MFSA issues Circular on Market Infrastructure Matters in relation to Brexit

Following the United Kingdom’s (“UK”) withdrawal from the European Union (“EU”), the Malta Financial Services Authority (‘MFSA’) has issued a circular which provides an update on governance and reporting obligations.

This update is relevant and applicable to all market participants, specifically those entities which fall within the ambit of the following securities markets’ regulations:

• 1.The Markets in Financial Instruments Directive (“MiFID II”) and The Markets in Financial Instruments Regulation (“MiFIR II”);
• 2.The European Markets Infrastructure Regulation (“EMIR”);
• 3.The Central Securities Depositary Regulation (“CSDR”);
• 4.The Alternative Investment Fund Managers Directive (“AIFMD”); &
• 5.The Money Market Funds Regulation (“MMFR”).

The UK’s withdrawal agreement states that, inter alia, during the transition period from 1 February 2020 to 31 December 2020, EU law will continue to apply to the UK as if it were still a Member State. Therefore, rights and obligations of UK entities under EU law will continue to apply, such as the reporting obligations emanating from the directives and regulations listed above.

The circular can be accessed by clicking on this link.