Featured Product

    MFSA Issues Circular on Amendments to Banking Rule

    March 01, 2021

    MFSA is amending the Banking Rule BR/13 on prudential assessment of acquisitions and increase of shareholdings in credit institutions authorized under the Banking Act 1994. The Rule sets out the criteria to be applied by MFSA in its assessment of a person or persons who intend to acquire or increase a shareholding in a credit institution. The minor amendments being made to the Rule are aimed at rectifying and updating the outdated references while further clarifying certain provisions of the Rule.

    Appendix 1 to the Rule is aimed at providing a list of specific information and documentation that may be requested to be submitted to MFSA for the prudential assessment of acquisitions. MFSA repealed sections of the Appendix that are covered in the regulatory technical standards of EBA, pursuant to Article 8(2) of the Capital Requirements Directive, and replaced such sections with paragraph 1 of Part I of the Appendix that provides details on information to be submitted. Additionally, minor amendments are being made in the section on proportionality, through the introduction of paragraph 18A of the Rule. This paragraph provides that the intensity of the assessment of proposed acquirers shall take into account the likely influence that the proposed acquirer may exercise on the credit institution. With respect to the MFSA opposition of proposed acquisitions, amendments are being made to the Rule to clarify that where the circumstances are well-justified, MFSA shall not oppose the proposed acquisition solely on the basis of the lack of some required information, the absence of which can be justified by the nature of the transaction. 

    The revisions being made to the Rule also provide further clarifications on the MFSA procedure for assessing proposed acquisitions. In assessing indirect acquirers of a credit institution, which are entities already MFSA-licensed, MFSA may limit such assessment to the persons at the top of the corporate control chain. This is clarified through the introduction of Paragraph 32A of the Rule. Additionally, with respect to MFSA's procedure, the amendments to the Rule introduce provisions related to assessments of financial soundness of a proposed acquirer that are made by overseas regulatory authorities. The Rule clarifies the extent to which such assessments by these authorities are taken into consideration by MFSA. These amendments are aimed at ensuring that proposed acquirers are aware of the information that is required to be submitted to MFSA to allow it to assess the proposed acquisition in a complete and timely manner.

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Rule, Proportionality, Regulatory Technical Standards, CRD, MFSA

    Related Articles
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    News

    PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List

    The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.

    September 09, 2022 WebPage Regulatory News
    News

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.

    September 08, 2022 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposed Regulation on Data Act

    The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).

    September 08, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8511