Cap. 370 Art. 8AApplication of CRR to certain investment firms.

(1) The competent authority may decide to apply the requirements of the CRR pursuant to point (c) of the first sub-

paragraph of Article 1(2) of the IFR to an investment firm to carry out any of the activities listed in points (3) and (6) of Section A of Annex I

to MiFID, where the total value of the consolidated assets of such investment firm is equal to or exceeds five billion euro (€5,000,000,000), calculated as an average of the previous twelve (12) months, and one or more of the following criteria apply:

(a) such investment firm carries out those activities on such a scale that the failure or the distress of the investment firm could lead to systemic risk;

(b) the investment firm is a clearing member as defined in point (3) of Article 4(1) of the IFR, or

(c) the competent authority considers it to be justified in light of the size, nature, scale and complexity of the activities of the investment firm concerned, taking into account the principle of proportionality and having regard to one or more of the following factors:

(i) the importance of the investment firm for the economy of Malta or of the European Union;

(ii) the significance of the investment firm’s cross-border activities;

(iii) the interconnectedness of the investment firm with the financial system.

(2) Sub-article (1) shall not apply to commodity and emission allowance dealers, collective investment undertakings or insurance undertakings.

(3) Where the competent authority decides to apply the requirements of the CRR to an investment firm in accordance with sub-article (1), that investment firm shall be supervised for compliance with prudential requirements under Titles VII and VIII of the CRD as transposed in national law.

(4) Where the competent authority decides to revoke a decision taken in accordance with sub-article (1), it shall inform the investment firm without delay:

Provided that, any decision taken by the competent authority under sub-article (1) shall cease to apply where an investment firm no longer meets the threshold referred to in that sub-article, calculated over a period of twelve consecutive months.

(5) For the purposes of this article, the term "investment firm" means an investment firm licensed under this Act.

(6) The competent authority shall inform the EBA without delay of any decision taken pursuant to sub-articles (1), (3) and (4).

OBLIGATIONS OF LICENCE HOLDERS AND OTHERS