MFSA publishes Chapter 3 of the Financial Institutions Rulebook

Following the consultation document issued on 21 May 2024, the MFSA has today issued the revised Chapter 3 of the Financial Institutions Rulebook (the “new FIR/03”) along with the new Financial Institutions Return and Guidance Notes.

The new FIR/03 is due to become applicable in two stages, with the first stage being applicable as from 15 October 2024 and the second stage being applicable as from 15 December 2024.  It should be noted that the requirements of the first stage consist of aspects which payment institutions and electronic money institutions are currently required to adhere to.  The second stage, which relates to aspects on governance and safeguarding, requires more work by payment institutions and electronic money institutions in order to ensure that they are compliant by the date when such requirements come into effect.

The current financial institutions Rules FIR/02 and FIR/03 will cease to be applicable to entities falling within scope of the new FIR/03.  Licence holders are urged to start assessing their applicability to the requirements as soon as possible to ensure compliance by the applicable deadline.

Author: Paul Falzon (Senior Regulatory Advisor, Ganado Advocates)