The Malta Financial Services Authority (MFSA) has just published a circular outlining that the new version of Chapter 3 of the VFA Rulebook shall become applicable in two stages.
Over the summer, various amendments were proposed to Chapter 3 of the VFA Rulebook (via a consultation process) to align the current requirements applicable to VFA Service Providers in Malta with the provisions in the Markets in Crypto-Assets Regulation (MiCA). Following feedback, the MFSA determined that it would be best for the updates and any deletions in the new Chapter 3 of the VFA Rulebook to apply as set out in the tables below.
Stage 1 – Applicable date: 1 January 2024
| Requirement under Chapter 3 of the VFA Rulebook | New updates or removal of requirements |
| Systems Audit (Title 2, Section 1, Sub-Section 4 & R3-3.1.6.6) |
Removal |
| IT Audit (Title 2, Section 1, Sub-section 5 & R3-3.1.6.7) |
New updates |
| Prudential (R3-2.2.3.4.3 & Title 3, Section 3) |
New updates |
| Reporting: Risk Management and the Internal Capital Adequacy Assessment Report (R3-3.5.4.5) |
Removal |
| Conduct of Business (R3-3.4.1.3 – R3-3.4.1.5) |
New updates |
| Client Categorisation (R3-3.4.3.3) |
Removal |
Stage 2 – Applicable date: 1 July 2024
| Requirement under Chapter 3 of the VFA Rulebook | New updates or removal of requirements |
| Outsourcing (R3-3.1.6.4) |
New updates |
| Orderly Wind-Down Plan (Title 3, Section 1, Sub-Section 8) |
New updates |
| Supplementary Conditions applicable to Specific VFA Services (Title 3, Section 2) |
New updates |
| Conduct of Business (R3-3.4.1.6) |
New updates |
The above illustrates that the MFSA has continued its efforts for Malta to be well equipped and ready for the implementation of MiCA ahead of applicable deadlines.
VFA Service Providers should also note that:
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- The MFSA will shortly issue an updated VFASP Return. VFA Service Providers will need to submit the updated VFASP Return at the end of Q1 2024 in line with reporting obligations.
- From January 2024, the MFSA will begin contacting VFA Service Providers in Malta.
The objective is to discuss the implementation of MiCA (and any issues with ensuring compliance by VFA Services Providers) as soon as possible.
Author: Mark Caruana Scicluna