S.L. 645.1 Art. 6Supervision of Maltese credit servicers.

(1) The competent authority shall review and evaluate the ongoing compliance, by a Maltese credit servicer which performs credit servicing activities in a host Member State, with the provisions of the Act and any regulations made, and Credit Servicing Rules and Conduct of Business Rules issued, thereunder.

(2) The competent authority shall be empowered to supervise, investigate and impose administrative penalties and remedial measures on Maltese credit servicers in respect of the provisions of the Act and any regulations made, and Credit Servicing Rules and Conduct of Business Rules issued, thereunder when performing credit servicing activities in a host Member State.

(3) The competent authority shall communicate any measures taken in respect of Maltese credit servicers to the European regulatory authority of the host Member State and, where appropriate, the competent authority of the Member State where the credit was granted, where such Member State is a Member State other than Malta and the host Member State.

(4) Without prejudice to regulation 5, where a Maltese credit servicer performs credit servicing activities in a Member state other than Malta, the competent authority, the European regulatory authority of the host Member State, and, where appropriate, the competent authority of the Member State where the credit was granted, when different from the competent authority and the European regulatory authority of the host Member State, shall cooperate closely in the performance of their functions and duties, in particular when carrying out checks, investigations and on-site inspections.

(5) The competent authority may, in the exercise of its function and duties provided for in the Act and any regulations made, and Credit Servicing Rules and Conduct of Business Rules issued, thereunder, request the European regulatory authority of the host Member State for its assistance in carrying out an on-site inspection of a branch set up, or of a credit service provider appointed, in the host Member State:

Provided that an inspection as referred to in this sub-regulation shall be conducted in accordance with the national law of the host Member State where the inspection is carried out.

(6) The European regulatory authority of the host Member State shall be entitled to decide on the most appropriate measures to be taken in each individual case in order to meet the request for assistance made by the competent authority as referred to in sub-regulation (5).

(7) Where the European regulatory authority of the host Member State has evidence that a Maltese credit servicer performing credit servicing activities in the host Member State, in accordance with national law transposing Article 13 of the NPL Directive, infringes any applicable provision of the law, including national law transposing the NPL Directive, such evidence shall be transmitted to the competent authority by the European regulatory authority of the host Member (PASSPORTING)

State, and the competent authority shall be requested to take appropriate measures.

(8) The provisions of sub-regulation (7) shall be without prejudice to the supervisory, investigatory and sanctioning powers of the European regulatory authority of the host Member State in relation to the European credit servicer under national law, namely those applicable to the credit or the credit agreement.

(9) The competent authority shall communicate details of any administrative or other procedure initiated in respect of the evidence provided by the European regulatory authority of the host Member State in terms of sub-regulation (7), or of any administrative penalties and remedial measures taken against the Maltese credit servicer, or of a reasoned decision why no measures were taken, to the European regulatory authority of the host Member State that transmitted the said evidence by no later than two (2) months from the date of the request referred to in sub-regulation (7):

Provided that where a procedure as referred to in this sub-regulation is initiated, the competent authority shall regularly inform the European regulatory authority of the host Member State about the status of such procedure.