Cap. 345 Art. 4Application for authorisation.

(1)(a) No person shall provide, or hold itself out to provide the services of a regulated market in or from within

Malta unless such person is in possession of an authorisation.

(b) Any body corporate or unincorporate may apply to the competent authority for an authorisation under this

Part of the Act declaring it to be an authorised regulated market for the purposes of this Act.

(c) A regulated market shall only be authorised where the competent authority is satisfied that both the market operator and the systems of the regulated market comply with the applicable requirements laid down in this Act and any regulation or Financial Market Rules made thereunder.

(d) Where a regulated market is a legal person and is managed or operated by a market operator other than the regulated market itself, the competent authority shall establish by means of Financial Market Rules how the different obligations imposed on the market operator under MiFID are to be allocated between the regulated market and the market operator.

(2) (a) The market operator of the regulated market shall provide all information, necessary to enable the competent authority to satisfy itself that the regulated market has established, at the time of initial authorisation, all the necessary arrangements to meet its obligations under the Act or any regulations or Financial Market Rules made thereunder.

(b) An application shall be made in such a manner as the competent authority may establish by Financial Market Rules and shall be accompanied by:

(i) a programme of operations setting out inter alia the types of business envisaged;

(ii) a full description of the organisational structure and the proposed bye-laws or similar arrangements of the applicant;

(iii) detailed information as required by the competent authority on the -

(a) persons who effectively direct the business and the operations of the regulated market;

(b) those persons who own the regulated market; and

(c) the market operator; and

(iv) any other information required by the competent authority.

(3) The market operator shall notify the competent authority immediately of any changes or corrections to the information provided in terms of sub-article (2): Provided that in the case of changes to the persons who effectively direct the business and the operations of the regulated market the prior authorisation of the competent authority shall be requested: Provided further that where there are objective and demonstrable grounds for believing that the appointment or election of an officer poses or may pose a material threat to the sound and prudent management and operation of the regulated market, the competent authority shall refuse to approve such appointment or election.

(4) For the better carrying out of the provisions of this Act, the competent authority may, from time to time, issue and publish Financial Market Rules which shall be binding on regulated markets and others as may be specified therein. Such Financial Market Rules may lay down additional requirements and conditions in relation to activities of regulated markets and any other persons as may be specified therein, the conduct of their business, their relations with customers, the public and other parties, their responsibilities to the competent authority, reporting requirements, financial resources, capital adequacy and related requirements, and any other matters as the competent authority may consider appropriate including -

(a) the manner and form in which an application is to be made;

(b) the particulars and such other matters which are to be set out by an applicant;

(c) such further information as the competent authority may reasonably require for the purpose of determining the application;

(d) any other matter incidental to or connected with any of the above.

(5) Information which the competent authority may require in connection with an application shall be provided in such form, and shall be verified in such manner, as the competent authority may direct.

(6) Different Financial Market Rules may be issued by the competent authority under sub-article (4) with respect to different classes or categories of applications.

(7) In determining an application the Competent Authority may have regard to any information which it considers relevant to the application.

(8) The competent authority may on an application duly made in accordance with sub-articles (1) and (2) and subject to any Financial Market Rules issued under sub-article (4) make or refuse to issue an authorisation. Where the competent authority issues an authorisation, the market operator shall be responsible for ensuring that the provisions of the Act, regulations and Financial Market Rules made thereunder and any implementing measures issued by the European Commission in terms of the powers conferred to it by the MIFID which are applicable to regulated markets, are complied with.

(9) An authorisation shall state the date on which it shall take effect.

(10) Where the competent authority refuses an application for an authorisation it shall give the applicant a notice to that effect stating the reasons for the refusal. (11) (Deleted by: XLVI.2021.12).

(12) An authorisation may, in accordance with such regulations as may be prescribed, be varied, suspended or revoked by the competent authority.