S.L. 370.46 Art. 14Establishment of significant branches (Host Authority). 22 [S.L.

(1) Where an investment firm, other than a EU

investment firm subject to Article 95 of the CRR, authorised in another

Member State has established a branch in Malta, the competent authority may make a request to the European regulatory authority which is the consolidating supervisor, where Article 112(1) applies, or to the European regulatory authority of the home Member State of such investment firms, for that branch to be considered as significant.

(2) The request referred to in sub-regulation (1) shall provide reasons for considering the branch to be significant with particular regard to the following:

(a) whether the market share of the branch in terms of deposits exceeds 2% in Malta;

(b) the likely impact of a suspension or closure of the operations of the investment firm on systemic liquidity and the payment, clearing and settlement systems in Malta; and

(c) the size and the importance of the branch in terms of number of clients within the context of the banking or financial system of Malta.

(3) The competent authority shall do everything within its power to reach a joint decision with the European regulatory authority of the home Member State and, where Article 112(1) applies, with the European regulatory authority which is the consolidating supervisor, on the designation of a branch as being significant.

(4) If no joint decision is reached within two months of receipt of a request under sub-regulation (1), the competent authority (SUPERVISORY CONSOLIDATION) 370.46 (CAPITAL REQUIREMENTS DIRECTIVE) shall take its own decision within a further period of two months on whether the branch is significant. In taking its decision, the competent authority shall take into account any views and reservations of the European regulatory authority which is the consolidating supervisor or the European regulatory authority of the home Member State.

(5) The decisions referred to in sub-regulations (3) and (4) shall be set out in a document containing full reasons and shall be transmitted to the European regulatory authorities concerned. It shall be recognised as determinative and applied by the European regulatory authorities in the Member States concerned.

(6) Where the European regulatory authority of the home Member State does not consult the competent authority, or where, following such consultation, the competent authority maintains that operational steps required by the Act and any regulations or Rules made thereunder transposing the requirements of Article 86(11) of the CRD, are not adequate, the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.