Featured Product

    MFSA Amends Banking Rules, Consults on ICT-Related Incident Reporting

    July 12, 2022

    The Malta Financial Services Authority (MFSA) published the guidelines for credit institutions under the reporting framework 3.0 (reporting under the Capital Requirements Directive), along with the revised Banking Rule BR/15 on capital buffers and Banking Rule BR/24 on internal governance of credit institutions; both the revised rules (BR/15 and BR/24) will come into force with immediate effect. Also published was a consultation document, along with a template, on the reporting of major information and communication technology (ICT)-related incidents. Finally, another publication is the annual report for 2021, which highlights the work done by MFSA during the past year.

    Amendments to Banking Rules. The key amendments include the following:

    • Amendment to BR/15 is in relation to an incorrect reference in paragraph 56 in order to change the reference to paragraph 49E to paragraph 52 accordingly.
    • Amendment to BR/24. The reference to the guidelines of the European Banking Authority (EBA) on information and communication technology (ICT) and security risk management (EBA/GL/2019/04) has been added to the requirement in paragraph 73(a) and added within the scope of the BR/24. In this regard, a new paragraph 295 is being added to cater for a general obligation of credit institutions to abide by the EBA guidelines as well as the MFSA guidance on technology arrangements, ICT and security risk management, and outsourcing arrangements. For implementation purposes, credit institution shall note that the EBA guidelines on ICT and security risk management were already applicable and in force through the MFSA guidance before this particular amendment to BR/24. This amendment is being undertaken only for clarity purposes.

    Consultation on reporting of major ICT-related incidents. According to the proposed updated major ICT-related incident reporting process, authorized persons will be expected to submit:

    • An initial report within four hours after an incident has been classified as major. Such classification is expected to take place within twenty-four hours after an incident has been detected.
    • An intermediate report within three working days from the submission of the initial report, irrespective of whether the incident has been resolved. An authorized person may provide one or more intermediate report/s at different stages within the resolution process.
    • A final report within twenty working days after business is deemed back to normal.

    This updated process does not replace or supersede any legal obligation by authorized persons to report incidents to other competent authorities. In establishing the updated process, MFSA takes into consideration the challenges with the current incident reporting process, the course that Digital Operational Resilience Act (DORA) is expected to be taking, and established incident reporting guidelines. This process will eventually have to be aligned with DORA when it enters into force. MFSA will communicate the method to securely submit major ICT related incident reports at a later stage. Annex 1 of the consultation documents sets out the major incident thresholds matrix. MFSA is requesting feedback on the consultation by August 05, 2022.


    Related Links

    Keywords: Europe, Malta, Banking, Basel, Regulatory Capital, Internal Governance, ICT, Incident Reporting, Reporting, DORA, Regtech, Technology Risk, Outsourcing Arrangements, MFSA

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582