S.L. 378.10 Art. 18DFreedom of establishment and freedom to provide services by credit intermediaries (Malta as home Member State).

(1) Where Malta is the home Member State, the admission of a credit intermediary by the MFSA shall, provided the activities that the credit intermediary intends to carry out in the host Member State are covered by the said admission and in accordance with regulation 18A(1), be effective for the entire territory of the European Union without further admission being required by the European regulatory authority of the host Member

State for the carrying out of the activities and provision of service covered by the admission:

Provided that Maltese credit intermediaries shall not be allowed to provide their services in relation to credit agreements offered by:

(a) financial institutions licensed in terms of the Financial Institutions Act, to consumers in a host Member State in which such financial institutions are not allowed to operate;

(b) credit institutions licensed in terms of the Banking Act to consumers in a host Member State, where such credit institutions have not exercised their right to establish a branch or to provide services in the relevant host Member State in terms of the Banking Act or any regulations made or Banking Rules issued thereunder.

(2) Where Malta is the home Member State, any Maltese credit intermediary intending to carry out business for the first time in one or more Member States under the freedom to provide services or when establishing a branch, shall inform the MFSA.

(3) Within a period of one month after being informed in accordance with sub-regulation (2), the MFSA shall notify the European regulatory authority of the host Member State concerned of:

(a) the intention of the Maltese credit intermediary; and

(b) where the Maltese credit intermediary is a tied credit intermediary, the creditors to which the Maltese credit intermediary is tied and whether the creditors take full and unconditional responsibility for the Maltese credit intermediary’s activities.

(4) The MFSA shall also, at the same time as a notification is sent to the European regulatory authority of the host Member State concerned, inform the Maltese credit intermediary concerned of that notification.

(5) The Maltese credit intermediary may only start business in the host Member State concerned one month after the date on which he was informed by the MFSA in accordance with sub-regulation (4).

(6) Where the European regulatory authority of the host Member State concerned indicates to the Maltese credit intermediary the conditions under which, in areas not harmonised in European Union law, the activities of the Maltese credit intermediary are to be carried out in the host Member State concerned in accordance with Article 32(4) of the MCD, the Maltese credit intermediary shall carry out its activities in the host Member State in accordance with the conditions indicated by the European regulatory authority of the host Member State concerned.