Cap. 590 ст. 15Where the competent authority may grant or refuse to grant a licence.

(1) The competent authority may grant or refuse to grant a licence applied for under this Act:

Provided that the competent authority shall only grant a licence upon being satisfied that the conditions laid down in this article have been met and such licence may be general or may be restricted to particular specified VFA services.

(2) The conditions referred to in sub-article (1) shall consist of the following and shall be satisfied on an ongoing basis:

(a) the applicant is a fit and proper person to provide the VFA services concerned and that the applicant will comply with and observe the requirements of this Act and any regulations made and rules issued thereunder and which are applicable to it;

(b) where the applicant is a natural person, such person is resident in Malta;

(c) where the applicant is a legal person:

(i) it is constituted either in Malta, in accordance with the laws of Malta, or in a recognised jurisdiction:

Provided that where the applicant is constituted in a recognised jurisdiction, it shall abide with any local presence requirements prescribed or as may be prescribed; and

(ii) its purposes or objects are limited to acting as a licence holder and carrying on activities ancillary or incidental thereto, and do not include purposes or objects which are not compatible with the VFA services of a licence holder.

For the purposes of this sub-paragraph, a purpose or object referring to any activity that requires any kind of authorisation whatsoever by the competent authority under any Maltese law, other than this Act, shall be deemed to be incompatible with the VFA services of a licence holder:

Provided that where a licence holder proposes to engage in business activities which are not listed in the Second Schedule and are not compatible within the meaning of this sub-paragraph, the licence holder shall be required to establish a separate entity; and

(iii) its actual activities are compatible and connected with the VFA services of a licence holder.

(3) (a) In granting a licence the competent authority may subject it to such conditions as it may deem appropriate and having granted a licence it may, from time to time, vary or revoke any condition so imposed or impose new conditions.

(b) For the better carrying out of the provisions of this Act, the competent authority may, from time to time, issue and publish rules which shall be binding on licence holders and others as may be specified therein. Such rules may lay down additional requirements, conditions and, or exemptions in relation to activities of licence holders and any other matters as the competent authority may consider appropriate:

Provided that different rules may be issued by the competent authority with respect to different classes or categories of applications.

(4) Without prejudice to the generality of sub-articles (1) and (2), where a VFA exchange is managed or operated by a VFA exchange operator other than the VFA exchange itself, the competent authority shall establish by means of rules how the different obligations are to be allocated between the VFA exchange and the VFA exchange operator.

(5) When considering whether to grant or refuse to grant a licence the competent authority shall, in particular, have regard to -

(a) the protection of investors and the general public;

(b) the protection of the reputation of Malta taking into account Malta’s international commitments;

(c) the promotion of innovation, competition and choice; and

(d) the reputation and suitability of the applicant and all other parties connected with the applicant.

(6) Every licence shall specify the VFA service or services which the holder thereof has been licensed to provide and shall state the date on which it shall take effect.

(7) Without prejudice to the generality of sub-article (2), the conditions to which the competent authority shall subject a licence may be made applicable, or be prescribed to be applicable, to -

(a) all licences;

(b) certain categories of licences;

(c) all licences granted to certain categories of licence holders;

(d) all licences in relation to particular VFA services.

(8) Any requirement in this Act that a person be a fit and proper person to carry out certain activities or functions shall be interpreted as a requirement not only that such person be a fit and proper person to carry out such activities or functions, but also that any beneficial owner, qualifying holder, member of the board of administration and any other person who will effectively direct the business of the licence holder be a fit and proper person to carry out such activities or functions.

(9) Where a licence holder proposes to engage in business activities not listed in the Second Schedule but compatible within the meaning of sub-article (2)(c)(ii), the competent authority may require the establishment of a separate entity, where the proposed activities may in the opinion of the competent authority impair or threaten to impair either the financial soundness of the licence holder or the ability of the competent authority to monitor the licence holder’s compliance with all the obligations laid down in this Act or any regulations and rules issued thereunder.