Cap. 370 Art. 7Power of competent authority to cancel or suspend licences.

(1) The competent authority may at any time cancel or suspend a licence in accordance with the provisions of this Act.

(2) In the case of an investment services licence, the competent authority may cancel or suspend a licence -

(a) if it considers that the holder thereof is not a fit and proper person to provide the investment service he is authorised to provide; or

(b) if it considers that the holder thereof does not fulfil the requirements of, or has contravened, any of the provisions of this Act or regulations made thereunder or of any applicable Investment Services Rules or Conduct of Business Rules issued by the competent authority, or has failed to satisfy or comply with any obligation or condition to which he or the licence is subject by virtue of or under this Act; or

(c) if the competent authority has been furnished by or on behalf of the licence holder with information which is false, inaccurate or misleading, or if the licence holder has obtained the licence by making false statements or by any other irregular means; or

(d) if the licence holder has not commenced to provide the service he has been authorised to provide within the time provided for in the licence or has ceased to provide such service; or

(e) if it considers it desirable to cancel or suspend the licence for the protection of investors and the general public, and the reputation of Malta taking into account Malta’s international commitments; or

(f) at the request of the licence holder; or

(g) in any of the circumstances under which the competent authority would have been precluded from issuing the licence under this Act or where under this Act it would have been entitled to refuse the grant of such licence; or

(h) if the licence holder is declared bankrupt, or goes into liquidation, or makes a composition with its creditors, or is otherwise dissolved.

(3) In the case of a collective investment scheme licence, the competent authority may cancel or suspend a licence -

(a) if it considers that the directors, officers or trustees of the scheme are not fit and proper persons to carry out the functions required of them in connection with the scheme; or

(b) if it considers that the scheme to which the licence refers does not fulfil the requirements of any provision of this Act or of any Investment Services Rules or regulations made thereunder, or there has been a contravention of any such provision as aforesaid, or an obligation or condition to which the scheme or the licence is subject by virtue of or under this Act has not been satisfied or complied with; or

(c) if information has been furnished to the competent authority by or on behalf of or in relation to the scheme which is false, inaccurate or misleading; or

(d) if the scheme has not commenced the activities which it was authorised to carry on within the time provided for in the licence or has ceased to carry on such activities; or

(e) if it considers it desirable to cancel or suspend the licence for the protection of investors and the general public and the reputation of Malta taking into account Malta’s international commitments; or

(f) at the request of the manager or trustee or custodian of the scheme, or their equivalent; or

(g) if the scheme is declared bankrupt, or goes into liquidation, or makes a composition with its creditors, or is otherwise dissolved.

(4) The competent authority shall notify ESMA of any cancellation of an investment services licence in terms of sub-article (2).