S.L. 370.26 Art. 7Breaches by Maltese managers of qualifying venture capital funds.

(1) In the case of a Maltese manager of qualifying venture funds marketed in a host Member State, where there are clear and demonstrable grounds that lead the host regulatory authority to believe that the Maltese manager is in breach of the EU Regulation in the host Member State, and upon receipt of the relevant notification, the competent authority shall take appropriate measures.

(2) Where, despite the measures taken by the competent authority, or because the competent authority has failed to take measures within a reasonable time, the Maltese manager persists in acting in a manner that is clearly in breach of the EU Regulation, the competent authority shall receive notification by the host regulatory authority of any measures proposed to be taken in order to protect the investors of the relevant qualifying venture capital fund, including the possibility of preventing the Maltese manager from carrying out any further marketing of its qualifying venture capital funds in the host Member State.