       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        1
CHAPTER 330
Substituted by:
XIII.1994.2.
Amended by:
XVII. 2002.103.
MALTA FINANCIAL SERVICES AUTHORITY ACT
To establish an Authority for Financial Services from within Malta, to
regulate such activities and to provide for matters ancillary or incidental
thereto or connected therewith.
20th January, 1989;
30th June, 1989
ACT XXXIV of 1988, as amended by Act XV of 1989; Legal Notice 167
of 1989; Legal Notice 79 of 1990; Act XXXI of 1990; Legal Notice 183 of
1990; and Acts XIII of 1994, XXV of 1995, XVII of 2002 and IV of 2003.
Short title. 
Amended by:
XIII. 1994.2;
XVII. 2002.103.
1. The short title of this Act is the Malta Financial Services
Authority Act.
Interpretation.
Amended by:
 XV. 1989.2;
XXXI. 1990. 2;
XIII. 1994.3;
XX. 1994.4.
Substituted by:
XVII. 2002.105.
Amended by:
IV. 2003.16.
2. In this Act unless the context otherwise requires:
''Authority'' means the Malta Financial Services Authority
established by article 3;
''Board of Governors'' means the Board of Governors of the
Authority established by article 6;
''Board of Management and Resources'' means the Board
established by article 11;
''Chief Operations Officer'' means the Chairman of the Board of
Management and Resources;
''Consumer Complaints Manager'' means the person appointed in
terms of article 20;
''Director-General'' means the Chairman of the Supervisory
Council established by article 10;
''Co-Ordination Committee'' means the Committee established by
article 9;
''financial year'' means a period of twelve months beginning on
the 1st day of January and ending on the 31st day of December of
each year;
''financial services'' means the business of banking, the business
of insurance and insurance intermediaries activities, securities
business, and the business of financial institutions and includes
company registration and compliance with company legislation and
such other areas of financial activities or services as may be placed
by the Minister under the supervisory and regulatory authority of
the Authority;
''Minister'' means the Minister responsible for Finance;
''person'' includes any entity corporate or unincorporated which
may hold a licence or other authorisation issued by the Authority or
which falls within the supervisory or regulatory authority of the
Authority;
  2      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
''prescribed'' means prescribed under this Act;
''Supervisory Council'' means the Council appointed in terms of
article 10.
Establishment of 
the Authority.
Amended by:
XIII.1994.5.
Substituted by:
XVII. 2002.106.
3. (1) There shall be an authority, to be called the Malta
Financial Services Authority.
(2) The Authority shall be a body corporate having a distinct
legal personality and capable of entering into contracts, of
acquiring and disposing of property of any kind for the purposes of
its functions under this Act or any other law, of suing and of being
sued, and of doing all such things and entering into all transactions
as are incidental to or conducive to the exercise or performance of
its functions aforesaid.
Functions of the 
Authority.
Amended by:
XIII.1994.6.
Substituted by:
XVII. 2002.106.
4. (1) Without prejudice to any other power or function
conferred to it by this Act or any other law, it shall be the function
of the Authority:
( a ) to regulate, monitor and supervise financial services in
Malta;
( b ) to promote the general interests and legitimate
expectations of consumers of financial services, and to
promote fair competition practices and consumer
choice in financial services;
( c ) to monitor and keep under review trading and business
practices relating to the supply of financial services to
private and other persons, and to provide relevant
information and guidelines to the public;
( d ) to monitor the working and enforcement of laws that
directly or indirectly affect consumer of financial
services in Malta, and to undertake or commission
such study, research or investigation which it may
deem necessary in this regard;
( e ) to advise the Government generally on the formulation
of policies in the field of financial services, and to
make recommendations to Government on action
which in the opinion of the Authority would be
expedient in relation to matters falling within the
regulatory and supervisory functions of the Authority;
( f ) to investigate allegations of practices and activities
detrimental to consumers of financial services, and
generally to keep under review trading practices
relating to the provision of financial services and to
identify, and take measures to suppress and prevent,
any practices which may be unfair, harmful or
otherwise detrimental to consumers of financial
services;
( g ) to ensure high standards of conduct and management
throughout the financial system;
( h ) to perform such other functions or duties as may be
assigned to it under this Act or any other law.
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        3
(2) For the better performance of its functions, the Authority
shall collaborate with other local and foreign bodies, Government
departments, international organisations and other entities which
exercise regulatory, supervisory or licensing powers under any law
in Malta or abroad or which are otherwise engaged in overseeing or
monitoring areas or activities in the financial services sector, and to
make arrangements for the mutual exchange of information and for
other forms of assistance in regulatory and supervisory matters.
(3) The Authority shall have the power to impose such fees as
may be prescribed, and to levy charges in respect of any request,
application or other matter that may be submitted to it under this or
any other Act including the fees and charges in respect of any
permission, licence, authorisation, exemption or other benefit, as
well as fees and charges in respect of its regulatory, supervisory or
investigative functions under this or any other law.
Cap. 370.
(4) In exercising its functions and powers assigned to it under
this Act or any other Act, the Authority shall be obliged to have
regard to Malta’s international commitments. In this Act, ''Malta’s
international commitments'' shall have the same meaning assigned
to the term under article 2 of the Investment Services Act.
The Authority.
Amended by: 
XV. 1989. 3; 
XIII.1994.8.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.16.
5. (1) The main organs of the Authority are the Board of
Governors, the Co-Ordination Committee, the Supervisory
Council, the Board of Management and Resources and the Legal
Office.
(2) It shall be the duty of the organs of the Authority to provide
the Board of Governors with all such information as may be
required for the proper performance of its functions and in
particular to enable it to ensure that its policies are being properly
carried out.
The Board of 
Governors.
Amended by: 
XIII.1994.9.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.10.
6. (1) The Board of Governors shall establish the policies to
be pursued by the Authority. In determining such policies the
Board of Governors shall follow such policy guidelines as may be
set out by Government. The Board of Governors shall also be
responsible for advising the Government as provided in article 4.
(2) The Board of Governors shall consist of the following:
( a ) a Chairman, appointed by the Prime Minister;
( b ) six other members appointed by the Prime Minister
from among persons who have distinguished
themselves in business, financial activities, the
professions, the public services or academic affairs
and who in his opinion are able to represent the points
of view of the industry and consumers of financial
services.
(3) A person shall not be eligible to be appointed as Chairman
or as a member of the Board of Governors or of any other organ of
the Authority, or to hold any office with the Authority, if he is the
holder of a licence or other authorisation issued by the Authority or
otherwise falls under the regulatory or supervisory functions of the
Authority, or is a director, an officer or employee of such holder or
  4      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
other such person.
(4) Where the Chairman is absent or is unable to exercise the
functions and powers of his office and the Prime Minister has not
appointed another person to act as chairman during the period of
absence or disability the remaining members of the Board of
Governors shall designate one of the other members of the Board to
carry out the functions of the chairman during each period.
(5) The Chairman and the members of the Board of Governors
shall hold office for such term, being a period of not more than five
years, as may be specified in the letter of appointment, and shall be
eligible for reappointment; and shall receive such remuneration as
the Minister may from time to time, determine.
(6) ( a ) Without prejudice to the provisions of subarticle (3)  a
person shall not be eligible to be appointed or to hold
office as Chairman or as a member of the Board of
Governors if he - 
(i) is a member of the House of Representatives; or
(ii) is legally incapacitated or interdicted; or
(iii) has been declared bankrupt or has made a
composition or arrangement with his creditors;
or
(iv) has contravened any provision made by or under
any law appearing to be designed for protecting
members of the public against financial loss due
to dishonesty, incompetence or malpractice
concerned in the provision of financial services
or in the management of companies; or
(v) has engaged in any business practice appearing
to the Prime Minister to be deceitful or
oppressive or otherwise improper (whether
unlawful or otherwise) or which otherwise
reflects discredit on his method of conducting
business or professional activities; or
(vi) has engaged in or been associated with any other
business practice or otherwise conducted
himself in such a manner as to cast doubt on his
competence or soundness of judgement; or
(vii) has a financial or other interest as is likely to
prejudicially affect the discharge by him of his
functions; or
(viii) is otherwise not a fit and proper person to hold
that office.
( b ) In determining whether a person is a fit and proper
person, the Prime Minister shall have regard to that
person’s probity, to his competence and soundness of
judgement for fulfilling the responsibilities of that
office, to the diligence with which he is fulfilling or is
likely to fulfil those responsibilities and to whether the
interests of any person are, or are likely to be, in any
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        5
way threatened by his holding that office.
( c ) Any person whom the Prime Minister has appointed or
proposes to appoint as a member of the Board of
Governors shall, whenever requested by the Prime
Minister to do so, furnish to him such information as
the Prime Minister considers necessary for the
performance of his duties under paragraphs ( a ) and
( b ).
( d ) A member of the Board may be relieved of office by
the Prime Minister on the ground of inability to
perform the functions of his office, whether due to
infirmity of mind or of body, or of misbehaviour; and
for the purposes of this paragraph repeated and
unjustified non-attendance of meetings may be deemed
to amount to misbehaviour.
( e ) Any member of the Board of Governors, may resign
his office by letter addressed to the Prime Minister.
( f ) The appointment of any person as a member of the
Board of Governors and the termination of office or
resignation of any such person, shall be notified in the
Gazette.
Meetings of the 
Board of 
Governors.
Amended by: 
XIII.1994.10.
Substituted by:
XVII. 2002.106.
7. (1) The Board of Governors shall meet as often as may be
necessary or expedient but in no case not less frequently than once
every three months. The meetings shall be convened by the
Chairman either on his own initiative or on the written request of
any three members.
(2) The Board of Governors may act notwithstanding any
vacancy amongst its members provided there is a quorum
consisting of not less than three members present at the meeting.
(3) The meeting of the Board of Governors shall be chaired by
the Chairman, or in his absence by the acting Chairman, or by a
member elected for the particular meeting by the other members
present at the meeting.
(4) Decisions of the Board of Governors shall be taken by a
majority of votes of the members present, and the Chairman or
other person chairing the meeting shall have an original vote and in
the event of an equality of votes a second or casting vote.
(5) ( a ) The Board of Governors shall designate one of the
officers of the Authority to act as Secretary to the
Board of Governors for such period and as the Board of
Governors shall deem appropriate.
( b ) It shall be the duty of the Secretary to make the
necessary preparations for the meetings of the Board
of Governors and to keep minutes of those meetings.
(6) Any participation in the proceedings of the Board of
Governors by a person not entitled so to do, shall not invalidate the
proceedings.
(7) Subject to the foregoing provisions of this article, the Board
  6      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
of Governors may regulate its own proceedings.
(8) The Board may invite any person and may require any
officer or employee of the Authority to attend a meeting of the
Board of Governors and to take part in the discussions.
Legal and judicial 
representation.
Amended by: 
XIII.1994.11.
Substituted by:
XVII. 2002.106.
8. The legal and judicial representation of the Authority shall
vest in the Chairman of the Board of Governors, or in such other
person as the Board of Governors may determine for any specific
case or class of cases:
Provided that the Board of Governors may from time to
time appoint any one or more of its members, or any one or more of
the officers or employees of the Authority, to appear in the name
and on behalf of the Authority in any judicial proceedings or on any
act, contract, instrument or other document whatsoever, or in any
class or category thereof.
The Co-ordination 
Committee.
Amended by: 
XV.1989.4;
XIII.1994.12,13.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.16.
9. (1) The Co-ordination Committee shall be responsible for
co-ordinating the implementation of the policies of the Authority.
(2) The Co-ordination Committee shall consist of the Chairman
of the Board of Governors, who shall preside threat, the Director-
General and the Chief Operations Officer of the Authority.
(3) The Board of Governors shall designate one of the officers
from the Legal Office to act as Secretary to the Co-ordination
Committee for such period and under such terms as the Board of
Governors shall deem appropriate.
(4) It shall be the duty of the Secretary to make the necessary
preparations for the meetings of the Co-ordination Committee and
to keep minutes of those meetings.
(5) The provisions of article 7 shall, in so far as applicable,
apply to the meetings of the Co-ordination Committee as they apply
to the meetings of the Board of Governors.
The Supervisory 
Council.
Amended by: 
XIII.1994.12,14.
Substituted by:
XVII. 2002.106.
10. (1) The Supervisory Council shall be responsible for the
approval of and for the issuing of licences and other authorisations,
for the processing of applications for such licences and
authorisations, and for the monitoring and supervision of persons
and other entities licensed or authorised by the Authority in the
financial services sector.
(2) The Supervisory Council shall consist of the Director-
General, who shall preside threat, and of each of the Directors
responsible respectively within the Authority for Banking
Company Compliance, Insurance, Investment Services and for any
other area of financial services under the regulatory supervision of
the Authority.
(3) The Supervisory Council shall designate one of the officers
of the Authority engaged in any of its functions mentioned in
subarticle (1) as its Secretary for such period and under such terms
as the Board of Governors shall deem appropriate.
(4) It shall be the duty of the Secretary to make the necessary
preparation for the meetings of the Supervisory Council and to
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        7
keep minutes of those meetings.
(5) The provisions of article 7 shall, insofar as applicable,
apply to the meetings of the Supervisory Council as they apply to
the meetings of the Board of Governors.
The Board of 
Management and 
Resources.
Amended by: 
XV.1989. 5; 
XXXI. 1990. 3; 
XIII.1994.12.
Substituted by:
XVII. 2002.106.
11. (1) The Board of Management and Resources shall be
responsible for carrying out the day-to-day management and the
finances of the Authority including business development and
ancillary services and for the general co-ordination of the
Authority's administrative affairs, and shall be composed of the
persons responsible for such activities within the Authority as may
be designated by the Board of Governors.
(2) The Chief Operations Officer shall preside over the Board
of Management and Resources.
(3) The Board of Management and Resources shall designate
one of the officers of the Authority engaged in any of the activities
mentioned in subarticle (1), to act as secretary of the Board of
Management and Resources for such period and under such terms
as the Board of Governors shall deem appropriate.
(4) It shall be the duty of the Secretary to make the necessary
preparations for the meetings of the Board and to keep minutes of
those meetings.
(5) The provisions of article 7 shall, insofar as applicable,
apply to the meetings of the Board of Management and Resources
as they apply to the meetings of the Board of Governors.
The Legal Office.
Amended by: 
XIII.1994.12,16.
Substituted by:
XVII. 2002.106.
12. The Legal Office shall provide such legal advice and
assistance and other services as the Board of Governors and the
other organs of the Authority may require for the execution of their
functions and duties.
Officers and 
employees of the 
Authority.
Amended by: 
XIII.1994.17.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.16.
13. (1) The Authority may appoint a Director General, a Chief
Operations Officer, a Consumer Complaints Manager and such
other officers and employees as it may consider necessary for the
efficient discharge of its functions, powers and duties under this
Act or any other law. The appointment of officers and other
employees of the Authority other than the Director-General, the
Chief Operations Officer and the Consumer Complaints Manager
shall be made by the Co-Ordination Committee on such terms and
conditions as the Board of Governors may establish.
Cap. 9.
of penal nature in any other law, the members of the Authority, and
every officer or employee thereof, shall be deemed to be public
officers.
Dissemination of 
information.
Amended by: 
XIII.1994.18.
Substituted by:
XVII. 2002.106.
14. (1) The Authority shall arrange for the dissemination in
such form and manner as it considers appropriate of such
information and advice as it may consider expedient to give the
public about matters relating to the exercise of its functions under
this Act or any other enactment.
(2) In arranging for the publication of any such information or
  8      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
advice, the Authority shall have regard to the duty of professional
secrecy and, as far as practicable shall refrain from publishing any
matter which relates to the private affairs of an individual, where
the publication of that matter would or might, in the opinion of the
Authority, seriously and prejudicially affect the interest of that
individual.
Compensation 
schemes.
Amended by: 
XIII.1994.19.
Substituted by:
XVII. 2002.106.
15. Without prejudice to any provisions of other laws, the
Minister may, acting on the advice of the Authority, make
regulations to establish, co-ordinate, amalgamate and otherwise
regulate compensation schemes or sub-schemes or other similar
arrangements in the financial services sector:
( a ) for the provision of compensation where licence
holders, or categories thereof, are unable to satisfy
their obligations towards depositors, investors, policy-
holders or other claimants in respect of any liability
incurred by them in connection with the carrying out
of any activity in regard to which they are licensed or
otherwise authorized, and 
( b ) for the provisions of compensation arising out of or in
connection with any other liability as may be
prescribed, and to regulate the management and the
financing of any such schemes or arrangements for
compensation and the contributions and levies to be
paid thereto, and such regulations may make different
provision for different classes of licence holders and
claimants.
Powers of the 
Authority.
Substituted by: 
XIII.1994.20;
XVII. 2002.106.
Amended by:
IV. 2003.11.
16. (1) Without prejudice to any other function and power
under this or any other law, in the exercise of its functions and
powers under this Act, the Authority shall have the right to
reasonable access and entry to the business premises, offices,
documentation and other information relating to the activities
licensed or authorised by the Authority or otherwise falling under
its supervisory or regulatory functions. The directors and managers,
by whatever name designated, or any other persons who are or have
been in charge of the operations or activities falling under the
supervisory or regulatory functions of the Authority shall assist and
shall collaborate with the Authority in order to enable it to
discharge its functions, and shall collate and transmit without any
undue delay such information and documentation as the Authority
may reasonably request from time to time.
(2) The Authority may issue directives and guidelines
regulating the procedures and duties of persons licensed or
authorised by it, or falling under its regulatory or supervisory
functions and such directives and guidelines may:
( a ) provide for the returns, statements, and notices to be
made or given for any purposes in regard to which the
Authority exercises supervisory or regulatory
functions under this or any other Act, and the form and
contents thereof; and 
( b ) prescribe the information that such persons are to
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        9
submit to the Authority;
( c ) require 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 notice; 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.
Cap. 370.
(3) Where a licence holder or the manager, secretary, director
or the person responsible for a licence holder contravenes or fails to
comply with any of the conditions imposed in a licence issued by
the Authority in terms of article 4 or any directives or guidelines
issued in terms of this article, the Authority may by notice in
writing impose on persons licensed or authorised by it, or falling
under its regulatory or supervisory functions including managers,
secretaries, directors and, or other persons, as the case may be, an
administrative penalty and the provisions of article 6(9) and (11) of
the Investment Services Act shall apply  mutatis mutandis .
Exchange of 
information.
Amended by: 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.12.
17. (1) Other than for the proper discharge of their duties or
functions under this or any other Act, or as may be otherwise
provided in any other law, the members of the Board of Governors
or of any other organ of the Authority, and the officers and
employees of the Authority shall treat any information acquired in
the discharge of their duties as confidential, and shall not, directly
or indirectly, disclose such information to any other person, except
with the consent of the person who had divulged the information.
(2) Without prejudice to the foregoing provisions of this
article, the Authority may, pursuant to a written request, disclose
information to:
( a ) a foreign competent authority or body carrying out
similar or equivalent functions in order to assist the
same in matters related to the regulation and
supervision of financial services;
( b ) any other body or authority formed or established
under Maltese law on matters in respect of which such
body or authority may have a regulatory, supervisory,
judicial or licensing function in terms of law:
Provided that the Authority shall disclose the requested
information where required or requested to do so within the terms
of Malta’s international commitments, or where so required within
the terms of understanding assumed in bilateral or multilateral
agreements for the exchange of information and other forms of
collaboration with overseas regulatory authorities including a
request arising under a Memorandum of Understanding concluded
with the Competent Authority.
  10      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
Communications 
with the Central 
Bank of Malta.
Amended by: 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
Cap. 204.
18. The Central Bank of Malta and the Authority shall on
request exchange information in their possession which is
necessary for the discharge by the Central Bank of its duties under
the Central Bank of Malta Act, and by the Authority under this Act
or any other law.
Consideration of 
complaints.
Amended by: 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
19. (1) The Authority may investigate any matter which:
( a ) relates to the functions exercisable by the Authority
under this Act or any law, and 
( b ) is the subject of a representation (other than one
appearing to the Authority to be frivolous) made to the
Authority by or on behalf of a person appearing to the
Authority to have an interest in that matter.
(2) Where the Authority has investigated any matter under this
article, it shall prepare a report on that matter and (subject to any
obligation with respect to professional secrecy) shall send a copy of
any such report to such of the following persons as it thinks
appropriate, that is to say:
( a ) any person to whom the report refers or who appears to
the Authority to have an interest in the matter to which
the report relates;
( b ) any person whose functions under any enactment
appear to the Authority to be exercisable in relation to
that matter;
( c ) any person who appears to the Authority to be a person
who ought to take account of the report in determining
how to act in relation to that matter.
Appointment of 
Consumer 
Complaints 
Manager.
Substituted by:
XVII. 2002.106.
20. (1) The Authority shall appoint a Consumer Complaints
Manager.
(2) It shall be the function of the Consumer Complaints
Manager to investigate complaints from private consumers arising
out of or in connection with any financial services transaction, and
to refer such cases as may be necessary or appropriate to the
Supervisory Council for its consideration; provided that nothing in
this subarticle shall be construed as giving a consumer a specific
right to require the Consumer Complaints Manager to give him
advice on any particular matter or to act on his behalf in any
dispute with a licensed person before any court or tribunal, except
to the extent, if any provided for by this or any other law.
(3) The Consumer Complaints Manager or any other duly
authorised officer of the Authority may communicate to a
consumer, whose complaint may have been investigated by the
Authority, information concerning any matter which may have
come to his cognisance in the course or as a result of the
investigation.
Distance selling 
arrangements.
Added by:
IV. 2003.13.
20A. The Minister may, acting on the advice of the Authority,
make regulations to regulate distance selling arrangements in
relation to financial services and the conclusion of agreements
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        11
where the consumer and other purchasers and the provider of the
service are at a distance from each other, and for this purpose to set
out the form and procedure for concluding such distance selling
agreements, to provide for the inclusion or exclusion of particular
terms and conditions, to establish a cooling-off period for
consumers, to lay down thresholds and exemptions, and to establish
minimum consumer rights, and to introduce measures to make
offers for such agreements more transparent and informative, and
to regulate any other aspect of distance selling.
Financial Services 
Tribunal.
Amended by: 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.14.
21. (1) There shall be a tribunal to be called ''The Financial
Services Tribunal'', in this Act also referred to as ''the Tribunal'',
which shall exercise and perform the functions and powers
assigned to it by law.
(2) The Tribunal shall consist of a chairman and two other
members appointed by the Minister.
(3) The chairman shall be an advocate who for a period of, or
periods amounting in the aggregate to, not less than twelve years
has served as an advocate in Malta or served as a magistrate in
Malta, or partly so practised and partly so served.
(4) Subject to any other provision in any other law related to
the composition of the Tribunal or to the qualifications of its
members, the two other members mentioned of the Tribunal shall
be persons who in the opinion of the Minister possess the necessary
expertise and experience in the business or regulation of financial
services, or finance.
(5) The chairman and the other members of the Tribunal shall
hold office for a period of three years, shall be eligible for re-
appointment and may not be removed during their term of office
except on grounds of proved inability to perform the functions of
their office whether arising from infirmity of body or mind or any
other cause, or proved misbehaviour.
(6) The chairman and other members of the Tribunal shall
receive such remuneration as may be determined in their instrument
of appointment.
(7) The remuneration referred to in subarticle (6) shall not be
altered during the tenure of office of a member by whom it is
receivable, except for such changes as may from time to time be
required to preserve at all times during the tenure of the
appointment the proportion of the remuneration to the salary of a
judge of the superior courts, as existed on the date of the
appointment.
(8) Upon the hearing of an appeal, made to it under any law,
the Tribunal shall have the power Ð
( a ) to confirm, reverse or vary the decision of the
competent authority under the relevant law and to give
directions within its powers under this Act or any other
law to the said competent authority to implement the
decision of the Tribunal;
( b ) to require the production of any document or other
  12      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
information;
( c ) to order the payment of costs and expenses by any
party to the appeal.
(9) The question for the determination of the Tribunal shall be
whether, for the reasons adduced by the appellant - 
( a ) the competent authority has, in its decision wrongly
applied any of the provisions of this Act; or
( b ) the decision of the competent authority constitutes an
abuse of discretion or is manifestly unfair:
Provided that the discretion of the competent authority may
not, so long as it has been exercised properly, be queried by the
Tribunal:
Provided further that no appeal shall lie from any decision
imposing a penalty not exceeding one hundred liri.
(10) The Tribunal shall have the power to summon witnesses
and to administer the oath thereto, and to appoint any expert or
experts as it may deem necessary for the determination of the case
before it.
(11) An appeal to the Tribunal shall be made in writing
explaining clearly the grounds for the appeal by not later than thirty
days from the date the decision or act in question has been notified
to the aggrieved person, and the Tribunal shall proceed to deal with
any matter before it with utmost urgency and shall give its decision
without delay.
(12) The Tribunal shall hold its sittings in public unless having
regard to the nature of the matter before it, the Tribunal deems it fit
and proper to conduct the proceedings or any part thereof behind
closed doors; in any such case the decision of the Tribunal shall
always be delivered in public.
(13) The Minister may make regulations governing the
procedure for bringing and conducting appeals before the Tribunal,
provided that in the absence of such regulations and subject to the
rules of natural justice, the Tribunal shall regulate its own
procedure.
(14) An appeal on a question of law only from a decision of the
Tribunal shall lie to the Court of Appeal. In the determination of
such an appeal, the Court of Appeal shall have all the powers of the
Tribunal to make orders.
(15) The Minister responsible for Justice may by regulations
made under this subarticle establish the fees payable in the registry
of the court in relation to the filing of judicial acts in connection
with appeals to the Court of Appeal under this article:
Cap. 12.
Provided that until such fees are so established by the
Minister, the fees contained in Schedule A to the Code of
Organization and Civil Procedure shall apply.
(16) An appeal made under this article shall not suspend the
operation of any decision or directive from which the appeal is
made:
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        13
Provided that a decision to cancel a licence shall not
become operative until the expiration of the period within which an
appeal lies under this article and, if an appeal is made within such
period, the decision shall become operative on the date of the
decision of the Tribunal dismissing the appeal or the date on which
the appeal is abandoned.
(17) In this article, ''competent authority'' refers to a competent
authority appointed in terms of any law relating to financial
services.
Financial 
provisions.
XV.1989.6: 
XXXI.1990.4; 
XIII.1994.21,22.
Substituted by:
XVII. 2002.106.
22. The revenue of the Authority shall consist of:
( a ) income derived in respect of licences, authorisations
and registrations and other fees or charges payable
under this Act or any other law in respect of which the
Authority exercises registration, supervisory,
regulatory or similar functions;
( b ) rents, interest and profits accruing from property,
deposits and other assets of the Authority;
( c ) any other money receivable or received by the
Authority.
Estimates and 
expenditure.
Amended by: 
XV.1989.7; 
XXXI. 1990.5; 
XIII.1994.23.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.16.
23. (1) The Co-ordination Committee shall cause to be
prepared in respect of each financial year and shall not later than
six weeks after the end of the previous financial year prepare for
adoption by the Board of Governors, within six weeks of
presentation with or without amendments, estimates of the income
and expenditure of the Authority for that financial year.
(2) In the preparation of such estimates the Authority shall
endeavour to ensure that the total revenues of the Authority are at
least sufficient to meet all sums properly chargeable to its income
and expenditure account, including, but, without prejudice to the
generality of that expression, depreciation.
(3) The estimates shall be made out in such form and shall
contain such information and such comparisons with previous years
as the Board of Governors may direct.
(4) Notwithstanding the provisions of subarticle (1), if in
respect of any financial year, it is found that the amount approved
by the Board of Governors is not sufficient or a need has arisen for
expenditure for a purpose not provided for in the estimates, the Co-
ordination Committee may adopt supplementary estimates for
approval by the Board of Governors and, in any such case the
provisions of this Act applicable to the estimates shall as near as
practicable apply to supplementary estimates.
Other powers of 
the Authority.
Amended by: 
XV. 1989.8;
XXXI. 1990.6; 
XIII.1994.21,24.|
Substituted by:
XVII. 2002.106.
24. (1) The Authority may:
( a ) hold accounts with any bank;
( b ) invest any of its liquid assets in short and medium term
first class securities as approved by the Board of
Governors;
( c ) acquire, purchase, lease or dispose of any movable or
  14      CAP. 330. ]                MALTA FINANCIAL SERVICES AUTHORITY
immovable property required for the conduct of its
business or for any purposes ancillary or incidental to
the performance of its functions under this Act.
(2) For the purpose of carrying out of its functions under this
Act, the Authority may, with the approval in writing of the
Minister, borrow or raise money in such manner, from such person,
body or authority, and under such conditions as the Minister, may
in writing approve.
Advances by the 
Government. 
Substituted by: 
XIII.1994.20.
Amended by:
XVII. 2002.106;
IV. 2003.16.
25. The Minister may make advances to the Authority of such
sums as he may consider to be required by the Authority for
carrying out any of its functions under this Act, and may make such
advances on such terms and conditions as he may deem
appropriate. Any such advances may be made by the Minister out
of the Consolidated Fund, and without further appropriation other
than this Act, by warrant under his hand authorising the Accountant
General to make such advances.
Determination and 
allocation of 
profits. 
Amended by: 
XIII.1994.21;
XVII. 2002.106;
IV. 2003.15, 16.
26. (1) The Authority may establish a Reserve Fund to which
may be appropriated surplus funds arising from its Income and
Expenditure Account provided the said fund does not exceed at any
time the initial capital of the Authority.
(2) The surplus funds of the Authority for each financial year
shall be determined after the Authority meets all current
expenditure for that year and after making such provisions,
including provisions for contingencies, as it deems fit, and the
appropriation referred to in subarticle (1).
(3) After the allocations referred to in subarticles (1) and (2)
have been made, the remainder of the surplus funds shall be paid to
the Government.
Accounts and 
audit.
Amended by: 
XV.1989.10; 
XIII.1994.21, 27.
Substituted by:
XVII. 2002.106.
27. (1) The Authority shall cause to be kept proper books of
accounts and other records in respect of its operations and shall
cause to be prepared a statement of accounts in respect of each
financial year.
(2) The accounts of the Authority shall be audited by auditors
appointed by the Board of Governors from among persons who are
qualified to be appointed as auditors of a company.
Authority’s 
reporting duties to 
the House.
Amended by: 
XV.1989.11; 
XXXI.1990.8; 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
28. The Authority shall, as soon as may be but not later than
three months after the close of each financial year, transmit to the
House, through the Minister, a copy of its annual accounts certified
by the auditors together with a report on its activities during the
previous year.
       MALTA FINANCIAL SERVICES AUTHORITY   [ CAP. 330.        15
Exemption from 
liability.
Amended by: 
XV.1989.12; 
XXXI.1990.9; 
XIII.1994.21.
Substituted by:
XVII. 2002.106.
Amended by:
IV. 2003.16.
29. The Authority, the Board of Governors, the Co-Ordination
Committee, the Supervisory Council, the Board of Management
and Resources, the Legal Office and the officers and employees of
the Authority shall not be liable in damages for anything done or
omitted to be done in the discharge or purported discharge of any
function under this Act, unless the act or omission is shown to have
been done or omitted to be done, as the case may be, in bad faith.
Exemption from 
taxes.
Amended by: 
XV.1989.13; 
XIII.1994.28.
Substituted by:
XVII. 2002.106.
30. The Authority shall be exempt from any liability for the
payment of income tax, duty on transfers and documents, and
customs and excise duty, under any law for the time being in force.
