S.L. 371.11 Art. 10Exercise of European passport rights by Maltese credit institutions establishment. S.L. 371.15

(1) A Maltese credit institution may exercise a European passport right to establish a branch in another Member State provided the requirements set out in this regulation are satisfied. -The activities that may be carried out in the host Member State by such a Maltese credit institution in exercise of a European passport right shall be limited to the activities it is authorised to undertake in Malta.

(2) The Maltese credit institution wishing to exercise a European passport right to establish a branch in another Member State shall provide the competent authority with a branch passport notification to establish a branch in another Member State, which shall contain -

(a) the Member State within the territory of which the Maltese credit institution plans to establish a branch;

(b) a programme of operations identifying, the inter alia, activities which it seeks to carry out through the branch;

(c) the address of the proposed branch from where documents may be obtained; and

(d) the proposed organisational structure of the branch and the names of the proposed managers.

(3) Without prejudice to sub-regulations (5) and (6), the competent authority shall, within three months of receiving a branch passport notification referred to in sub-regulation (2), give a notice to the European regulatory authority of the host Member State, which shall -

(a) be given in accordance with the CRD;

(b) certify that the Maltese credit institution is authorised to act as a credit institution by the competent authority;

(c) identify which of the activities listed in Annex I to the CRD it intends to carry out;

(d) contain the information stated in the branch passport notification referred to in sub-regulation (2);

(e) indicate the amount and composition of own funds and the sum of the own funds requirements under Article 92 of the CRR of the Maltese credit institution; and

(f) contain details of any deposit guarantee scheme which is intended to protect the branch’s clients.

(4) The competent authority shall notify the European regulatory authority of any change in the details of a deposit guarantee scheme referred to in sub-regulation (3)(f).

(5) Where the requirements specified in sub-regulation (2) are satisfied, the notice referred to in sub-regulation (3) shall only be sent to the European regulatory authority if, taking into account the activities which the Maltese credit institution seeks to carry out through the branch, the competent authority has no reason to doubt the adequacy of the administrative structure or the financial situation of the Maltese credit institution:

Provided that in the event of any changes in any of the particulars referred to in this sub-regulation, the competent authority shall notify the European regulatory authority accordingly.

(6) Where the competent authority refuses to give the European regulatory authority of the host Member State the notice referred to in sub-regulation (3), it shall, within three months from the date of receipt of the branch passport notification referred to in sub-regulation (2), give the Maltese credit institution the reasons for its decision in writing. The Maltese credit institution may appeal to the Tribunal and the provisions of article 10 of the Act shall apply mutatis mutandis.

(7) A branch of a Maltese credit institution shall not be established and commence its activities in the host Member State unless -

(a) the Maltese credit institution has received a communication from the European regulatory authority acknowledging its establishment in the host Member State and, if necessary, indicating any applicable conditions in the interests of the general good; or

(b) two months have elapsed from the date of receipt of the notice referred to in sub-regulation (3), and no communication has been received from the European regulatory authority.

(8) In the event of a change in any of the particulars communicated in the branch passport notification referred to in sub-regulation (2), the Maltese credit institution shall give the European regulatory authority and the competent authority a change of branch particulars notification in accordance with Article 36(3) of the CRD at least one month before implementing the change in order to enable the competent authority to take a decision following the notification under this regulation.

(9) The prudential supervision of a Maltese credit institution shall be the responsibility of the competent authority whether the credit institution establishes a branch in another Member State or not, without prejudice to those provisions of the CRD which give responsibility to the European regulatory authority of the host Member State.

(10) Sub-regulation (9) shall not prevent the supervision on a consolidated basis in terms of regulation 3 of the Supervisory

Consolidation Regulations.

(11) The competent authority shall notify the European Commission and the EBA of the number and type of cases in which there have been refusals in terms of sub-regulations (6) and (8).