The Malta Financial Services Authority (“MFSA”) has launched a consultation on proposed amendments to the Capital Markets Rules applicable to the Institutional Financial Securities Market (“IFSM”), a regulated market operated by the Malta Stock Exchange for wholesale securities with a minimum denomination of €100,000.
The initiative aims to modernise and streamline the current regulatory framework, making it more practical and aligned with recent legal and market developments.
Key highlights of the proposed changes include:
1. Clarifying Scope and Application:
The revised rules define “professional securities” and reinforce that only non-equity securities with a denomination per unit of at least €100,000, and which are only acquired and traded by qualified professionals or advised investors, fall within the IFSM remit.
2. Deletion of Chapter 2 – Prospectus Structure:
Chapter 2 of the Capital Markets Rules for Wholesale Securities Markets which was originally designed to reflect the Prospectus Directive, is set for removal. This reflects the shift to the directly applicable Prospectus Regulation (EU) 2017/1129, which has rendered the chapter redundant.
3. Re-evaluating the Role of Listing Agents:
Under the proposals, the current Listing Agent role will be replaced by MFSA-registered sponsors. This change is part of a broader initiative to enhance the Sponsors’ Regime. The new structure aims to streamline sponsor responsibilities in line with the distinct nature of the IFSM, while maintaining proportional regulatory expectations.
This consultation aims to gather stakeholder perspectives on the MFSA’s proposed changes to the Capital Markets Rules applicable to the IFSM and the MFSA is welcoming feedback from interested parties by 8th August 2025.
Comments can be submitted via email to [email protected].
The full Consultation Document and the draft revised Capital Market Rules can be accessed here.
