This law, known as the Financial Markets Act, establishes rules for the authorization and operation of regulated markets and central securities depositories, and for the orderly trading of transferable securities. It also covers related matters concerning financial markets.
regulated markets, central securities depositories and for the orderly trading in transferable securities and to provide for matters ancillary or incidental thereto or connected therewith. Amended by: XVII. 2002.111. Substituted by: XX. 2007.13. 24th January, 1991; 12th December, 1991; 8th January, 1992; 21st February, 1992 ACT XXXIII
1990, as amended by Legal Notice 2
1992; Act V
1992; Legal Notice 76
1994; Acts: XIV, XVI and, XXI
1994, XXIV, XXV
1995, IX
1997; Legal Notices 90, 91
1999, 124
2000; Acts XVII
2002, IV
2003; Legal Notice 370
2003; Acts IV
2005, XX
2007; Legal Notice 424
2007; Acts III
2009, XIX
2010, X
2011, XX
2013, XIX
2016, Act XVII, XXXI
2017. XLIV
2018, IX
2019 and XXVI
2019, V
2020, XLVI and LXXI
2021, IX and XXV
2023, XI and XXIX
THE ACT Part I Part II Part III Part IV Part IV bis Part V Part VI Part VII Preliminary Trading Venues Prospectus, Listing and Trading Central Securities Depository Covered Bonds Regulatory and Investigatory Powers Financial Services Tribunal Miscellaneous SCHEDULE Articles 1-2A 3-10B 11-23 24-31A 31B-31I 32-41B 42-44 45-54 PART I PRELIMINARY 1. The short title
this Act is the Financial Markets Act. *Vide transitory provision reproduced at the end
this Chapter. Short title. Amended by: XVII. 2002.
Regulation (EU) No. 1308/2013, and Annex I, Parts I to XX and XXIV/1 thereto, as well as to products listed in Annex I to Regulation (EU) No. 1379/2013
the European Parliament and
the Council; "APA" or "approved publication arrangement" means the same as the meaning assigned to it in point
MiFIR; "ARM" or "approved reporting mechanism" means the same as the meaning assigned to it in point
MiFIR; "binding legal instrument" means any directly applicable measures, including but not limited to, any implementing technical standards, any regulatory technical standards or similar measures, issued under European Union legislation; "bye-laws" means the bye-laws made in terms
article 4C; "Capital Markets Rules" means those Rules issued by the competent authority under Part III
this Act; "the CBD" means Directive (EU) 2019/2162
the European Parliament and
the Council
27 November 2019 on the issue
covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Central Bank" means the Central Bank
Malta as defined by the Central Bank
Malta Act; "central securities depository" or "CSD" shall mean a legal person that operates a securities settlement system as referred to in point
Section A
the Annex to the CSDR and provides at least one
the following core services listed in Section A
the said Annex: (i) initial recording
securities in a book-entry system (‘notary service’); (ii) providing and maintaining securities accounts at the top tier level (‘central maintenance service’); "commodity derivatives" means those financial instruments defined in point
MiFID; which relate to a commodity or an underlying referred to in Section C
Annex I to MiFID; or in point
Annex I thereto; "certificates" means those securities which are negotiable on the capital market and which in case
a repayment
investment by the issuer are ranked above shares but below unsecured bond instruments and other similar instruments; "collateral assets" means physical assets and assets in the form
exposures that secure cover assets; F I NANCIAL MAR KET S "collection body" shall have the same meaning as assigned to it in article 2
the ESAP Regulation; "company" includes: (
whether the company has or has not established a place
business in Malta; "competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act; "cover assets" means assets included in a cover pool; "cover pool" means a clearly defined set
assets securing the payment obligations attached to covered bonds that are segregated from other assets held by the credit institution issuing the covered bonds; "covered bond" means a debt obligation that is issued by a credit institution in accordance with the provisions
this Act, the Financial Markets Act (Covered Bonds) Regulations, regulations 68
the Recovery and Resolution Regulations, and
any Covered Bonds Rules issued under this Act or under the Financial Markets Act (Covered Bonds) Regulations, and that is secured by cover assets to which covered bond investors have direct recourse as preferred creditors; "covered bond programme" means the structural features
a covered bonds issue that are determined by the provisions
this Act and any regulations and Covered Bonds Rules issued thereunder, and the provisions
the Recovery and Resolution Regulations transposing the CBD and by contractual terms and conditions, in accordance with the approval granted to the credit institution issuing the covered bonds; "covered bond public supervision" means the supervision
covered bond programmes ensuring compliance with, and the enforcement
, the requirements applicable to the issue
covered bonds; "Covered Bonds Rules" means those Rules issued by the competent authority under Part IV bis or under any regulations issued thereunder; "CRAR" means Regulation (EC) No. 1060/2009
the European Parliament and
the Council
the 16 September 2009 on credit rating agencies, as amended from time to time, and words and expressions used in this Act shall have the same meaning as is given to them in the said EU Regulation unless otherwise defined herein; "CRD" means Directive 2013/36/EU
the European Parliament and
the Council
26 June 2013 on access to the activity
c r e d it in s t it u ti o ns a n d t h e p r u de n t ia l su pe r vi s i on
c r e d it institutions and investment firms, amending Directive 2002/87/EC S.L. 345.
the CRR; "CRR" means Regulation (EU) No 575/2013
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648 /2012, as amended from time to tim e, and includes any implementing measures that have been or may be issued thereunder; "CSDR" means Regulation (EU) No. 909/2014
the European Parliament and
the Council
the 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and MiFID and Regulation (EU) No. 236/2012, as may be amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "CTP" or "consolidated tape provider" means the same as the meaning assigned to it in point
MiFIR; "data extractable format" shall have the same meaning as assigned to it in article 2
the ESAP Regulation; "data reporting services provider" means the same as the meaning assigned to it in point
MiFIR; "dealing on own account" means trading against proprietary capital resulting in the conclusion
transactions in one or more financial instruments; "dematerialised form" means the fact that financial instruments exist only as book entry records; "depositary receipts" means those securities which are negotiable on the capital market and which represent ownership
the securities
a non-domiciled issuer while being able to be admitted to trading on a regulated market and traded independently
the securities
the nondomiciled issuer; "derivatives" means those financial instruments as defined in point
MiFID; and referred to in Annex I, Section C
the European Parliament and
the Council
24 October 1995 on the protection
individuals with regard to the processing
personal data and on the free movement
such data, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; " Directive 2003/87/EC" means Directive 2003/87/EC
the European Parliament and
the Council
13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/ 61/EC, as amended from time to time, and includes any implementing measures that have been or may be issued F I NANCIAL MAR KET S thereunder; "Directive 2009/65/EC" means Directive 2009/65/EC
the European Parliament and
the Council
13 July 2009 on the coordination
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 2013/34/EU" means Directive 2013/34/EU
the European Parliament and
the Council
26 June 2013 on the annual financial statements, consolidated financial statements and related reports
certain types
undertakings, amending Directive 2006/43/EC
the European Parliament and
the Council and repealing Council Directives 78/660/EEC and 83/349/EEC as may be amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directives" m eans the Trans pare ncy Dire ctive, the Shareholders’ Rights Directive, the Takeover Bids Directive and the Statutory Audits Directive, collectively; "distributed ledger technology" shall have the same meaning as that assigned to it in point
the DLT Pilot Regime Regulation; "DLT Pilot Regime Regulation" means Regulation (EU) 2022/858
the European Parliament and
the Council
30 May 2022 on a pilot regime for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No 600/2014 and (EU) No 909/2014 and Directive 2014/65/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "DORA Regulation" means Regulation (EU) 2022/2554
the European Parliament and
the Council
14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No. 1060/2009, (EU) No. 648/2012, (EU) No. 600/ 2014, (EU) No. 909/2014 and (EU) 2016/1011, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "EBA" means the European Banking Authority established by Regulation (EU) No. 1093/2010
the European Parliament and
the Council
24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No. 716/ 2009/EC and repealing Commission Decision 2009/78/EC, as amended from time to time; "EEA State" means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May, 1992 as amended by the Protocol signed at Brussels on the 17th March, 1993 and as amended by any subsequent acts; "EMIR" means Regulation (EU) No. 648/2012
the European Parliament and
the Council
the 4th July, 2012 on OTC derivatives, central counterparties and trade repositories as amended from time to time; F I NA N C I AL M AR K ET S "ESAP" means European Single Access Point in accordance with the ESAP Regulation; "ESAP Regulation" means Regulation (EU) 2023/2859
the European Parliament and
the Council
13 December 2023 establishing a European single access point providing centralized access to publicly available information
relevance to financial services, capital markets and sustainability, as may be amended from time to time and includes any implementing measures that have been, or may be issued thereunder; "ESMA" means the European Securities and Markets Authority established by Regulation (EU) No 1095/2010
the European Parliament and
the Council
24 November 2010; "ESRB" means the European Systemic Risk Board established by Regulation (EU) No 1092/2010
the European Parliament and
the Council
24 November 2010 on European Union macroprudential oversight
the financial system and establishing a European Systemic Risk Board; S.L. 330.09. "European regulatory authority" means the body or bodies designated by a Member State or EEA State in accordance with Article 67
the MIFID to carry out each
the duties provided for under the different provisions
the MIFID; "European resolution authority" shall have the same meaning as that assigned to it in regulation 2
the Recovery and Resolution Regulations; "exchange-traded fund" means a fund
which at least one unit or share class is traded throughout the day on at least one trading venue and with at least one market maker which takes action to ensure that the price
its units or shares on the trading venue does not vary significantly from its net asset value and, where applicable, from its indicative net asset value; "extendable maturity structure" means a mechanism which provides for the possibility
extending the scheduled maturity
covered bonds for a pre-determined period
time and in the event that a specific trigger occurs; "financial instruments" means those instruments specified in Section C
Annex I
MiFID; "financial instruments" means those instruments specified in Section C
Annex I
MiFID, including such instruments issued by means
distributed ledger technology; "frequent issuer" means an issuer referred to in Article 9
the Prospectus Regulation; "Gender Balance Directive" means Directive (EU) 2022/2381
the European Parliament and
the Council
23 November 2022 on improving the gender balance among directors
listed companies and related measures, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Green Bonds Regulation" means Regulation (EU) 2023/2631
the F I NANCIAL MAR KET S European Parliament and
the Council
22 November 2023 on European Green Bonds and optional disclosures for bonds marketed as environmentally sustainable and for sustainability-linked bonds, as may be amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "home Member State" means, in the case
a regulated market, the Member State or EEA State in which the regulated market is registered or, if under the law
that Member State or EEA State it has no registered
fice, the Member State or EEA State in which the head
fice
the regulated market is situated; "host Member State" means the Member State or EEA State in which a regulated market provides appropriate arrangements so as to facilitate access to trading on its system by remote members or participants established in that same Member State or EEA State; "immobilisation" means the act
concentrating location
physical securities in a CSD in a way that enables subsequent transfers to be made by book-entry; "individual connected with the company" means an individual who is either: (i) a director
that company or a related company, or (ii) who is an
ficer or employee
that company or related company, or (iii) occupies a position involving a business or professional relationship between himself, his employer, or a company
which he is a director, and that company or related company, or (iv) a public
ficer acquiring information in an
ficial capacity; "inspector" means an inspector appointed under article 33; "issuer" means, for the purposes
, any legal entity which issues or proposes to issue securities; "legal entity" shall include registered business associations without legal personality and trusts within the meaning
the Transparency Directive; "licence holder" means a person who holds a licence under the Investment Services Act; "listed company" means a company whose financial instruments have been admitted to listing on a trading venue in accordance with the provisions
this Act; "listed financial instruments" or "quoted financial instruments'' means financial instruments which have been admitted to listing on a regulated market in accordance with this Act; "local regulated market" means, for the purposes
, a regulated market which is authorised under this Act; "MAD" means Directive 2014/57/EU
the European Parliament F I NA N C I AL M AR K ET S and
the Council
16 April 2014 on criminal sanctions for market abuse (market abuse directive), as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "management body" means the body or bodies
a market operator or data reporting services provider which are appointed in accordance with Maltese law, which are empowered to set the entity’s strategy, objectives and overall direction, and which oversee and monitor management decision-making and include persons who effectively direct the business
the entity; "MAR" means Regulation (EU) No. 596/2014
the European Parliament and
the Council
16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC
the European Parliament and
the Council and Commission D irecti ves 2 003 /1 24/ EC, 20 03 /12 5/EC and 2 004 /7 2/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "market abuse" means conduct amounting to the prohibited use
inside information or market manipulation in terms
the Prevention
Financial Markets Abuse Act; "market maker" means a person who holds himself out on the financial markets on a continuous basis as being willing to deal on own account by buying and selling financial instruments against that person’s proprietary capital at prices defined by that person; "market operator" means a person or persons who manages and, or operates the business
a regulated market and may be the regulated market itself; "members" in relation to a regulated market means the members
that regulated market; " M e m b e r St a t e " m e a n s a M e m b e r St a t e o f t h e E u r o p e a n Communities; "metadata" shall have the same meaning as assigned to it in article 2
the ESAP Regulation; "MiFID" means Directive 2014/65/EU
the European Parliament and
the Council
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; "MiFIR" means Regulation (EU) No. 600/2014
the European Parliament and
the Council
15 May 2014 on markets in financial instruments and amending Regulation (EU) No. 648/2012, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Minister" means the Minister responsible for the regulation
Financial Services; "multilateral system" means any system or facility in which multiple third-party buying and selling trading interests in financial instruments F I NANCIAL MAR KET S are able to interact in the system; "multilateral trading facility" or "MTF" means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments - in the system and in accordance with nondiscretionary rules - in a way that results in a contract in accordance with Title II
MiFID; "
fer
securities to the public" means, for the purposes
, a communication to persons in any form and by any means, presenting sufficient information on the terms
the
fer and the securities to be
fered, so as to enable an investor to decide to purchase or subscribe for those securities. This definition also applies to the placing
securities through financial intermediaries; "
feror" means, for the purposes
, a legal entity or individual which
fers securities to the public; "organised trading facility" or "OTF" means a multilateral system which is not a regulated market or an MTF and in which m ul t ip l e th i r d- p a r t y b uy i ng an d se ll i ng in t e r e s ts i n b o nd s , structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract in accordance with Title II
MiFID; "overcollateralisation" means the entirety
the statutory, contractual or voluntary level
collateral that exceeds the coverage requirement set out in regulation 12
the Financial Markets Act (Covered Bonds) Regulations; S.L. 345.27. "overseas regulatory authority" means an authority in a country or territory outside Malta that is not a Member State or EEA State which exercises any regulatory or supervisory function in relation to financial services corresponding to a function
the competent authority as defined in the Malta Financial Services Authority Act; "personal data" shall have the same meaning as assigned to it in Regulation (EU) 2016/679
the European Parliament and
the Council
27 April 2016 on the protection
natural persons with regard to the processing
personal data and on the free movement
such data, and repealing Directive 95/46/EC (General Data Protection Regulation); "prescribed" means prescribed by regulations made under this Act; "Prospectus Regulation" means Regulation (EU) No. 2017/1129
the European Parliament and
the Council
the 14 June 2017 on the prospectus to be published when securities are
fered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards and similar measures that have been, or may be issued thereunder; "proxy advisor" means a legal person that analyses, on a professional and commercial basis, the corporate disclosure and, where relevant, other information
listed companies with a view to informing investors’ voting decisions by providing research, advice or F I N AN C I A L M A RKE TS voting recommendations that relate to the exercise
voting rights, providing such services to shareholders with respect to shares
companies which have their registered
fice in a Member State or EEA State, and the shares
which are admitted to trading on a regulating market situated or operating in a Member State or EEA State; "quoted company" means a company whose financial instruments have been admitted to listing and trading on a trading venue in accordance with the provisions
this Act; "recognised list" means a list prepared and published by a regulated market in accordance with the bye-laws
such regulated market; "regulated information" shall have the same meaning as that assigned to it in the Capital Market Rules; "regulated market" means a multilateral system operated and, or managed by a market operator, which brings together or facilitates the bringing together
multiple third-party buying and selling interests in financial instruments - in the system and in accordance with its non-discretionary rules - in a way that results in a contract, in respect
the financial instruments admitted to trading under its rules and, or systems, and which is authorised and functions regularly and in accordance with Title III
MiFID. For the purposes
this definition, "buying and selling interests" includes orders, quotes and indications
interest; "Regulation (EU) No. 1095/2010" means Regulation (EU) No. 1095/2010
the European Parliament and
the Council
24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/77/EC as amended from time to time, and includes any implementing measures that have been or may be issued hereunder; "Regulation (EU) No. 1308/2013" means Regulation (EU) No. 1308/2013
the European Parliament and
the Council
17 December 2013 establishing a common organisation
the markets in agricultural products and repealing Council Regulations (EEC) No. 922/72, (EEC) No. 234/79, (EC) No. 1037/2001 and (EC) No. 1234/2007, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; S.L. 330.09. "related company" in relation to a company, means any body corporate which is that company’s subsidiary, associated or holding company, or is the manager
or managed by, or is advisor to or is advised by or otherwise controls or is controlled by that company, its holding company or a subsidiary or associate
that company’s holding company; " "resolution" shall have the same meaning as that assigned to it in regulation 2
the Recovery and Resolution Regulations; F I NANCIAL MAR KET S "Resolution Committee" means the Resolution Committee appointed by the Resolution Authority in terms
article 7B
the Malta Financial Services Authority Act; "securities" means, for the purposes
, transferable securities, with the exception
money market instruments as defined in point
the MiFID, having a maturity
less than twelve
creditors other than covered bond investors and counterparties
derivative contracts; "Shareholders’ Rights Directive" means Directive 2007/36/EC
the European Parliament and
the Council
the 11 July 2007 (as subsequently amended) on the exercise
certain rights
shareholders in listed companies, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards and similar measures that have been or may be issued thereunder; "special administrator" means the person or entity appointed to administrate a covered bond programme in the event
the insolvency
a credit institution issuing covered bonds under that programme, or when such credit institution has been determined to be failing or likely to fail pursuant to regulation 32
the Recovery and Resolution Regulations or, in exceptional circumstances, where the competent authority determines that the proper functioning
that credit institution is seriously at risk; "sponsor" means a person registered with the competent authority in terms
article 12B, to provide advice, guidance and expertise to issuers applying, or intending to apply, for admissibility to listing
securities on a local regulated market under this Act, and as may be prescribed; "Statutory Audits Directive" means Directive 2006/43/EC
the European Parliament and
the Council
the 17 May 2006 (as subsequently amended) on statutory audits
annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC, as may be amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards and similar measures that have been, or may be issued thereunder; "SSR" means Regulation (EU) No. 236/2012
the European Parliament and
the Council
14 March 2012 on short selling and certain aspects
credit default swaps, as amended from time to time; "Takeover Bids Directive" means Directive 2004/25/EC
the European Parliament and
the Council
21 April 2004 on takeover bids, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "third-country CSD" means any legal entity established in a third S.L. 330.09. F I N AN C I A L M A RKE TS country that provides a similar service to the core service referred to in point
Section A
the Annex to the CSDR and performs at least one other core service listed in Section A
the Annex; "trading" means the activity
buying and selling
quoted financial instruments; "trading venue" means a regulated market, an MTF or an OTF; "transferable securities" means those classes
securities which are negotiable on the capital market, with the exception
instruments
payment, such as: (a) shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect
shares; (b) bonds or other forms
securitised debt, including depositary receipts in respect
such securities; (c) any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures; "Transparency Directive" means Directive 2004/109/EC
the European Parliament and
the Council
15 December 2004 on the harmonisation
transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; Added by: XLVI.2021.11. "tribunal" means the Financial Services Tribunal established under article 21
the Malta Financial Services Authority Act. (1A) In this Act and in any regulations made thereunder, if there is any conflict between the English and Maltese texts, the English text shall prevail.
this Act is inter alia to regulate trading venues, central securities depositories, central counterparties, covered bonds and the issuance thereof by credit institutions licensed in terms
the Banking Act, and to provide for the orderly trading in transferable securities and for matters ancillary or incidental thereto or connected therewith, and to transpose and, or implement, in part, the relevant provisions
the CBD, CRAR, CSDR, DLT Pilot Regime Regulation, EMIR, MIFID, MiFIR, the Prospectus Regulation, the SSR and the Directives, and consequently this Act and any regulations adopted thereunder shall be interpreted and applied accordingly.
the Banking Act. F I NANCIAL MAR KET S 2A.
this Act.
the relevant provisions
CRAR, CSDR, the DLT Pilot Regime Regulation, EMIR, the Gender Balance Directive, the Green Bonds Regulation, MiFID, MiFIR and the SSR, and the Commission
the European Union, ESMA, and European regulatory authorities shall be informed accordingly.
implementing the relevant provisions
the CRAR,CSDR, the DLT Pilot Regime Regulation, EMIR, the Gender Balance Directive, the Green Bonds Regulation, MiFID, MiFIR and the SSR, and any reference in this Act to the com petent authority shall be read and construed accordingly. Competent authority shall carry out its functions under this Act. Added by: XIX. 3016.4. Amended by: XXV.2023.37; XI.2025.6. PART II TRADING VENUES Amended by: XX. 2007.14. Substituted by: XIX. 2016.5. 3.
the Competent Authority, may make regulations setting out - Minister’s power to make regulations. Substituted by: XVII. 2002.
which an authorisation may be issued by the competent authority; (
market operators and, or regulated markets; (e) arrangements for the investigation
complaints about market operators and, or regulated markets; (f) the functions
the Tribunal with respect to proceedings under the bye-laws
regulated markets by persons subject to such bye-laws; (g) arrangements for the scrutiny
practices
market operators and, or bye-laws and practices
regulated markets and for preventing restrictive practices in terms
the Competition Act and any regulations made thereunder; F I N AN C I A L M A RKE TS (h) categories
transactions that are to be carried out exclusively on a regulated market and the circumstances in which investors may be exempted therefrom; (i) exemptions from the requirement for an authorisation under article 4
authorisation and notification procedures, as may be prescribed; (ia) fees and charges in respect
any request, application or other matter that may be submitted to the Authority under this Act, including the fees and charges in respect
any permission, licence, authorisation, registration, exemption or any other benefit, as well as any fees and charges in respect
the Authority’s regulatory, supervisory or investigative functions in accordance with this Act and any regulations made or Rules issued thereunder; (j) Added by: XXXI. 2017.17.
the above matters. Regulations made under this article may impose: (
any contravention or failure to comply not exceeding a fine (multa)
four hundred and sixty six thousand euro (€466,000) or to a term
imprisonment not exceeding four years, or to both such fine and imprisonment; (c) administrative penalties higher than one hundred and fifty thousand euro (€150,000) and fines higher than four hundred and sixty six thousand euro (€466,000), where deemed necessary or appropriate for any contravention
or failure
compliance with any EU Directive or EU Regulation or
any regulations made under this article to transpose or to give effect to any EU Directive or EU Regulation.
any provision
the Act or for any breach
any Financial Market Rules, transposing and, or implementing any EU Directive or EU Regulation. F I NANCIAL MAR KET S 4.
a regulated market in or from within Malta unless such p erson is in possession
an authorisation. (b) Any body corporate or unincorporate may apply to the competent authority for an authorisation under this Part
the Act declaring it to be an authorised regulated market for the purposes
this Act. (c) A regulated market shall only be authorised where the competent authority is satisfied that both the market operator and the systems
the regulated market comply with the applicable requirements laid down in this Act and any regulation or Financial Market Rules made thereunder. (d) Where a regulated market is a legal person and is managed or operated by a market operator other than the regulated market itself, the competent authority shall establish by means
Financial Market Rules how the different obligations imposed on the market operator under MiFID are to be allocated between the regulated market and the market operator.
the regulated market shall provide all information, necessary to enable the competent authority to satisfy itself that the regulated market has established, at the time
initial authorisation, all the necessary arrangements to meet its obligations under the Act or any regulations or Financial Market Rules made thereunder. (
operations setting out inter alia the types
business envisaged; (ii) a full description
the organisational structure and the proposed bye-laws or similar arrangements
the applicant; (iii) detailed information as required by the competent authority on the (a) persons who effectively direct the business and the operations
the regulated market; (
any changes or corrections to the information provided in terms
sub-article
changes to the persons who Application for authorisation. Substituted by: XVII. 2002.
the regulated market the prior authorisation
the competent authority shall be requested: Provided further that where there are objective and demonstrable grounds for believing that the appointment or election
an
ficer poses or may pose a material threat to the sound and prudent management and operation
the regulated market, the competent authority shall refuse to approve such appointment or election.
the provisions
this Act, the competent authority may, from time to time, issue and publish Financial Market Rules which shall be binding on regulated markets and others as may be specified therein. Such Financial Market Rules may lay down additional requirements and conditions in relation to activities
regulated markets and any other persons as may be specified therein, the conduct
their business, their relations with customers, the public and other parties, their responsibilities to the competent authority, reporting requirements, financial resources, capital adequacy and related requirements, and any other matters as the competent authority may consider appropriate including (
determining the application; (d) any other matter incidental to or connected with any
the above.
applications.
the Act, regulations and Financial Market Rules made thereunder and any implementing measures issued by the European Commission in terms
the powers conferred to it by the MIFID which are applicable to regulated markets, are complied F I NANCIAL MAR KET S with.
MAR or
MAD, the public law governing the trading conducted under the systems
the regulated market shall be that
Malta when Malta is the home Member State
the regulated market. Applicable law when Malta is the home Member State. Added by: XX. 2007.18. Substituted by: XXXI. 2017.19. 4B.
the regulated market must be fit and proper. Significant influence over the management
a regulated market. Added by: XX. 2007.18.
the share capital issued by such body or
the voting rights attaching to such share capital or which makes it possible to exercise a significant influence over the management
the regulated market ("qualifying shareholding") or increase such qualifying shareholding so that the proportion
the voting rights or
the share capital held by him in the regulated market reaches or exceeds twenty
that intention by such person or by the relevant regulated market and the competent authority has approved the acquisition
or increase in such qualifying shareholding.
sub-article
the said regulated market.
a regulated market shall: (a) provide the competent authority with, and make public, information regarding the ownership
the regulated market and, or the market operator, and in particular, the identity and scale
interests
any parties in a position to exercise significant influence over the management; (b) inform the competent authority
and make public, any transfer
ownership which gives rise to a change in the identity
the persons exercising significant influence over the operation
the regulated market. Regulated market bye-laws and arrangements. Added by: XX. 2007.
financial instruments to trading which shall ensure that any financial instruments admitted to trading on the regulated market are capable
being traded in a fair, orderly and efficient manner and, that transferable securities are freely negotiable: Provided that in the case
derivatives such requirements shall also ensure that the design
the derivative contract allows for its orderly pricing as well as for the existence
effective settlement conditions; (ii) have effective arrangements to verify that issuers
transferable securities that are admitted to trading comply with their obligations under Union Law in respect
initial, ongoing or ad hoc disclosure obligations; (iii) establish arrangements which facilitate its members or participants in obtaining access to information which has been made public under Union Law; (iv) establish the necessary arrangements to review regularly the compliance with admission requirements
the financial instruments which are admitted to trading.
the issuer and in compliance with the relevant provisions
Directive 2003/71/EC
the European Parliament and
the Council
4 November, 2003 on the prospectus to be published when securities are
fered to the public or admitted to trading, and amending Directive 2001/ 34/EC and any implementing measures that have been or may be issued thereunder.
the fact that its transferable securities are traded on that regulated market. The issuer shall not be subject to any obligation to provide information required under sub-article
this article regulated markets shall also comply with the applicable provisions
MiFIR. Rights
a market operator. Added by: XXXI. 2017.21. 4D. A market operator shall be entitled to exercise the rights that correspond to the regulated market that it manages by virtue
MiFID. Limitation on market operators. Added by: XXXI. 2017.21. 4E. Market operators shall not execute client orders against proprietary capital, or engage in matched principal trading on any
the regulated markets they operate. F I NANCIAL MAR KET S 4F.
the DORA Regulation to ensure its trading systems are resilient, have sufficient capacity to deal with peak order and message volumes, are able to ensure orderly trading under conditions
severe market stress, are fully tested to ensure such conditions are met and are subject to effective business continuity arrangements, including ICT business continuity policy and plans and ICT response and recovery plans established in accordance with Article 11
the DORA Regulation, to ensure continuity
its services if there is any failure
its trading systems.
investment firms participate in such agreements which require them to post firm quotes at competitive prices with the result
providing liquidity to the market on a regular and predictable basis, where such a requirement is appropriate to the nature and scale
the trading on that regulated market.
the investment firm in relation to the provision
liquidity and where applicable any other obligation arising from participation in the scheme referred to in sub-article
rebates or otherwise
fered by the regulated market to an investment firm so as to provide liquidity to the market on a regular and predictable basis and, where applicable, any other rights accruing to the investment firm as a result
participation in the scheme referred to in sub-article
such binding written agreements. The regulated market shall inform the competent authority about the content
the binding written agreement and shall, upon request, provide all further information to the competent authority necessary to enable the competent authority to satisfy itself
compliance by the regulated market with sub-article
a significant price System resilience, circuit breakers and electronic trading. Added by: XXXI. 2017.
different asset classes and sub-classes, the nature
the market model and the types
users and is sufficient to avoid significant disruptions to the orderliness
trading.
liquidity in that financial instrument halts trading, in any Member State or EEA State including Malta, that trading venue shall have the necessary systems and procedures in place to ensure that it will notify the competent authority or European regulatory authorities, as the case may be, in order for them to coordinate a market-wide response and determine whether it is appropriate to halt trading on other venues on which the financial instrument is traded until trading resumes on the original market.
trading and the principles for establishing the main technical parameters used to do so.
the markets, including giving such directives as referred to in paragraphs (h) to (k)
article 15
the Investment Services Act.
algorithms and providing environments to facilitate such testing in accordance with the requirements laid down in Chapters II and IV
the DORA Regulation, in order to: (
unexecuted orders to transactions that may be entered into the system by a member or participant, in order to: (i) (ii) be able to slow down the flow
orders if there is a risk
its system capacity being reached; and limit and enforce the minimum tick size that may be executed on the market.
persons to whom such access may be provided and that the member or participant retains responsibility for orders and trades executed using that service in relation to the requirements
MiFID.
direct electronic access by a member or participant to a client in the case
non-compliance with sub-articles
shares in exchange for any rebates that are granted.
time for which the order w a s m a i n t a i n e d a n d t o c al i b r at e t h e f e e s t o e a c h f i n a n c i a l instrument to which they apply.
cancelled orders to executed orders and on those operating a high-frequency algorithmic trading technique in order to reflect the additional burden on system capacity. F I N AN C I A L M A RKE TS
flagging from members or participants, orders generated by algorithmic trading, the different algorithms used for the creation
orders and the relevant persons initiating those orders. That information shall be available to the competent authority and European regulatory authorities upon request.
tick sizes shall not prevent regulated markets from matching orders large in scale at mid-point within the current bid and
fer prices.
the financial instrument in different markets and the average bid-ask spread, taking into account the desirability
enabling reasonably stable prices without unduly constraining further narrowing
spreads; (b) adapt the tick size for each financial instrument appropriately.
shares with an International Securities Identification Number (ISIN) issued outside the European Economic Area (EEA), or shares which have an EEA ISIN and which are traded on a third-country venue in the local currency or in a non-EEA currency, as referred to in point (a)
MiFIR for which the venue that is the most relevant market in terms
liquidity is in a third country, regulated markets may provide for the same tick size that applies in that venue. Synchronisation
business clocks. Added by: XXXI. 2017.
such events relating to that regulated market as may be specified by the competent authority; and (b) such information in respect
those events as may be specified by the competent authority; (c) such other information relating to that regulated F I NANCIAL MAR KET S market, at such times or in respect
such period as may be specified by the competent authority.
the Financial Market Rules issued under article 5 are not to apply in respect
any regulated market or are to apply to such regulated market with such modification as may be specified in the Financial Market Rule, if it is satisfied that (a) compliance by the regulated market with the Financial Market Rules, or with the Financial Market Rules as unmodified, would be unduly burdensome or would not achieve the purpose for which the Financial Market Rules were made; and Non-application or modification
Financial Market Rules. Substituted by: XVII. 2002.
the Financial Market Rule as aforesaid would not result in undue risk to persons whose interests such Financial Market Rules are intended to protect.
the regulated market concerned or otherwise as provided in this Act.
the authorisation within twelve months, expressly renounces the authorisation or has not operated for the preceding six months, or (
an authorisation. Substituted by: XVII. 2002.
the authorisation.
any revocation order. Notice
directive or revocation. Substituted by: XVII. 2002.
its intention so to do to the regulated market concerned; and (b) take such steps as it considers reasonably practicable to bring the notice to the attention
any other persons who are, in its opinion, likely to be affected.
the period for making representations (
sub-article
the regulated market, or (ii) with the date on which the notice is brought to the attention
any other persons notified in terms
sub-article
such other persons. (b) such longer period stated in the notice as the competent authority may deem fit to allow in the particular case.
its decision; and (b) where it decides to issue the directive or to make the order, take such steps as it considers reasonably practicable for bringing its decision to the attention
any other persons who are, in the competent authority’s opinion, likely to be affected thereby. 10. A regulated market intending to take any
the following actions shall notify the competent authority in writing and the consent
the competent authority shall be required before a regulated market may lawfully: (a) alter or revoke any
its bye-laws; or Notification
intended action. Substituted by: XVII. 2002.114. Amended by: XX. 2007.14, 23. (
clearing services in respect
transactions effected on the regulated market concerned or in the criteria which it applies when determining to whom it will provide clearing services. 10A. Regulated markets shall
fer all their members or participants the right to designate the systems for the clearing and settlement
transactions in financial instruments undertaken on that regulated market subject to: (a) such links and arrangements between the designated clearing and settlement system and any other system or facility as are necessary to ensure the efficient and economic settlement
the transaction in question; and Clearing and settlement
transactions. Added by: XX. 2007.
the regulated market that technical conditions for the clearing and settlement
transactions concluded on the regulated market through a clearing and settlement system other than that designated by the regulated market are such as to allow smooth and orderly functioning
financial markets. 10B.
the regulated markets registered in Malta and shall forward that list to the other Member States, EEA States and ESMA. A similar communication shall be effected in respect
each change to that list.
the members or participants
the regulated market to the competent authority
the regulated market. Competent authority to draw up list when it is the home Member State
a regulated market. Added by: XX. 2013.
the competent authority. Substituted by: XLVI.2021.
the competent authority: (a) to approve, or otherwise, the prospectus
any
fer
securities to the public in Malta; (b) to approve, or otherwise, the admissibility
securities to a local regulated market; (ba) to approve, or otherwise, the registration
a sponsor, as may be prescribed; (c) to make Capital Markets Rules for the better implementation and purposes
this Part; (d) to ensure compliance by issuers
securities with the requirements or conditions set out in the Prospectus Regulation, the Directives, this Act and any regulations and Capital Markets Rules issued thereunder; (
information by issuers or any other persons subject to the Capital Markets Rules with the objective
ensuring effective and equal access to the public in Malta and in all Member States or EEA States where the securities are admitted to trading on a local regulated market; (f) to act as the designated competent authority in Malta for the purposes
implementing the relevant provisions
the Prospectus Regulation and the Directives, ensure that the provisions adopted pursuant to the Directives are applied and issue Capital Markets Rules in furtherance
its responsibility under any provisions
any
the Directives, which rules shall be binding on issuers, shareholders and any other persons as may be indicated in the said Rules: Provided that, in relation to the Statutory Audit Directive, this paragraph shall only apply to the extent that the said Directive applies to issuers; (g) to cooperate with ESMA for the purposes
, and where required by, the Prospectus Regulation, the Directives or any other applicable law.
ten
a prospectus submitted to it for approval or suspend or restrict an
fer
securities to the public or admission to listing and, or trading on a local regulated market where the competent authority is making use
the power to impose a prohibition or restriction, until such prohibition or restriction has ceased; (e) to refuse approval
any prospectus drawn up by any person for a maximum period
not more than five
the securities
fered to the public or admitted to trading on a local regulated market in order to ensure investor protection or the smooth operation and integrity
the market; (
natural persons, and for that purpose to enter premises in order to access documents and other data in any form: (
the inspection or investigation may be relevant to prove a breach
the Prospectus Regulation, this Act or any regulations or Capital Markets Rules issued thereunder; and, or for the purpose
ensuring compliance
the F I N AN C I A L M A RKE TS issuer with continuing obligations in terms
the Prospectus Regulation, this Act or any regulations or Capital Markets Rules issued thereunder; Further functions
the Listing Authority. Added by: XIX. 2010.20; Amended by: X. 2011.15. Approval
prospectus and admissibility to listing. Substituted by: XLVI.2021.16. Amended by: XI.2025.10. (
a sponsor in such circumstances as may be prescribed. 11A. (Deleted by XIX. 2016.8). 12.
any other applicable law, no securities shall be: (a)
fered to the public in Malta unless and until a prospectus is approved by the competent authority; and (b) eligible for admission to listing and trading on a local regulated market unless and until the competent authority has approved the admissibility to listing
those securities.
the Prospectus Regulation, the provisions
the Prospectus Regulation, this Act and any regulations or Capital Markets Rules issued thereunder shall not apply to an
fer
securities to the public with a total consideration in the European Union and the EEA
less than one million euro (€1,000,000), which shall be calculated over a period
twelve
the Prospectus Regulation,
fers
securities to the public shall be exempt from the obligation to publish a prospectus in accordance with Article 3
the Prospectus Regulation provided that: F I NANCIAL MAR KET S (a) such
fers are not subject to notification in accordance with Article 25
the Prospectus Regulation; and (b) the total consideration
each such
fer in the European Union and the EEA is less than a monetary amount calculated over a period
twelve
a sponsor in Malta unless duly registered with the competent authority in accordance with this Act in the manner prescribed and as may be provided for in Capital Markets Rules. Registration
sponsors and transitory provision. Added by: XI.2025.11.
the coming into force
this article, is already providing or holding himself out as providing the services
a sponsor, may only continue to
fer such services for ten
the coming into force
this article, if the following two
this article and any regulations and rules issued under the Act, by not later than two
coming into force; and (b) they shall have been registered by the competent authority before the lapse
the said ten
coming into force: Provided that the competent authority shall either register such person applying for registration or shall otherwise refuse an application for registration made in accordance with this subarticle, before the lapse
such ten
this Act and any regulations and Rules made thereunder. A "duly completed application" shall include any additional or missing information or documentation which may subsequently be requested by the competent authority. Registration or refusal, as the case may be, shall be made by the competent authority in accordance with the provisions
this Act and any regulations or rules issued thereunder. 12C.
the competent authority to register or refuse an application for registration
a sponsor. Added by: XI.2025.11. F I N AN C I A L M A RKE TS otherwise impose new conditions.
all sponsors to whom registration has been granted in terms
this Act shall be established by the competent authority. The register shall be publicly available on the competent authority’s website and shall indicate the names
the persons to whom such registration has been granted, and it shall be updated on a regular basis. Power
competent authority to cancel or suspend registration
a sponsor. Added by: XI.2025.11. 12D. The competent authority may, at any time, in the circumstances prescribed, cancel or suspend the registration
a sponsor granted in terms
this Act. Capital Markets Rules. Substituted by: XLVI.2021.18. 13.
sub-article
the competent authority, their activities, the conduct
their business, their relations with customers, the public and other parties, their responsibilities to the competent authority, reporting requirements, financial resources, capital adequacy and related requirements, and any other matters as the competent authority may consider appropriate; (
the Prospectus Regulation, the Directives and any other legislative measures
the European Union requiring transposition or implementation; and, or (e) regulate any matter that is incidental to or connected with any
the matters mentioned above as the competent authority may consider appropriate in the performance
its functions.
adaptation
the Capital Markets Rules, as may also be so specified. 14. (Deleted by XLVI.2021.19). 14A. The Minister, acting on the advice
the competent authority, may make regulations to give effect to the provisions
this Part and, without prejudice to the generality
the foregoing, may, by such regulations, in particular do any
the following: Delegation
functions and powers
the Listing Authority. Minister’s power to make regulations. Added by: XI.2025.12. (
any application for the approval
a prospectus and the admissibility to listing
securities on a local regulated market, as well as any fees and charges in respect
the competent authority’s regulatory, supervisory or investigative functions under this Part, under any regulations made or Capital Markets Rules issued hereunder, as may be prescribed; and (c) provide for any matter incidental to or connected with any
the above. 15.
a prospectus and, or the admissibility to listing
securities on a local regulated market shall be made to the competent authority in such a manner as may be required by Capital Markets Rules.
securities on a local regulated market unless it is satisfied that: Listing. Substituted by: XVII. 2002.
any applicable provision
the Prospectus Regulation, this Act or any regulations or Capital Markets Rules issued thereunder; and (b) any other requirements imposed by the competent authority, are complied with.
a prospectus and, or the admissibility to listing
securities on a local regulated market shall be refused if the competent authority considers that granting it would be detrimental to the public interest. 15A.
its decision regarding the requested approval
the prospectus within ten
the submission
the draft prospectus. Approval
prospectus. Added by: XLVI.2021.21. F I N AN C I A L M A RKE TS
fer to the public involves securities issued by an issuer that does not have any securities admitted to trading on a regulated market and that has not previously
fered securities to the public: Provided that the time limit
twenty
the draft prospectus. Where subsequent submissions are necessary in accordance with sub-article
completeness, comprehensibility and consistency necessary for its approval and, or that changes or supplementary information are needed: (a) it shall inform the applicant
that fact promptly and at the latest within the time limits set out in sub-article
the draft prospectus and, or the supplementary information; and (b) it shall clearly specify the changes or supplementary information that are needed: Provided that, in such cases, the time limit set out in subarticle
the prospectus and terminate the review process. In such case, the competent authority shall notify the applicant
its decision and indicate the reasons for such refusal.
sub-articles
separate documents drawn up by frequent issuers, including frequent issuers using the notification procedure provided for in Article 26
the Prospectus Regulation. The frequent issuer shall inform the competent authority at least five
an application for approval: Provided that a frequent issuer shall submit an application to the competent authority containing the necessary amendments to the universal registration document, where applicable, the securities note and the summary submitted for approval. F I NANCIAL MAR KET S
sub-articles
an application for approval: Provided that this provision shall only apply till 31 December 2022, following which it shall cease to have effect.
the application.
its decision in writing stating the reasons for its refusal.
the approval
a prospectus and any supplement thereto as soon as possible and in any event by no later than the end
the first working day after that approval is notified to the applicant. 15B.
this Act or any other law, the issuer, the
feror, the person asking for the admission to listing and, or trading on an authorized regulated market, the guarantor or, when any
the foregoing is a legal entity, the members
its administrative, management or supervisory bodies, as the case may be, shall be jointly and severally responsible and civilly liable for the information submitted in a prospectus, and any supplement thereto.
this Act or any other law, no civil liability shall attach to any person mentioned in sub-article
the summary pursuant to Article 7
the Prospectus Regulation or the specific summary
an EU Growth prospectus pursuant to the second sub-paragraph
the Prospectus Regulation, including any translation thereof, unless: (a) it is misleading, inaccurate or inconsistent, when read together with the other parts
the prospectus; or (b) it does not provide, when read together with the other parts
the prospectus, key information in order to assist investors when considering whether to invest in the securities.
legal entities, their names and registered
fices, as well as declarations by them that, to the best
their knowledge, the information contained in the prospectus is factually correct and that the prospectus makes no omission likely to affect its import.
an approved prospectus: Provided that the provisions
this sub-article shall apply without prejudice to Articles 4 and 5
the Transparency Directive where the information under those Articles is included in a universal registration document. Notification
decision. Substituted by: XVII. 2002.
its decision regarding the requested approval
the admissibility to listing
securities on a local regulated market within ten
the submission
the application.
fer to the public involves securities issued by an issuer that does not have any securities admitted to trading on a regulated market and that has not previously
fered securities to the public: Provided that the time limit
twenty
the application. Where subsequent submissions are necessary in accordance with subarticle
that fact promptly and at the latest within the time limits set out in sub-article
the submission
the application; and (b) it shall clearly specify the changes or supplementary information that are required: Provided that, in such cases, the time limit set out in subarticle
admissibility to listing
securities on a local regulated market and terminate the review process. In such a case, the competent authority shall notify the applicant
its decision and indicate the reasons for its refusal.
the application.
securities on a local regulated market, it shall give the applicant written notice accordingly.
securities on a local regulated market, it must give the applicant notice
its decision in writing stating the reasons for its refusal.
this article "application" means an application for the approval
admissibility to listing
securities on a local regulated market made in terms
the provisions
this Act, and any regulations, or Capital Markets Rules issued thereunder.
discontinuation or suspension. Substituted by: XVII. 2002.
contraventions. Substituted by: XVII. 2002.114. Amended by: IV. 2005.30; XX. 2007.27, 33; L.N. 424
2007; X. 2011.16; XIX. 2016.
administrative, management or supervisory bodies
the legal entity. Added by: XIX. 2016.10. 19B. (Deleted by: XLVI.2021.27). Suspension
exercise
voting rights. Added by: XIX. 2016.
penalty. Substituted by: XVII. 2002.
the Listing Authority. Substituted by: XVII. 2002.
carrying out its duties and exercising its powers under the Directives and the Prospectus Regulation. It shall render the necessary assistance to other European regulatory authorities, in particular by exchanging information and cooperating in any investigatory or supervisory function. Reference
cases to ESMA. Added by: XX. 2013.
professional secrecy. Added by: XX. 2013.
professional secrecy shall not prevent the competent authority from exchanging confidential information or from transmitting confidential information to other European regulatory authorities, ESMA or ESRB, subject to constraints relating to firm-specific information and effects on third countries as provided for in Regulation (EU) No 1095/2010 and Regulation (EU) No 1092/2010
the European Parliament and
the Council
24 November 2010 on European Union macro-prudential oversight
the financial system and establishing a European Systemic Risk Board respectively. Information exchanged between the competent authority and other European regulatory authorities, F I NANCIAL MAR KET S ESMA or the ESRB shall be covered by the obligation
professional secrecy, to which the persons employed or formerly employed by the competent authority receiving the information are subject. 21D. The competent authority shall notify ESMA
any cooperation agreements it enters into providing for the exchange
information with the regulatory authorities or bodies enabled by their respective legislation to carry out tasks under the Directives and the Prospectus Regulation. 21E.
making regulated information accessible on ESAP, the collection body shall be the Malta Stock Exchange, the latter being the
ficially appointed mechanism in terms
the Transparency Directive: Notification to ESMA. Added by: XX. 2013.32. Amended by: XLVI.2021.36. Accessibility
information on ESAP. Added by: XXIX.2025.13. Provided that for the purpose
taking the decisions referred to in article 39G, to the extent that the said decisions concern transparency requirements relating to regulated information, accessible on ESAP, the collection body shall be the competent authority. Such obligation shall apply with effect from 10 July 2026.
the ESAP Regulation; (
the natural persons or legal entity to which the information relates; (ii) where available, the legal entity identifier
the legal entity, as specified pursuant to Article 7
the ESAP Regulation; (iii) the type
information, as classified pursuant to Article 7
the ESAP Regulation; (iv) an indication
whether the information contains personal data. 22. (Deleted by: XLVI.2021.37). Delegation
powers. Substituted by: XVII. 2002.
a central securities depository in or from Malta unless such person is in possession
a written authorisation issued by the competent authority under this Part, in terms
the CSDR: Provided that a CSD authorised in Malta and wishing to provide the services referred to in points 1 and 2
Section A
the Annex to the CSDR, within the territory
a Member State or an EEA State, may do so in accordance with Article 23
the CSDR: Provided further that a CSD, authorised in a Member State or an EEA State and wishing to provide the services referred to in points 1 and 2
Section A
the Annex to the CSDR, within the territory
Malta, may do so in accordance with Article 23
the CSDR: Provided further that a third-country CSD may provide services referred to in the Annex to the CSDR within the territory
Malta, in accordance with Article 25
the CSDR.
the CSDR, authorizing it to act as a central securities depository for the purposes
this Act.
the Central Bank
Malta Act or any other law. Designation
the competent authority. Added by: XXXI. 2017.27. 24A. The Malta Financial Services Authority established by the Malta Financial Services Authority Act shall be the designated competent authority in Malta for the purposes
implementing the relevant provisions
the CSDR, and any reference to the competent authority shall be read and construed accordingly. Determination
an application. Amended by: XVII. 2002.
an application duly made in accordance with this Part, in terms
the CSDR, grant or refuse to grant an authorisation. Where the competent authority issues an authorisation, the central securities F I NANCIAL MAR KET S depository shall be responsible for ensuring that the provisions
the CSDR as well as the provisions
the Act, regulations made thereunder and Financial Market Rules issued by the competent authority, which are applicable to central securities depositories are complied with.
a central securities depository shall include the services listed in the Annex to the CSDR. Functions
a central securities depository. Amended by: XVII. 2002.110,
the central securities depository or otherwise as provided in this Act. Revocation
an authorisation. Added by: XVII. 2002.
a central securities depository, if it appears to the competent authority that the central securities depository: (
the authorisation during twelve months, expressly renounces the authorisation or has provided no services or performed no activity during the preceding six months; or F I N AN C I A L M A RKE TS (
appeal. Added by: XXXI. 2017.
other articles. Amended by: V. 1992.2; XVII. 2002.110,
articles 4B, 6 and 9
this Act shall apply mutatis mutandis to central securities depositories. Powers
the Minister to make regulations. Amended by: XVII. 2002.110,
the competent authority, may make regulations setting out: (a) the requirements and conditions which must be satisfied by a person if it is to provide the services
a central securities depository in respect
which the competent authority may issue an ‘authorisation’ under this Act; (b) the requirements which a central securities depository must continue to satisfy if it is to remain authorised, including the amount
fees to be payable to the competent authority; (
a central securities depository; (e) requirements for the creation, holding or evidencing
title to and rights in respect
Financial Instruments in a dematerialised form or represented in book-entry form as immobilisation; (f) arrangements for the investigation
complaints and or grievances about central securities depositories and remedies in respect thereof; (g) arrangements for the ascertainment
compliance by central securities depositories and the scrutiny
rules and requirements
central securities depositories; (h) exemptions from the requirement for an authorisation or from any provision
this Act which may be subject to such variations, additions, adaptations and modifications as may be prescribed and which may be subject to such conditions or other requirements, including other forms
authorisation and notification procedures; (
the above matters.
financial instruments and for different circumstances or purposes.
or failure
compliance with any EU Directive or EU Regulation or
any regulations made under this article to transpose or to give effect to any EU Directive or EU Regulation. Added by: XXXI. 2017.
any matter raised in this Part, including Rules for the better regulation
and for securing compliance by c e n t r a l s e c u r i t i e s d e p o s i t o r i e s a n d t h e i r o ff i c i a l s w i t h t h e requirements and obligations arising under this Act or regulations made thereunder. Financial Market Rules. Amended by: XVII. 2002.110, 121. Substituted by: XX. 2007.36. Amended by: XIX. 2010.25. 31A. This Part shall be read and construed in accordance with the CSDR and, insofar as the provisions
this Part
this Act and any rules made thereunder are inconsistent with the provisions
the CSDR, the provisions
the CSDR shall prevail and the provisions
this Part
this Act and any rules made thereunder shall not apply to the extent
the inconsistency. CSDR to prevail in case
any inconsistency. Added by: XXXI. 2017.
the competent authority. Added by: IX.2023.5. 31B.
the competent authority to act as the designated competent authority in Malta for the purposes
implementing the provisions
the CBD and to carry out covered bond public supervision.
covered bonds to assess and ensure compliance with the requirements laid down in this Part and any regulations and Covered Bonds Rules issued thereunder.
sub-articles
the competent authority shall include the power to: (
this Part and any regulations and Covered Bonds Rules issued thereunder; (d) issue Covered Bonds Rules in order to better implement and carry out the provisions
this Act and, or
any regulations issued thereunder and, or in furtherance
its responsibility under any provisions
the CBD, which rules shall be binding on credit institutions and any other persons as may be specified therein; (e) investigate possible breaches
the requirements
this Part or any regulations or Covered Bonds Rules issued thereunder; (f) carry out on-site and
f-site inspections; (
covered bonds.
its functions and duties pursuant to sub- F I NANCIAL MAR KET S article
the provisions
this Act or any regulations made thereunder, and to transpose, implement and give effect to the provisions and requirements
the CBD. Covered Bonds Rules. Added by: IX.2023.5.
sub-article
the CBD; (e) regulate any matter that is incidental to or connected with any
the matters mentioned in this article as the competent authority may consider appropriate in the performance
its functions; and (f) lay down requirements and conditions for the better implementation and purposes
this Part and
any regulations issued thereunder.
this article shall be binding on credit institutions and on any other persons as may be specified therein. 31D.
and to article 54, no covered bonds shall be issued in Malta by a credit institution unless and until a covered bond programme is approved by the competent authority.
a covered bond Requirement
a covered bond programme. Added by: IX.2023.5. F I N AN C I A L M A RKE TS programme shall be in such form and accompanied by such documents and information and shall conform with such requirements as shall be specified in Covered Bonds Rules.
operations setting out the issue
covered bonds; (b) the credit institution has adequate policies, processes and methodologies aimed at investor protection for the approval, amendment, renewal and refinancing
loans included in the cover pool; (c) the credit institution has management and staff dedicated to the covered bond programme which have adequate qualifications and knowledge regarding the issue
covered bonds and the administration
the covered bond programme; (d) the administrative set-up
the credit institution’s cover pool and the monitoring thereof meets the applicable requirements laid down in this Act and any regulations and Covered Bonds Rules issued thereunder; (e) the credit institution satisfies the requirements
this Act, and any regulations and Covered Bonds Rules issued thereunder; and (f) the credit institution satisfies any other requirements that may be imposed by the competent authority.
sub-regulation
the credit institution’s compliance with the requirements
this Act and any regulations and Covered Bonds Rules issued thereunder.
this article. F I NANCIAL MAR KET S 31E.
a covered bond programme does not comply with article 31D
completeness, comprehensibility and consistency necessary for its approval or that changes to the application or the covered bond programme are required or additional information is required: (a) Approval
the covered bond programme. Added by: IX.2023.5. it shall inform the applicant
that fact; and (b) it shall clearly specify the changes or additional information that are necessary.
the application and terminate the review process. In such cases, the competent authority shall notify the applicant
its decision in writing and specify the reasons for such refusal.
sub-article
a covered bond programme by acting in any
the following ways: (
paragraph (b).
its decision in writing stating the reasons for its refusal. 31F. A credit institution shall provide the competent authority with details
any changes in the information provided under this Act or any regulations or Rules issued thereunder as soon as such credit institution becomes aware
such changes. Changes in information. Added by: IX.2023.5. 31G. Credit institutions issuing covered bonds shall register all their transactions in relation to the covered bond programme and shall have in place adequate and appropriate documentation systems and processes. Registration
transactions in relation to the covered bond programme. Added by: IX.2023.
the competent authority, may make regulations to give effect to the provisions
this Act, and without prejudice to the generality
the foregoing may, by such regulations, in particular, do any
the following: (a) regulate covered bonds and the issuance thereof, including in the case
the insolvency or resolution
a credit institution issuing covered bonds; and establish and provide for the structural features
covered bonds, including requirements for cover assets, collateral assets and other assets securing covered bonds as well as the methodology and process for the valuation thereof; requirements for a cover pool, its composition and for risk diversification therein; requirements for the segregation
cover assets including the segregation thereof in the case
the insolvency or resolution
a credit institution issuing covered bonds; requirements on the information to be provided to investors including on the frequency and publication thereof; coverage requirements including on the valuation
derivative contracts and on any interest payable in respect
outstanding covered bonds and interest receivable in respect
cover assets; and requirements for a liquidity buffer; (b) regulate the drawing-up, approval, publication and distribution in Malta
covered bond programmes, including those relating to covered bonds issued by credit institutions authorised in a country outside Malta and in such case, make provision for the approval
such covered bond programmes taking into account Malta’s international commitments; (c) provide for reporting requirements and the form and frequency thereof, including in the event
the insolvency or resolution
a credit institution issuing covered bonds, and for other requirements and conditions which a credit institution issuing covered bonds must satisfy on a continuing and ongoing basis and establish the circumstances and the manner in which requirements and conditions may be varied, suspended or revoked; (d) provide for the exercise
powers by the competent authority on credit institutions and others as may be specified therein; (e) provide for the establishment and imposition
administrative penalties or other administrative measures for breaches
this Act or any regulations or Covered Bonds Rules issued thereunder, and for appeals therefrom to the Financial Services Tribunal, as well as for the establishment and imposition
fines and other penalties; F I NANCIAL MAR KET S (f) provide for the establishment and imposition
fines, other punishments and terms
imprisonment for contraventions
, or failure to comply with, this Act or any regulations or Covered Bonds Rules issued thereunder, and for appeals therefrom; (g) provide for any matter that the Minister may deem expedient, including the creation and exercise
rights by, or for the benefit
, the public, the imposition
duties and obligations on credit institutions issuing covered bonds or persons responsible for the management or administration thereof and the regulation
any fees and, or any other charges imposed directly or indirectly on investors; (h) provide for the keeping
records and for disclosure requirements; (i) regulate the promotion or sale
covered bonds; (j) provide for and regulate the payment by a credit institution issuing covered bonds or any other person, as the case may be,
application, approval or other fees and such other charges payable to the competent authority in respect
any matter provided for, by or under this Act or any regulations made under this article, as may be prescribed; (k) exempt any covered bonds or any categories thereof or any covered bonds issued before 8 July 2022 that comply with the requirements laid down in Article 52
Directive 2009/65/EC, as applicable on the date
their issue, from any one or more
the provisions
this Act or any regulations made under this article subject to such variations, additions, adaptations and modifications as may be prescribed and subject to such conditions or other requirements, including other forms
authorisation and notification procedures, as may be prescribed; (l) transpose, implement and give effect to the provisions and requirements
the CBD and
any other Directives, Regulations or any other legislative measures
the European Union requiring transposition and, or implementation, as they may be amended from time to time, including any implementing measures that have been or may be issued thereunder; regulations made under this paragraph, and strictly related to transposition or implementation as aforesaid, may provide that any provision
this Act or
any other law shall not apply to matters falling under the regulations, and that in so far as any
the provisions
the regulations are inconsistent with the provisions
this Act or
any other law, such provisions in any such regulations shall prevail; F I N AN C I A L M A RKE TS (
adaptation
the regulations as may also be so specified.
any contravention or failure to comply not exceeding a fine (multa)
four hundred and sixty-six thousand euro (€466
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.