MFSA newsletter
Malta Insurance Rendezvous to draw major players in captive insurance A two day conference in Malta in November is expected to attract the major European players in captive insurance. Organised by RIRG, the Risk and Insurance Research Group, The Malta...
Malta Insurance Rendezvous to draw major players in captive insurance
A two day conference in Malta in November is expected to attract the major European players in captive insurance. Organised by RIRG, the Risk and Insurance Research Group, The Malta Insurance Rendezvous will be held on November 13 and 14 at the Hilton.
It will focus on European captive insurance issues for risk managers and CFOs and has been designed specifically to update companies considering Malta as a location for their captives. An exciting line-up of presentations from key players in the industry complement an exceptional networking opportunity and a chance for risk managers to meet industry experts.
This event has been targeted at UK and European risk managers, financial officers and captive owners interested in direct writing opportunities, brokers from all UK and European regions, captive managers and standard insurance service providers such as accountants, investment managers and lawyers.
Malta was chosen as a location for this seminar since the island has emerged as an attractive captive location since joining the EU in May 2004. Malta has already attracted considerable interest from leading captive management firms.
The Rendezvous will be chaired by Paul Obolensky, president of AIG Insurance Management Services Worldwide. The speakers will include senior representatives of European regulators, the European Commission as well as industry players.
Joe Bannister, chairman of the MFSA said: "The Malta Insurance Rendezvous comes at an important time for the onshore insurance industry. Malta is now firmly established as a serious alternative jurisdiction for captives and insurance companies seeking a domicile inside the EU. The Maltese insurance services sector has registered impressive growth over the last two years as the world's leading insurance managers set up operations and blue chip, multinational companies followed to establish their operations in the country. Equally impressive is the industry's ability to reach high levels of sophistication in professional service provision normally associated with jurisdictions that have been around for much longer. With its formidable line-up of speakers, the Malta Rendezvous will therefore bring a fresh insight into the key issues that concern the industry today and those that will shape its future"
The conference brochure and details about registration can be downloaded from www.rirg.com/MaltaAgenda.aspx.
MFSA accepted as IOPS member
The Malta Financial Services Authority has been accepted as a governing member of the International Organisation of Pension Supervisors (IOPS).
Formed in July 2004, IOPS is an independent international body representing supervisory authorities responsible for regulating private pension arrangements.
The organisation currently has around 60 members and observers representing over 50 countries and territories worldwide. IOPS' main objective is to improve the quality and effectiveness of the supervision of private pension systems throughout the world, thereby enhancing their development and operational efficiency, and allowing for the provision of a secure source of retirement income in as many countries as possible. The organisation cooperates closely with other international organisations involved in pension supervision policy development and dialogue, including the OECD, World Bank, ISSA, IAIS and IMF. MFSA chairman Joe Bannister, said: "Membership of IOPS comes at an important time for the MFSA, which is currently in the final stages of evaluating the outcome of wide ranging consultations on a new regulatory framework for occupational and personal pension arrangements supervision that will supersede
The Special Funds (Regulation) Act of 2002. Membership of IOPS will enhance the development and implementation process relating to the proposed Retirement Pensions Bill and further ensure that Malta can provide the optimum regulatory infrastructure for this type of financial service." In December 2006, IOPS adopted a set of Principles for Private Pension Supervision identifying good practice which can be applied universally. The MFSA is also a member of the Committee of European Insurance and Occupational Pensions Supervisors which it joined in 2004.
Forthcoming training events
The MFSA in collaboration with various training institutions is working on a number of training sessions for the financial services industry:
The Institute of Directors Malta, (IOD) has announced a series of corporate governance workshops for company directors in terms of their personal liability and accountability.
The Four Seasons Director Training Programme is being supported by the MFSA's Education Consultative Council. The first of its 11 workshops will be held on October 13. The programme will help participants identify the tasks required to build a strong board and focus on good corporate governance, improving company strategy, defining long-term vision, developing strategic plans, monitoring performance and dealing with a variety of stakeholders.
The programme builds on the role of directors and the voluntary guidelines for Corporate Governance that was issued by the MFSA in 2006. It also links with the corporate governance issues that have been the subject of increasing stakeholder attention and scrutiny over the past decade in response to the very public collapse of a number of North American and European public companies.
Speakers for the workshop include Sir Keith Bright, Victor Hughes, Jonathan Rice, Peter Barratt, Edwin Ward and Marlene Mizzi.
Meanwhile, the Programme on Financial Services Operations and Compliance which is administered by the MITC in collaboration with the MFSA and Enterprise LSE is also scheduled to commence during the first week of October. The programme is targeting 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 will also attract former employees who wish to re-enter the financial services market.
Information seminar on the Capital Requirements Directive
The MFSA in collaboration with the Technical Assistance Information Exchange Instrument (TAIEX) of the European Commission is organising an information seminar about the main changes to local legislation brought about by the Capital Requirements Directive. The aim of this training is to provide practitioners in the financial services industry with the necessary briefing with regards to the amendments related to the Capital Requirements Directive to be included in primary legislation, namely the Banking Act and the respective banking rules which are issued by the MFSA. The programme is divided into five afternoon workshops to be held between October 15 and 19. Speakers for the workshop include MFSA staff members from the Banking Unit and Mag. Wolfgang Fend from the Austrian Financial Market Authority (FMA). Further details can be accessed from the training section on the MFSA website www.mfsa.com.mt.
International news - Definition of capital instruments for financial conglomerates
The Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have published a report on the possible impact of the differences in the definition of capital instruments provided for by the European banking, insurance and securities regulation, for the supervision of a conglomerate. This assessment has been produced by the Interim Working Committee on Financial Conglomerates (IWCFC) in response to the Commission's call for advice on Sectoral rules on eligible capital and analysis of the consequences for supervision of financial conglomerates.
The report focuses on the impact of the key differences flagged by the industry, the treatment of hybrids (including the limits) the different approaches to deductions, the treatment of unrealised profits and revaluation reserves. The exercise used the three methods of calculation as laid down in the Financial Conglomerates Directive. The impact analysis confirms that the key differences can have an impact in the composition and amount of regulatory capital of a financial conglomerate. The Financial Conglomerates Directive (FCD) does not increase, nor alleviate, nor eliminate the differences in capital that are driven by the Sectoral differences. This is valid across the three methods of consolidation allowed by the FCD.
In the next few months, together with market participants, the IWCFC will reflect on the rationale behind the Sectoral differences and how to address these differences in Sectoral rules from a financial conglomerates perspective.
Licences issued September 2007
(i) Collective Investment Scheme
Licence issued to Altma Fund SICAV plc, in respect of two sub-funds. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Swiss Investment Funds SICAV plc. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Spectrum Fund (SICAV). This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to 21st Century Investments SICAV plc. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Celsius Global Funds SICAV plc in respect of one sub fund to carry out the activities of a Maltese UCITS.
(ii) Enrolled Insurance Managers
Island Insurance Management Services Limited was granted enrolment in the Managers List to act as an insurance manager.
Consumer education programmes
The MFSA is continuing its efforts to step up consumer education in financial services. Between October and December 2007, the consumer complaints manager will be participating in radio and TV programmes focused at enhancing Maltese consumers' knowledge of financial services. During these TV and Radio programmes, the consumer complaints manager will also be tackling consumer issues coming out from the Markets in Financial Instruments Directive which will be coming into force shortly.
The consumer feature on RTK Radio will start on October 9, at 3.30 p.m., during the programme Irrid nistaqsi which also includes phone-ins. The MFSA will participate during the TV programme Tant Iehor! aired on One TV at 11.30 a.m., that is also a live programme during which the public may phone in to ask general questions on financial services. The MFSA will also be participating on Net TV's breakfast show La qomna qomna! at 7.45 a.m. and during Chatroom, a discussion programme for youths also aired on Net TV.
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).
MFSA website: www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: www.mfsa.com.mt/consumer
A two day conference in Malta in November is expected to attract the major European players in captive insurance. Organised by RIRG, the Risk and Insurance Research Group, The Malta Insurance Rendezvous will be held on November 13 and 14 at the Hilton.
It will focus on European captive insurance issues for risk managers and CFOs and has been designed specifically to update companies considering Malta as a location for their captives. An exciting line-up of presentations from key players in the industry complement an exceptional networking opportunity and a chance for risk managers to meet industry experts.
This event has been targeted at UK and European risk managers, financial officers and captive owners interested in direct writing opportunities, brokers from all UK and European regions, captive managers and standard insurance service providers such as accountants, investment managers and lawyers.
Malta was chosen as a location for this seminar since the island has emerged as an attractive captive location since joining the EU in May 2004. Malta has already attracted considerable interest from leading captive management firms.
The Rendezvous will be chaired by Paul Obolensky, president of AIG Insurance Management Services Worldwide. The speakers will include senior representatives of European regulators, the European Commission as well as industry players.
Joe Bannister, chairman of the MFSA said: "The Malta Insurance Rendezvous comes at an important time for the onshore insurance industry. Malta is now firmly established as a serious alternative jurisdiction for captives and insurance companies seeking a domicile inside the EU. The Maltese insurance services sector has registered impressive growth over the last two years as the world's leading insurance managers set up operations and blue chip, multinational companies followed to establish their operations in the country. Equally impressive is the industry's ability to reach high levels of sophistication in professional service provision normally associated with jurisdictions that have been around for much longer. With its formidable line-up of speakers, the Malta Rendezvous will therefore bring a fresh insight into the key issues that concern the industry today and those that will shape its future"
The conference brochure and details about registration can be downloaded from www.rirg.com/MaltaAgenda.aspx.
MFSA accepted as IOPS member
The Malta Financial Services Authority has been accepted as a governing member of the International Organisation of Pension Supervisors (IOPS).
Formed in July 2004, IOPS is an independent international body representing supervisory authorities responsible for regulating private pension arrangements.
The organisation currently has around 60 members and observers representing over 50 countries and territories worldwide. IOPS' main objective is to improve the quality and effectiveness of the supervision of private pension systems throughout the world, thereby enhancing their development and operational efficiency, and allowing for the provision of a secure source of retirement income in as many countries as possible. The organisation cooperates closely with other international organisations involved in pension supervision policy development and dialogue, including the OECD, World Bank, ISSA, IAIS and IMF. MFSA chairman Joe Bannister, said: "Membership of IOPS comes at an important time for the MFSA, which is currently in the final stages of evaluating the outcome of wide ranging consultations on a new regulatory framework for occupational and personal pension arrangements supervision that will supersede
The Special Funds (Regulation) Act of 2002. Membership of IOPS will enhance the development and implementation process relating to the proposed Retirement Pensions Bill and further ensure that Malta can provide the optimum regulatory infrastructure for this type of financial service." In December 2006, IOPS adopted a set of Principles for Private Pension Supervision identifying good practice which can be applied universally. The MFSA is also a member of the Committee of European Insurance and Occupational Pensions Supervisors which it joined in 2004.
Forthcoming training events
The MFSA in collaboration with various training institutions is working on a number of training sessions for the financial services industry:
The Institute of Directors Malta, (IOD) has announced a series of corporate governance workshops for company directors in terms of their personal liability and accountability.
The Four Seasons Director Training Programme is being supported by the MFSA's Education Consultative Council. The first of its 11 workshops will be held on October 13. The programme will help participants identify the tasks required to build a strong board and focus on good corporate governance, improving company strategy, defining long-term vision, developing strategic plans, monitoring performance and dealing with a variety of stakeholders.
The programme builds on the role of directors and the voluntary guidelines for Corporate Governance that was issued by the MFSA in 2006. It also links with the corporate governance issues that have been the subject of increasing stakeholder attention and scrutiny over the past decade in response to the very public collapse of a number of North American and European public companies.
Speakers for the workshop include Sir Keith Bright, Victor Hughes, Jonathan Rice, Peter Barratt, Edwin Ward and Marlene Mizzi.
Meanwhile, the Programme on Financial Services Operations and Compliance which is administered by the MITC in collaboration with the MFSA and Enterprise LSE is also scheduled to commence during the first week of October. The programme is targeting 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 will also attract former employees who wish to re-enter the financial services market.
Information seminar on the Capital Requirements Directive
The MFSA in collaboration with the Technical Assistance Information Exchange Instrument (TAIEX) of the European Commission is organising an information seminar about the main changes to local legislation brought about by the Capital Requirements Directive. The aim of this training is to provide practitioners in the financial services industry with the necessary briefing with regards to the amendments related to the Capital Requirements Directive to be included in primary legislation, namely the Banking Act and the respective banking rules which are issued by the MFSA. The programme is divided into five afternoon workshops to be held between October 15 and 19. Speakers for the workshop include MFSA staff members from the Banking Unit and Mag. Wolfgang Fend from the Austrian Financial Market Authority (FMA). Further details can be accessed from the training section on the MFSA website www.mfsa.com.mt.
International news - Definition of capital instruments for financial conglomerates
The Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have published a report on the possible impact of the differences in the definition of capital instruments provided for by the European banking, insurance and securities regulation, for the supervision of a conglomerate. This assessment has been produced by the Interim Working Committee on Financial Conglomerates (IWCFC) in response to the Commission's call for advice on Sectoral rules on eligible capital and analysis of the consequences for supervision of financial conglomerates.
The report focuses on the impact of the key differences flagged by the industry, the treatment of hybrids (including the limits) the different approaches to deductions, the treatment of unrealised profits and revaluation reserves. The exercise used the three methods of calculation as laid down in the Financial Conglomerates Directive. The impact analysis confirms that the key differences can have an impact in the composition and amount of regulatory capital of a financial conglomerate. The Financial Conglomerates Directive (FCD) does not increase, nor alleviate, nor eliminate the differences in capital that are driven by the Sectoral differences. This is valid across the three methods of consolidation allowed by the FCD.
In the next few months, together with market participants, the IWCFC will reflect on the rationale behind the Sectoral differences and how to address these differences in Sectoral rules from a financial conglomerates perspective.
Licences issued September 2007
(i) Collective Investment Scheme
Licence issued to Altma Fund SICAV plc, in respect of two sub-funds. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Swiss Investment Funds SICAV plc. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Spectrum Fund (SICAV). This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to 21st Century Investments SICAV plc. This Fund is a Professional Investor Fund targeting Qualifying Investors.
Licence issued to Celsius Global Funds SICAV plc in respect of one sub fund to carry out the activities of a Maltese UCITS.
(ii) Enrolled Insurance Managers
Island Insurance Management Services Limited was granted enrolment in the Managers List to act as an insurance manager.
Consumer education programmes
The MFSA is continuing its efforts to step up consumer education in financial services. Between October and December 2007, the consumer complaints manager will be participating in radio and TV programmes focused at enhancing Maltese consumers' knowledge of financial services. During these TV and Radio programmes, the consumer complaints manager will also be tackling consumer issues coming out from the Markets in Financial Instruments Directive which will be coming into force shortly.
The consumer feature on RTK Radio will start on October 9, at 3.30 p.m., during the programme Irrid nistaqsi which also includes phone-ins. The MFSA will participate during the TV programme Tant Iehor! aired on One TV at 11.30 a.m., that is also a live programme during which the public may phone in to ask general questions on financial services. The MFSA will also be participating on Net TV's breakfast show La qomna qomna! at 7.45 a.m. and during Chatroom, a discussion programme for youths also aired on Net TV.
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).
MFSA website: www.mfsa.com.mt
Registry website: http://registry.mfsa.com.mt
Consumer website: www.mfsa.com.mt/consumer