Cap. 370 Art. 17ACo-operation in supervisory functions, verifications, on- site checks, inspections and investigations.

(1) The competent authority may request the cooperation of a European regulatory authority in carrying out its supervisory functions or for an on-site verification or in an investigation in the territory of the latter within the framework of their powers:

Provided that in the case of a person holding a licence or other equivalent authorisation from a European Regulatory

Authority and who is a remote member within the meaning of the

MIFID of a regulated market authorised in terms of the Financial

Markets Act, the competent authority may communicate with such person directly, in which case the competent authority shall inform the contact point of the home Member State of such person accordingly.

(2) If, upon the request for cooperation by the competent authority in terms of Article 54(2) of the AIFM Directive, Articles 52 and 118 of the CRD and Article 101(5) of the UCITS Directive, a verification or an investigation is carried out in a Member State by a European regulatory authority, the competent authority may request that its own officers, employees or agents accompany the officials carrying out the verification or investigation, and such officers, employees or agents shall, however, be subject to the overall control of such Member State on whose territory the said verification or investigation is being conducted.

(3) A European regulatory authority may request the cooperation of the competent authority in carrying out its supervisory functions or for an on-site verification or in an investigation, in which case the competent authority shall, within the framework of its powers:

(a) carry out the verifications or the investigation itself, and in respect of requests pursuant to Article 118 of the CRD with the participation of the requesting authority; or

(b) allow the requesting authority to carry out the verification or investigation, and, it may also, in terms of Article 54(2) of the AIFM Directive and Article 101(5) of the UCITS Directive, request that its own officers, employees or agents accompany the European regulatory authority in carrying out the verification or investigation; or

(c) allow inspectors or experts within the meaning of article 14 and auditors within the meaning of article 18 to carry out the verification or investigation.

(4) Without prejudice to any other provision of this Act, the competent authority may request the cooperation of a European regulatory authority to verify information about investment firms, investment holding companies, mixed financial holding companies, financial institutions, ancillary services undertakings, mixed-activity holding companies or subsidiaries, including subsidiaries which are insurance companies, that are located in the territory of the European regulatory authority concerned, and such request shall be verified in accordance with sub-article (6).

(5) Without prejudice to any other provision of this Act, a European regulatory authority may request the cooperation of the competent authority to verify information about investment firms, investment holding companies, mixed financial holding companies, financial institutions, ancillary services undertakings, mixed-activity holding companies or subsidiaries, including subsidiaries which are insurance companies, that are located in Malta, and such request shall be verified in accordance with sub-article (6).

(6) Where a European regulatory authority makes a request in terms of sub-articles (4) and (5), the competent authority shall, within the framework of its powers:

(a) carry out the verification itself;

(b) allow the European regulatory authority who made that request to carry out such verification;

(c) request an auditor or expert to carry out the verification impartially and to report the results promptly:

Provided that for the purposes of paragraphs (a) and (c), the European regulatory authority that made the request shall be allowed to participate in the verification.

(7) Where a European investment firm carries out its activities through a branch in Malta, the European regulatory authority of the home Member State may, after having informed the competent authority, carry out, itself or through intermediaries that it appoints for that purpose, inspections of such a branch and on-site checks of the information referred to in article 17(2A).

(8) Without prejudice to sub-article (7), where Malta is the host Member State, the competent authority shall, for supervisory purposes and where the competent authority considers it to be relevant for reasons of stability of the financial system in Malta, have the power to carry out, on a case-by-case basis, on-site checks and inspections of the activities carried out by branches of European investment firms on its territory and require information from a branch about its activities:

Provided that, before carrying out such checks and inspections, the competent authority shall, without delay, consult the European regulatory authority of the home Member State:

Provided further that, as soon as possible following the completion of those on-site checks and inspections, the competent authority shall communicate to the European regulatory authority of the home Member State the information obtained and findings that are relevant for the risk assessment of the European investment firm concerned.