Cap. 512 чл. 19Nomination of SME Envoy.

The Minister may appoint a person to be designated as the

''SME Envoy'' whose tasks shall be, amongst other things:

(a) to defend and promote the interests of SMEs with a view of ensuring that they are mainstreamed a priori in any national initiatives, whether regulatory or otherwise;

(b) to promote initiatives to implement the principles enshrined in this Act; and

(c) to co-ordinate national action with the Member States of the European Union and the European Union, particularly with the Commission SME Envoy. Schedule I

(Article 4)

Impact Assessment Framework Form Impact Assessment Framework Form for primary legislation

Impact Assessment Framework Form for subsidiary legislatio Schedule II

(Article 4) SME Test guidelines

(1) Consultation with SMEs representatives

New proposed legislation having a direct impact on the business environment to be discussed at the Enterprise Consultative Council (ECC) or a specifically sub-committee of the Council. In this discussion the entity responsible the legislation has to outline the main objective of the proposal and identify aspects of the proposed legislation, particularly whether proposed includes: - a new compliance cost - requirement for new equipment - impact on staff time - indication as to whether a one-size fits all approach is being if yes, why? - indication as to whether proposed measures outweigh implementation (e.g. environmental concerns).

(2) Preliminary assessment of businesses likely to be affected During this stage, it should be established whether SMEs are among population, in particular the sector(s) more likely to be affected. Relevant sources of information should be explored including representatives. A non-exhaustive list of elements to consider includes, applicable, items such as: • the number of businesses to be affected • the proportion of the employment concerned in the different of enterprises affected • the weight on the different kind of SMEs in the sector(s) and medium ones) • if the preliminary assessment leads to the conclusion amongst the affected parties, further analysis should be carried where appropriate - taken into account when defining the developing the policy options in the impact assessment.

(3) Measurement of the impact on SMEs The distribution of the potential costs and of the benefits of the respect to the business size, differentiating between micro, small, medium enterprises should be analysed qualitatively and, if possible quantitatively. important to establish to which extent the proposal affects SMEs’ competitiveness the business environment in which it will affect their operations by establishing • Financial costs - created by the obligation to pay fees or • Substantive costs - created by the obligation to adapt the product/service and/or production/service delivery process economic, social or environmental standards (e.g. the purchase equipment, training of staff, additional investments to be • Administrative costs - created by the obligation to provide on the activities or products of the company including recurring administrative costs (e.g. resources to acquire or provide information); Cost and impacts identified for small and micro enterprises should be compared with those for larger enterprises. one may also consider other factors such as: possible loss of competitiveness due to external factors such as the availability of finance, tax regimes, access to resources or skills, etc.; possible changes in the behaviour of competitors, suppliers or customers; possible impacts on barriers to entry, competition in the market and market structure; possible impact on innovation, understood as both technological and non-technological; innovation (process, marketing, etc.); benefits, if applicable, coming from the proposal (burden reduction, improved productivity and competitiveness, greater investments or innovation etc.).

Assessment of alternative options and mitigating measures abovementioned cost/benefit analysis indicates that small and micro are relatively higher burden, one might consider the use of specific measures in a level playing field and the respect of the proportionality principle. analysis made under the previous section shows that small and micro disproportionately affected or disadvantaged compared to larger should consider (one a case by case basis) using possible mitigating

Complete or partial size-related exemptions for small or micro-businesses (example: businesses below certain thresholds do not have to comply with certain specific obligations when this does not invalidate the original purpose of the legislation) Temporary reduction or exemptions (example: transition periods during which small and micro enterprises are exempted or longer intervals for certain obligations) Tax reductions or direct financial aid to compensate costs incurred provided this is compatible with existing legislation (on competition or international trade) Reduced fees (example: when these fees are particularly high and/or represent a fixed cost that would be felt disproportionately by small and micro enterprises) Simplified reporting obligations for small and micro enterprises (example: in the area of statistics, explore possible synergies with already existing reporting obligations) Specific information campaigns or user guides, training and dedicated help-desks/offices (example: specific help-desks providing tailored information for small businesses) Systematically consider general simplification initiatives which can particularly benefit small and micro enterprises (example: possibility to use on-line facilities, simplified inspections)

When assessing possible mitigation measures for SMEs, it is important costs this could produce are also fully considered and included assessment.

Amended by: Schedule III (Article 3) XXII.2021.10.

Explanatory Notes

(i) Explanatory Notes must be published alongside every instrument been identified as having an impact on the business sector.

(ii) The government department, government entity or government sponsoring the instrument is responsible for drafting the explanatory notes it. The draft must be agreed with by the Office of the State Advocate, which that it is consistent with the instrument..

(iii) The Explanatory Notes are not intended to be an exhaustive the instrument or to be a substitute for it. Their purpose is to make accessible to readers who are not legally qualified and who have knowledge of the subject matter.

(iv) The Notes are not legislation. They do not form part of the are not amendable by Parliament or the House of Representatives nor them. They are not designed to resolve ambiguities in the text of the instrument if ambiguities are identified as the instrument progresses, they should accordingly. The Notes should make clear that they do not purport to be rulings on the interpretation of the proposed legislation, as only the these.

(v) The Notes should usually contain the following items: Summary and background, Overview of the structure of the Commentary, and concluding sections.

(vi) If the instrument implements a European Directive, the Explanatory should include in the form of an annex a set of “Transposition Notes” how the Government intends to transpose all the main elements of the into Maltese law.

Schedule IV (Article 9) Ethical Values in SMEs Drawing up a code of ethics

A code of ethics is the main tool for implementing an ethics policy. core values into specific commitments and expected behaviour in organisation’s key stakeholder groups (i.e. customers, employees, contractors, providers of finance and community). A code will also be to address environmental responsibilities and to state how the company relate to its competitors. It is also helpful to ask employees about ethical and on which they would like guidance when drawing up a code.

issues to be addressed in a code of ethics ethics should pledge to: Accurately represent what the enterprise is capable of in all marketing, advertising and promotional materials. Accurately represent available skills, recognizing limitations and only offering professional services that it feels competent to provide. Inform prospective clients of any conditions that could limit the enterprise’s effectiveness. Place each client’s best interest first and foremost, making reasonably certain that the enterprise has the necessary skills and resources to provide the support needed before entering into a client relationship. Clearly communicate the terms and conditions of any client relationship, identifying the responsibilities of all parties, and documenting these provisions in a signed agreement. Honour all contracts, agreements and commitments. Only make commitments that are within the enterprise’s power and abilities to deliver. Accept responsibility for all work it does, admit mistakes and do whatever is possible to rectify any problems that arise. Maintain accurate and sufficient records of all client work. Safeguard and protect all private and confidential information entrusted it or obtained in the course of any working relationship. Not release any client information without prior consent or unless given instruction or permission by client to do so on his behalf. Ensure that electronic and hardcopy record disposal is handled in a confidential and secure manner. Protect the interest of its clients at all times.