News and developments
The New Banking Rule 25 on the Financial Holding Companies and Mixed Financial Holding Companies Regime
BR/25 provides further detail to the banking industry in relation to the requirement in Article 21a of Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019 amending Directive 2013/36/EU (“CRDV”) relating to the approval or exemption of financial holding companies and mixed financial holding companies (the “(M)FHCs”) which are, inter alia, part of a banking group. Article 21a of CRDV had been transposed in the Banking Act (Chapter 371 of the Laws of Malta) (the “Banking Act”) through Article 11B and Article 29AA [1].
BR/25 contains two annexes to be submitted to the MFSA, that is, Annex I which provides for the Application Form/s and Annex II which provides for the Annual Declaration Form (see further information below). It is to be noted that BR/25 and the Annexes came into force on the 28 July 2022.
The following (M)FHCs (as each is defined in the Banking Act) fall within scope of BR/25:
Authors: Catherine Formosa, Caroline Gauci August 1, 2022
[1] https://ganado.com/news/practice-news/approval-or-exemption-from-approval-of-mixed-financial-holding-companies/
- Parent financial holding companies;
- Parent mixed financial holding companies;
- EU parent financial holding companies;
- EU parent mixed financial holding companies; an
- Other financial holding companies and mixed financial holding companies, which do not fall within (a) to (d) above and which are required to comply with the CRD and Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (the “CRR”) on a sub-consolidated basis.
Authors: Catherine Formosa, Caroline Gauci August 1, 2022
[1] https://ganado.com/news/practice-news/approval-or-exemption-from-approval-of-mixed-financial-holding-companies/