S.L. 370.10 Art. 8Exercise of passport rights by Malteseinvestment firms - establishment.

(1) A Maltese investment firm may provide investment services as well as ancillary services whether through the establishment of a branch in exercise of a European right, or by the use of a tied agent established in a Member State or EEA State other than

Malta in which it has not established a branch, if it satisfies the requirements prescribed in this regulation.

(2) The Maltese investment firm shall give the competent authority a notice of its intention to establish a branch or use tied agents established in a Member State or EEA State other than Malta in which it has not established a branch, which notice shall contain -

(a) the Member State or EEA State within the territory of which the investment firm plans to establish a branch or the Member State or EEA State in which it has not established a branch but plans to use tied agents established there;

(b) a programme of operations identifying the activities which it seeks to carry on through through the branch as well as the ancillary services to be offered;

(c) the address in the host Member State or EEA State from where documents may be obtained;

(d) where established, the organisational structure of the branch and indicating whether the branch intends to use tied agents and the identity of those tied agents;

(e) where tied agents are to be used in the host Member

State or EEA State in which the Maltese investment firm has not established a branch, 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 Maltese investment firm;

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

(g) such other clarifications as may be requested by the competent authority.

(3) Unless it has reason to doubt the adequacy of the administrative structure or the financial situation of tthe Maltese investment firm and shall inform the Maltese investment firm concerned accordingly, taking into account the activities envisaged, the competent authority shall communicate the information referred to in subregulation (2) to the European regulatory authority within three months of receiving all the said information from the Maltese investment firm.

(4) In addition to the information referred to in sub-regulation (2), the competent authority shall communicate, to the European regulatory authority the details of the accredited compensation scheme of which the Maltese investment firm is a member.

(5) The competent authority shall inform the European regulatory authority of any change in the details of a compensation scheme referred to in subregulation (4).

(6) If the competent authority decides to refuse to communicate to the European regulatory authority the information it received from the Maltese investment firm in terms of subregulation (2):

(a) it shall, within three months from the date when it receives all the said information, give the Maltese investment firm which gave that information the reasons for its decision in writing; and

(b) that Maltese investment firm may appeal to the Tribunal and the provisions of article 19 of the Act shall apply mutatis mutandis.

(7) A branch of the Maltese investment firm shall not commence business unless -

(a) the European regulatory authority notifies the Maltese investment firm that its branch may commence business in its territory; or

(b) two months have elapsed from the date of transmission of the information required in terms of subregulation

(2) by the competent authority to the European regulatory authority.

(8) In the event of change in any of the particulars communicated in accordance with subregulation (2), the Maltese investment firm shall give written notice of that change to the competent authority at least one month before implementing the change. The competent authority shall also inform the European regulatory authority of this change.

(9) The prudential supervision of a Maltese investment firm shall be the responsibility of the competent authority whether the said Maltese investment firm establishes a branch or provides services in another Member State or EEA State or not, without prejudice to those provisions of MiFID which give responsibility to the European regulatory authority.

(10) Where a Maltese investment firm uses tied agents established in a Member State other than Malta or in an EEA State, such tied agent shall be assimilated to the branch wherever this is established and shall be subject to the provisions of MiFID relating to branches.

(11) The provisions of this regulation shall also apply, mutatis mutandis, to credit institutions authorised in Malta 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 "Maltese investment firm" shall be deemed to include reference to a "Maltese credit institution.".