S.L. 370.10 Art. 3Exercise of passport rights by European investment firms - establishment.

(1)A European investment firm which is seeking to provide investment services and, or activities as well as ancillary services in Malta, either through the establishment of a branch in Malta in exercise of its European right or by the use of a tied agent established in Malta, shall satisfy the conditions prescribed in sub-

regulation (2) and shall thereafter be exempt from the requirements prescribed in article 3 of the Act:

Provided that the European investment firm shall be exempt from the provisions of article 3 of the Act if those investment services are covered by the authorisation granted to the investment firm in the home Member State or EEA State;

Provided further that ancillary services may only be provided together with an investment service.

(2) The establishment conditions for the purposes of this regulation are that -

(a) the European investment firm has communicated its European regulatory authority:

(i) the fact that it intends to establish a branch in

Malta or that it has not established a branch in

Malta but plans to use tied agents established in Malta;

(ii) a programme of operations setting out inter alia the investment services as well as the ancillary services to be offered;

(iii) where established the organizational structure of the branch and indicating whether the branch intends to use tied agents and the identity of those tied agents;

(iv) where tied agents are to be used and the investment firm has not established a branch in Malta, a description of the intended use of the tied agents and an organisational structure including reporting lines, indicating how the agents fit into the corporate structure of the investment firm;

(v) the address in Malta from where documents may be obtained;

(vi) the names of those responsible for the management of the branch or of the tied agent;

(b) the competent authority has received, from the

European regulatory authority of the European investment firm:

(i) the information which the European investment firm had provided to it in terms of paragraph (a);

(ii) details of the accredited compensation scheme of which the European investment firm is a member in accordance with Directive 97/9/EC: Provided that in the event of change in the particulars, the competent authority shall receive notification thereof from the European regulatory authority of the European investment firm.

(3) A branch of a European investment firm shall not commence business unless -

(a) it has been informed by the competent authority that it may commence business; or

(b) two months have elapsed from the date of transmission by the European regulatory authority of the information it received from the European investment firm in terms of subregulation (2).

(4) Where the European investment firm appoints tied agents established in Malta, such tied agents shall be assimilated to the branch which the European investment firm establishes in Malta and shall be subject to the Investment Services Rules, Conduct of Business Rules and regulations relating to branches.

(5) The provisions of this regulation shall also apply, mutatis to credit institutions authorised in another Member State or mutandis, EEA State wishing to provide investment services as well as ancillary services through tied agents in accordance with Article 35(7) of MiFID, and accordingly references in this regulation to a "European investment firm" shall be deemed to include references to a "European credit institution"