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Beyond Sustainability Promises: ESMA Clarifies Impact and Climate Transition Claims
An investment fund may hold shares in a renewable energy company without necessarily contributing to the environmental benefits that company generates. Similarly, a fund may report a lower portfolio carbon footprint even when emissions from its investee companies have not fallen. These distinctions matter when sustainability-related claims are communicated to investors. On 27 October 2026, the Malta Financial Services Authority (“MFSA”) issued a circular drawing attention to two thematic notes published by the European Securities and Markets Authority (“ESMA”) on 12 October 2026. The notes address impact claims and climate transition claims made in non-regulatory communications, including marketing materials and…
Prediction Markets in Malta: Financial Instruments, Crypto-Assets or Bets?
Will a company's share price rise? Will a football team win its next match? Prediction markets allow people to trade contracts based on the outcomes of such events. While the concept may appear straightforward, the legal position is less so. Depending on the nature of the contract, what looks like a simple prediction could be treated as a financial instrument, a crypto-asset or a bet. On 19 October 2026, the Malta Financial Services Authority (“MFSA”) issued a circular on Prediction Markets and Event Contracts, clarifying how existing regulatory frameworks may apply to this increasingly prominent business model. What Exactly Are…
Merits of Article 325 Revisited: Carmel Cortis Constitutional Judgment
Introduction On 12 October 2023, the First Hall of the Civil Court, in its Constitutional Jurisdiction in Carmel Cortis et v. Office of the Prime Minister et (Rik. Nru. 21/19TA), held that the provisions of the Companies Act (Cap. 386 of the Laws of Malta) (the “Act”) through which the property of a company struck off the register as defunct devolves upon the Government of Malta breached the fundamental right to property protected by Article 37 of the Constitution of Malta and Article 1 of Protocol No. 1 to the European Convention on Human Rights (“A1P1”), as well as the…
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