MFSA Circular on Regulatory Reporting
ECB Letter on Contingency Preparedness regarding COVID-19
Circular to Listed Entities in Reaction to COVID-19
MFSA and MBR Issue Communication Clarifying Summons and Court Notifications
ESMA Publishes its Recommendations on Combating the COVID-19 Outbreak
MFSA Issues Banking Rule BR/22 on Complaints-Handling Procedures for Credit Institutions
MFSA Circular on Regulation (EU) No 596/2014 (the Market Abuse Regulation/MAR)
MFSA CIRCULAR ON REGULATORY REPORTING
In its latest communication, the regulator outlined that it expects regulated firms to have appropriate contingency plans to counter the unprecedented and significant effects of the coronavirus outbreak. The regulator outlined that it acknowledges the increasingly difficult situation which all industries are facing at the moment and that it is considering applying flexibility in the applicable deadlines for the submission of regulatory reporting falling due over the next months. In this respect, the MFSA has noted that while it will be accepting a delay from the reporting deadlines falling due by March or April, it is not yet inclined to accept a delay for reporting deadlines due by May or June.
ECB LETTER ON CONTINGENCY PREPAREDNESS REGARDING COVID-19
The ECB issued a letter to all significant credit institutions regarding the developments related to COVID-19. The letter highlights the need for institutions to adequately prepare appropriate measures in dealing with a pandemic, which could severely restrict banks' operational capabilities.
The letter provides a non-exhaustive list of suggestions which institutions are expected to follow in an effort to mitigate the negative repercussions that the outbreak may pose.
CIRCULAR TO LISTED ENTITIES IN REACTION TO COVID-19
Around mid-March, the MFSA circulated an announcement addressed to listed entities whose financial instruments are admitted to trading on a trading venue wherein it tackled two main points:
- Public disclosure of information under the Market Abuse Regulation (MAR); and
- Annual General Meetings.
In the context of disclosure obligations under MAR, the MFSA, referring to ESMA's statement issued on 11.03.2020, inter alia reminded issuers to disclose as soon as possible any relevant significant information concerning the impacts of the coronavirus pandemic on their fundamentals, prospects or financial situation, as is stipulated under the MAR.
With reference to Annual General Meetings, the MFSA encouraged issuers to provide alternative options for the setting up of Annual General Meetings, and consider means such as e-voting or remote voting through proxy, other type of correspondence, or via internet through online secured voting platforms.
MFSA'S CIRCULARMFSA AND MBR ISSUE COMMUNICATION CLARIFYING SUMMONS AND COURT NOTIFICATIONS
In a communication addressed to all legal professionals, the MFSA and MBR issued a reminder that the two entities have separate and distinct legal personalities, both occupying different functions according to law.
In light of this fact, members are being asked to correctly file court notifications and/or writs of summons either to the MBR or to the MFSA depending on the nature of the proceedings or the parties to the proceedings. Currently, several members are incorrectly filing court notifications against the MBR or the MFSA, resulting in delays in proceedings and a good amount of unnecessary inconvenience.
Any court notifications and/or writs of summons intended for the Malta Business Registry Agency should be addressed to and served at the following address: AM Business Centre, Triq il-Labour, Żejtun. With respect to court notifications and/or writs of summons intended for the MFSA, these should be addressed to and served at the following address: Triq il-Imdina, Zone 1, Central Business District, CBD 1010, Birkirkara.
MFSA'S AND MBR'S COMMUNICATION
ESMA PUBLISHES ITS RECOMMENDATIONS ON COMBATING THE COVID-19 OUTBREAK
The European Securities and Markets Authority (ESMA)'s Board of Supervisors is closely monitoring the development of COVID-19 and its continuing impact on financial markets in the European Union.
Keeping in mind the market situation at hand and the contingency measures taken by supervisory entities, the ESMA has made recommendations on the following matters:
- Business continuity planning
- Market disclosure
- Financial reporting
- Fund management
The ESMA has also declared that it is prepared to use its powers to ensure the orderly functioning of markets, financial stability and investor protection.
MFSA ISSUES BANKING RULE BR/22 ON COMPLAINTS-HANDLING PROCEDURES FOR CREDIT INSTITUTIONS
The MFSA has recently issued a new Banking Rule on "Complaints-Handling Procedures for Credit Institutions under the Banking Act 1994" (hereinafter the "Rule"), to adopt the provisions as set out in the joint guidelines by the European Securities and Market Authority and the European Banking Authority for complaints-handling for the securities and the banking sector.
The main aim of this Rule is to place aggrieved consumers of credit institutions in a better position when it comes to lodging complaints before proceeding to other judicial forums or other alternative dispute mechanisms. The Rule seeks to ensure that a complaint management policy is in place which allows the credit institution to investigate complaints fairly and flag any possible conflicts of interest.
MFSA CIRCULAR ON REGULATION (EU) NO 596/2014 (THE MARKET ABUSE REGULATION/MAR)
The MFSA has published a communication highlighting its main findings as a result of the onsite compliance meetings which it has been regularly carrying out to verify the extent of implementation of the Regulation by issuers, falling within the scope of MAR.
Overall, the MFSA reported that issuers had put in place relatively good measures in an effort to mitigate their susceptibility to market abuse. However, such measures could be further improved upon. To this end, the Authority supplied the issuers with various recommendations to ensure adherence to high compliance standards in the context of MAR and its Implementing and Delegated Acts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
