Featured Product

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0. In a separate communication, the Authority also published the 2022 cross-sector supervisory priorities, which are focused on financial crime compliance, corporate governance and compliance, digital finance, and sustainable finance. Moreover, it recently published the bi-annual update on the transposition of CRD5, credit risk, sustainable finance, implementation of Basel III reforms, digital finance package, and EU proposal on artificial intelligence. Also announced were the amendments to the Banking Act and its Subsidiary Legislation, which shall soon come into effect, to transpose the Capital Requirements Directive (CRD5) and the Investment Firms Directive (IFD) into the national regulatory framework. Finally, MFSA announced amendments to a number of Banking Rules as well as the introduction of a new Banking Rule, BR/24, on internal governance to transpose CRD5; these Banking Rules will come into force with immediate effect.

    MFSA is introducing BR/24 and repealing Annex 2B of BR/12,entitled “Technical Criteria on Governance Arrangements and the Treatment of Risks.” The new rule introduces requirements in line with the amendments in CRD5, also stipulating that data on loans to the directors of credit institutions and their related parties, as defined therein, should be documented and made available to MFSA. Furthermore, the EBA guidelines on internal governance and the EBA guidelines on product oversight for retail banking products have been implemented in this Rule. The key Banking Rules that are being revised include the following: 

    • BR/12 on the Supervisory Review and Evaluation Process (SREP) has been amended to reflect the amendments introduced by CRD5, with respect to the level of application of the requirements stipulated in the said Rule, specifically in relation to the elements that are assessed throughout the SREP. Among other amendments, this Rule has been revised to ensure the subsidiary undertakings that are not subject to the CRD shall comply with sector-specific rules on an individual basis. Furthermore, the amendments specify the types of subsidiaries to which the remuneration requirements do not apply on a consolidated basis and the exception to such rule.
    • BR/14 on outsourcing has been amended to clarify that the 60-day period within which MFSA is to assess an outsourcing notification may start to run from the submission of any other information that MFSA may require to process such notification. Additionally, the amendments also implement requirements, with respect to the outsourcing policy of credit institutions, emanating from the EBA guidelines on internal governance. 
    • BR/15 on capital buffers has been amended to transpose the CRD5 provisions related to the restrictions on composition of the combined buffer requirement. Moreover, the section on “Global and Other Systematically Important Institutions” (G-SIIs and O-SIIs) has been amended to define and provide the identification methodology for G-SIIs together with changes to the implementation of an O-SII buffer that is higher than 3% of the total risk exposure amount. Additionally, changes have been made to the provisions on calculation of the combined buffer requirement while a provision on the failure of credit institutions to meet the leverage ratio buffer requirement has been introduced.
    • BR/21 on remuneration policies and practices has been amended to introduce the definition of the term "gender-neutral remuneration policy" and to provide a list of staff members who are considered as having a material impact on the risk profile of a credit institution. The amendments to this Rule also relate to the principles on variable elements of remuneration and the introduction of specific exceptions thereto, to ensure proportionality in this regard.

    As per an announcement from the Central Bank of Malta (CBM), Creditinfo Malta Limited (C 30174) has been granted a five-year renewable license to operate as a credit reference agency (CRA). The function of a CRA is primarily to issue credit scores on natural and legal persons, including credit institutions.


    Related Links

    Keywords: Europe, Malta, Banking, CRD5, IFD, Basel, Supervisory Priorities, Reporting, Sustainable Finance, Banking Act, Banking Rule, Internal Governance, SREP, ESG, Regulatory Capital, Capital Buffer, Framework 3.0, Regtech, Credit Scoring, Credit Risk, Lending, Creditinfo, MFSA, CBM

    Featured Experts
    Related Articles

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697