S.L. 376.7 Art. 3Application for the exercise of a European right by European financial institutions - services.

(1) A European financial institution seeking to provide payment services and, or issue and, or distribute and, or redeem electronic money in Malta in exercise of a European right under the freedom to provide services shall communicate to its European regulatory authority the information prescribed in sub-regulation (2), and shall thereafter be exempt from the provisions of article 3 of the Act:

Provided that this regulation shall not apply to a European financial institution seeking to provide payment services and, or distribute and, or redeem electronic money in Malta through an agent and, or a distributor, as applicable.

(2) The information referred to in sub-regulation (1) shall be the following:

(i) its intention to provide payment services and, or issue, and or distribute and, or redeem electronic money in Malta;

(ii) the name, the address and where applicable, the authorisation number and the unique identification number of the European financial institution;

(iii) whether the European financial institution intends to issue and, or distribute and, or redeem electronic money in Malta and, or which payment services activities it intends to carry out;

(iv) where the European financial institution intends to INSTITUTIONS

outsource operational functions of payment services and, or of the issuance and, or distribution and, or redemption of electronic money to other entities in Malta, the operational functions of the 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 Malta; and

(v) any other information which may be required in terms of Article 14(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, in terms of Article 28(2) of the Payment Services Directive, receive the said information from the European regulatory authority by means of the template set out in Annex V to the Commission Delegated Regulation.

(4) Where the competent authority receives all the information referred to in sub-regulation (2) from the European regulatory authority in accordance with Article 28(2) of the Payment Services Directive, it shall, within one month of receipt of the said information, assess that information and provide the European regulatory 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 European financial institution in the exercise of a European right.

(5) Where the European regulatory authority does not agree with the assessment of the competent authority, the latter shall, in terms of Article 28(2) of the Payment Services Directive, be informed of the reasons for its decision.

(6) Within three months of receipt of all of the information referred to in sub-regulation (2), the competent authority shall, in terms of Article 28(3) of the Payment Services Directive, receive communication of the European regulatory authority’s decision.

(7) Following communication to the competent authority of the European regulatory authority’s decision in terms of sub-regulation (6), the competent authority shall publish the information referred to in sub-regulation (2)(ii) and (iii) in the public register established and maintained by the competent authority in accordance with article 8D of the Act.

(8) In the event of a change regarding the information communicated in accordance with sub-regulation (2), including any additional entities to which activities are outsourced in Malta, the competent authority shall, in terms of Article 28(4) of the Payment Services Directive and Article 16 of the Commission Delegated Regulation, be informed of such changes by the European regulatory authority and, in such cases, the provisions of sub-regulations (3) to

(6) shall apply.