Skip to main content

Guidance on the Submission of Involvement Suitability Assessment

On 30th November 2021, the MFSA published a circular notifying authorised individuals on changes in the way the ‘Involvement Suitability Assessments’ (ISAs) (formerly known as the “Entity Assessment”) is to be submitted. The changes will enable Licence Holders to send sensitive data directly to the MFSA. Furthermore, in situations where Board members are simply changing positions within the same Board, a submission of the ISA is not required but only a notification via email to the MFSA.

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

https://www.mfsa.mt/wp-content/uploads/2021/11/Guidance-on-the-Submission-of-Involvement-Suitability-Assessment.pdf

 

MFSA adds ‘Sustainable Finance’ to 2022 Supervisory Priorities

In its circular dated 15 December 2021, the MFSA informed the industry that it has added ‘Sustainable Finance’ as a regulatory priority for 2022, complementing further those that have remained in place since last year. For the third straight year, ‘Financial Crime Compliance’ and ‘Corporate Governance & Compliance Culture’ remain important cross-sectoral MFSA priorities.

The Supervisory Priorities for 2022 were established after careful examination of the market environment, the regulatory developments, the European Union’s Strategic Priorities, together with amongst others, the regulatory and supervisory experience.

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

https://www.mfsa.mt/wp-content/uploads/2021/12/MFSA-Supervision-Priorities-2022.pdf

 

Log4j Critical Vulnerability

On 16 December 2021, the MFSA issued a circular notifying authorised persons that on 15 December 2021, ENISA, the EU Agency for Cybersecurity released a Joint Statement together with the European Commission regarding a Critical Vulnerability on a Java-based logging package, Log4j. In this respect, authorised persons are expected to assess their potential exposure to this vulnerability and to apply adequate mitigation measures in a timely manner by following official guidelines. The MFSA EXPECTS Authorised Persons to employ continuous monitoring to identify potential threats to, and vulnerabilities in, their Information and Communications Technologies, in a timely manner, whilst having sound threat and vulnerability management processes and practices in place.

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

https://www.mfsa.mt/wp-content/uploads/2021/12/Log4j-Critical-Vulnerability.pdf

 

The MFSA Asset Management Strategy – Boosting a key Sector

On 20 December 2021, the Authority published a newsletter highlighting the importance of developing a sector-specific strategy for asset management, the significance of which has become apparent from various recent economic, market and regulatory events. The newsletter is based on findings which illustrate a detrimental effect on the continuous operation of several current funds and managers domiciled in Malta during the last two to three years, as well as the emergence of additional fund vehicles and asset managers, undermining Malta’s strong position in this industry.

The results of a statistical study conducted on the rate of attrition in the expansion of locally domiciled asset managers and funds confirmed further the necessity for the MFSA to devote strategic attention to this sector and design a viable plan to remedy the highlighted weaknesses.

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

https://www.mfsa.mt/publication/the-mfsa-asset-management-strategy-boosting-a-key-sector/

 

Making effective use of threat landscape reports

On 20 December 2021, the MFSA issued a newsletter notifying financial institutions that they should establish their own cyber threat intelligence methods, taking their size, risk profile, reliance on information and communications technology, and the services and products they provide into account. Threat Landscape Reports should then be used in conjunction with existing cyber threat intelligence processes.

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

https://www.mfsa.mt/publication/making-effective-use-of-threat-landscape-reports/

 

Update to the AFR

On 21 December 2021, the MFSA issued a circular informing CISs that the AFR has been updated. The Authority also highlighted that, as a result of feedback received, the deadline for all annual fund return submissions will permanently be one month after the deadline for audited financial statements pack submission, i.e. five months from the accounting reference period.

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

https://www.mfsa.mt/wp-content/uploads/2021/12/Update-on-the-Annual-Fund-Return.pdf

 

Publication of the Taxonomy Regulation Article 8 Disclosures Delegated Act

On 23 December 2021, the MFSA informed Licence Holders that the ‘Disclosures Delegated Act’ (supplementing Article 8 of the Taxonomy Regulation) was adopted by the European Commission on 6 July 2021 and published on the Official Journal of the European Union on 10 December 2021. This act aims to increase transparency in the market and specifies the disclosure obligations under Article 8 of the Taxonomy Regulation. The act becomes applicable on 1 January 2022 and the relevant disclosures need to be undertaken prior to such date.

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

https://www.mfsa.mt/wp-content/uploads/2021/12/Publication-of-the-Taxonomy-Regulation-Article-8-Disclosures-Delegated-Act-1.pdf

Leave a Reply