S.L. 376.7 Art. 8Measures in case ofnon-compliance, including precautionary measures.

(1) Without prejudice to the responsibility of the

European regulatory authority of the home Member State, where the competent authority ascertains that a European financial institution having agents or branches or distributors in Malta does not comply with the provisions of the Act and any regulations or Rules issued thereunder, other than articles 11A and 11B of the Act, the competent authority shall inform the European regulatory authority of the home INSTITUTIONS

Member State without delay:

Provided that, where the competent authority ascertains that a European financial institution having agents or branches or distributors in Malta does not comply with articles 11A and 11B of the Act, the competent authority shall cooperate with the Central Bank for the purposes of informing the European regulatory authority of the home Member State without delay in terms of Article 30(1) of the Payment Services Directive as transposed in Directives issued by the Central Bank under the Central Bank of Malta Act.

(2) In emergency situations, where immediate action is necessary to address a serious threat to the collective interests of those making use of the services of the European financial institution in Malta through an agent or branch or distributor, the competent authority may, in parallel to the cross-border cooperation between the competent authority and the European regulatory authority of the home Member State and pending measures by the said European regulatory authority of the home Member State, take precautionary measures:

Provided that where a proposed precautionary measure relates to a failure to comply with articles 11A or 11B of the Act, such precautionary measure shall be taken in close cooperation with the Central Bank.

(3) Any precautionary measures referred to in sub-article (2) shall be appropriate and proportionate to their purpose to protect against a serious threat to the collective interests of those making use of the services of the European financial institution in Malta through an agent or branch or distributor. The said precautionary measures shall not result in a preference for those making use of such service in Malta over those making use of such services in other Member States.

(4) Any precautionary measures referred to in sub-article (2) shall be temporary and shall be terminated when the serious threats identified are addressed, including with the assistance of, or in cooperation with, the European regulatory authority of the home Member State or, as provided for in Article 27(1) of the Payment Services Directive, with the EBA.

(5) Where compatible with the emergency situation referred to in sub-article (2), the competent authority, , shall inform the European regulatory authority of the home Member State and those of any other Member State concerned, the European Commission and the EBA in advance, and in any case without undue delay, of the precautionary measures taken under sub-article (2) and of their justification.

(6) In the event of an infringement or suspected infringement of the Act or regulations or Rules issued thereunder, by an agent or branch or distributor of a European financial institution conducted under the right of establishment, the competent authority shall have the power to exercise all the powers granted to it under the Act and any regulations and Rules issued thereunder in relation to such agent or branch or distributor:

Provided that in relation to an infringement or suspected infringement of Articles 11A or 11B of the Act, in exercising the powers granted to it under the Act and any regulations or Rules issued thereunder, the competent authority shall collaborate closely with the Central Bank.