S.L. 370.5 Art. 2Interpretation. Cap. 370.

(1) Any reference in these regulations to the Act is a reference to the Investment Services Act, and subject to the provisions of subregulation (2), the provisions of article 2 of the said Act shall also apply to these regulations.

(2) In these regulations, unless the context otherwise requires -

"the Act" means the Investment Services Act;

"assets" means movables and immovable property of any kind; "Commission Delegated Directive" means Commission Delegated

Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits, as amended from time to time;

"the competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act;

"control of assets" means the holding or control of assets belonging to, or on behalf of a customer, by a person hereinafter referred to as the subject person, acting in the course of rendering an investment service under the Act, and includes custody of assets; "customer" means any person whose assets are held under the control of a subject person; "depositary" means a depositary which is qualified in accordance with regulation 16; "Directive 2009/65/EC" means Directive 2009/65/EC of the

European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as amended from time to time and includes any implementing measures that have been or may be issued thereunder;

"Directive 2013/36/EU" means Directive 2013/36/EU of the

European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, as amended from time to time and includes any implementing measures that have been or may be issued thereunder; "Investment Services Rules" refers to Rules issued by the competent authority under various articles of the Act; "MiFID" means Directive 2014/65/EU of the European

Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder;

"professional client" means a client meeting the criteria laid down in Annex II of MiFID;

"qualifying money market fund" means a collective investment undertaking authorised under Directive 2009/65/EC, or which is subject to supervision and, if applicable, authorised by the competent authority under the Act, and which satisfies all of the following conditions:

(a) its primary investment objective must be to maintain the net asset value of the undertaking either constant at par (net of earnings), or at the value of the investors’ initial capital plus earnings;

(b) it must, with a view to achieving that primary investment objective, invest exclusively in high quality money market instruments with a maturity or residual maturity of no more than 397 days, or regular yield adjustments consistent with such a maturity, and with a weighted average maturity of 60 days. It may also achieve this objective by investing on an ancillary basis in deposits with credit institutions:

Provided that for the purposes of paragraph (b), a money market instrument shall be considered to be of high quality if the collective investment scheme or the management company on behalf of the collective investment scheme performs its own documented assessment of the credit quality of money market instruments that allows it to consider a money market instrument as high quality. Where one or more credit rating agencies registered and supervised by ESMA have provided a rating of the instrument, the internal assessment carried out by the collective investment scheme or the management company on behalf of the collective investment scheme shall have regard to, inter those credit ratings; alia,

(c) it must provide liquidity through same day or next day settlement;

"Regulation (EU) 2015/2365" means Regulation (EU) 2015/2365

of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 as amended from time to time;

"retail client" means a client who is not a professional client as defined in Annex II of MiFID; "securities financing transaction" means transactions as defined in

Article 3(11) of Regulation (EU) 2015/2365; "subject person" means a person who is in possession of an investment services licence under the Act or is otherwise authorised or approved by the competent authority or is acting under an exemption from the requirement of such a licence in terms of the Investment Services Act (Exemption) Regulations:

Provided that a depositary as defined under the Investment

Services Act (Depositaries of Collective Investment Schemes) Regulations that is also licensed to carry out other investment services shall also be a subject person under these regulations in relation to such investment services other than custody for collective investment schemes and in which case, the Investment Services Act (Depositaries of Collective Investment Schemes) Regulations shall apply.

Part 2 General