S.L. 330.16 Art. 6Product intervention powers of the competent authorities.

(1) The competent authority may prohibit or restrict the marketing or distribution of a PEPP in Malta under the following conditions:

(a) the competent authority is satisfied that there are reasonable grounds to believe that the PEPP gives rise to significant or reiterated saver’s protection concerns or poses a risk to the orderly functioning and integrity of financial markets or the stability of whole or part of the financial system within at least one (1) Member State;

(b) the action is proportionate taking into account the nature of the risks identified, the level of sophistication of PEPP savers concerned and the likely effect of the action on PEPP savers who have concluded a PEPP contract;

(c) the competent authority has properly consulted European regulatory authorities in other Member States that may be significantly affected by the action; and,

(d) the action does not have a discriminatory effect on services or activities provided from another Member State.

(2) Where the conditions set out in the sub-regulation (1) are fulfilled, the competent authority may impose the prohibition or restriction on a precautionary basis before a PEPP has been marketed or distributed to PEPP savers where the conditions set out in the sub-regulation (1) are fulfilled. The prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by the competent authority.

(3) The competent authority shall not impose a prohibition or restriction under the PEPP Regulation unless it has notified all other European regulatory authorities involved and EIOPA in writing or through any other medium agreed to between the European regulatory authorities, at least one (1) month before the measure is intended to take effect, of the details of:

(a) the PEPP to which the proposed action relates;

(b) the precise nature of the proposed prohibition or restriction and when it is intended to take effect; and, EUROPEAN PERSONAL PENSION PRODUCT (PEPP))

(c) the evidence upon which they have based their decision and upon which they have reasonable grounds to believe that each of the conditions in sub-regulation (1) are met.

(4) In exceptional cases, where the competent authority deems it necessary to take urgent action under this regulation in order to prevent detriment arising from the PEPP, the competent authority may take action on a provisional basis, by written notice to all other European regulatory authorities and EIOPA, at least twenty-four (24) hours before the measure is intended to take effect to all other European regulatory authorities and EIOPA, provided that all the conditions set out in this regulation are met. In addition, the competent authority shall clearly state the reasons why a one (1) month notification period would not have adequately addressed the specific concern or threat:

Provided that the competent authority shall not take action on a provisional basis for a period exceeding three (3) months.

(5) The competent authority shall publish on its website a notice of any decision to impose any prohibition or restriction referred to in sub-regulation (1);

Provided that the prohibition or restriction shall only apply in relation to action taken after the publication of such notice.

(6) The notice referred to in sub-regulations (1) and (5) shall specify:

(a) details of the prohibition or restriction;

(b) a time after the publication of the notice from which the measures will take effect; and,

(c) the evidence upon which it is satisfied each of the conditions in sub-regulation (1) are met.

(7) The competent authority shall revoke a prohibition or restriction if the conditions in sub-regulation (1) no longer apply.