Contingency preparedness of Financial Institutions

Following the notice on the interim supervisory measures delineating the measures to be taken by the Malta Financial Services Authority (“MFSA”) in supervising licensed entities during the recent pandemic, the MFSA circulated another notice reminding financial institutions licensed under the Financial Institutions Act of the critical need to address the challenges posed by the spread of COVID-19 in their business continuity arrangements.
Financial institutions must ensure that their operational preparedness minimises the potential adverse effects of the spread of COVID-19 and that all necessary actions in responding to the pandemic scenario are ready for implementation. Financial institutions are also required to inform the MFSA with regards to:
Any adverse changes in customer behaviour;Imminent difficulties in ensuring the continuity of services; andAny activation of contingency plans.
Financial Institutions are also encouraged to communicate with critical service providers to understand and ascertain how services continuity shall be ensured during the pandemic scenario.
Feel free tocontact us if you require any further information in relation to business continuity arrangements.