforcement activity.

the ECSP Regulation: Provided that if the competent authority is not able to supply the required information immediately, it shall notify the requesting European regulatory authority

the reasons.

the competent authority in carrying out its supervisory functions or for an on-site verification or in an investigation, in which case the competent authority shall, within the framework

its powers: (

1. a)carry out the on-site inspection or investigation Cooperation with European regulatory authorities. CROWDFUNDING SERVICE PROVIDERS itself; (
2. b)allow the European regulatory authority which submitted the request to participate in an on-site inspection or investigation; (
3. c)allow the European regulatory authority which submitted the request to carry out the on-site inspection or investigation itself; (
4. d)appoint auditors or experts to carry out the onsite inspection or investigation; or (
5. e)share specific tasks related to supervisory activities with other competent authorities.

the following circumstances: (

1. a)where complying with the request is likely to adversely affect its own investigation, enforcement activities or a criminal investigation; (
2. b)where judicial proceedings have already been initiated in respect

the same actions and against the same natural or legal persons before the authorities

Malta; or (c) where a final judgment has already been delivered in relation to such natural or legal persons for the same actions in Malta.

the requirements under the ECSP Regulation have not been satisfied or has reason to believe that to be the case, it shall inform the European regulatory authority

the entity or entities suspected

such infringement

its findings in a detailed manner. Precautionary measures. 28.

crowdfunding services or that the crowdfunding service provider or third parties have infringed their obligations under the ECSP Regulation, notify the European regulatory authority which granted authorisation to the crowdfunding service provider and ESMA

such irregularities or infringements.

crowdfunding services persists in infringing the ECSP Regulation, the competent authority shall, after informing the said European regulatory authority and ESMA, take all appropriate measures in order to protect investors and shall inform the European Commission and ESMA

such measures without undue delay. 29.

the ECSP Regulation in accordance with Regulation (EU) No 1095/2010. Cooperation with ESMA.

an on-site inspection or investigation with cross-border effect, the competent authority may request ESMA to coordinate the inspection or investigation, as the case may be.

Regulation (EU) No 1095/

2. Where a crowdfunding service provider engages in activities other than crowdfunding services, the competent authority shall cooperate with the authorities responsible for overseeing such other activities as provided for in the relevant European Union legislation or national law, as applicable. Cooperation with other authorities. PART VI APPEALS, SANCTIONS AND CONFIDENTIALITY 31.

the Malta Financial Services Authority Act. Appeals. 

the competent authority under the ECSP Regulation or this Act, or any regulations or Rules issued thereunder, may appeal against such decision to the Tribunal within such period and under such conditions as are established under article 21

the Malta Financial Services Authority Act.       

an application for authorisation to act as a crowdfunding service provider which contains all the information required under the provisions in force within six

its submission, may appeal against such failure to decide to the Tribunal within such period and under such conditions as are established in terms

article 21

the Malta Financial Services Authority Act.           

the competent authority shall not suspend the operation

that decision: CROWDFUNDING SERVICE PROVIDERS Provided that a decision

the competent authority to withdraw the authorisation

a crowdfunding service provider shall not become operative until the expiration

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

the decision

the Tribunal dismissing the appeal or on the date on which the appeal is abandoned.  

this article, the provisions

article 21

the Malta Financial Services Authority Act shall apply mutatis mutandis to appeals that may be brought before the Tribunal under this article.

fences. Amended by: XI.2025.49. 32.

the provisions

articles 5

article 19

the provisions

the ECSP Regulation or this Act, or under any regulations made under this Act, shall be guilty

an

fence.

, or pursuant to, any

the provisions

the ECSP Regulation, this Act or

any regulations or Rules issued thereunder, or any condition, obligation, requirement, directive or order made or given as aforesaid, furnishes information or makes a statement which he knows to be inaccurate, false or misleading in any material respect, or recklessly furnishes information or makes a statement which is inaccurate, false or misleading in any material respect, shall be guilty

an

fence.

any crowdfunding service with a fraudulent intent or for a fraudulent purpose, shall be guilty

an

fence.

the commission

an

fence under this Act removes, destroys, conceals or fraudulently alters any book, document or other paper, shall be guilty

an

fence.

an

fence.

this Act or any regulations issued thereunder shall not affect any criminal proceedings that may be competent under any other law.

Police to receive specific information related to criminal CROWDFUNDING SERVICE PROVIDERS investigations or proceedings commenced for breaches

the ECSP Regulation, this Act or any regulations made or Rules issued thereunder. The Commissioner

Police shall cooperate with the competent authority, thereby providing such specific information related to any criminal investigations or proceedings commenced in relation to such breaches; and (b) provide such information received in accordance with paragraph (a), and transmit copies

acts and documents

the courts

criminal justice in accordance with the second proviso to article 518

the Criminal Code, to other authorities which are deemed competent authorities for the purposes

Article 29

the ECSP Regulation, as well as to ESMA, for the purpose

fulfilling its obligations to cooperate for the purposes

the ECSP Regulation, this Act and any regulations made and Rules issued thereunder. 33.

an

fence under the provisions

article 32 shall be liable on conviction to a fine (multa) not exceeding five hundred thousand euro (€500,000) or to a term

imprisonment not exceeding three

imprisonment is otherwise imposed in regulations made under article 16

an

fence under the provisions

article 31 shall be liable on conviction to a fine (multa) not exceeding eight hundred thousand euro (€800,000), unless such fine is otherwise imposed in regulations made under article 16

ficers, employees or agents, whether current or former, or by inspectors, auditors and experts formerly or currently engaged by the competent authority for the purposes

, or pursuant to, any

the provisions

the ECSP Regulation, this Act, or

any regulations or Rules issued thereunder, or in the discharge

any functions under any

the said provisions, or by any other person who works or has worked for the competent authority or for any third party to whom the competent authority has delegated any

its functions or powers, shall be treated as confidential and protected by the duty

professional secrecy, and shall not be disclosed to any other person, except in the following cases: (

1. a)where the authority, body or person communicating information to the competent authority consents thereto; (
2. b)where the disclosure

the information is Confidentiality. CROWDFUNDING SERVICE PROVIDERS necessary for any legal proceedings; (c) where the information is provided to such other local or European or overseas regulatory, judicial or enforcement authorities in the pursuance

serious concerns

a regulatory or criminal nature; and, or (d) where the disclosure

the information is permitted or required by European Union legislation or national law.