S.L. 378.10 Art. 18FWithdrawal of admission of credit intermediaries.

(1) An admission granted to a credit intermediary by the

MFSA shall automatically cease to have any effect if the holder:

(a) expressly renounces the admission;

(b) has carried out neither credit intermediation activities in terms of the definition "credit intermediary" in regulation 2, nor provided advisory services, for the preceding six months; or

(c) where the credit intermediary is a legal person, has ceased to operate as a result of a merger with another credit intermediary or for any other reason whatsoever.

(2) The MFSA may withdraw the admission granted to a credit intermediary in accordance with regulation 18A where such a credit intermediary:

(a) has obtained the admission through false or misleading statements or any other irregular means;

(b) no longer fulfils the requirements under which admission was granted;

(c) has seriously or systematically infringed the provisions of these regulations governing the operating conditions for credit intermediaries;

(d) if any document or information accompanying an application for an admission or any information given in connection therewith is false in any material particular;

(e) conceals from, or fails to notify the MFSA with any document or information or change therein which it was its duty to reveal or notify under these regulations or any Credit Intermediaries’ Rules issued thereunder;

(f) where the credit intermediary is a legal person, is declared bankrupt or, goes into liquidation or is otherwise dissolved;

(g) fails to comply with any of the provisions of these regulations or any Credit Intermediaries’ Rules issued thereunder or with the conditions under which the admission is granted; or

(h) has insufficient assets to cover its liabilities.

(3) Where Malta is the home Member State and where the admission of a credit intermediary automatically ceases to have effect in accordance with sub-regulation (1) or is withdrawn by the MFSA in accordance with sub-regulation (2), the MFSA shall immediately notify the European regulatory authority of the relevant host Member States of such automatic cessation of admission or of such withdrawal as soon as possible and at the latest within fourteen (14) days from the date on which the admission automatically ceases to have effect or from the date of the withdrawal, by any appropriate means.

(4) The MFSA shall, without undue delay, delete from the register referred to in regulation 18A any credit intermediaries whose admission has automatically ceased to have effect or has been withdrawn.

(5) The MFSA may also impose restrictions on an admission granted in terms of these regulations as it shall consider appropriate for the proper compliance by credit intermediaries with the provisions of these regulations, any Credit Intermediaries’ Rules issued thereunder and the conditions, if any, of its admission, and may include:

(a) the removal of any officer of the credit intermediary or the replacement of any officer by such person as the MFSA may designate;

(b) the requirement for the credit intermediary to take or refrain from any action;

(c) the requirement that the credit intermediary be prohibited from undertaking any transaction or transactions or any class of business or be permitted to undertake any transaction or transactions or any class of business only upon such terms as the MFSA may prescribe:

Provided that the MFSA shall have the power to vary or remove any restrictions imposed under this regulation.

(6) Where the MFSA intends to restrict or withdraw an admission or to vary any restriction, it shall serve written notice of its intention on the credit intermediary; such notice shall specify the grounds upon which the MFSA intends to take action and shall specify a period within which the credit intermediary shall be entitled to make representations to the MFSA as to why such action should not be taken. Unless the MFSA decides that the matter is urgent, it shall not impose or vary any restriction or withdraw an admission before the expiry of such period.

(7) Where the MFSA is satisfied that the circumstances so warrant, it may at any time make public any action it has taken under this regulation.