S.L. 370.20 Art. 9Freedom of establishment of European management companies - branch.

(1) Where a European management company wishes to establish a branch in Malta, the following conditions shall be complied with:

(a) the European management company has provided the

European regulatory authority in its home Member

State or EEA State with the following documentation:

(i) a notification of its intention to establish a branch in Malta;

(ii) a programme of operations identifying the activities and services which the European management company seeks to carry on through the branch in Malta and the proposed organisational structure of the branch, including a description of the risk management process implemented by the European management company and a description of the procedures and arrangements implemented to ensure a suitable investor complaints procedure in terms of Article 15 of the UCITS Directive;

(iii) the address of the proposed branch in the territory of Malta from where documents may be obtained;

(iv) the names of those responsible for the management of the branch;

(b) the competent authority has received from the European regulatory authority of the home Member State or EEA State of the European management company:

(i) the information in paragraph (a);

(ii) details of any compensation scheme of which the European management company is a member and which is intended to protect investors;

(iii) where the European management company wishes to pursue the activity of collective portfolio management in terms of Annex II of the UCITS Directive, an attestation that the European management company has been so authorised pursuant to the provisions of the UCITS Directive, a description of the scope of the authorisation of the European management company and details of any restriction on the types of UCITS that the European management company is authorised to manage.

(2) A European management company pursuing activities through a branch within the territory of Malta shall comply with the provisions of the Investment Services Rules on conduct of business, and the competent authority shall be responsible for supervising compliance thereof.

(3) A branch of a European management company shall not commence business in Malta unless:

(a) it has been informed by the competent authority of the applicable provisions in force in accordance with sub-regulation (1) and that it may establish the branch in Malta; or

(b) two months have elapsed from the date of receipt by the competent authority of the information and the documents referred to in sub-regulation (2) by the European authority in the home Member State or EEA State of the European management company.

(4) Where the European management company plans a change in any of the particulars referred to in sub-regulation (1)(a)(ii) to (iv), it shall give written notice of that change to the competent authority not less than one month prior to the implementation of such change, and the provisions of sub-regulation (3) shall apply.

(4A) Where, pursuant to a change referred to in sub-regulation (4), the European management company would no longer comply with the UCITS Directive, the competent authority shall receive notification in terms of the second subparagraph of Article 17(8) of the UCITS Directive from the European regulatory authority of the home Member State or EEA State of the European management company.

(4B) Where a change referred to in sub-regulation (4) is implemented, after information has been transmitted by the European regulatory authority of the home Member State or EEA State of the European management company in accordance with the second subparagraph of Article 17(8) of the UCITS Directive, and pursuant to that change the European management company no longer complies with the UCITS Directive, the competent authority shall receive notification from the European regulatory authority of the home Member State or EEA State of the European management company without undue delay of the measures taken in terms of the third subparagraph of Article 17(8) of the UCITS Directive.

(5) In the event of a change to any of the particulars notified to the competent authority in accordance with sub-regulation (1)(a) and (b)(ii), the competent authority shall receive notification thereof from the European regulatory authority of the home Member State or EEA State of the European management company.

(6) The competent authority shall be notified by the European regulatory authority of the European management company home Member State or EEA State whenever there is a change in the scope of the authorisation of the European management company or in the details of any restriction on the types of UCITS that a European management company is authorised to manage.