Circular by the MFSA on the Conduct of Business Rulebook Revisions

24 Jul 2019

The Malta Financial Services Authority (the "MFSA") has recently published an updated version of the Conduct of Business Rulebook (the "Rulebook") originally issued by the MFSA in December 2017, and which changes have become effective as of the 11th of July 2019. The changes to the Rulebook include the following:

 

  1. Requirements applicable to the Securities Sector

  • Binary Options - The measures proposed in the Consultation Document issued by the European Securities and Markets Authority (“ESMA”) relating to product intervention measures in relation to binary options have been included in the Rulebook.  Also, a definition of ‘Binary Option’ has been included in the Glossary of the Rulebook.

  • Shareholders Rights Directive II - New disclosure requirements have been included in the Rulebook regarding the encouragement of long-term shareholder engagement. 

  • Definition of Regulated Person - The definition of ‘Regulated Person’ has also been amended in order to exclude ‘CRR Local Firms’, whilst a definition of the latter has also been added to the Glossary.

 

2. Requirements applicable to all Regulated Persons

  • Marketing Rules - A number of new Requirements applicable to all Regulated Persons have been amended indicating that advertisement or information must include specific reference to the identified target market. 

  • Telephone Contact with Clients - The Regulated Person is required to keep a record of the client’s verbal consent requested at the beginning of the conversation, in order to be contacted by the regulated person telephonically.

  • Record Keeping Requirements – Minutes of face-to-face conversations with clients may be recorded by means which are technologically permissible.

 

Please feel free to contact us if you require further information on the Conduct of Business Rulebook revisions.

 

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