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Various Laws (Amendment Of Financial Provisions) Act, 2008 (Bill No. 9)

A BILL

entitled

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, 2008.

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 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 an d obligations as designated by the sam e 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.".

Short title.

Amendment of the Civil Code. Cap. 16.

Amendment of article 1852 of the Code.

Substitution of article 1855A of the Code.

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PART II

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

Amendment of article 16 of the principal Act.

AMENDMENT OF THE MALTA FINANCIAL SERVICES AUTHORITY ACT

5. 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".

6. 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 III

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

Amendment of article 2 of the principal Act.

AMENDMENT OF THE TRUSTS AND TRUSTEES ACT

7. 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".

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

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

Cap. 345.

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

9. 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:

Amendment of article 43 of the principal Act.

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 IV

AMENDMENT OF THE FINANCIAL MARKETS ACT

10. 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".

11. 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".

12. 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".

Amendment of the Financial Markets Act. Cap. 345.

Amendment of article 2 of the principal Act.

Amendment of article 37C of the principal Act.

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PART V

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 Insurance Business Act. Cap. 403.

Amendment of article 22 of the principal Act.

Amendment of article 38 of the principal Act.

AMENDMENT OF THE BANKING ACT

13. 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".

14. 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.".

15. In sub-article (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".

16. Sub-article (3) of article 17 of the principal Act shall be deleted.

17. In sub-article (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 VI

AMENDMENT OF THE INSURANCE BUSINESS ACT

18. 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".

19. In paragraph (a) of sub-article (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".

20. In sub-article (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".

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PART VII

AMENDMENT OF THE PREVENTION OF FINANCIAL MARKETS ABUSE ACT

21. 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".

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

Amendment of the Prevention of Financial Markets Abuse Act.

Cap. 476.

Amendment of article 2 of the principal Act.

Cap. 345.

" "regulated market" means:
(a) in the case of Malta, a regulated market which has been grante d authorisation in terms of the Financial Markets Act and which appears on the list of regulated markets prepared an 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;".

23. In sub-article (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".

24. 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.

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Objects and Reasons

The main object of this Bill is to amend various financial related provisions in various laws.