Key Highlights of FIR/03
The new FIR/03 introduces comprehensive rules, including:
- Notification and Approval Requirements: Streamlined processes for gaining prior approval from the Authority.
- Passporting: Simplified procedures for cross-border operations within the EU.
- Appointment of Agents and Distributors: Clear guidelines for the appointment and oversight of agents and distributors.
- Outsourcing: Specific rules to ensure prudent outsourcing practices.
- Safeguarding: Enhanced measures to protect client funds.
- Prudential Requirements: Robust financial safeguards to ensure sound management.
- Record-Keeping and Reporting: Detailed requirements to ensure accurate record-keeping and regular reporting to the Authority.
A notable addition is the quarterly ‘Financial Institutions Return’ report, soon to be finalized. Such report intends to help the MFSA monitor compliance and financial health of the licensees.
Transition and Future Plans
Once the Consultation concludes, a 3-month transition period is proposed to help institutions comply with the revised rules.
Further updates to other chapters of the Financial Institutions Rulebook are expected throughout 2024. These will include revisions to Chapter 1 on authorizations and Chapter 2 on non-payment services. In addition, a new Chapter 4 on rules applicable to account information service providers is expected to be issued.
Feedback Invitation
Stakeholders are invited to submit feedback by June 17, 2024, to [email protected]
