Insights

In this issue:

• ECB Publishes Annual Report for 2018 Supervisory Activities
• Common Rules for Crowdfunding Platforms
• Updates to the Depositor Compensation Scheme (Amendment) Regulations
• EBA Central Register of Payments and E-Money Institutions
• Circular to Credit Institutions and Branches on Changes to Submissions of ITS on Supervisory Reporting Date
• ECON Draft Report on the Proposal for a Directive on Credit Servicers, Credit Purchasers and the Recovery of Collateral
• MFSA and FIAU Join Forces and Publish a Consultation Document on a New Set of Guidelines on the Opening of Accounts for Fintech Companies

ECB Publishes Annual Report for 2018 Supervisory Activities

On 21 March 2019, the ECB published its annual report on supervisory activities for 2018 which report highlights the ECB’s key achievements during the same year under the single supervisory mechanism. The ECB also published a speech on such report highlighting the SSM supervisory priorities for this year, including:

1. the reduction of the stock of non-performing loans;
2. the improvements to banks’ internal processes for capital and liquidity adequacy (ICAAP and ILAAP processes); and
3. an assessment of the banks’ resilience to liquidity shocks, and an introduction of new measures to examine IT and cyber risks.

Report

Common Rules for Crowdfunding Platforms

On 27 March 2019, the European Parliament adopted its position on the Commission’s proposals for common rules for crowdfunding platforms across Europe. The Commission had initially published the original draft regulation (the “Crowdfunding Regulation”), which proposal is not intended to replace national regimes. The proposed Regulation will primarily ‘scale up’ crowdfunding services while further augmenting access to finance particularly for start-ups and SMEs. Another objective of the same is to bestow investors with all the necessary information on crowdfunding.

Proposal

Forecast

Updates to the Depositor Compensation Scheme (Amendment) Regulations 

The DCS Regulations have recently been amended by Parliament through Legal Notice 43/2019. One of the main amendments states that e-money and funds received in exchange for e-money, were added to the list of non-eligible deposits. Furthermore, another legislative update relates inter alia to the contribution levels by the members of the scheme.

Outline of DCS Amendments

EBA Central Register of Payments and E-Money Institutions

The EBA has recently launched its central electronic register under the PSD2 which serves as a public, freely accessible and source of aggregated information on passporting, payment, electronic money institutions and agents within the EU. Its main objectives revolve around the notions of transparency and the safeguarding of consumer protection within the European Single Market. The content of the central register ultimately mirrors the content of the national registers across the EU. The national competent authority is responsible for the accuracy of the information provided and to update the same information at least once a day.

Electronic Register

Circular to Credit Institutions and branches on changes to submissions of ITS on Supervisory Reporting date

On 22 March 2019, the MFSA issued a circular to all credit institutions and branches relating to changes to be implemented by entities when submitting ITS on Supervisory Reporting data to the Authority. The circular focuses mainly on the reporting requirements and applicable templates, the XBRL file naming convention and the ZIP file naming conventions. It is key to highlight that the Authority expected the respective institutions to abide by the new sets of obligations and procedures outlined in the same circular.

Circular

ECON draft report on the proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral

The Committee on Economic and Monetary Affairs of the European Parliament has recently issued a draft report on the proposal for a directive of the European Parliament and of the Council on credit servicers, credit purchasers and the recovery of collateral. Rapporteurs de Lange and Gualtieri suggest various amendments to the draft directive including, without limitation, the deletion of Title V, which section outlines the framework for accelerated extrajudicial collateral enforcement.

Draft Report

MFSA and FIAU join forces and publish a consultation document on a new set of guidelines on the opening of accounts for Fintech companies

Inspired by the risks inherent in the Fintech market, the MFSA and the FIAU issued a Guidance Document for Credit Institutions, Payment Institutions and Electronic Money Institutions opening accounts for FinTechs. The rationale behind this Guidance Document, which is subject to consultation, aims to make these institutions aware of the risks of any prospective customers who are active in technology reliant areas.

This Consultation is open to the public until 30 April 2019.

Guidance Document