S.L. 378.10 Art. 18AAdmission of credit intermediaries.

(1) Any credit intermediary who, carries out all or part of the credit intermediation activities in terms of the definition "credit intermediary" in regulation 2, or who provides advisory services in or from Malta, shall apply for admission with the MFSA in terms of these regulations.

(2) An application for admission in terms of these regulations shall be made in such form and manner as the MFSA may from time to time determine.

(3) The MFSA shall have the power to require any person to provide such information as it may deem necessary for the purpose of determining an application for admission or for the purposes of determining whether to restrict or withdraw an admission in terms of these regulations: Provided that an application may only be withdrawn by written notice to the MFSA before admission is granted or refused.

(4) The MFSA shall determine an application by doing any of the following:

(a) granting an admission without conditions;

(b) granting an admission subject to such conditions as it may deem appropriate;

(c) refusing to grant an admission: Provided that if it refuses an application it shall inform the applicant, in writing, of the reasons for the refusal.

(5) The MFSA may grant admission in terms of these regulations only if it is satisfied, on the basis of the information required to be submitted in terms of these regulations and any Credit Intermediaries’ Rules issued thereunder, that admission ought to be granted.

(6) Subject to the provisions of these regulations, the MFSA may subject the admission referred to in this regulation to such conditions as it may deem appropriate, and having granted an admission it may, from time to time, vary or revoke any condition so imposed or impose new conditions.

(7) Credit intermediaries shall not be admitted by the MFSA unless they fulfil at least the requirements provided for in regulation 6 and the following professional requirements:

(a) credit intermediaries shall hold, at all times, professional indemnity insurance covering the territories in which they offer services, or some other comparable guarantee against liability arising from professional negligence: Provided that for tied credit intermediaries who act on behalf of and under the full and unconditional responsibility of only one creditor, such a professional indemnity insurance or other comparable guarantee shall be provided by the creditor for which the credit intermediary is empowered to act;

(b) a natural person established as a credit intermediary, the members of the Board of Directors of a credit intermediary established as a legal person and natural persons performing equivalent tasks within a credit intermediary which is a legal person but does not have a Board of Directors, shall be of good repute. Such persons shall, as a minimum, have a clean police record or any other national equivalent in relation to serious criminal offences linked to crimes against property or other crimes related to financial activities and they shall not have previously been declared bankrupt, unless they have been rehabilitated in accordance with national law;

(c) a natural person established as a credit intermediary, the members of the Board of Directors of a credit intermediary established as a legal person and natural persons performing equivalent tasks within a credit intermediary which is a legal person but does not have a Board of Directors, shall possess the appropriate level of knowledge and competence in relation to credit agreements.

(8) The MFSA shall, for the purposes of paragraph (c) of sub-regulation (7) establish the appropriate level of knowledge and competence in accordance with the principles set out in the Third Schedule.

(9) A credit intermediary admitted in terms of these regulations shall provide the MFSA with particulars of any changes in the information provided under these regulations and any Credit Intermediaries’ Rules issued thereunder as soon as such credit intermediary becomes aware of such change.

(10) Where Malta is the home Member State, all Maltese credit intermediaries, whether established as natural or legal persons, shall be entered into a register with the MFSA.

(11) The register referred to in sub-regulation (10) shall be maintained by the MFSA, who shall ensure that the said register is kept up to date and is publicly available online.

(12) The register referred to in sub-regulation (10) shall contain at least the following information:

(a) the names of the persons within the management who are responsible for the intermediation business;

(b) the Member States in which the Maltese credit intermediary conducts business under the rules on the freedom of establishment or the freedom to provide services and of which the Maltese credit intermediary has informed the MFSA in accordance with Article 32(3) of the MCD;

(c) whether the Maltese credit intermediary is tied or not;

(d) where a tied credit intermediary acts on behalf of and under the full and unconditional responsibility of only one creditor, the creditor on whose behalf the tied credit intermediary acts.

(13) Any credit intermediary who is to be admitted under these regulations who -

(a) is a legal person, shall have its head office and its registered office in Malta;

(b) is not a legal person, shall have its head office in Malta and shall actually carry on its main business in Malta.

(14) The MFSA shall establish a single information point to allow quick and easy public access to information from the register referred to in sub-regulation (10), which shall be compiled electronically and kept constantly updated.

(15) Without prejudice to regulations 18B and 18C, all admitted credit intermediaries shall comply with the requirements defined in sub-regulations (6), (7) and (8) on a continuing basis.

(16) The MFSA may issue, amend or revoke Credit Intermediaries’ Rules as it shall consider appropriate for carrying into effect the provisions of this regulation.

(17) This regulation shall not apply to credit institutions licensed in terms of the Banking Act and, or to financial institutions licensed in terms of the Financial Institutions Act.