S.L. 370.47 Art. 7On-the-spotchecks and inspections of branchesinanother Member State. 

(1) Where a European investment firm carries out its activities through a branch in Malta, the competent authority may permit the European regulatory authority of the home Member State concerned, after it has notified the competent authority, to carry out, itself or through an intermediary appointed for that purpose, on-the-spot checks of the information referred to in regulation 6(1) and inspections of such branches.

(2) The competent authority may carry out, on a case-by-case basis, on-the-spot checks and inspections of the activities carried out by branches of European investment firms in Malta and require information from a branch about its activities for supervisory purposes, and where it considers it relevant for reasons of stability of the financial system in Malta. Before carrying out such checks and inspections, the competent authority shall consult the European regulatory authority of the home Member State concerned.

(3) On-the-spot checks and inspections of branches when carried out in Malta shall be conducted in accordance with the laws of Malta.

(4) As soon as possible, following completion of those checks and inspections, the competent authority shall communicate to the European regulatory authority of the home Member State, the information obtained and findings that are relevant for the risk assessment of the investment firm concerned.