S.L. 371.11 Art. 12On-the-spot checking and inspection of branches established in a Member State other than Malta. S.L. 371.15

(1) Where a Maltese credit institution exercises a European passport right to establish a branch, the competent authority may, after notifying the European regulatory authority of the host Member State, carry out, itself or through the intermediary of persons appointed for that purpose by the competent authority, on-the-spot checks of the information referred to in Article 50 of the CRD and inspections of such branches.

(2) The competent authority may also, for the purposes of the inspection of branches, have recourse to one of the other procedures set out in regulation 12 of the Supervisory

Consolidation Regulations.

(3) Where Malta is the home Member State, the competent authority shall duly take into account the information and findings obtained by the European regulatory authority of the host Member State that are relevant for the risk assessment of the credit institution or the stability of the financial system in the relevant host Member State in accordance with Article 52(3) of the CRD in determining the supervisory examination programme referred to in regulation 5 of the Banking Act (Supervisory Review) Regulations and shall also have regard to the stability of the financial system in the host Member State concerned.

(4) On-the-spot checks and inspections of branches shall be conducted in accordance with the law of the Member State where the check or inspection is carried out.

(5) Information received under Article 52(3) of the CRD and information obtained by means of an on-the-spot check or inspection referred to in this regulation, shall not be disclosed under article 25(9) and (10) of the Act, except with the express consent of the European regulatory authority which disclosed the information or of the European regulatory authority of the Member State in which such an on-the-spot check or inspection was carried out.