Cap. 371 Art. 11CIntermediate European Union parent undertaking.

(1) Without prejudice to the derogation provided for in article 38(3), a credit institution licensed in terms of this Act which is part of a third-country group having as part of the same group one or more other credit institution or one or more investment firm, licensed in Malta or authorised in another Member State, shall have a single intermediate EU parent undertaking that is established either in Malta or in another Member State.

(2) The competent authority may allow a credit institution referred to in sub-article (1) to have two intermediate EU parent undertakings where it determines that the establishment of a single intermediate EU parent undertaking:

(a) would be incompatible with a mandatory requirement for separation of activities imposed by the rules or the overseas regulatory authority of the third country where the ultimate parent undertaking of the third-country group has its head office; or

(b) would render resolvability less efficient than in the case of two intermediate EU parent undertakings according to an assessment carried out by the relevant resolution authority of the intermediate EU parent undertaking.

(3) An intermediate EU parent undertaking shall be a credit institution licensed in terms of article 7 or authorised in accordance with Article 8 of the CRD, or a financial holding company or mixed financial holding company that has been granted approval in terms of article 11B and, or Article 21a of the CRD:

Provided that, where a second intermediate EU parent undertaking must be set up in connection with investment activities to comply with a mandatory requirement as referred to in sub-article (2), the second intermediate EU parent undertaking may be an investment firm holding an investment services licence in terms of article 6 of the Investment Services Act or is authorised in accordance with Article 5(1) of the MiFID, that is subject to the BRRD.

(4) Sub-articles (1), (2) and (3) shall not apply where the total value of assets in the European Union of the third-country group is less than forty billion euro (€40,000,000,000).

(5) For the purposes of this article:

(a) the total value of assets in the European Union of the third-country group shall be the sum of the following:

(i) the total value of assets of each institution in the European Union forming part of the third-country group, as resulting from its consolidated balance sheet or as resulting from their individual balance sheet, where an institution's balance sheet is not consolidated

(ii) the total value of assets of each branch of the third-country group authorised in the European Union in accordance with the CRD, MiFID or MiFIR;

(b) the term "institution" shall also include investment firms.

(6) The competent authority shall notify the EBA with the following information in respect of each third-country group operating in Malta:

(a) the names and the total value of assets of institutions belonging to a third-country group;

(b) the names and the total value of assets corresponding to branches authorised in Malta in accordance with the provisions of national law transposing the CRD, the MiFID or MiFIR, and the types of activities that they are licensed to carry out;

(c) the name and the type as referred to in sub-article (3) of any intermediate EU parent undertaking set up in Malta and the name of the third-country group of which it is part.

(7) A credit institution forming part of a third-country group shall meet at least one of the following conditions:

(a) it has an intermediate EU parent undertaking;

(b) it is an intermediate EU parent undertaking;

(c) it is the only institution in the European Union of the third-country group; or

(d) it is part of a third-country group with a total value of assets in the European Union of less than forty billion euro (€40,000,000,000).