S.L. 371.11 Art. 22Transitional provisions.

The provisions of regulations 3(6), 4(5), 6, 8, 12, 14, 15

and 16 shall not apply until the date on which the liquidity coverage requirement becomes applicable in accordance with a delegated act adopted by the European Commission in accordance with Article 460 of the CRR in terms of Article 151 of the CRD: Provided that, until the date referred to in this regulation:

(a) regulation 6 of these regulations shall be replaced by the following: " 6. (1) The competent authority may, for statistical Reporting to the competent purposes, require a European credit institution which authority. has established a branch in Malta in terms of these regulations, to report periodically on its activities in Malta to the competent authority.

(2) In discharging its responsibilities within the meaning of regulation 23, the competent authority may require such branches of European credit institutions to provide the same particulars as Maltese credit institutions for that purpose.";

(b) regulation 8 of these regulations shall be replaced by the following:

"On-the-spot 8. (1) Where a European credit institution carries checks of out its activities in Malta through a branch in branches exercise of a European passport right, the European established in Malta. regulatory authority of the home Member State may, after notifying the competent authority, carry out, itself or through an intermediary, on-the-spot checks of the information referred to in regulation 16 of these regulations.

(2) This regulation and the right of European regulatory authorities of the home Member State to have recourse to one of the other procedures set out in Article 118 of the CRD for the purposes of such on-the-spot checking of branches, shall not affect the right of the competent authority, in discharging its responsibilities under the CRD, to carry out on-the-spot checks of branches established in Malta.";

(c) regulation 12 of these regulations shall be replaced by

* Revoked by European Passport Rights for Credit Institutions Regulations, 2011. † Revoked by these Regulations. the following:

"On-the-spot 12. (1) Where a Maltese credit institution carries checks of out its activities in another Member State through a branches branch in exercise of a European passport right, the established in a Member State competent authority may, after notifying the other than European regulatory authority of the host Member Malta. State, carry out, itself or through an intermediary, on-the-spot checks of the information referred to in regulation 16 and may also, for the purposes of such on-the-spot checking of branches, have recourse to one of the other procedures set out in regulation 12 of the Supervisory Consolidation Regulations. S.L. 371.15

(2) This regulation shall not affect the right of the European regulatory authority of the host Member State, in discharging its responsibilities under the CRD, to carry out on-the-spot checks of branches established in the host Member State.";

(d) regulation 14 of these regulations shall be replaced by the following: " 14. (1) Where Malta is the host Member State Contraventions by European and the competent authority ascertains that a credit institutions. European credit institution which has a branch or provides services in Malta in exercise of a European passport right is not complying with the provisions of the Act or any regulations made or Banking Rules issued thereunder transposing the requirements of the CRD relating to the powers of the competent authority, the competent authority shall require the European credit institution to remedy its non-compliance.

(2) If the European credit institution concerned fails to take the necessary steps to remedy and rectify its position, the competent authority shall notify the European regulatory authority of such failure accordingly.

(3) Where Malta is the host Member State, if, despite the measures taken by the European regulatory authority of the home Member State to ensure that the European credit institution concerned remedies its non-compliance, or because such measures prove inadequate or are not provided for in the Member State in question, the European credit institution persists in violating the legal rules referred to in sub-regulation (1), the competent authority may, after notifying the European regulatory authority, take appropriate measures to prevent or to punish further breaches and, in so far as necessary, to prevent the European credit institution from initiating further transactions in Malta.

(4) Before following the procedure set out in sub-regulations (1) to (3), where Malta is the host Member State, the competent authority may, in emergencies, take any precautionary measures necessary to protect the interests of depositors, investors and others to whom services are provided. The competent authority shall notify the European Commission and the European regulatory authorities concerned of such measures at the earliest opportunity.

(5) Where Malta is the host Member State, the competent authority may, notwithstanding regulation 6 and sub-regulations (1) to (3) of this regulation, exercise the powers conferred upon it under the CRD to take appropriate measures to prevent or to punish breaches committed in Malta of the provisions of the Act or any regulations made or Banking Rules issued thereunder transposing the requirements of the CRD or in the interests of the general good. This shall include the possibility of preventing credit institutions who have so acted in breach, from initiating further transactions in Malta.

(6) Any measures taken in accordance with sub-regulation (1) or sub-regulations (4) or (5) involving penalties or restrictions on the exercise of the freedom to provide services or the freedom of establishment shall be properly reasoned and communicated to the credit institution concerned.

(7) Where Malta is the host Member State and a European credit institution carrying out its activities in Malta in exercise of a European passport right has had its authorisation withdrawn by the European regulatory authority of the home Member State, the competent authority shall take appropriate measures to prevent the European credit institution concerned from initiating further transactions in Malta and to safeguard the interests of depositors.";

(e) regulation 15 of these regulations shall be replaced by the following:

"Contraventions 15. (1) Where Malta is the home Member State, by Maltese credit if the European regulatory authority of the host institutions. Member State, after ascertaining that a Maltese credit institution having a branch or providing services within its territory in exercise of a European passport right is not complying with the legal provisions adopted in that Member State pursuant to the CRD relating to the powers of the European regulatory authority of the host Member State, requires the Maltese credit institution concerned to remedy its non-compliance and the Maltese credit institution concerned fails to take the necessary steps to remedy such non-compliance, the competent authority shall, at the earliest opportunity, take all appropriate measures to ensure that the Maltese credit institution concerned remedies its non-compliance. The nature of those measures shall be communicated to the European regulatory authorities concerned.

(2) Any measures taken in accordance with sub-regulation (1) involving penalties or restrictions on the exercise of the freedom to provide services or the freedom of establishment shall be properly reasoned and communicated to the credit institution concerned.

(3) In the event of withdrawal of a licence by the competent authority of a Maltese credit institution, the competent authority shall notify the European regulatory authorities of the host Member State without delay.";

(f) regulation 16 shall be replaced by the following:

" 16. The competent authority shall collaborate Collaboration between closely with relevant European regulatory regulatory authorities in order to supervise the activities of authorities. credit institutions operating, in particular through a branch, in one or more Member States other than that in which their head offices are situated. The competent authority shall supply all information concerning the management and ownership of credit institutions to the relevant European regulatory authorities in the Member States concerned, that is likely to facilitate their supervision and the examination of the conditions for their licensing, and all information likely to facilitate the monitoring of credit institutions, in particular with regard to liquidity, solvency, deposit guarantees, the limiting of large exposures, administrative and accounting procedures and internal control mechanisms.".