S.L. 330.6 Art. 7Risk concentration.

(1) Without prejudice to the sectoral rules, supplementary supervision of the risk concentration of regulated entities in a financial conglomerate shall be exercised in accordance with the rules laid down in these regulations.

(2) Regulated entities authorised in Malta or a mixed financial holding company of a group identified as a financial conglomerate with its head office in Malta shall report at least once a year to the coordinator any significant risk concentration at the level of the financial conglomerate, in accordance with the rules laid down in this regulation and in the Second Schedule.

(3) The information required in terms of sub-regulation (2) shall be submitted to the coordinator:

(a) by the regulated entity which is at the head of the financial conglomerate; or

(b) where the financial conglomerate is not headed by a regulated entity, by the mixed financial holding company or by a regulated entity in the financial conglomerate identified by the coordinator, after consultation with the other relevant competent authorities and with the financial conglomerate.

(4) These risk concentrations shall be subject to supervisory overview by the coordinator in accordance with regulations 11 to 15 and regulations 18 to 21.

(5) The Authority may by means of rules set quantitative limits or adopt other supervisory measures which would achieve the objectives of supplementary supervision with regard to any risk concentration at the level of a financial conglomerate.

(6) Where a financial conglomerate is headed by a mixed financial holding company, the sectoral rules applicable to risk concentration of the most important financial sector in the financial conglomerate, if any, shall apply to that sector as a whole, including the mixed financial holding company.