S.L. 345.11 Art. 5Contraventions.

(1) Where the competent authority has clear and demonstrable grounds for believing that a person, authorised to operate a regulated market in any Member State or EEA state and who is providing access to its systems in Malta in exercise of a European right, is in breach of its obligations arising from the provisions adopted pursuant to the Directive, it shall refer those findings to the European regulatory authority.

(2) If, despite the measures taken by the European regulatory authority or because such actions prove inadequate, the person providing access to its systems in Malta in exercise of a European right, persists in acting in a manner which is clearly prejudicial to the interests of investors in Malta or the orderly function of markets, the competent authority shall, after informing the European regulatory authority, take all the appropriate measures needed in order to protect investors and the proper functioning of the markets. This shall include the possibility of preventing the regulated market providing access to its systems in Malta, in exercise of a European right from making the said arrangements available to remote members or participants established in Malta. The Commission of the European Union and ESMA shall be informed of such measures without delay. In addition, the competent authority may refer the matter to ESMA.

(3) Any measure adopted pursuant to this regulation shall be communicated to the regulated market concerned, in writing, together with reasons justifying such measures and shall be subject to a right of appeal to the Financial Services Tribunal and the provisions of Part VI of the Act shall apply mutatis mutandis.

Part IV

Cooperation between the competent authority and European regulatory authorities