S.L. 371.11 Art. 3Exercise of European passport rights by European credit institutions - establishment.

(1) A European credit institution which is seeking to establish a branch in Malta in exercise of a European passport right shall be exempt from the provisions of article 5(1) of the Act. The activities that may be carried out in Malta by such a European credit institution in exercise of a European passport right shall be limited to the activities it is authorised to undertake in the home Member State.

(2) A European credit institution may exercise a European passport right to establish a branch in Malta in accordance with sub-regulation (1) provided -

(a) the European credit institution has given the European regulatory authority of the home Member State a branch passport notification to establish a branch in Malta in accordance with Article 35(1) and (2) of the CRD;

(b) the competent authority has received a notice from the European regulatory authority of the home Member State, which shall -

(i) be given in accordance with the CRD;

(ii) certify that the European credit institution is authorised to act as a credit institution by the European regulatory authority;

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

(iv) contain the information stated in the branch passport notification referred to in paragraph (a);

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

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

(3) The competent authority shall, within two months of receiving the notice referred to in sub-regulation (2)(b), prepare for the supervision of the European credit institution and, if necessary, indicate the conditions under which, in the interests of the general good, those activities shall be carried out in Malta.

(4) A branch of a European credit institution shall not be established and commence its activities in Malta unless -

(a) the European credit institution has received a communication from the competent authority acknowledging its establishment in Malta 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 by the competent authority of the notice referred to in sub-regulation (2)(b), in the event that no communication has been received from the competent authority.

(5) In the event of a change in branch particulars notified to the European regulatory authority in accordance with sub-regulation (2)(a), the European credit institution shall give both the competent authority and the European regulatory authority a change of branch particulars notification in accordance with Article 36(3) of the CRD, at least one month before implementing any such change to enable the competent authority to take a decision setting out the conditions for the change in accordance with sub-regulation (3).

(6) Any measures taken by the competent authority with respect to a branch shall not allow discriminatory or restrictive treatment on the basis that the credit institution to which the branch belongs is authorised in another Member State.