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 The minor amendments being made to the Rule are aimed at rectifying and updating the outdated references while further clarifying certain provisions of the Rule.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 MFSA repealed sections of the Appendix that are covered in the regulatory technical standards of EBA, pursuant to Article 8(2) of the Capital Requirements Directive, and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

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    News

    OSFI Sets Out Plan for Future Guidance on Managing Technology Risk

    OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.

    May 10, 2021 WebPage Regulatory News
    News

    MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance

    MAS updated rules for new housing loans by banks and finance companies.

    May 10, 2021 WebPage Regulatory News
    News

    HKMA Publishes Guideline on Sustainable Finance Grant Scheme

    HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.

    May 09, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6959