Consultation on retirement schemes and funds
The MFSA is consulting the financial services industry on a review of the regulatory framework for retirement schemes and funds under the Special Funds (Regulation) Act (SFA).
Developments in the field of occupational pensions during the past four years have prompted the need to review the SFA and the regulations that had been issued under its provisions. The extent of the revisions involved has led to the drafting of new legislation, entitled the Retirement Pensions Act (RPA), which will replace the current SFA. A draft Bill has been issued in this regard for consultation by interested parties.
The proposed Bill provides a regulatory framework for the regulation of retirement schemes, retirement funds and service-providers.
The Bill represents a full revision of the SFA, taking into account developments arising following the transposition of the EU Pensions Directive (Directive 2003/41/EC of the European Parliament and of the Council on the activities and supervision of institutions for occupational retirement provision) as well as comments raised by the industry in previous consultations.
The Bill reflects legislation which is more principle based with detailed conditions to be included in supporting regulations and rules.
Apart from changes to the structure of the current law, changes in terminology and other clarifications, the RPA also provides for the possibility to establish different legal forms for both retirement schemes and retirement funds. The RPA also introduces a recognition requirement for back-office administrators and has removed the concept of a retirement fund administrator with respect to retirement funds.
In view of the proposed changes to the SFA, the legal notices and directives currently supporting the SFA would need to be changed. The draft legal notices and pension rules to be issued under the RPA would be circulated for consultation following the end of the consultation period and the review of the comments received.
The MFSA is expecting comments from the industry in relation to the draft Bill by not later than July 20. Consultation documents are available on the MFSA's website at www.mfsa.com.mt under the Pensions section.
MiFID training course
The MFSA is to host a training programme on the implementation of MiFID on July 12, 13 and 16.
Carlo Comporti, deputy secretary general of the Committee of European Securities Regulators will be addressing participants on MiFID Level III. MFSA officials will be providing an overview of the local legislative provisions which transpose MiFID's requirements applicable to trading venues and Malta's implementation of MiFID's transaction reporting requirements.
The local implementation of MiFID's requirements applicable to intermediaries will be the subject of the training session to be held on July 16. The programme is partly sponsored by TAIEX.
The full programme and details about the training programme can be accessed from the MFSA website under the Training and Development section.
Education Consultative Council approves terms of reference
A council set up by the MFSA "to improve and sustain excellence in financial services related training" has just approved its terms of reference.
The Education Consultative Council's terms of reference were drawn up on the premise that, given the manner in which the financial services sector in Malta is developing, there will be a demand for new skills and academic backgrounds over and above those that are currently available.
This will require a proactive approach and innovative strategies aimed at ensuring that current and future employees would be capable to fill any skills gaps, that will emerge from time to time.
The main objective of the council will be to act as a forum for debate,co-ordination and information sharing on matters related to financial services training and development.
Within this context, the MFSA will endeavour to seek the council's opinion and input in its efforts to attain the human resources development objectives as established in its strategic plan.
The council will also evaluate policies and procedures that its members would like to be introduced or amended on a sectorial or national level. In doing so the council will also consider relevant local and international developments related to financial services related training and will coordinate initiatives towards continuous professional development within the sector.
The council is chaired by Prof. Charles Farrugia, a member on the Board of Governors of the MFSA and comprises representatives from the MFSA itself, the Malta College of Arts Science and Technology (MCAST), the Guidance Unit of the Department of Education, the Malta International Training Centre (MITC), the Institute of Financial Services - Malta (IFS), the Institute of Financial Services Practitioners (IFSP), the Society of Trust and Estate Practitioners - Malta (STEP), the Institute of Legal Studies (ILS) and the Institute of Directors - Malta (IOD).
MFSA-LSE in new training programme
The MFSA and the London School of Economics are in the final stages of the formulation of a new programme on financial services operations and compliance scheduled to commence during the first week of October.
It will comprise a number of online modules dealing with key international operations and compliance issues. These will be complemented by classroom sessions on related topics of a local nature.
The programme will be targeted towards prospective employees in the sector and those who are already employed but who need to gain more expertise and knowledge in their day-to- day work.
The course should also be attractive to former employees who wish to re-enter the market. This new initiative will harness the LSE's teaching expertise both on a technological and traditional level and that of a number of local experts who are expected to be involved in this venture.
The programme will be administered by the Malta International Training Centre (MITC) in collaboration with the MFSA and Enterprise LSE.
Risk mitigation seminar
The Information Systems Audit and Control Association (ISACA) in collaboration with the MFSA has held a seminar on risk mitigation in financial services.
The objective of the seminar was to highlight key issues in IT governance that are of particular interest to financial services licence holders and ISACA members. The sessions delved into some of the standard frameworks available, their worldwide acceptance, inter-dependency and benefits as well as implementation of best practices.
The speakers included Joe Demanuele, COO, MFSA who delivered a presentation on business continuity and disaster recovery in financial services; Ray Vella, deputy director on-site supervision within the Banking Unit at the MFSA, who spoke on MFSA on-site compliance visits with a particular focus on information governance systems and Martin Rosenberg, Programme Director International - IT Governance, Sourcing and Services Value Management, who gave an overview of implementing IT governance frameworks within regulated institutions.
The vice president of ISACA Malta Chapter, Gordon Micallef delivered a presentation on information security governance.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website www.mfsa.com.mt.
Licences issued in June
(i) Collective Investment Schemes • Collective Investment Scheme licence issued to Public Private Real Estate Fund SICAV plc. This fund is a Professional Investor Fund targeting Qualifying Investors. • Licence issued to Celsius Global Funds SICAV plc in respect of the Barclays Guaranteed Dynamic Fund (July 2007) to carry out the activities of a Maltese UCITS pursuant to the Undertakings for Collective Investment in Transferable Securities and Management Companies Regulations, 2004.
(ii) Investment Services Licences • Category 2 Investment Services Licence to GreenBay Investments Limited.
(iii) Insurance licences • Authorisation granted to Arnold Clark Insurance (Malta) Ltd to carry on business of insurance in three classes of general business, restricted to commitments where Malta is not the country of the commitment. • Authorisation granted to Arnold Clark Life Insurance (Malta) Ltd to carry on business of life insurance, restricted to commitments where Malta is not the country of the commitment.
(iv) Trusts and Trustees • Areti Fiduciary Services Ltd has been authorised to act as Trustee in terms of the Trusts and Trustees Act. • FPC Wealth Management Ltd has been authorised to act as Trustee in terms of the Trusts and Trustees Act.
(v) Licences surrendered • Surrender of collective investment scheme licence issued to HSBC Structured Funds SICAV plc.
MFSA website: www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: www.mfsa.com.mt/consumer
The MFSA is consulting the financial services industry on a review of the regulatory framework for retirement schemes and funds under the Special Funds (Regulation) Act (SFA).Developments in the field of occupational pensions during the past four years have prompted the need to review the SFA and the regulations that had been issued under its provisions. The extent of the revisions involved has led to the drafting of new legislation, entitled the Retirement Pensions Act (RPA), which will replace the current SFA. A draft Bill has been issued in this regard for consultation by interested parties.
The proposed Bill provides a regulatory framework for the regulation of retirement schemes, retirement funds and service-providers.
The Bill represents a full revision of the SFA, taking into account developments arising following the transposition of the EU Pensions Directive (Directive 2003/41/EC of the European Parliament and of the Council on the activities and supervision of institutions for occupational retirement provision) as well as comments raised by the industry in previous consultations.
The Bill reflects legislation which is more principle based with detailed conditions to be included in supporting regulations and rules.
Apart from changes to the structure of the current law, changes in terminology and other clarifications, the RPA also provides for the possibility to establish different legal forms for both retirement schemes and retirement funds. The RPA also introduces a recognition requirement for back-office administrators and has removed the concept of a retirement fund administrator with respect to retirement funds.
In view of the proposed changes to the SFA, the legal notices and directives currently supporting the SFA would need to be changed. The draft legal notices and pension rules to be issued under the RPA would be circulated for consultation following the end of the consultation period and the review of the comments received.
The MFSA is expecting comments from the industry in relation to the draft Bill by not later than July 20. Consultation documents are available on the MFSA's website at www.mfsa.com.mt under the Pensions section.
MiFID training course
The MFSA is to host a training programme on the implementation of MiFID on July 12, 13 and 16.
Carlo Comporti, deputy secretary general of the Committee of European Securities Regulators will be addressing participants on MiFID Level III. MFSA officials will be providing an overview of the local legislative provisions which transpose MiFID's requirements applicable to trading venues and Malta's implementation of MiFID's transaction reporting requirements.
The local implementation of MiFID's requirements applicable to intermediaries will be the subject of the training session to be held on July 16. The programme is partly sponsored by TAIEX.
The full programme and details about the training programme can be accessed from the MFSA website under the Training and Development section.
Education Consultative Council approves terms of reference
A council set up by the MFSA "to improve and sustain excellence in financial services related training" has just approved its terms of reference.
The Education Consultative Council's terms of reference were drawn up on the premise that, given the manner in which the financial services sector in Malta is developing, there will be a demand for new skills and academic backgrounds over and above those that are currently available.
This will require a proactive approach and innovative strategies aimed at ensuring that current and future employees would be capable to fill any skills gaps, that will emerge from time to time.
The main objective of the council will be to act as a forum for debate,co-ordination and information sharing on matters related to financial services training and development.
Within this context, the MFSA will endeavour to seek the council's opinion and input in its efforts to attain the human resources development objectives as established in its strategic plan.
The council will also evaluate policies and procedures that its members would like to be introduced or amended on a sectorial or national level. In doing so the council will also consider relevant local and international developments related to financial services related training and will coordinate initiatives towards continuous professional development within the sector.
The council is chaired by Prof. Charles Farrugia, a member on the Board of Governors of the MFSA and comprises representatives from the MFSA itself, the Malta College of Arts Science and Technology (MCAST), the Guidance Unit of the Department of Education, the Malta International Training Centre (MITC), the Institute of Financial Services - Malta (IFS), the Institute of Financial Services Practitioners (IFSP), the Society of Trust and Estate Practitioners - Malta (STEP), the Institute of Legal Studies (ILS) and the Institute of Directors - Malta (IOD).
MFSA-LSE in new training programme
The MFSA and the London School of Economics are in the final stages of the formulation of a new programme on financial services operations and compliance scheduled to commence during the first week of October.
It will comprise a number of online modules dealing with key international operations and compliance issues. These will be complemented by classroom sessions on related topics of a local nature.
The programme will be targeted towards prospective employees in the sector and those who are already employed but who need to gain more expertise and knowledge in their day-to- day work.
The course should also be attractive to former employees who wish to re-enter the market. This new initiative will harness the LSE's teaching expertise both on a technological and traditional level and that of a number of local experts who are expected to be involved in this venture.
The programme will be administered by the Malta International Training Centre (MITC) in collaboration with the MFSA and Enterprise LSE.
Risk mitigation seminar
The Information Systems Audit and Control Association (ISACA) in collaboration with the MFSA has held a seminar on risk mitigation in financial services.
The objective of the seminar was to highlight key issues in IT governance that are of particular interest to financial services licence holders and ISACA members. The sessions delved into some of the standard frameworks available, their worldwide acceptance, inter-dependency and benefits as well as implementation of best practices.
The speakers included Joe Demanuele, COO, MFSA who delivered a presentation on business continuity and disaster recovery in financial services; Ray Vella, deputy director on-site supervision within the Banking Unit at the MFSA, who spoke on MFSA on-site compliance visits with a particular focus on information governance systems and Martin Rosenberg, Programme Director International - IT Governance, Sourcing and Services Value Management, who gave an overview of implementing IT governance frameworks within regulated institutions.
The vice president of ISACA Malta Chapter, Gordon Micallef delivered a presentation on information security governance.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website www.mfsa.com.mt.
Licences issued in June
(i) Collective Investment Schemes • Collective Investment Scheme licence issued to Public Private Real Estate Fund SICAV plc. This fund is a Professional Investor Fund targeting Qualifying Investors. • Licence issued to Celsius Global Funds SICAV plc in respect of the Barclays Guaranteed Dynamic Fund (July 2007) to carry out the activities of a Maltese UCITS pursuant to the Undertakings for Collective Investment in Transferable Securities and Management Companies Regulations, 2004.
(ii) Investment Services Licences • Category 2 Investment Services Licence to GreenBay Investments Limited.
(iii) Insurance licences • Authorisation granted to Arnold Clark Insurance (Malta) Ltd to carry on business of insurance in three classes of general business, restricted to commitments where Malta is not the country of the commitment. • Authorisation granted to Arnold Clark Life Insurance (Malta) Ltd to carry on business of life insurance, restricted to commitments where Malta is not the country of the commitment.
(iv) Trusts and Trustees • Areti Fiduciary Services Ltd has been authorised to act as Trustee in terms of the Trusts and Trustees Act. • FPC Wealth Management Ltd has been authorised to act as Trustee in terms of the Trusts and Trustees Act.
(v) Licences surrendered • Surrender of collective investment scheme licence issued to HSBC Structured Funds SICAV plc.
MFSA website: www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: www.mfsa.com.mt/consumer