MFSA Publishes Reporting and Regulatory Updates for Banks
The Malta Financial Services Authority (MFSA) published circulars that amend the Banking Rule BR/21 and the Financial Institutions Rule FIR/01, updated the guidelines on reporting through the LH Portal, highlighted the upcoming legislative developments in 2023, and published a policy and guidance note on the enforcement regime for penalties for regulatory reporting breaches.
Below are the highlights of the key recent updates:
- MFSA updated the guidelines for credit institutions and foreign bank branches to upload and review certain supervisory reporting data through the LH Portal. The revised LH Portal guidelines for credit institutions cover new data collection, processing, and validation system in line with ECB "HSA" requirements as well as inclusion of implementing technical standards version 3.2 file naming conventions, incorporating change in the European Banking Authority filing rules. The Annex I to the document includes the XML schema specification, describing the structure and content of the XML feedback document.
- Also published was a circular that amends the Banking Rule BR/21 by implementing the European Banking Authority (EBA) Guidelines on the benchmarking exercises on remuneration practices, gender pay gap, and approved higher ratios under the Capital Requirements Directive, or CRD (2013/36/EU). The circular concerns the implementation of EBA Guidelines on the data collection exercises regarding high earners under the CRD. The amendments to this Banking Rule shall apply from December 31, 2022.
- The revisions to the Financial Institutions Rule FIR/01 provide clarification in relation to the limited network exclusions under the second Payment Services Directive (PSD2) and crowdfunding services. The amendments include a new paragraph 58A, which specifies that the assessment of MFSA shall be performed on the basis of the EBA Guidelines on the limited network exclusion under PSD2 (EBA/GL/2022/02). With regard to the Crowdfunding Regulation (2020/1503), a new paragraph 15B has been inserted in the rule to remove any conflict that may arise between recital 9 of the Crowdfunding Regulation and the Financial Institutions Act. The revised rule FIR/01 shall come into force with immediate effect.
- Additionally, MFSA highlighted certain upcoming legislative developments, including developments with respect to the regulation on the Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA), which are expected to come into force during the second and first quarters of 2023, respectively. MFSA also noted that the transposition of Non-Performing Loan, or NPL Directive (2021/2167) into the national law is in progress. MFSA notified that the final text of the Banking Package 2021 is expected to be published by June 2023, with the Capital Requirements Regulation (CRR3) becoming applicable from January 01, 2025 while 18 months are factored in for transposition of the Capital Requirements Directive (CRD6) by MFSA.
Related Links
- Supervisory Reporting Updates
- LH Portal Guidelines for Credit Institutions (PDF)
- Annex I XML Schema Specification (PDF)
- Circular on Amendments to BR/21 (PDF)
- Circular on Amendments to FIR/01 (PDF)
- Upcoming Legislation
- Policy Note on Reporting Related Breaches
Keywords: Malta, Reporting, Basel, PSD2, Remuneration Benchmarking, Crowdfunding Regulation, Regtech, MiCA Regulation, Europe, CRD, EBA, MFSA, Banking, LH Portal, DORA, CRR3, CRD6
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
CMF Sets Out Workplan for Implementation of Fintech LawRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
