Cap. 345 Art. 31EApproval of the covered bond programme.

(1) Where the competent authority finds that an application for the approval of a covered bond programme does not comply with article 31D(2) or that the covered bond programme does not meet the standards of completeness, comprehensibility and consistency necessary for its approval or that changes to the application or the covered bond programme are required or additional information is required:

(a) it shall inform the applicant of that fact; and

(b) it shall clearly specify the changes or additional information that are necessary.

(2) Where the applicant is unable or unwilling to make the necessary changes or to provide the additional information requested in accordance with sub-article (1), the competent authority shall be entitled to refuse the approval of the application and terminate the review process. In such cases, the competent authority shall notify the applicant of its decision in writing and specify the reasons for such refusal.

(3) Without prejudice to the provisions of sub-article (2), the competent authority shall determine an application for the approval of a covered bond programme by acting in any of the following ways:

(a) granting an approval without conditions;

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

(c) refusing to grant an approval:

Provided that the competent authority may, at any time, vary or revoke any condition imposed in terms of paragraph (b).

(4) If the competent authority decides to approve a covered bond programme, it shall give the applicant written notice accordingly.

(5) If the competent authority decides to refuse a covered bond programme, it must give the applicant notice of its decision in writing stating the reasons for its refusal.