S.L. 330.9 Art. 23Conditions for group financial support.

Financial support by a group entity in accordance with regulation 19 may only be provided if all the following conditions are met:

(a) there is a reasonable prospect that the support provided significantly redresses the financial difficulties of the group entity receiving the support;

(b) the provision of financial support has the objective of preserving or restoring the financial stability of the group as a whole or any of the entities of the group and is in the interests of the group entity providing the support;

(c) the financial support is provided on terms, including consideration in accordance with regulation 19(7);

(d) there is a reasonable prospect, on the basis of the information available to the board of directors of the group entity providing financial support at the time when the decision to grant financial support is taken, that the consideration for the support will be paid and, if the support is given in the form of a loan, that the loan will be reimbursed, by the group entity receiving the support. If the support is given in the form of a guarantee or any form of security, the same condition shall apply to the liability arising for the recipient if the guarantee or the security is enforced;

(e) the provision of the financial support would not jeopardise the liquidity or solvency of the group entity providing the support;

(f) the provision of the financial support would not create a threat to financial stability: in particular in Malta, where the group entity providing support is in Malta; or, in particular in the Member State of such a group entity providing support, where the group entity providing support is not established in Malta;

(g) the group entity providing the support complies at the time the support is provided with the requirements of the CRD relating to capital or liquidity and any requirements imposed pursuant to Article 104(2) of the CRD and the provision of the financial support shall not cause the group entity to infringe those requirements, unless authorised:

(i) where the Authority is responsible for the supervision on an individual basis of the entity providing the support, by the Authority; or

(ii) where the Authority is not responsible for the supervision on an individual basis of the entity providing the support, by the European regulatory authority responsible for such supervision;

(h) the group entity providing the support complies, at the time when the support is provided, with the requirements relating to large exposures laid down in the CRR and in the CRD including any national legislation or any legislation in force in any other Member State exercising the options provided therein, and the provision of the financial support shall not cause the group entity to infringe those requirements, unless authorised by the Authority responsible for the supervision on an individual basis of the group entity providing the support;

(i) the provision of the financial support would not undermine the resolvability of the group entity providing the support.