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Circular on the Q&As related to the Sustainable Finance Disclosure Regulation (“SFDR”)

On 4 August 2021, the Authority issued another circular addressed to all entities falling within scope of SFDR, whereby the MFSA brought to the attention of Financial Market Participants and Financial Advisors the EU Commission Decision which was adopted on 6 July 2021, and which intends to clarify the provisions emanating from the SFDR.

For further information, reference should be made to the circular available on the MFSA’s website:

https://www.mfsa.mt/publication/qa-related-to-the-sustainable-finance-disclosure-regulation-sfdr/

 

Supply Chain Security Attacks

Further to the 24 supply chain attacks reported from January 2020 to early July 2021, on 3 August 2021, the MFSA issued a circular highlighting the importance of undertaking the required monitoring to identify any potential threats and vulnerabilities and the importance of having risk management processes in place to mitigate such attacks on supplier and/or customer assets.

For further information, reference should be made to the circular available on the MFSA’s website:

https://www.mfsa.mt/publication/supply-chain-security-attacks/

 

Circular on MiFID II/MiFIR Post-Trade Transparency Obligations and Third-Country Trading Venues

On 4 August 2021, the MFSA issued a circular informing investment firms on the publication of ESMA’s opinion with respect to transparency obligations under MiFID II/MiFIR. ESMA’s opinion is that the publication of transactions concluded on third-country trading venues (which are subject to transparency provisions similar to those applicable to EU trading venues) does not contribute to the achievement of the transparency objectives set out in MiFIR. ESMA considers that EU investment firms should not be required to publish information about transaction concluded on the above-mentioned trading venues. ESMA has also published, and regularly updates, a list of trading venues that meet the criteria for the consistent application of the post-trade transparency requirements as set out in MiFIR.

For further information, reference should be made to the circular available on the MFSA’s website:

https://www.mfsa.mt/publication/circular-on-mifid-ii-mifir-post-trade-transparency-obligations-and-third-country-trading-venues/

 

The IFRD – 6th Briefing

On 5 August 2021, the Authority issued the 6th briefing on the implementation of the IFRD Package informing the industry that the revised Part BI Rulebook has been issued and which will become applicable as of 6 August 2021. The briefing also provides a brief overview of the changes to the applicable Rulebook. In this respect, the new Rulebook has been now divided into three Parts; Part 1 applicable to all Investment Firms, Part 2 applicable to Class 1s and Class 1 Minus, and Part 3 applicable to Class 1 Minus, Class 2 and 3. Apart from the division into three parts in the new Rulebook, the Authority has also removed all references to the CRR and the section relating to ‘Introducers’.

For further information, reference should be made to the sixth IFRD package briefing available on the MFSA’s website:

https://www.mfsa.mt/publication/the-investment-firms-regulation-and-directive-6th-briefing/

 

Circular on the updates made to the Investment Services Rules for Fund Managers and CISs

On 23 August 2021, the MFSA issued a circular notifying Fund Managers and CISs with respect to updates to certain sections of the applicable Rulebooks in line with regulatory development at a European level.

In this respect, the Rulebook applicable to AIFMs has been updated as follows:

  • The revision of SLC 8.01 to make reference to ESMA Guidelines on Article 25 of Directive 2011/61/EU; and
  • The revision of SLC 3.14 to make reference to the ESMA Guidelines on Marketing Communications.

Furthermore, the Rulebook applicable to AIFs has also been updated whereby SLC 8.90 has been revised to make reference to ESMA Guidelines on Article 25 of Directive 2011/61/EU.

For further information, reference should be made to the circular available on the MFSA’s website:

https://www.mfsa.mt/publication/circular-on-the-updates-made-to-the-investment-services-rules-for-investment-services-providers-and-collective-investment-schemes-2/

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