Cap. 371 Art. 11AOpening of branches having their head office outside the European Union.

(1) The competent authority shall not apply provisions which result in more favourable treatment to a branch of a credit institution having its head office in a third country, than that accorded to branches of credit institutions having their head office in the European Union, when commencing or continuing to carry out their business.

(1A) Branches of credit institutions which have their head office in a third country and which are licensed in Malta to open such branches, shall report to the competent authority, at least annually, the following information:

(a) the total assets corresponding to the activities of the branch in Malta;

(b) information on the liquid assets available to the branch, in particular availability of liquid assets in Member State currencies;

(c) the own funds that are at the disposal of the branch;

(d) the deposit protection arrangements available to depositors in the branch;

(e) the risk management arrangements;

(f) the governance arrangements, including the key function holders for the activities of the branch as may be set out in a Banking Rule;

(g) the recovery plans covering the branch

(h) any other information that may be requested by the competent authority, as it may consider necessary to enable comprehensive monitoring of the activities of the branch.

(2) The competent authority shall notify the EBA of the following:

(a) all the licences granted to credit institutions, having their head office in a third country, to open a branch in Malta and any subsequent changes to such licences;

(b) total assets and liabilities of the branches in Malta of credit institutions having their head office in a third country which are licensed to open such branches, as periodically reported;

(c) the name of the third-country group to which a branch of a credit institution having its head office in a third country which has been granted a licence to open such a branch belongs.

(3) Where:

(a) credit institutions having their head office in a third country are licensed to open branches in Malta; or

(b) credit institutions licensed in terms of this Act are part of a third-country group, the competent authority shall cooperate closely with overseas regulatory authorities which supervise credit institutions in other Member States that are part of the same third-country group and, or with authorities in other Member States which supervise investment firms that are part of the same third-country group and, or with overseas regulatory authorities which supervise branches in other Member States of credit institutions having their head office in a third country that are part of the same third-country group, as applicable, to ensure that all activities of that third-country group in the European Union are subject to comprehensive supervision, so as to prevent the circumvention of the requirements applicable to third-country groups pursuant to this Act and, or any regulations made and, or any Banking Rules issued thereunder, and, or the CRD, and, or the CRR, and to prevent any detrimental impact on the financial stability of the European Union.