S.L. 330.6 Art. 11The coordinator.

(1) The Authority shall, together with the relevant competent authorities, including those of the Member State in which a mixed financial holding company has its head office, appoint from among such competent authorities a coordinator responsible for coordination and exercise of supplementary supervision of the regulated entities in a financial conglomerate in accordance with the provisions of these regulations.

(2) The appointment of the coordinator in terms of sub-regulation (1) shall be based on the following criteria:

(a) where a financial conglomerate is headed by a regulated entity, the task of coordinator shall be exercised by the competent authority which has authorised that regulated entity pursuant to the relevant sectoral rules;

(b) where a financial conglomerate is not headed by a regulated entity, the task of coordinator shall be exercised by the competent authority identified in accordance with the following principles:

(i) where the parent of a regulated entity is a mixed financial holding company, the task of coordinator shall be exercised by the competent authority which has authorised that regulated entity pursuant to the relevant sectoral rules;

(ii) where at least two regulated entities which have their registered office in the European Union have as their parent the same mixed financial holding company, and one of these entities has been authorised in the Member State in which the mixed financial holding company has its head office, the task of coordinator shall be exercised by the competent authority of the regulated entity authorised in that Member State. When one of these regulated entities has been authorised in Malta and the mixed financial holding company also has its head office in Malta, the coordinator shall be the Authority: Provided that, where more than one regulated entity, being active in different financial sectors, have been authorised in the Member State in which the mixed financial holding company has its head office, the task of coordinator shall be exercised by the competent authority of the regulated entity active in the most important financial sector as defined in the proviso to regulation 3(2); Provided further that, where the financial conglomerate is headed by more than one mixed financial holding company with a head office in different Member States and there is a regulated entity in each of these states, the task of coordinator shall be exercised by the competent authority of the regulated entity with the largest balance sheet total if these entities are in the same financial sector, or by the competent authority of the regulated entity in the most important financial sector as defined in the proviso to regulation 3(2);

(iii) where at least two regulated entities which have their registered office in the European Union have as their parent the same mixed financial holding company and none of these entities has been authorised in the Member State in which the mixed financial holding company has its head office, the task of coordinator shall be exercised by the competent authority which authorised the regulated entity with the largest balance sheet total in the most important financial sector. When one of these regulated entities has been authorised in Malta and the mixed financial holding company also has its head office in Malta, the coordinator shall be the Authority;

(iv) where the financial conglomerate is a group without a parent undertaking, or in any other case, the task of coordinator shall be exercised by the competent authority which authorised the regulated entity with the largest balance sheet total in the most important financial sector as defined in the proviso to regulation 3(2).

(3) The Authority may, in particular cases, by common agreement with the relevant competent authorities, waive the criteria referred to in sub-regulation (2) if their application would be inappropriate, taking into account the structure of the conglomerate and the relative importance of its activities in different countries, and may appoint a different competent authority as coordinator.

(4) In the cases referred to in sub-regulation (3), before taking a decision, the Authority and the other competent authorities concerned shall give the financial conglomerate an opportunity to state its opinion on the proposed decision.

(5) When a competent authority other than the Authority has been appointed coordinator, that coordinator shall be recognised in Malta for the purpose of exercising and enforcing its responsibilities and for the purpose of exercising any powers given to the coordinator under these regulations.