S.L. 330.6 Art. 21Additional powers of the Authority.

(1) The Authority may take any measures in terms of these regulations in relation to a regulated entity authorised in Malta within the financial conglomerate and may take any step or action permitted in the sectoral rules or in any laws, rules, regulations, guidelines or directives implementing or giving effect to the sectoral rules in respect of such regulated entity in a financial conglomerate.

(2) The Authority may apply the provisions of the sectoral rules on capital adequacy, intra-group transactions and risk concentration at the level of the financial conglomerate.

(3) Where the Authority is of the opinion that a mixed financial holding company with its head office in Malta:

(a) is or is likely to become unable to meet its obligations towards its creditors or its clients;

(b) whose subsidiaries or entities in whom it holds a participation or with whom it has close links are not maintaining or are unlikely to be in a position to maintain adequate capital resources having regard to the volume and nature of their business, or which no longer comply with capital or other financial requirements specified by the competent authorities from time to time;

(c) fails to provide to the coordinator within such reasonable period as may be specified by the coordinator such information as it may reasonably request for the purpose of its functions under these regulations; or

(d) fails to comply with any decision, direction, condition or requirement imposed under these regulations, and the circumstances are such that the Authority or the coordinator is of the opinion that the stability or soundness of a mixed financial holding company is materially affected by this failure;

it shall, subject to the provisions of sub-regulation (4), inform the mixed financial holding company accordingly of its decision and shall in writing direct the mixed financial holding company to comply immediately with the decision and any requirements set out by the Authority or the coordinator as the case may be.

(4) Before taking a decision in respect of a mixed financial holding company under sub-regulation (3), the Authority shall notify the mixed financial holding company of its intention to take such decision.

(5) Every notice given under sub-regulation (4) shall state that the recipient of the notice may make representations, within such reasonable period after the service thereof as may be stated in the notice, being a period of not less than forty-eight (48) hours and not longer than thirty (30) days. Such representations shall be made in writing to the Authority giving reasons why the proposed decision should not be taken, and the Authority shall consider any representation so made before arriving at a final decision.

(6) The Authority shall, as soon as practicable, notify its final decision in writing to the mixed financial holding company concerned.

(7) If the mixed financial holding company fails to comply with a decision of the Authority under sub-regulation (3), the Authority shall notify the relevant competent authorities.

(8) Without prejudice to the provisions of these regulations, the Authority shall cooperate with the other relevant competent authorities to ensure the effectiveness of penalties and other measures in relation to the mixed financial holding company concerned or their effective manager, secretary, director or other person responsible therefor.

(9) Any decision taken in terms of these regulations shall have effect from the date specified by the Authority or the coordinator, as the case may be therein.