S.L. 370.48 Art. 4Administrative penalties and other administrative measures. 3 4 [S.L.

(1) Without prejudice to the supervisory powers of the competent authority referred to in regulation 3 and the IFD, the competent authority shall impose administrative penalties and other administrative measures in respect of breaches of:

(a) the provisions of the Act and, or of regulations and, or Investment Services Rules made thereunder transposing the provisions of the IFD; and, or

(b) the provisions of the IFR, including where an investment firm:

(i) fails to have in place internal governance arrangements as set out in Article 26 of the IFD;

(ii) fails to report information or provides incomplete or inaccurate information on compliance with the obligation to meet own funds requirements set out in Article 11 of the IFR to the competent authority, in breach of point (b) of Article 54(1) of the IFR;

(iii) fails to report to the competent authority, in breach of point (e) of Article 54(1) of the IFR, information about concentration risk or provides incomplete or inaccurate information;

(iv) incurs a concentration risk in excess of the limits set out in Article 37 of the IFR, without prejudice to Articles 38 and 39 of the IFR;

(v) repeatedly or persistently fails to hold liquid assets in breach of Article 43 of the IFR, without prejudice to Article 44 of the IFR;

(vi) fails to disclose information, or provides incomplete or inaccurate information, in breach of the provisions set out in Part Six of the IFR;

(vii) makes payments to holders of instruments included in the own funds of the investment firm where Article 28, 52 or 63 of the CRR prohibit such payments to holders of instruments included in own funds;

(viii) is found liable for a serious breach of national provisions adopted pursuant to Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/ 2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC;

(ix) allows one or more persons who do not comply with Article 91 of the CRD to become or remain a member of the management body.

(2) The administrative penalties and other administrative measures taken pursuant to sub-regulation (1) shall be effective, proportionate and dissuasive.

(3) The competent authority may impose administrative penalties and other administrative measures relating to breaches of the provisions of the Act and any regulations and Investment Services Rules issued thereunder transposing the requirements of the IFD, and of the IFR to the members of the management body of such companies and to other natural persons who under Maltese law are responsible for the breach. (ADMINISTRATIVE PENALTIES, MEASURES 370.48 AND INVESTIGATORY POWERS)