S.L. 370.42 Art. 7Responsibility of the Maltese investment firm appointing tied agents.

(1) Where a Maltese investment firm decides to appoint a tied agent, it remains fully and unconditionally responsible for any act or omission on the part of the tied agent when the latter is acting on behalf of the Maltese investment firm.

(2) The Maltese investment firm shall ensure that its tied agent discloses the capacity in which such tied agent is acting and the name of the Maltese investment firm which such tied agent is representing when contacting or before dealing with any client or potential client.

(3) The Maltese investment firm that appoints tied agents shall monitor the activities of its tied agents so as to ensure that they continue to comply with the requirements of these regulations, the Investment Services Rules and, or Conduct of Business Rules that may be issued by the competent authority in terms of article 6 of the Act, when acting through tied agents.

(4) The Maltese investment firm that appoints tied agents shall take adequate measures in order to avoid any negative impact that the activities of the tied agents, which are not covered by the scope of MiFID, could have on the activities carried out by the tied agents on behalf of the Maltese investment firm.