Cap. 376 Art. 6Restriction, suspension and withdrawal of a licence or a registration.

(1) The competent authority may withdraw, suspend or restrict a licence or registration issued to a financial institution where:

(a) the financial institution expressly renounces the licence or registration;

(b) the financial institution does not commence business pursuant to the licence or registration as applicable, within twelve months of its issue, or any later date as may be specified by the competent authority, or has ceased to engage in business for more than six months, or for such other period of time as may be determined by the competent authority;

(c) (i) the financial institution has obtained the licence or registration through false statements or any other irregular means; or

(ii) where any document or information accompanying an application for a licence or a registration or any information given in connection therewith is false in any material particular; or

(iii) where the financial institution conceals from, or fails to notify or submit to the competent authority, any document or information or change therein, which it was its duty to reveal or notify under this Act and any regulations and, or Rules issued thereunder;

(d) the financial institution no longer fulfils the conditions required for the granting of the licence or registration, or any conditions stipulated in any Financial Institutions Rule, or fails to inform the competent authority on major developments in this respect;

(e) the financial institution is declared bankrupt or goes into liquidation, or enters into a composition with its creditors or is otherwise dissolved;

(f) the financial institution has ceased to operate as a result of a merger with another financial institution;

(g) the financial institution is a branch of an institution incorporated outside Malta, and the overseas regulatory authority in the country of incorporation withdrew the authorisation or registration of the institution;

(h) the financial institution would constitute a threat to the stability of the payment system by continuing its payment services or electronic money;

(i) the financial institution fails or is likely to fail to comply with any of the provisions of this Act and any regulations or Financial Institutions Rules issued thereunder or with the conditions under which the licence or registration is granted or any directive as may be issued by the Authority;

(j) the financial institution has insufficient assets to cover its liabilities; or

(k) the competent authority considers that, by reason of the manner in which the financial institution is conducting or proposes to conduct its affairs, or for any other reason, these would constitute a threat to the stability or integrity of the financial system.

(2) Where the competent authority withdraws, suspends or restricts a licence or registration, it shall inform the financial institution of the reasons for the withdrawal, suspension or restriction of the licence or registration.

(3) Deleted by XXVI.2019.27.

(4) Restrictions of a licence or a registration issued to a financial institution, that are imposed by the competent authority pursuant to sub-article (1), shall be such restrictions as the competent authority shall consider appropriate for the proper compliance by the financial institution with the provisions of this Act and any regulations and, or Rules issued thereunder, in addition to the conditions, if any, of its licence or registration and the protection of the integrity of the country’s financial system, and may include:

(a) the requirement that the financial institution be prohibited from undertaking any transaction or transactions or any activity listed in the First Schedule; or

(b) the requirement that the financial institution be permitted to undertake any transaction or transactions or any activity listed in the First Schedule only upon such terms and conditions, as the competent authority may prescribe.

(5) The competent authority shall have the power to vary or remove any restrictions imposed under this article.

(5A) Where the competent authority varies or removes any restrictions imposed under this article, it shall inform the financial institution of the reasons for the variation or removal of any such restrictions.

(6) A licence granted to a branch of an institution incorporated outside Malta may only be withdrawn after consultation with the overseas regulatory authority of the country of incorporation, unless the competent authority decides that the matter is urgent, or that there are circumstances which make such prior consultation inappropriate.

(7) Upon the restriction or withdrawal of a licence or a registration of a financial institution incorporated in Malta, the competent authority shall inform the overseas regulatory authorities of the country in which the financial institution or its subsidiaries are carrying on any activity under the First Schedule or any other activity as the competent authority may deem complementary to the institution’s activities in Malta.

(8) Where the competent authority is satisfied that the circumstances so warrant, it may at any time make public any restriction imposed under this article.

(9) The competent authority shall publish any withdrawal or suspension of a licence or registration, including those in the public register referred to in article 8D, and in the electronic central register developed, operated and maintained by the EBA in accordance with Article 15 of the Payment Services Directive.