S.L. 376.7 Art. 10Application for the exercise of a European right by Maltese financial institutions - branch.

(1) A Maltese financial institution may exercise a

European right to establish a branch in another Member State if it satisfies the requirements set out in this regulation.

(2) The Maltese financial institution shall give the competent authority a notice of its intention to establish a branch in another Member State, which notice shall be provided in English or in another language accepted by both the competent authority and the European regulatory authority and shall contain the following information:

(i) the name and address of the Maltese financial institution;

(ii) the licence number or registration number of the Maltese financial institution, as applicable;

(iii) the Member State in which the Maltese financial institution intends to establish a branch;

(iv) the payment services which the Maltese financial institution intends to provide in such other Member State and whether it intends to issue and, or distribute and, or redeem electronic money in such other Member State;

(v) the address of the proposed branch in the host Member State;

(vi) the identity of those responsible for the management of the proposed branch;

(vii) a description of the organisational structure of the INSTITUTIONS

proposed branch;

(viii) a business plan including a forecast budget calculation for the first three financial years which demonstrates that the Maltese financial institution is able to employ the appropriate and proportionate systems, resources and procedures to operate soundly with regard to the proposed provision of payment services and, or the issuance and, or distribution and, or redemption of the electronic money through the proposed branch in the host Member State;

(ix) a description of the Maltese financial institution’s governance arrangements and internal control mechanisms, including administrative, risk management and accounting procedures, which demonstrates that those governance arrangements, control mechanisms and procedures are proportionate, appropriate, sound and adequate with regard to the proposed provision of payment services and, or the issuance and, or distribution and, or redemption of the electronic money through the proposed branch in the host Member State;

(x) where the Maltese financial institution intends to outsource operational functions of payment services and or of the issuance, and, or distribution and, or redemption of electronic money to other entities in the host Member State, the operational functions of payment services and, or of the issuance and, or distribution and, or redemption of electronic money which it will be outsourcing to other entities in that host Member State; and

(xi) any other information as may be required in terms of Article 6(1) of the Commission Delegated Regulation.

(3) Within one month of receipt of all of the information referred to in sub-regulation (2), the competent authority shall send to the European regulatory authority the said information by means of the template set out in Annex II to the Commission Delegated Regulation and the competent authority shall inform the Maltese financial institution of such transmission of information.

(4) Where the European regulatory authority receives all the information referred to in sub-regulation (2) from the competent authority in accordance with sub-regulation (3), it shall, in terms of Article 28(2) of the Payment Services Directive, within one month of receipt of the said information, assess that information and provide the competent authority with relevant information in connection with the intended provision of payment services and, or issuance and, or distribution and, or redemption of electronic money by the relevant Maltese financial institution in the exercise of a European right. The European regulatory authority shall, in terms of Article 28(2) of the Payment Services Directive, inform the competent authority in particular of any reasonable grounds for concern in connection with the intended establishment of a branch with regard to money laundering or terrorist financing within the meaning of Directive (EU) 2015/849.

(5) Where the competent authority does not agree with the assessment of the European regulatory authority, it shall provide the latter with the reasons for its decision.

(6) If the assessment of the competent authority, particularly in light of the information received from the European regulatory authority of the host Member State is not favourable, the competent authority shall refuse to register the branch or shall withdraw the registration if already made.

(7) Within three months of receipt of all of the information referred to in sub-regulation (2), the competent authority shall communicate its decision to the European regulatory authority and to the Maltese financial institution.

(8) Upon communication to the European regulatory authority of its decision in terms of sub-regulation (7), the competent authority shall register the branch in the public register established and maintained by the competent authority in accordance with article 8D of the Act and shall publish in the said register the information referred to in sub-regulation (2)(i) to (v).

(9) Upon entry in the register referred to in article 8D of the Act, the branch of the Maltese financial institution may commence its activities in the host Member State.

(10) The Maltese financial institution shall notify the competent authority, without undue delay, of the date from which it commences its activities through the branch in the relevant host Member State.

(11) The competent authority shall inform the European regulatory authority of the host Member State of the date from which the Maltese financial institution shall commence its activities through the branch in the relevant host Member State by means of the template set out in Annex VI to the Commission Delegated Regulation.

(12) The Maltese financial institution shall communicate to the competent authority, without undue delay, any relevant change regarding the information communicated in accordance with sub-regulation (2) including additional branches or entities to which activities are outsourced in the host Member States in which it operates and, in such cases, the provisions of sub-regulations (3) to

(11) shall apply. INSTITUTIONS