The Malta International Training Centre (MITC) has hosted a group of African participants on an Insurance Supervision Training Programme held at the Excelsior Hotel between the 22nd and 25th July 2009.

Sixteen participants from the respective supervisory organisations in Uganda, Kenya and Tanzania attended the programme, which consisted of presentations made by local practitioners in the field of Insurance Supervision.

Specifically, the programme content included technical aspects which financial officers of insurance companies need to know in order to understand the operations of insurance companies, the risks to which these companies are exposed, and the regulatory practices used by the regulator to ensure compliance with legislation. Policies and procedures relating to on-site and off-site supervision were also presented, providing local practice as a base for discussion. The programme also delved into IFRS reporting as a tool to help in the better understanding of the operations of insurance companies.

At the end of the four-day programme, Andre Farrugia, Director of Studies of the Malta International Training Centre and Ms Cheryl Bruce, Economic Adviser Economic Affairs Division - International Finance & Capital Markets Section, presented attendance certificates to the participants.

The Commonwealth Secretariat of the UK sponsored the expenses of the full programme.

International Financial Crime Forum

Malta will be hosting an International Financial Crime Forum on November 11 and 12, 2009. The forum will be examining the current issues affecting financial fraud, due diligence and financial intelligence. The interactive forum is held annually by the ICC Financial Investigation Bureau (FIB) and is this year being organised in collaboration with the Financial Intelligence Analysis Unit (FIAU) and the MFSA.

The Forum is established as an essential component in the yearly conference calendar of those responsible for managing and avoiding risk in today's financial environment. The aim of this forum is to present delegates with the latest fraud trends and developments, and assists them in dealing with financial crime, money laundering and counter terrorism financing issues.

The Forum is ideal for FIB members, national Financial Intelligence Unit (FIU) representatives and compliance officers from other financial sector institutions.

Further information can be obtained by e-mail from Charlene Ciantar on cciantar@mfsa.com.mt.

Company Registration Fees in respect of small companies

In reply to a number of reports appearing in the local papers the MFSA has stated that as a result of legal notice 354 of 2008, the fees in respect of small companies ‘with an authorised share capital of up to EUR1,500,' were reduced from €349 to €245 (a 30% decrease).

In the case of electronically filed registrations, these fees have been further reduced to EUR210 (that is, an overall reduction of 40%). Likewise, companies with the same share capital have has their Annual Return fees reduced from €163 to €100, amounting to a decrease of 38% (and €85 or 47% less, if filed electronically). As regards larger companies, a company with an authorised share capital of €115,000 would pay a registration fee of €880 (a 24% increase over the old fee of €710) and €744 for electronic registration (a 4.8% increase over the old fee of €710).

Fees have also been reduced for the registration of Annual Returns by companies with a share capital of up to €10,000 and for the electronic registration of companies with a share capital of up to €5,000. The Annual Return fee for a company with an authorised share capital of €115,000 has increased from EUR326 to €600 €510 if filed electronically), while for a company with an authorised share capital of €100,000 this has increased from €326 to €400 (€340 for electronic filing).

Consultations underway

(i) EU Consultations

The European Commission is currently consulting on responsible lending and borrowing and on the final report of the Expert Group on Credit Histories. The following are the links to the two consultations:

(i) Consultation on responsible lending and borrowing (information available at: http://ec.europa.eu/internal_market/finservices-retail/credit/responsible_lending_en.htm). The EU has launched this consultation in an attempt to tackle credit market risks that were at the the root of the current financial crisis. The consultation covers, amongst other things, the advertising and marketing of credit products, the pre-contractual information provided, ways to assess product suitability and borrower creditworthiness, advice standards, responsible borrowing and issues relating to the framework for credit intermediaries (e.g. disclosure, registration, licensing and supervision).

(ii) Consultation on the final report of the Expert Group on Credit Histories (information available at: http://ec.europa.eu/internal_market/finservices-retail/credit/history_en.htm)

Interested parties are invited to send their comments to the Commission by 31 August 2009 (instructions on the Consultations website at http://ec.europa.eu/internal_market/consultations/index_en.htm).

A public hearing on responsible lending and borrowing will be held in Brussels on 3 September 2009 to discuss with stakeholders the most appropriate policy responses to the challenges faced by borrowers and the financial services industry, and to draw together the main conclusions from the consultation. A draft agenda is available at: http://ec.europa.eu/internal_market/finservices-retail/credit/responsible_lending_en.htm.

(ii) CESR Consultations

• CESR is currently consulting on Level II implementing measures related to the UCITS Management Company Passport.

This consultation paper sets out CESR's draft advice on the following areas: (i) Organisational requirements and conflicts of interest; (ii) Rules of conduct; (iii) Measures to be taken by a depositary of a UCITS managed by a management companies (iv) Risk Management; and (v) Supervisory co-operation.

The deadline for contributions is September 4, 2009.

• CESR is also consulting on Technical Advice at Level II on the format and content of Key Information Document disclosures for UCITS

This consultation paper sets out CESR's draft advice on the following areas: (i) Format and presentation; (ii) Objectives and investment policy; (iii) risk and reward; (iv) Charges; (v) Performance presentation; (vi) Practical information; (vii) Circumstances in which the KID should be revised (viii) Special Cases - how the KID might be adapted for particular fund structures; and (ix) Costs and benefits.

The deadline for contributions is September 4, 2009.

All contributions should be submitted online via CESR's website under the heading ‘Consultations' at www.cesr.eu. All contributions received will be published following the close of the consultation, unless the respondent requests their submission to be confidential.

(iii) CEIOPS Consultations

CEIOPS is currently consulting on the second set of consultation papers on Solvency II Level 2 Implementing measures. The Consultation Papers are available on the CEIOPS website www.ceiops.eu - Consultation Papers (Vide 2009 Consultation Papers - Open for comments). CEIOPS invites stakeholders to send their contributions, by September 11, 2009, via e-mail, in English to secretariat@ceiops.eu">secretariat@ceiops.eu, using exclusively the templates for comments made available by CEIOPS.

CEBS publishes draft guidelines on ‘liquidity buffers'

European regulators earlier this month proposed a system of rules to force banks to hold a month's worth of cash and other liquid assets in case of financial crisis.

The committee of European Banking Supervisors (CEBS) published draft guidelines on a system of so-called "liquidity buffers", which would ensure banks held sufficient cash, government bonds or other investments eligible to swap for central bank funding, to cope with a bank run or other emergency, such as the freezing-up of wholesale funding markets.

Banks are concerned that their profitability will be hit hard if the rules on liquidity buffers are too strict - the more cash they are forced to hold in a buffer, the less financing they have available for their core business.

But CEBS' proposals were welcomed by industry experts. Simon Gleeson, regulatory partner at Clifford Chance, said: "This is a very difficult area. Unlike capital strength, where there is broad industry agreement, there is absolutely no consensus on the issue of liquidity."

Alongside minimum capital requirements, liquidity management has been a key area of regulatory focus in the wake of the financial crisis of the past two years. Several bank failures - from Northern Rock to Lehman Brothers and the Icelandic banks - involved liquidity problems, where banks that were unable to refinance themselves in capital markets simply ran out of cash.

CEBS' initiative is likely to set the tone for broader international regulation.

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).

New Licences issued in June/July

(i) Collective Investment Scheme (CIS) Licences

• Additional CIS licence issued to NBCG Fund SICAV plc in respect of three sub-funds. These funds are Professional Investor Funds targeting Qualifying Investors.
• Additional CIS licence issued to FMG Funds SICAV plc in respect of one sub-fund. This fund is a Professional Investor Fund Targeting Experienced and Qualifying Investors.

Surrender of Collective Investment Scheme licence

• Surrender of CIS licence by The Scottish Capital Protected Fund SICAV in respect of its 46 sub-funds.

(ii) Investment Services

Surrender of Investment Services Licence

• Surrender of Category 1 IS licence by Raiffeisen Malta Bank Public Company Limited.

(iii) Trusts and Trustees

• Authorisation issued to Custom House Global Fund Services Limited to receive property under trust and to act as a trustee or co-trustee.
• Authorisation issued to Dominion Fiduciary Services (Malta) Limited to receive property under trust and to act as a trustee or co-trustee.

Extension of Licence

• Authorisation issued to DF Corporate Services Limited was extended to the provision of trustee services.

(iv) Insurance Business

Extension of Licences

• Authorisation issued to Elmo Insurance Ltd was extended to carry on in Malta business of insurance in a further class of general business.
• Authorisation issued to Setana Insurance Company Ltd was extended to carry on in Malta business of reinsurance in a further two classes of general business.