The Malta Financial Services Authority ('MFSA') has revised Chapter 3 of its Financial Institutions Rulebook ('FIR/03'), to strengthen the regulatory framework for payment institutions, as well as e-money institutions. Following consultations with stakeholders, the updated rules, along with the Financial Institutions ('FI') Return and guidance notes, have been now published. Feedback from the previous consultations has been also published highlighting and summarising the key points extracted as well as the resulting adjustments made.
The new FIR/03 will be implemented in two (2) stages:
- Stage 1 (15th October 2024): The implementation of most provisions except those relating to governance and safeguarding requirements. These requirements were already included in the previous version of FIR/03.
- Stage 2 (15th December 2024): The implementation of governance and safeguarding requirements, which are considered as being new requirements.
The current rules (FIR02 and FIR03) will be phased out, with FIR02 remaining applicable for some institutions until further notice.
This development highlights the MFSA's efforts to modernise financial regulations in Malta, with a particular focus on the payments and e-money sectors. It is also noteworthy that, by adopting a phased approach, institutions are being given ample time to adapt to the new rules.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
