S.L. 370.15 Art. 6Collaboration concerning supervision. S.L. 371.15

(1) The competent authority shall collaborate closely with

European regulatory authorities in order to supervise the activities of investment firms and operating in particular through a branch, in one or more Member States other than Malta. The competent authority shall supply all information concerning the management and ownership of such investment firms to the relevant European regulatory authorities in the Member States concerned, that is likely to facilitate their supervision and the examination of the conditions for their licensing, and all information likely to facilitate the monitoring of investment firms, in particular with regard to liquidity, solvency, the limiting of large exposures, other factors that may influence the systemic risk posed by the investment firm, administrative and accounting procedures and internal control mechanisms.

(2) The competent authority shall provide the European regulatory authorities of the host Member State immediately with any information and findings pertaining to liquidity supervision in accordance with Part Six of the CRR and the Supervisory Consolidation Regulations, of the activities performed by an investment firm through its branches, to the extent that such information and findings are relevant to the protection of investors in the host Member State.

(3) The competent authority shall inform the European regulatory authorities of all the investment firms’ host Member States immediately where liquidity stress occurs or can reasonably be expected to occur. That information shall also include details about the planning and implementation of a recovery plan and about any prudential supervisory measures taken in that context.

(4) (a) Where Malta is the home member state of the investment firm, the competent authority shall communicate and explain upon request to the European regulatory authorities of the host Member State of that investment firms’ branch, how information and findings provided by the latter have been taken into account.

(b) Where the competent authority disagrees with the measures to be taken by the European regulatory authority of the host Member State in relation to the information and findings referred to in paragraph (a), the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19 of Regulation (EU) No. 1093/2010.

(c) Where Malta is the host member state of a branch belonging to a European investment firm and the competent authority, following communication by the European regulatory authority of the said European investment firm, of information and findings relating to the said European investment firm, maintains that no appropriate measures have been taken by the said European regulatory authority, the competent authority may, after informing the European regulatory authority concerned and the EBA, take appropriate measures to prevent further breaches in order to protect the interests of investors and others to whom services are provided or to protect the stability of the financial system.

(5) The competent authority may refer to the EBA situations where a request for collaboration to a European regulatory authority, in particular to exchange information, has been rejected or has not been acted upon within a reasonable time.

(6) The competent authority may exchange information with the bodies listed and in the manner specified in Schedule V for the better carrying out of its supervisory functions in accordance with the CRD and the CRR:

Provided that the information received or exchanged by the competent authority or by its officers, employees or agents as well as inspectors, auditors and experts engaged by the competent authority, from the bodies listed in the said Schedule, shall be treated as confidential and protected by the duty of professional secrecy.