S.L. 330.6 Art. 8Intra-group transactions.

(1) Without prejudice to the sectoral rules, supplementary supervision of intra-group transactions of regulated entities in a financial conglomerate shall be exercised in accordance with these regulations.

(2) Regulated entities authorised in Malta or a mixed financial holding company with its head office in Malta shall report at least once a year to the coordinator all significant intra-group transactions of regulated entities within a financial conglomerate in accordance with the rules laid down in this regulation and in the Second Schedule.

(3) In the absence of any definition of the thresholds in terms of paragraph 3 of the Second Schedule, an intra-group transaction shall be presumed to be significant if its amount exceeds at least five (5) per centum of the total amount of capital adequacy requirements at the level of a financial conglomerate.

(4) 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 which has been identified by the coordinator, after consultation with the other relevant competent authorities and with the financial conglomerate.

(5) Intra-group transactions in terms of this regulation shall be subject to supervisory overview by the coordinator.

(6) The Authority may by means of sectoral rules set quantitative limits and qualitative requirements and may also take other supervisory measures that would achieve the objectives of supplementary supervision with regard to intra-group transactions of regulated entities within a financial conglomerate.

(7) Where a financial conglomerate is headed by a mixed financial holding company, the sectoral rules regarding intra-group transactions of the most important financial sector in the financial conglomerate shall apply to that sector as a whole, including the mixed financial holding company.