Financial Markets Act (Cap. 345), article 31H

31H. (1) The Minister, acting on the advice of the competent authority, may make regulations to give effect to the provision s of this Act, and without prejudice to the generality of the foregoing m ay, by such regulations, in particul ar, do any of the following: (a) regulate covered bonds and the issuance thereof, including in the case of the insolvency or resolution of a cred it institution issuing covered bonds; and establish and provide fo r the structural features of covere d bonds, including requirement s for cover assets, collateral as s e t s a n d o t h e r a s s e t s s e c u r i n g 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 of cover assets including the segregation thereof in the case of the insolvency or resolution of 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 of derivative contracts and on any interest payable in respect of outstanding covered bonds and interest receivable in respect of cover assets; and requirements for a liquidity buffer; (b) regulate the drawing- up, approval, publication and distribution in Malta of 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 of 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 of the insolvency or resolution of a credit institution issuing covered bonds, and for other requirements and conditions which a credit institutio n issuing covered bonds must satisfy on a continuing and ongoing basis and establish the circumstances and the manner in which r e q u i r e m e n t s a n d c o n d i t i o n s m a y b e v a r i e d , s u s p e n d e d o r revoked; (d) provide for the exercise of powers by the competent authority on credit institutions and others as may be specified therein; (e) provide for the establishment and imposition of administrative penalties or other administrative measures for breaches of 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 of fines and other penalties; FINANCIAL MARKETS [CAP. 345. 47 (f) provide for the establishment and imposition of fines, other punishments and terms of imprisonment for contraventions of, 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 of rights by, or for the benefit of, the public, the imposition of duties and obligations on credit institutions issuing covered bonds or persons responsible for the management or administration thereof and the regulation of any fees and, or any other charge s imposed directly or indirectly on investors; (h) provide for the keeping of records and for disclosure requirements; (i) regulate the promotion or sale of 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, of application, approval or other fees and such other charges payable to the competent authority in respect of any matter provided for, by or under this Act or any regulation s 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(4) of Directive 2009/65/EC, as applicable on the date of their issue, from any one or more of the provisions of this Act or any regulations made under this article subject to such variations, additions, adaptations and modifi cations as may be prescribed and subject to such conditions or other requirements, including other forms of authorisation and notification procedures, as may be prescribed; (l) transpose, implement and give effect to the provisions and requirements of the CBD and of any other Directives, Regulations or any other legislative measures of th e 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 m ade under this paragraph, and strictly related to transposition or implementation as aforesai d, may provide that any provision of this Act or of any other law shall not apply to matters falling under the regulations, and that in so far as any of the provisions of the regulations are inconsistent with the provisions of this Act or of any other law, such provisions in any such regulations shall prevail; 48 CAP. 345.] FINANCIAL MARKETS (m) prescribe anything that is to be or which may be prescribed; (n) provide for anything that is incidental to or connected with the matters referre d to in paragraphs (a) to (m) . (2) Regulations made under this article may be made subject to such exemptions or conditions as may be specified therein, may make different provisions for different cases, circumstances or purp oses and may give to the competent authority such powers of adaptation o f the regulations as may also be so specified. (3) Regulations made under this article may impose: (a) administrative penalties which may not exceed one hundred and fifty thousand euro (€150,000) for each infringement or failure to comply, as the case may be; (b) punishments or other penalties in respect of any contravention or failure to comply not exceeding a fine ( multa) of four hundred and sixty-six thousand euro (€466,000) or imprisonment for a term not exceeding four years, or 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 of, or failure o f 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 Regulation; (d) administrative penalties in the form of a fixed penalty, a daily penalty, or both. (4) Regulations made under this article may prescribe administrative penalties and fines as provided for in sub-artic le (3)(c), for any breach of any provision of the Act or of any regulation s issued under this article or for any breach of any Covered Bonds Rules , transposing and, or implementing any EU Directive or Regulation . (5) Where regulations have been issued in terms of this article, the competent authority may issue Covered Bonds Rules for the b etter carrying out, and to better implement, the provisions of the regulations. Claims and privileged claims. Added by: IX.2023.5. S.L. 345.27.