S.L. 370.18 Art. 10Breaches by European UCITS.

(1) The European regulatory authority of the UCITS home Member State or EEA State shall have the sole power to take action against a European UCITS marketing its units in Malta, if the European UCITS infringes any law, regulation or administrative provision of the UCITS home Member State or EEA State or any regulation laid down in constitutional documents. However, the competent authority may nonetheless take action against that European UCITS if it infringes any laws, regulations and administrative provisions in force in Malta, falling outside the scope of the UCITS Directive or the requirements set out in Articles 92 and 94 of the said Directive.

(2) Where the competent authority has clear and demonstrable grounds to believe that a European UCITS, the units of which are being marketed in Malta, is in breach of the obligations arising from the provisions of the Act, these regulations or the Investment Services Rules, which do not confer supervisory and regulatory powers on the competent authority, the competent authority shall refer those findings to the European regulatory authority of the UCITS home Member State or EEA State, which shall take appropriate measures.

(3) If, despite the measures taken by the European regulatory authority of the UCITS home Member State or EEA State, or because such measures prove to be inadequate, or because the European regulatory authority of the UCITS home Member State or EEA State fails to act within a reasonable timeframe, the European UCITS persists in acting in a manner that is clearly prejudicial to the interests of the Maltese investors, the competent authority may, as a consequence, take either of the following actions:

(a) after informing the European regulatory authority of the UCITS home Member State or EEA State, the competent authority may take all the appropriate measures needed in order to protect investors, including the possibility of preventing the European UCITS concerned from carrying out any further marketing of its units in Malta; or

(b) if necessary, bring the matter to the attention of ESMA.

(4) The competent authority shall, without delay, inform the European Commission and ESMA of any measure taken pursuant to sub-regulation (3)(a). MISCELLANEOUS