S.L. 370.27 Art. 10Breaches by European managers of qualifying social entrepreneurship funds.

(1) Where there are clear and demonstrable grounds that lead the competent authority to believe that a European manager of qualifying social entrepreneurship funds is in breach of the EU

Regulation in Malta, it shall promptly inform the regulatory authority of the home Member State of the European manager. The regulatory authority of the home Member State shall take the necessary measures.

(2) Where, despite the measures taken by the regulatory authority of the home Member State, or because the regulatory authority has failed to take measures within a reasonable time, the European manager of qualifying social entrepreneurship funds persists in acting in a manner that is clearly in breach of the EU Regulation, the competent authority may, after informing the regulatory authority of the home Member State, take all the appropriate measures in order to protect the investors of the relevant qualifying social entrepreneurship funds, including the possibility of preventing the European manager from carrying out any further marketing of its qualifying social entrepreneurship funds in Malta.