MFSA updates industry on temporary measures in the event of a 'no-deal' Brexit

In the light of the developments related to the withdrawal of the United Kingdom from the European Union, the MFSA announced that it will be issuing further communication on a number of aspects involving the carrying out of activities by the relevant stakeholders in the financial services sector. This communication is in addition to a number of circulars already published over the past months.

Any communication issues by the MFSA should be interpreted in the context of a 'no-deal' exit scenario (unless otherwise specifically stated to the contrary) and will provide updates on any transitional measures taken, to ensure that licensed entities can continue their business in the various sectors with minimal disruption.

The upcoming Circulars, said the MFSA, will also address situations where UK entities are currently providing services to Maltese clients, and may include conditional equivalence status in particular scenarios and other measures, as may be permitted by the applicable EU regulation.

Measures taken, continued the MFSA, will be of a temporary nature and remain subject to any decisions and further recommendations as may be made by the three European Supervisory Authorities (EBA, EIOPA and ESMA) in terms of EU law.

Meanwhile, licensed entities are encouraged to continue providing the MFSA with timely and accurate information on any potential consequences envisaged with regard to services provided, in the event that the UK leaves the EU without a withdrawal agreement. 

Today, the MFSA issued the first Circular, aimed to provide an update to UK licensed investment funds, asset managers and investment firms passporting to Malta.