Share on LinkedInShare on LinkedIn

ARTICLE · 29 APRIL 2015

MIFID II - ESMA Issues Consultation Paper On Draft Guidelines On Complex Debt Instruments And Structured Deposits

GVZH Advocates
GVZH Advocates
Contributor
GVZH Advocates

GVZH Advocates

GVZH Advocates is a modern and sophisticated legal practice comprised of top-tier professionals,...

View firm profile
Explore more from GVZH Advocates

On the 24th March, 2015, ESMA issued a consultation paper on draft guidelines it developed for the assessment of the complexity of...

MaltaFinance and Banking
GVZH Advocates
GVZH Advocates
Author LinkedIn connections

On the 24th March, 2015, ESMA issued a consultation paper on draft guidelines it developed for the assessment of the complexity of:

  • Bonds, other forms of securitised debt and money market instruments incorporating a structure which makes it difficult for the client to understand the risk involved; and
  • Structured deposits incorporating a structure which makes it difficult for the client to understand the risk of return or the cost of exiting the product before term. 

The guidelines are intended to enhance investor protection and are important for the correct classification of MiFID debt instruments (bonds, securitised debt and money market instruments) and structured deposits as either 'complex' or 'non-complex'.

The consultation will run until the 15 June 2015 following which date ESMA will consider all comments received. It is anticipated that the final guidelines will be published during the fourth quarter of 2015.

www.csb-advocates.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Read more about

Related Comparative Guides

See more popular content from

Article

The Travel Rule – An Effective AML/CFT Tool Or An Expensive Data- Protection Liability?

The Travel Rule, originating from FATF Recommendation 16, has evolved from traditional wire transfers to encompass virtual asset service providers, with the EU's Transfer of Funds Regulation now in full effect. As compliance costs mount and payment infrastructures multiply, critical questions emerge about the financial burden on licensed institutions, data protection risks, and whether these regulations effectively combat money laundering and terrorist financing.
MaltaFinance and Banking
MK Fintech Partners
MK Fintech Partners
Article

Publication Of Commission Delegated Regulation Implementing Key Prospectus Reforms Under The EU Listing Act

The European Commission has published new delegated regulations amending the EU prospectus disclosure regime, introducing streamlined content requirements and standardized formats for various categories of prospectuses. These reforms, part of the broader EU Listing Act package, aim to reduce regulatory burdens for issuers while maintaining investor protection, with key changes including reduced historical financial information requirements and simplified disclosure obligations.
European UnionFinance and Banking
Ganado Advocates
Ganado Advocates
Article

MFSA Formalises Supervisory Expectations On Bank Dividend Distributions

The Malta Financial Services Authority has issued new guidance to credit institutions outlining supervisory expectations for dividend distributions, emphasizing prudent capital planning and financial resilience. While not introducing new regulatory requirements, the circular formalizes current supervisory practices and provides detailed documentation requirements for banks proposing distributions at both institutional and holding company levels.
MaltaFinance and Banking
Ganado Advocates
Ganado Advocates
Article

Savings And Investments Union: What Does It Mean For Malta?

Malta's Permanent Representative to the EU, Neil Kerr, examines how the proposed Savings and Investments Union differs from the Capital Markets Union and explores its potential impact on Malta's high household savings rate. The discussion addresses whether this EU initiative can effectively channel Malta's substantial savings into more productive investments while respecting national competencies and market proportionality.
MaltaFinance and Banking
Finance Malta
Finance Malta
Article

CRD VI And Cross-Border Lending: What Third-Country Credit Institutions Need To Know

The European Union's Sixth Capital Requirements Directive introduces a groundbreaking EU-wide framework requiring third-country credit institutions to establish authorised branches when providing core banking services within the EU. This new regime, effective January 2027, replaces the previous patchwork of national rules with harmonised supervisory standards, though several exemptions and transitional protections apply to existing arrangements.
MaltaFinance and Banking
Camilleri Preziosi
Camilleri Preziosi
Article

MFSA Revises Regulatory Framework For CFD And Rolling Spot Forex Providers

The Malta Financial Services Authority has introduced significant amendments to its Investment Services Rules affecting firms offering contracts for difference and rolling spot forex contracts. These changes streamline authorisation requirements, align capital thresholds with EU frameworks, and recalibrate governance expectations while removing certain prescriptive obligations that have been superseded by broader European legislation.
MaltaFinance and Banking
Mamo TCV Advocates
Mamo TCV Advocates
Article

Malta Opens A New Runway For Aircraft Financial Leasing With MFSA’s Proposed Rulebook

Malta's aviation finance sector is poised for significant expansion as the MFSA introduces a groundbreaking consultation on new rules for aircraft financial leasing companies. The proposed Article 3B framework offers an alternative pathway for companies to enter the aircraft leasing market without full licensing requirements, while maintaining robust regulatory oversight through a notification-based system with ongoing compliance obligations.
MaltaFinance and Banking
Finance Malta
Finance Malta
Article

Harmonised Regulatory Reporting Framework Ready For Introduction In 2027

The Malta Financial Services Authority and the Financial Intelligence Analysis Unit are introducing a Harmonised Regulatory Reporting Framework to eliminate overlapping data requests and reduce operational burdens for financial services companies. The new framework will standardise domestic regulatory returns and create a unified ecosystem to minimise data errors, with mandatory implementation set for January 2027.
MaltaFinance and Banking
Finance Malta
Finance Malta
Article

Schools In Malta For Expat Families: A Relocation Guide To Education – Part 2

Relocating to Malta with children raises important questions about school enrolment, language requirements, and eligibility for public education. This comprehensive guide addresses the most common concerns families face when navigating Malta's education system, from mid-year enrolment possibilities to documentation requirements and the role immigration status plays in accessing schools.
MaltaImmigration
GVZH Advocates
GVZH Advocates
Article

The Concept Of “Single Source” In The Equal Pay (Transparency And Reporting) Regulations

Malta's new Equal Pay Regulations introduce a restrictive 'single source' test for cross-employer pay comparisons that may conflict with EU law. This analysis examines whether Regulation 8's requirement that undertakings be under common control and carry out the same economic activity is compatible with the broader CJEU interpretation established in Lawrence and codified in Directive 2023/970.
European UnionEmployment and HR
GVZH Advocates
GVZH Advocates
Article

Managing Hybrid & Remote Work: Legal Pitfalls For Employers In Malta

Remote and hybrid work arrangements in Malta carry significant legal implications that extend far beyond operational convenience. Employers must navigate a complex web of employment protections, working-time regulations, data protection requirements, anti-discrimination duties, and cross-border tax considerations. Without proper contractual frameworks and compliance procedures, organizations risk employment claims, discrimination awards, regulatory enforcement action, and unexpected permanent establishment
MaltaEmployment and HR
GVZH Advocates
GVZH Advocates
Article

Malta Global Residence Programme (GRP) Vs Global Resident Status:  2027 Tax Rules Changes

Malta's Global Residence Programme (GRP) will be replaced by a new Individual Tax Programme from January 2027, introducing substantially higher entry requirements including increased minimum tax obligations and stricter property thresholds. Eligible applicants who submit applications before December 31, 2026 can secure grandfathered status under the current, more favorable GRP terms until 2031, potentially saving significant costs on application fees, property requirements, and annual tax minimums.
MaltaImmigration
GVZH Advocates
GVZH Advocates
Article

The Shift In The Burden Of Proof In Employment Discrimination Claims Under Maltese Law

Maltese employment law departs from the ordinary civil rule that claimants must prove their allegations when it comes to discrimination claims. Once an employee establishes facts suggesting discriminatory treatment, the burden shifts to the employer to prove the decision was lawful and non-discriminatory. This article examines the EU origins of this evidential framework, its implementation across multiple Maltese regulations, and how the courts have applied it in practice.
MaltaEmployment and HR
GVZH Advocates
GVZH Advocates
Article

Malta Tax Residence Certificate Vs GRP And TRP: Understanding The Difference

Many individuals mistakenly believe that obtaining beneficiary status under Malta's Global Residence Programme or The Residence Programme automatically qualifies them for a Malta Tax Residence Certificate. This article examines the critical legal and administrative distinctions between these two separate processes, explaining when and how individuals can successfully obtain a Tax Residence Certificate beyond their programme beneficiary status.
MaltaTax
GVZH Advocates
GVZH Advocates
Article

Legal & Regulatory Updates | June Issue

This quarterly bulletin consolidates significant legal, regulatory, and compliance developments across Malta's financial services, gaming, consumer protection, and data protection sectors. Key regulatory bodies including the MGA, MFSA, FIAU, MCCAA, IDPC, and FSSA have issued consultations, guidance, and enforcement updates addressing artificial intelligence governance, anti-money laundering standards, decentralised finance frameworks, and enhanced consumer protections. The updates reflect Malta's ongoing al
MaltaCorporate/Commercial Law
GVZH Advocates
GVZH Advocates