MK Fintech Partners Ltd reposted this
📢 Last Wednesday i had the pleasure of attending the Financial Institution workshop organised Malta Financial Services Authority (MFSA) which focused on the regulatory updates made to the Financial Institution Rulebook FR03. 📝 Upon applicability of Chapter 3 of the Financial rulebook the current FR02 and FR03 will cease to apply. 💥Application dates: - All but governance and safeguarding: 15th October 2024. - Governance and safeguarding requirements: 15th December 2024. 💣 Notes and Key highlights from the workshop: ✅️ MFSA highlights: 👉 New: Compliance exit interview 👉Internal Audit function can be outsourced but 1 director must oversee the function 👉New: Notification requirement for any changes re safeguarding arrangements prior to changes being made 👉Rulebook to reference to E-Money Tokens and the derogation MICAR provides from EMD2 👉the MFSA departed from some of the guidelines of the EBA with the aim of lightening the framework and achieving better proportionality for FIs 👉Overview of minimum expectations for board composition and local substance. Eg it is sufficient for 1 director and 1 member of senior management to fulfil four eyes principle 👉New: notification form for outsourcing critical or important functions 👉 ICT risk management- integrated Dora requirements 👉New: Introduces Safeguarding Audit - can be done by IA but MFSA has discretion if high risk for an independent extrernal auditor to carry it out. However report does not need to be submitted to the mfsa ✅️ CENTRAL BANK REPORTING highlights Update on the Financial Return: 👉 Only BR06 return will remain valid and the other BRs won't be required. 👉 Central Bank of Malta has streamlined return submissions with the MFSA 👉 Outcome: reduce reporting burden on FIs and BR06 is more in line with market trends. ✅️ FIAU reporting highlights: 👉 There will now only be one single reporting AML/CFT requirement and only 1 return will need to be submitted through one sole channel. This is an action of the Pilot project set up as a result of an action point of the MFSA digital package. 👉 REQs won't need to be submitted through caspar going forward but just to the MFSA [who will then pass on the necessary data to the FIAU] and which will be submitted in January every [Shifted from April]. Application: January 2025. 👏 I commend Camille Pepos and his wonderful Fintech Team for the great work done and successful initiatives with other authorities to streamline reporting. 💡I look forward to the same initiatives being applied to the VFA sector which I am sure will also come and be welcomed by the market. MK Fintech Partners Ltd