S.L. 370.47 Art. 15Publication. 

(1) The competent authority shall publish the following information in accordance with the technical standards adopted by the European Commission:

(a) the texts of laws, regulations, administrative rules and general guidance adopted in Malta in relation to the IFD;

(b) the manner of exercise of the options and discretions available in the IFR and the IFD;

(c) the general criteria and methodologies it uses in the review and evaluation pursuant to regulation 9;

(d) without prejudice to the confidentiality provisions of the Act, aggregate statistical data on key aspects of the implementation of the IFR and the IFD in Malta, including the number and nature of supervisory measures taken and of administrative penalties imposed in terms of the Act.

(2) The information published in accordance with sub-regulation (1) shall be sufficiently comprehensive and accurate to enable a meaningful comparison of the approaches adopted by the European regulatory authorities.

(3) The disclosures shall be published following a common format and they shall be updated regularly. The disclosures shall be published on the official website of the competent authority.

 SCHEDULE I Amended by: L.N. 157 of 2025. SUPERVISORY POWERS (regulations 11, 12 and 13)

(1) For the purposes of regulations 9, 10, 11(3), and 12 and the application of the IFR, the competent authority shall have at least the following powers:

(a) to require investment firms to hold own funds in excess of the requirements set out in Article 11 of the IFR, under the conditions of this Schedule transposing the requirements of Article 40 of the IFD or to adjust the own funds and liquid assets required in case of material changes in the business of those investment firms;

(b) to require the reinforcement of the arrangements, processes, mechanisms and strategies implemented in accordance with the Investment Services Rules transposing the requirements of Articles 24 and 26 of the IFD;

(c) to require investment firms to present, within one year, a plan to restore compliance with supervisory requirements pursuant to the Act, regulations or Investment Services Rules issued thereunder, the IFD, and to the IFR and set a deadline for its implementation, including improvements to that plan regarding scope and deadline; INVESTMENT FIRMS DIRECTIVE)

(d) to require investment firms to apply a specific provisioning policy or treatment of assets in terms of own funds requirements;

(e) to restrict or limit the business, operations or network of investment firms or to request the divestment of activities that pose excessive risks to the soundness of an investment firm;

(f) to require the reduction of the risk inherent in the activities, products and systems of investment firms;

(g) to require investment firms to limit variable remuneration as a percentage of net revenues where it is inconsistent with the maintenance of a sound capital base;

(h) to require investment firms to use net profits to strengthen own funds;

(i) to restrict or prohibit distributions or interest payments by an investment firm to shareholders, members or holders of Additional Tier 1 instruments within the meaning of the IFR, where the prohibition does not constitute an event of default of the investment firm;

(j) to impose additional or more frequent reporting requirements to those set in the IFD and the IFR, including reporting on capital and liquidity positions;

(k) to impose specific liquidity requirements in accordance with Article 42 of the IFD;

(l) to require additional disclosures;

(m) to require investment firms to reduce the risks posed to the security of investment firms’ network and information systems to ensure confidentiality, integrity and availability of their processes, data and assets:

Provided that, the competent authority shall notify the Resolution Committee of any additional own funds requirement imposed pursuant to sub-paragraph (a) for an investment firm that falls under the scope of the BRRD.

(2) For the purposes of paragraph (1)(j), the competent authority may only impose additional or more frequent reporting requirements on investment firms where the information to be reported is not duplicative and one of the following conditions is met:

(a) one of the cases referred to in paragraphs (a) and

(b) of regulation 11(1) applies;

(b) the competent authority considers it to be necessary to gather the evidence referred to in paragraph (b) of regulation 11(1);

(c) the additional information is required for the purpose of the supervisory review and evaluation process referred to in regulation 9:

Provided that, information shall be deemed to be duplicative where the competent authority already has the same or substantially the same information, where that information is capable of being produced by the competent authority or of being obtained by the same competent authority through other means than a requirement on the investment firm to report it. The competent authority shall not require additional information where the information is available to the competent authority in a different format or level of granularity than the additional information to be reported and that different format or granularity does not prevent it from producing substantially similar information.

(3) The additional own funds requirements referred to in paragraph (1)(a) shall be imposed by the competent authority only where, on the basis of the reviews carried out in accordance with regulations 9 and 10, it ascertains any of the following situations for an investment firm:

(a) the investment firm is exposed to risks or elements of risks, or poses risks to others that are material and are not covered or not sufficiently covered by the own funds requirement, and especially K‐factor requirements, set out in Parts Three or Four of the IFR;

(b) the investment firm does not meet the requirements set out in Articles 24 and 26 of the IFD and other supervisory measures are unlikely to sufficiently improve the arrangements, processes, mechanisms and strategies within an appropriate time-frame;

(c) the adjustments in relation to the prudent valuation of the trading book are insufficient to enable the investment firm to sell or hedge out its positions within a short period without incurring material losses under normal market conditions;

(d) the review carried out in accordance with regulation 10 shows that non‐compliance with the requirements for the application of the permitted internal models will likely lead to inadequate levels of capital;

(e) the investment firm repeatedly fails to establish or INVESTMENT FIRMS DIRECTIVE) maintain an adequate level of additional own funds as set out in Article 41 of the IFD.

(4) For the purposes of paragraph (3)(a), risks or elements of risks shall be considered not to be covered or to be insufficiently covered by the own funds requirements set out in Parts Three and Four of the IFR only where the amounts, types and distribution of capital considered adequate by the competent authority following the supervisory review of the assessment carried out by investment firms in accordance with Article 24(1) of the IFD are higher than the investment firm’s own funds requirement set out in Parts Three or Four of the IFR:

Provided that, for the purposes of this paragraph, the capital considered to be adequate may include risks or elements of risks that are explicitly excluded from the own funds requirement set out in Parts Three or Four of the IFR.

(5) The competent authority shall determine the level of the additional own funds required pursuant to paragraph (1)(a) as the difference between the capital considered adequate pursuant to paragraph (4) and the own funds requirement set out in Parts Three or Four of the IFR.

(6) The competent authority shall require investment firms to meet the additional own funds requirement referred to in paragraph (1)(a) with own funds subject to the following conditions:

(a) at least three quarters of the additional own funds requirement is met with Tier 1 capital as defined in the IFR;

(b) at least three quarters of the Tier 1 capital as defined in the IFR is composed of Common Equity Tier 1 capital as defined in the IFR;

(c) those own funds are not used to meet any of the own funds requirements set out in points (a), (b) and (c) of Article 11(1) of the IFR.

(7) The competent authority shall substantiate in writing its decision to impose an additional own funds requirement as referred to in paragraph (1)(a) by giving a clear account of the full assessment of the elements referred to in paragraphs (3) to (6). In the case set out in paragraph (3)(d), that includes a specific statement of why the level of capital established in accordance with Article 41(1) of the IFD is no longer considered sufficient.

(8) Competent authorities may impose an additional own funds requirement in accordance with paragraphs (3) to (7) on investment firms that meet the conditions for qualifying as small and non‐interconnected investment firms set out in Article 12(1) of the IFR on the basis of a case‐by‐case assessment and where the competent authority deems it to be justified.

(9) Taking into account the principle of proportionality and commensurate with the size, systemic importance, nature, scale and complexity of activities of investment firms that do not meet the conditions for qualifying as small and non‐interconnected investment firms set out in Article 12(1) of the IFR, the competent authority may require such investment firms to have levels of own funds which, based on Article 24 of the IFD, are sufficiently above the requirements set out in Part Three of the IFR and in the IFD, including the additional own funds requirements referred to in paragraph (1)(a), to ensure that cyclical economic fluctuations do not lead to a breach of those requirements or threaten the ability of the investment firm to wind down and cease activities in an orderly manner.

(10) The competent authority shall, where appropriate, review the level of own funds that has been set by each investment firm that does not meet the conditions for qualifying as a small and non‐interconnected investment firm set out in Article 12(1) of the IFR, in accordance with paragraph (9) and, where relevant, shall communicate the conclusions of that review to the investment firm concerned, including any expectation for adjustments to the level of own funds established in accordance with paragraph (9). Such a communication shall include the date by which the competent authority requires the adjustment to be completed:

Provided that, the competent authority shall notify the Resolution Committee of any additional own funds requirement imposed pursuant to paragraph (1)(a) for an investment firm that falls under the scope of the BRRD and about any expectation for adjustments pursuant to this paragraph.

SCHEDULE II BODIES WITH WHOM THE COMPETENT AUTHORITY MAY EXCHANGE INFORMATION (Regulation 6) The competent authority may exchange information with:

(1) Other European regulatory authorities and may transmit information to the ESRB, EBA, ESMA, central banks of the Member States, the European System of Central Banks (ESCB) and the European Central Bank in their capacity as monetary authorities and, where appropriate, public authorities responsible for overseeing payment and settlement systems, with confidential information where that information is necessary for the performance of their tasks, and in accordance with the IFD and the IFR. INVESTMENT FIRMS DIRECTIVE)

(2) Bodies or authorities responsible for supervising the entities governed by and listed in points (1) and (2) of Article 2(1) of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, for compliance with the said Directive (EU) 2015/849.