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The Various Laws (Amendment Of Financial Provisions) Act (Act No. Iii Of 2009)

ACT No. III of 2009

AN ACT to amend financial provisions in various laws.

BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-

1. The short title of this Act is the Various Laws (Amendment of Financial Provisions) Act, 2009.

PART I

AMENDMENT OF THE CIVIL CODE

2. This Part amends the Civil Code, and it shall be read and construed as one with the Civil Code, hereinafter in this Part referred to as "the Code".

3. Sub-articles (4) and (5) of article 1852 of the Code shall be deleted.

4. For article 1855A of the Code, there shall be substituted

Short title.

Amendment of the Civil Code. Cap. 16.

Amendment of article 1852 of the Code.

Substitution of article 1855A of the Code.

A 186
the following:
"Regulations. 1855A. The Minister responsible for justice in conjunction with the Minister responsible for finance may make regulations prescribing the conditions under which debts and obligat ions as desi gnat ed by t h e same regulations may be exempted from any of the provisions of Title IV and Title XVII of Part II of Book Second subject to such conditions as he may in such regulations establish, and further regulating the charging of interests, the compounding of interests in all respects and the maximum amount of interest that may become payable.".

PART II

Amendment of the Accountancy Profession Act. Cap. 281.

Amendment of article 2 of the principal Act.

Amendment of article 15 of the principal Act.

AMENDMENT OF THE ACCOUNTANCY PROFESSION ACT

5. This Part amends the Accountancy Profession Act, and shall be read and construed as one with the Accountancy Profession Act, hereinafter referred to in this Part as "the principal Act".

6. In the Maltese version of subarticle (1) of article 2 of the principal Act, the definition "prinċipji u l-prattika ta’ accounting ġeneralment aċċettati", shall be substituted by the following:
" "prinċipji u l-prattika ta’ kontijiet ġeneralment aċċettati" tfisser il-prinċipji u prattika ta’ kontijiet ġeneralment aċċettati hekk kif imfissra fir-regolamenti magħmulin mill-Ministru skond l-artikolu 8;".

7. Paragraph (a) of subarticle (1) of article 15 of the principal

Act shall be amended as follows:-
(a) subparagraph (ii) thereof shall be renumbered as subparagraph (iii), and immediately after the words "of regulations" therein there shall be added the words "or directives";
(b) immediately after subparagraph (i) thereof, there shall be added the following new subparagraph:
"(ii) a contravention of any regulation made or directive issued in terms of this Act where the regulation or directive provides for the suspension, cancellation, withdrawal or subjection to conditions of a warrant or practising certificate as a consequence of such
A 187
contravention;"; and
(c) subparagraphs (iii) and (iv) thereof shall be renumbered as subparagraphs (iv) and (v) respectively.

PART III

AMENDMENT OF THE MALTA FINANCIAL SERVICES AUTHORITY ACT

8. This Part amends the Malta Financial Services Authority Act and it shall be read and construed as one with the Malta Financial Services Authority Act, hereinafter in this Part referred to as "the principal Act".

9. Article 16 of the principal Act shall be amended as follows:

(a) for paragraph (b) of sub-article (2) thereof, there shall be substituted the following new paragraph:
"(b) issue a directive in writing requiring a holder of a licence or other authorisation, and, or any official thereof, to do or to refrain from doing any act, including such prohibitions, restrictions and conditions as may be specified in the directive; and any such directive may be issued in respect of specific cases or classes of cases; any holder of the licence or other authorisation and, or the official to whom the notice is addressed shall obey, comply with and give effect to any such directive within the time and manner stated in the directive."; and
(b) in sub-article (3) thereof, for the words "or any orders or Rules", there shall be substituted the words "or any directives or Rules".

PART IV

AMENDMENT OF THE TRUSTS AND TRUSTEES ACT

10. This Part amends the Trusts and Trustees Act and it shall be read and construed as one with the Trusts and Trustees Act, hereinafter in this Part referred to as "the principal Act".

11. Article 2 of the principal Act shall be amended as follows: (a) the definition "recognised investment exchange"

shall be deleted; and

Amendment of the Malta Financial Services Authority Act. Cap. 330.

Amendment of article 16 of the principal Act.

Amendment of the Trusts and Trustees Act. Cap. 331.

Amendment of article 2 of the principal Act.

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(b) immediately after the definition "register" there shall be added the following new definition:

Cap. 345.

" "regulated market" shall have the same meaning assigned to it by the Financial Markets Act;".

Amendment of article 43 of the principal Act.

12. Article 43 of the principal Act shall be amended as follows:

(a) in paragraph (a) of sub-article (6) thereof:
(i) in sub-paragraph (iv) thereof, for the words "approved jurisdiction." there shall be substituted the words "approved jurisdiction; or"; and
(ii) immediately after sub-paragraph (iv) thereof, there shall be inserted the following:

Cap. 345.

"(v) a person who is in possession of an authorisation to operate a central securities depository in terms of the Financial Markets Act."; and
(b) in sub-paragraph (i) of paragraph (a) of sub-article (9) thereof, for the words "securities which are listed on the Malta Stock Exchange or other recognised investment exchange" there shall be substituted the words "securities which are listed on a regulated market in Malta".

PART V

Amendment of the Financial Markets Act. Cap. 345.

Amendment of article 2 of the principal Act.

Amendment of article 37C of the principal Act.

AMENDMENT OF THE FINANCIAL MARKETS ACT

13. This Part amends the Financial Markets Act and it shall be read and construed as one with the Financial Markets Act, hereinafter in this Part referred to as "the principal Act".

14. In article 2 of the principal Act, in the definition "quoted company" for the words "trading on a recognised exchange in" there shall be substituted the words "trading on a regulated market in".

15. In sub-article (4) of article 37C of the principal Act, for the words "listed in article 37(11) of the Investment Services Act", there shall be substituted the words "listed in article 17(11) of the Investment Services Act".

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PART VI

AMENDMENT OF THE BANKING ACT

16. This Part amends the Banking Act and it shall be read and construed as one with the Banking Act, hereinafter in this Part referred to as "the principal Act".

17. In the English text of the proviso to sub-article (2) of article 5 of the principal Act, for the words "entitled to exercise their rights under European Community Law.", there shall be substituted the words "entitled to exercise its rights under European Community Law.".

18. In subarticle (3) of article 13 of the principal Act, for the words "on a recognised investment exchange in terms of", there shall be substituted the words "on a regulated market in terms of".

19. Subarticle (3) of article 17 of the principal Act shall be deleted.

20. In subarticle (1) of article 17B of the principal Act, for the words "including sound and administrative and accounting procedures.", there shall be substituted the words "including sound administrative and accounting procedures.".

PART VII

AMENDMENT OF THE COMPANIES ACT

21. This Part amends the Companies Act and it shall be read and construed as one with the Companies Act, hereinafter in this Act referred to as "the principal Act".

22. Subarticle (6) of article 156 of the principal Act shall be amended as follows:

(a) for paragraph (b) thereof, there shall be substituted the following:
"(b) to a company which on its balance sheet date does not exceed the limits of two out of the three criteria set out in article 185(1)(a). Notwithstanding the provisions of this paragraph, the Accountancy Board established in terms of the Accountancy Profession Act may request the information specified in subarticle (5) to be delivered to it within such period as it may establish for that purpose."; and

Amendment of the Banking Act.

Cap. 371.

Amendment of article 5 of the principal Act.

Amendment of article 13 of the principal Act.

Amendment of article 17 of the principal Act.

Amendment of article 17B of the principal Act.

Amendment of the Companies Act.

Cap. 386.

Amendment of article 156 of the principal Act.

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Amendment of article 175 of the principal Act.

(b) paragraph (c) thereof shall be deleted.

23. For article 175 of the principal Act there shall be substituted the following:

"Disclosure required in notes to accounts.
175. (1) Individual accounts prepared in terms of article 167 shall, in the notes to the accounts, disclose the information required by generally accepted accounting principles and practice together with such other information required to be disclosed therein by this Act.
(2) Consolidated accounts prepared in terms of article 170 shall, in the notes to the accounts, disclose the information required by generally accepted accounting principles and practice together with such other information required to be disclosed therein by this Act.".

PART VIII

Amendment of the Insurance Business Act. Cap. 403.

Amendment of article 22 of the principal Act.

Amendment of article 38 of the principal Act.

Cap.345.

Amendment of the Prevention of Financial Markets Abuse Act.

Cap. 476.

Amendment of article 2 of the principal Act.

AMENDMENT OF THE INSURANCE BUSINESS ACT

24. This Part amends the Insurance Business Act and it shall be read and construed as one with the Insurance Business Act, hereinafter in this Part referred to as "the principal Act".

25. In paragraph (a) of subarticle (5) of article 22 of the principal Act, immediately after the words "recognised for such purposes by the competent authority" there shall be added the words "and holds appropriate practical experience as an actuary".

26. In subarticle (3) of article 38 of the principal Act, for the words "listed on any recognised investment exchange", there shall be substituted the words "listed on any regulated market within the meaning of the Financial Markets Act or on an equivalent market in a non-Member State or non-EEA State".

PART IX

AMENDMENT OF THE PREVENTION OF FINANCIAL MARKETS ABUSE ACT

27. This Part amends the Prevention of Financial Markets Abuse Act and it shall be read and construed as one with the Prevention of Financial Markets Abuse Act, hereinafter in this Part referred to as "the principal Act".

28. Article 2 of the principal Act shall be amended as follows:

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(a) the definition "Investment Services Directive" shall be deleted;
(b) the definition "recognized investment exchange" shall be deleted; and
(c) for the definition "regulated market", there shall be substituted the following:

Cap. 345.

" "regulated market" means:
(a) in the case of Malta, a regulated market which has been granted authorisation in terms of the Financial Markets Act and which appears on the list of re gula te d ma rkets pr epare d a n d published by the European Commission in terms of Directive 2004/39/EC;
(b) in the case of any other Member State or EEA State, any entity which appears on the list of regulated markets prepared and published by the European Commission in terms of Directive 2004/
39/EC;".

29. In subarticle (1) of article 4 of the principal Act, for the words "or constitutes an off-exchange deal in terms of the Off- Exchange Trading Regulations", there shall be substituted the words "or constitutes an off-market deal in terms of the Financial Markets Act (Off-Market Deals) Regulations, 2007".

30. In paragraph (a) of article 5 of the principal Act, the words "including admission to a recognized investment exchange situated or operating in Malta" shall be deleted.

Amendment of article 4 of the principal Act.

Amendment of article 5 of the principal Act.

Passed by the House of Representatives at Sitting No. 94 of the
18th March, 2009.
LOUIS GALEA

Speaker

PAULINE ABELA

Clerk to the House of Representatives