S.L. 371.5 Art. 4Administrative penalties and other administrative measures.

(1) Without prejudice to articles 35 and 35A of the Act, to any regulations made under article 3(1)(e) of the Act and to the supervisory powers of the competent authority referred to in regulation 3, the competent authority shall impose administrative penalties and other administrative measures in respect of breaches of:

(a) the provisions of the Act and, or of any regulations made and, or Banking Rules issued thereunder, and, or any binding legal instruments issued under the CRD, and, or

(b) the provisions of the CRR.

(2) The administrative penalties and other administrative measures taken pursuant to sub-regulation (1) shall be effective, proportionate and dissuasive.

(3) Where the obligations arising under the Act or under any regulations made or Banking Rules issued thereunder and the CRR, Banking Rules issued thereunder, under any binding legal instruments issued under the CRD, and under the CRR, apply to credit institutions, financial holding companies and mixed financial holding companies, in the event of a breach of any such obligation or of a failure to comply with a directive issued by the competent authority under the Act, or any regulations made or Banking Rules issued thereunder and under the CRR, Banking Rules issued thereunder, under any binding legal instruments issued under the CRD, and under the CRR, the competent authority may, subject to the conditions laid down in Maltese law, by notice in writing and without recourse to a court hearing, impose administrative penalties on directors, and on other natural persons who under Maltese law are responsible for the breach or for the failure to comply with any such directive.

(4) The competent authority may impose administrative penalties or other administrative measures aiming to end observed breaches or the causes of such breaches, on financial holding companies, mixed financial holding companies, and mixed activity holding companies, or their effective managers, which are responsible for the breach of the provisions of the Act and any regulations made and Banking Rules issued thereunder transposing the requirements of Chapter 3 of Title VII of the CRD.