Malta Financial Services Authority
MFSA Newsletter
MFSA promotes careers in financial services
The Malta Financial Services Authority (MFSA) in collaboration with the Ministry of Finance and the Ministry of Education has organised two half-day seminars for guidance officers and school counsellors to highlight future career opportunities in the financial services sector.
The MFSA had said in its strategic plan 2007-2009 that it intended to step up its efforts to ensure that up to date information was made available to students at secondary and post-secondary level so that they would be able to make proper training and career choices.
"The MFSA is aware that the financial services sector in Malta is evolving to the extent that, in the coming years, it will require employees with new and enhanced skills besides those usually associated with it. This will create new career and work opportunities," the authority said.
Participants were welcomed by Education Minister Louis Galea and Tonio Fenech, Parliamentary Secretary at the Ministry of Finance, while presentations were given by MFSA, chairman Joseph V. Bannister and representatives of the Malta College of Arts Science and Technology (Mcast), the Institute of Financial Services (Malta), and the Malta International Training Centre.
The role of the MFSA in the training of prospective and current employees and study opportunities available to students besides those in the tertiary sector were explained.
The MFSA recently also set up an Education Council to complement the work done at guidance level by furthering coordination and cooperation among training providers in the organisation of training programmes of a vocational nature addressed at prospective employees.
The council will also allow for a better co-ordination of programmes for continuous professional development as well as regulatory oriented ones organised for licence holders from time to time. The council comprises a number of training institutions which are working with the MFSA in providing a number of training programmes. These include the Institute of Financial Services (Malta), the Malta International Training Centre, the Institute of Legal Studies, the Institute of Directors, The Institute of Financial Services Practitioners and the Society of Trust and Estate Practitioners. Mcast and the Guidance and Counselling Unit of the Department of Education are also represented.
It is expected that the efforts of the council will result in a comprehensive number of training programmes aimed at meeting demands that are expected to arise over the next three years.
Circular regarding the EU MiFID
The MFSA has issued its seventh circular regarding the EU Markets in Financial Instruments Directive (MiFID) to bring to the attention of licence holders another two CESR consultation documents on the Best Execution requirement and Transaction Reporting. Licence holders are encouraged to familiarise themselves with the requirements of MiFID and to update their systems, policies and procedures as necessary in order to ensure compliance by November 1, 2007.
Best execution is the cornerstone of the MiFID regulatory architecture where consistency among supervisors will be crucial in achieving an integrated pan-European Single Market in Financial Services. The MiFID's best execution requirements establish a new standard aimed at promoting market efficiency and investor protection. These in turn provide a mechanism that requires firms to direct their order flows to execution venues that allow them to obtain the best possible result for their clients' orders on a consistent basis, fostering competition between trading venues while at the same time promoting investor confidence.
This consultation paper sets out a number of practical proposals and questions for a common approach with respect to the following issues: (i) Contents of execution policy and arrangements; (ii) disclosure to client; (iii) client consent; (iv) relationship between firms in chains of execution; (v) review and monitoring; (vi) execution quality data. The paper does not address, at this stage, questions of scope of application of the best execution requirements and all related aspects. CESR has in fact asked the European Commission for clarification on some of these issues and is currently awaiting further guidance.
The consultation document on transaction reporting covers guidance as regards to the (i) reporting obligation by branches of investment firms; (ii) further details on what constitutes the execution of a transaction; (iii) approval of reporting channels.
An area of proposed guidance, which is very relevant for Maltese industry, relates to transactions in cases where several intermediaries are involved in the execution of a transaction. In this regard, CESR members have agreed to collect (and exchange when needed) information from the transactions which are conducted by the immediate market facing party and transactions where the investment firm is undertaking the transaction on its own account. This proposal is in line with current and proposed applicable local transaction reporting requirements.
The MFSA encourages the local industry to participate in this CESR consultation process by considering the questions set out in these consultation documents and sending their responses, by not later than tomorrow, March 2, in respect of transaction reporting and by not later than March 16, 2007 in respect of best execution. All consultation responses /comments should be sent via CESR's website (www.cesr.eu) under the section 'Consultation'.
MFSA warning to investors
The MFSA has issued a warning regarding a number of internet domains which have recently been created purporting to belong to particular financial entities in Malta. A domain name is simply an internet address, used to help people get to a website. Although these web domains would contain the name of a financial institution and the contents of the site would list an array of links to financial services, they would not be owned by the actual financial entity.
The MFSA warns the public that the domain www.apsbankmalta.com does not belong to and has no relationship whatsoever with APS Bank Limited, a bank licensed in Malta (who is the rightful owner and operator of www.apsbank.com.mt).
The authority strongly discourages any form of communication, transaction or dealing with www.apsbankmalta.com. The MFSA also reminds consumers to be vigilant and not to rush into responding to any type of online communication with urgent requests for personal information.
A list of licensed entities can be viewed on the MFSA website at www.mfsa.com.mt. The public is also reminded that the MFSA's website is constantly updated with warnings about firms which may be carrying on financial services business without authorisation from a financial regulator. For more information, consumers may contact the Authority by phone or freephone 80074924 or by e-mail at consumerinfo@mfsa.com.mt
Diploma in financial services operations
The MFSA and Enterprise LSE of the London School of Economics have teamed up for preparations for a new Diploma in Financial Services Operations and Compliance. Focusing on different aspects of operations and compliance, this new programme is being designed to balance EU/international issues with local priorities to train those seeking careers in financial services or those who wish to formalise initial experience gained while currently employed with the various licence holders.
The programme is expected to harness the expertise of LSE's teaching technology and online support for a number of customised modules to be delivered via domestic computer networks within the Malta International Training Centre (MITC). The modules on local topics are expected to be classroom based and also coordinated by the MITC.
Performance fees regulations
The MFSA said the Investment Services Act (Performance Fees) Regulations, issued late last year, represented another step forward in the development of the local regulatory framework.
"They aim to ensure the fair treatment and protection of investors in the application of performance fees by locally based retail collective investment schemes. The new requirements prescribe the basis on which performance fees may be paid in the case of such schemes."
Performance fees can briefly be described as a form of remuneration payable by a scheme to those involved in managing its assets, when the value of the scheme's units exceeds a specified benchmark. Given that the payment of performance fees from a scheme's assets results in a decrease in the value of units held by investors in the scheme, the primary aim of these regulations is to ensure that performance fees are structured in such a manner so as to be fair and reasonable to investors and to genuinely reward market operators for superior returns earned to investors. Such fees should also bear a reasonable relationship to the services rendered by the operator to the collective investment scheme.
Apart from prescribing the basis on which performance fees may be paid, the regulations also specify a number of disclosure requirements in order to ensure investors are informed regarding a number of relevant aspects, including the manner of calculation and impact of performance fees. The regulations also incorporate certain safeguards which seek to ensure the correctness of calculation of performance fees.
The regulations apply to new and existing retail collective investment schemes licensed under the Investment Services Act, 1994. With regards to the latter, the regulations provide for an appropriate transitional period within which schemes which already have a performance fee structure in place, are required to comply with the provisions of the regulations.
Licences issued in February
(i) Collective Investment Schemes
Maltese UCITS
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of two sub-funds.
Professional Investor Funds
Collective Investment Scheme licence issued to Grenfell Funds (SICAV) plc in respect of the Graduate Fund to carry out the activities of a Professional Investor Fund targeting Experienced Investors.
Collective Investment Scheme licence issued to Velocity One Fund SICAV plc. This fund is a Professional Investor Fund targeting Qualifying Investors.
(ii) Investment Services
Amarillo Investment Solutions Limited Category 1B Investment Services Licence has been upgraded to a Category 2 Licence.
(iii) Trusts and Trustees
Hull Services Limited has been authorised to receive property under trusts and to act as a trustee or co-trustee.
CAC Fiduciary Limited has been authorised to receive property under trusts and to act as a trustee or co-trustee.
Fiduciary Services
BT Fiduciare Ltd has been authorised to provide fiduciary services.
(iv) Surrender of Licences
Surrender of collective investment scheme licence issued to Grenfell Funds (SICAV) in respect of the Astral Fund.
Surrender of collective investment scheme licence issued to Altma Fund (SICAV) in respect of the following sub-funds:
- Essex, Sub-Fund
- Hanover Sub-Fund
- Mespil Sub-Fund
- Phibsborough Sub-Fund
- Townsend Sub-Fund
Surrender of Category 2 Investment Services Licence issued to Teragon Capital Limited.
MFSA website: http://www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: http://www.mfsa.com.mt/consumer
The Malta Financial Services Authority (MFSA) in collaboration with the Ministry of Finance and the Ministry of Education has organised two half-day seminars for guidance officers and school counsellors to highlight future career opportunities in the financial services sector.The MFSA had said in its strategic plan 2007-2009 that it intended to step up its efforts to ensure that up to date information was made available to students at secondary and post-secondary level so that they would be able to make proper training and career choices.
"The MFSA is aware that the financial services sector in Malta is evolving to the extent that, in the coming years, it will require employees with new and enhanced skills besides those usually associated with it. This will create new career and work opportunities," the authority said.
Participants were welcomed by Education Minister Louis Galea and Tonio Fenech, Parliamentary Secretary at the Ministry of Finance, while presentations were given by MFSA, chairman Joseph V. Bannister and representatives of the Malta College of Arts Science and Technology (Mcast), the Institute of Financial Services (Malta), and the Malta International Training Centre.
The role of the MFSA in the training of prospective and current employees and study opportunities available to students besides those in the tertiary sector were explained.
The MFSA recently also set up an Education Council to complement the work done at guidance level by furthering coordination and cooperation among training providers in the organisation of training programmes of a vocational nature addressed at prospective employees.
The council will also allow for a better co-ordination of programmes for continuous professional development as well as regulatory oriented ones organised for licence holders from time to time. The council comprises a number of training institutions which are working with the MFSA in providing a number of training programmes. These include the Institute of Financial Services (Malta), the Malta International Training Centre, the Institute of Legal Studies, the Institute of Directors, The Institute of Financial Services Practitioners and the Society of Trust and Estate Practitioners. Mcast and the Guidance and Counselling Unit of the Department of Education are also represented.
It is expected that the efforts of the council will result in a comprehensive number of training programmes aimed at meeting demands that are expected to arise over the next three years.
Circular regarding the EU MiFID
The MFSA has issued its seventh circular regarding the EU Markets in Financial Instruments Directive (MiFID) to bring to the attention of licence holders another two CESR consultation documents on the Best Execution requirement and Transaction Reporting. Licence holders are encouraged to familiarise themselves with the requirements of MiFID and to update their systems, policies and procedures as necessary in order to ensure compliance by November 1, 2007.
Best execution is the cornerstone of the MiFID regulatory architecture where consistency among supervisors will be crucial in achieving an integrated pan-European Single Market in Financial Services. The MiFID's best execution requirements establish a new standard aimed at promoting market efficiency and investor protection. These in turn provide a mechanism that requires firms to direct their order flows to execution venues that allow them to obtain the best possible result for their clients' orders on a consistent basis, fostering competition between trading venues while at the same time promoting investor confidence.
This consultation paper sets out a number of practical proposals and questions for a common approach with respect to the following issues: (i) Contents of execution policy and arrangements; (ii) disclosure to client; (iii) client consent; (iv) relationship between firms in chains of execution; (v) review and monitoring; (vi) execution quality data. The paper does not address, at this stage, questions of scope of application of the best execution requirements and all related aspects. CESR has in fact asked the European Commission for clarification on some of these issues and is currently awaiting further guidance.
The consultation document on transaction reporting covers guidance as regards to the (i) reporting obligation by branches of investment firms; (ii) further details on what constitutes the execution of a transaction; (iii) approval of reporting channels.
An area of proposed guidance, which is very relevant for Maltese industry, relates to transactions in cases where several intermediaries are involved in the execution of a transaction. In this regard, CESR members have agreed to collect (and exchange when needed) information from the transactions which are conducted by the immediate market facing party and transactions where the investment firm is undertaking the transaction on its own account. This proposal is in line with current and proposed applicable local transaction reporting requirements.
The MFSA encourages the local industry to participate in this CESR consultation process by considering the questions set out in these consultation documents and sending their responses, by not later than tomorrow, March 2, in respect of transaction reporting and by not later than March 16, 2007 in respect of best execution. All consultation responses /comments should be sent via CESR's website (www.cesr.eu) under the section 'Consultation'.
MFSA warning to investors
The MFSA has issued a warning regarding a number of internet domains which have recently been created purporting to belong to particular financial entities in Malta. A domain name is simply an internet address, used to help people get to a website. Although these web domains would contain the name of a financial institution and the contents of the site would list an array of links to financial services, they would not be owned by the actual financial entity.
The MFSA warns the public that the domain www.apsbankmalta.com does not belong to and has no relationship whatsoever with APS Bank Limited, a bank licensed in Malta (who is the rightful owner and operator of www.apsbank.com.mt).
The authority strongly discourages any form of communication, transaction or dealing with www.apsbankmalta.com. The MFSA also reminds consumers to be vigilant and not to rush into responding to any type of online communication with urgent requests for personal information.
A list of licensed entities can be viewed on the MFSA website at www.mfsa.com.mt. The public is also reminded that the MFSA's website is constantly updated with warnings about firms which may be carrying on financial services business without authorisation from a financial regulator. For more information, consumers may contact the Authority by phone or freephone 80074924 or by e-mail at consumerinfo@mfsa.com.mt
Diploma in financial services operations
The MFSA and Enterprise LSE of the London School of Economics have teamed up for preparations for a new Diploma in Financial Services Operations and Compliance. Focusing on different aspects of operations and compliance, this new programme is being designed to balance EU/international issues with local priorities to train those seeking careers in financial services or those who wish to formalise initial experience gained while currently employed with the various licence holders.
The programme is expected to harness the expertise of LSE's teaching technology and online support for a number of customised modules to be delivered via domestic computer networks within the Malta International Training Centre (MITC). The modules on local topics are expected to be classroom based and also coordinated by the MITC.
Performance fees regulations
The MFSA said the Investment Services Act (Performance Fees) Regulations, issued late last year, represented another step forward in the development of the local regulatory framework.
"They aim to ensure the fair treatment and protection of investors in the application of performance fees by locally based retail collective investment schemes. The new requirements prescribe the basis on which performance fees may be paid in the case of such schemes."
Performance fees can briefly be described as a form of remuneration payable by a scheme to those involved in managing its assets, when the value of the scheme's units exceeds a specified benchmark. Given that the payment of performance fees from a scheme's assets results in a decrease in the value of units held by investors in the scheme, the primary aim of these regulations is to ensure that performance fees are structured in such a manner so as to be fair and reasonable to investors and to genuinely reward market operators for superior returns earned to investors. Such fees should also bear a reasonable relationship to the services rendered by the operator to the collective investment scheme.
Apart from prescribing the basis on which performance fees may be paid, the regulations also specify a number of disclosure requirements in order to ensure investors are informed regarding a number of relevant aspects, including the manner of calculation and impact of performance fees. The regulations also incorporate certain safeguards which seek to ensure the correctness of calculation of performance fees.
The regulations apply to new and existing retail collective investment schemes licensed under the Investment Services Act, 1994. With regards to the latter, the regulations provide for an appropriate transitional period within which schemes which already have a performance fee structure in place, are required to comply with the provisions of the regulations.
Licences issued in February
(i) Collective Investment Schemes
Maltese UCITS
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of two sub-funds.
Professional Investor Funds
Collective Investment Scheme licence issued to Grenfell Funds (SICAV) plc in respect of the Graduate Fund to carry out the activities of a Professional Investor Fund targeting Experienced Investors.
Collective Investment Scheme licence issued to Velocity One Fund SICAV plc. This fund is a Professional Investor Fund targeting Qualifying Investors.
(ii) Investment Services
Amarillo Investment Solutions Limited Category 1B Investment Services Licence has been upgraded to a Category 2 Licence.
(iii) Trusts and Trustees
Hull Services Limited has been authorised to receive property under trusts and to act as a trustee or co-trustee.
CAC Fiduciary Limited has been authorised to receive property under trusts and to act as a trustee or co-trustee.
Fiduciary Services
BT Fiduciare Ltd has been authorised to provide fiduciary services.
(iv) Surrender of Licences
Surrender of collective investment scheme licence issued to Grenfell Funds (SICAV) in respect of the Astral Fund.
Surrender of collective investment scheme licence issued to Altma Fund (SICAV) in respect of the following sub-funds:
- Essex, Sub-Fund
- Hanover Sub-Fund
- Mespil Sub-Fund
- Phibsborough Sub-Fund
- Townsend Sub-Fund
Surrender of Category 2 Investment Services Licence issued to Teragon Capital Limited.
MFSA website: http://www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: http://www.mfsa.com.mt/consumer
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