MFSA CONSULTATION ON RULES ON EQUITY RELEASE AND FINANCIAL PRODUCTS
Following the publication of the rules relating to the registration process for credit and financial institutions offering equity release financial products to pensioners, the MFSA has now launched a consultation exercise seeking suggestions and feedback in relation to the Chapters of the Rulebook dealing with the ongoing obligations. The Rulebook will include four pillars dealing with ongoing obligations, namely (i) disclosures, (ii) sales processes and selling practices, (iii) complaints handling, and (iv) valuation.
The consultation is open to the public until 28th October 2019. Industry participants and interested parties are to send their feedback via email to firstname.lastname@example.org.
EBA COMMUNICATION ON BREXIT CONTINGENCY PLANNING
In a recent a communication, the European Banking Authority aims to iron out the pending matters relating to the preparation by financial institutions in view of Brexit. The supranational authority urges continued progress on contingency planning particularly in light of the main objective of making sure that appropriate staff, data and assets are in place to support relevant authorisations and that ultimately customers are kept abreast with any material developments.
The EBA also highlights the notion that customers ought to contact directly their financial service providers in case they have concerns about whether they may be impacted by the UK withdrawal from the EU.
EBA OPINION ON DEADLINE FOR SCA MIGRATION
On the 16th October 2019, the European Banking Authority (EBA) published an opinion on the migration to SCA under the PSDII for e-commerce card-based payment transactions wherein it sets the deadline for such migration to the 31 December 2020. Furthermore, it also provides a blueprint of the steps which are to be taken during the migration period.
The EBA recommends that national competent authorities, rather than pursuing enforcement actions against non-compliant service providers, should focus more on monitoring the SCA migration itself. Furthermore, the EBA notes that consumers should be protected against fraud as required under the law and NCAs should, therefore, communicate to their PSPs that the liability regime under Article 74 of the PSD2 still applies, which consequently means that issuing and acquiring PSPs are still liable for unauthorised payment transactions.
EBA CONSULTS ON SUPERVISORY REPORTING CHANGES TO CRR2 AND BACKSTOP REGULATION
On the 16th of October 2019, the European Banking Authority (EBA), launched a public consultation on the revised Implementing Technical Standards (ITS) on supervisory reporting, aiming to maintain the reporting requirements updated with changes in the regulatory framework and with the changing needs for Supervisory Authorities’ risk assessments.
Affecting areas of reporting such as; own funds, credit risk, counterparty credit risk, large exposures, leverage ratio, net stable funding ratio and FINREP, the consultation paper aims to review the reporting framework in order to replace the Commission’s Implementing Regulation (EU) No. 680/2014. Such review has in turn facilitated the institutions’ compliance with reporting and disclosure requirements by improving the consistency between the two.
JMLSG RECEIVES MINISTERIAL APPROVAL OF GUIDANCE ON SYNDICATED LENDING
On the 15th of October 2019, the Joint Money Laundering Steering Group (JMLSG) received the Treasury Ministerial Approval of their revised guidance material on sector 17 regarding Syndicated Loans. A more thorough approach was taken for the revised version of the guidance material as the roles of the parties within syndicated loans were explained in higher detail to further clarify what every role entails.
Amongst changes, such as the introduction of the use of diagrams in order to explain transactions such as Novation and Assignments, and delving deeper into the risks of money laundering that syndicate loans might entail, JMLSG’s main focus with such amendment was the furtherance of detail with defining the components which make up syndicate loans, spanning from the transactions which take place to the roles of every participant which is involved within such industry.