S.L. 370.20 Art. 8Breaches by Maltese management companies.

(1) Where a Maltese management company which has a branch or provides services within the territory of another Member

State or EEA State is in breach of the rules in force in that Member

State or EEA State, the European regulatory authority of that Member State or EEA State shall require the Maltese management company to put an end to such breach. The European regulatory authority shall also notify the competent authority in writing detailing such breach.

(2) Where a Maltese management company refuses to provide the European regulatory authority of the Member State or EEA State in which it has established a branch in terms of regulation 3 or in which it provides services in terms of regulation 4, with information requested by and falling within the remit of that European regulatory authority or fails to take the necessary steps to put an end to a breach reported pursuant to sub-regulation (1), the European regulatory authority of the said Member State or EEA State shall notify the competent authority in writing. The competent authority shall, as soon as possible, take all appropriate measures to ensure that the Maltese management company provides the information requested by the European regulatory authority or remedies the breach reported by the said European regulatory authority.

(3) The competent authority shall communicate the nature of any measures taken against the Maltese management company in terms of sub-regulation (2) to the European regulatory authority concerned.

(4) Where a Maltese management company continues to refuse to provide the information requested by the European regulatory authority in the host Member State or EEA State or persists in its breaches of legal or regulatory rules despite the measures taken by the competent authority or due to the inadequacy or unavailability of such measures in Malta, the competent authority shall be notified of any measures taken by the European regulatory authority of the host Member State or EEA State against the Maltese management company.

(5) The competent authority shall consult the European regulatory authority of the host Member State or EEA State before withdrawing the licence of the Maltese management company in accordance with the provisions of this regulation.

FREEDOM OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES BY EUROPEAN MANAGEMENT COMPANIES