S.L. 386.5 Art. 5AAuthorisation to act as nominee or trustee.

(1) The provisions of this regulation shall apply to a foreign company which is to be registered as continued in Malta, the shares of which are held by a foreign nominee or trustee on behalf and in the interest of other persons entitled to the beneficial ownership thereof, hereinafter referred to as ''a foreign trustee''.

(2) No foreign trustee shall act as trustee in Malta in relation to shares in foreign companies which have applied to be registered as continued in Malta unless such foreign trustee is authorised to act as a trustee in Malta.

(3) (a) The Authority may authorise a foreign trustee to act as a trustee in Malta solely in relation to shares in foreign companies which have applied to be registered as continued in Malta, in so far as such foreign trustee, prior to acting as trustee in respect of such foreign companies -

(i) has applied in writing to the Authority for authorisation;

(ii) is in possession of a valid licence or authorisation to act as trustee issued by the relevant regulatory authority in an approved jurisdiction; and

(iii) pays to the Authoriy an annual authorisation fee of one thousand and one hundred and sixty-four euro and sixty-nine cents (1,164.69).

(b) An application under this regulation shall outline the proposed trustee activities and shall be accompanied by such information as may be required by the Authority.

(c) The Authority, in granting authorisation, may impose any restrictions or conditions it deems fit.

(d) The Authority shall be entitled to monitor the activities of the foreign trustee in Malta as the Authority deems fit and shall require the foreign trustee to provide the Authority from time to time with such information as the Authority considers necessary.

(e) Where the foreign trustee fails to comply with any request for information made by the Authority in the exercise of its functions under these regulations, the Authority may revoke the authorization of such foreign trustee forthwith.

(4) The requirement for authorisation under this regulation shall not apply to a foreign trustee acting as trustee in respect of one or more shares in a foreign company where such shares do not have any special voting rights and they do not exceed in the aggregate two euro and thirty-three cents (2.33) in nominal value or its equivalent in any other currency.

(5) No foreign trustee shall be in violation of the provisions of this regulation provided -

(a) he obtains authorisation to act as trustee in Malta under article 51A of the Malta Financial Services Authority Act; the Investment Services Act or this regulation; or

(b) transfers the shares held in the foreign company to a person who is so authorised, within fifteen days of the date of the provisional certificate of continuation issued in terms of regulation 6.

(6) A breach or non-observance by a foreign trust of any provision of this regulation relating to the authorisation of such trustee to act as a trustee in Malta shall not in any manner prejudice the validity or enforceability of a trust or affect the duties and responsibilities of such trustee in terms of applicable law or of the registration of the company as continued in Malta.

(7) Authorisation under this regulation to act as a trustee shall constitute an authorisation for the purposes of article 51A(9) of the Malta Financial Services Authority Act and shall be deemed to satisfy the requirements of the said article 51A(9) and of article 127(10) of the Act.

(8) Any authorisation issued in terms of this regulation, and any renewal thereof, shall remain in force until such time as the foreign trustee remains in possession of the valid licence or authorization referred to in subregulation (3)(a)(ii) and until such time as may be determined by the Authority in virtue of any provision of any law relating to the regulation of trustees.