On the 14th February 2022, the Malta Financial Services Authority (“MFSA”) issued a circular notifying investment services providers of the changes carried out to the Conduct of Business Rulebook (the “Rulebook”), originally issued by the MFSA on the 20th December 2017.
Further to the introduction of provisions to the Rulebook in January 2020 relating to the selling of subordinated eligible liabilities to retail clients, the MFSA has introduced further amendments to extend the protections to retail clients involved in the purchase of eligible liabilities to those retail investors purchasing other instruments qualifying as own funds or bail-inable liabilities.
In this regard, the new Rule ‘R.4.1.50’ in the Rulebook applies all the requirements applicable to the selling of subordinated eligible liabilities also with respect to Additional Tier 1 instruments and Tier 2 instruments sold to retail clients.
Moreover, the glossary to Rulebook has been updated to include the definitions of ‘Additional Tier 1 instruments’ and ‘Tier 2 instruments’.
Do not hesitate to contact us should you require more information or assistance on the above.