On the 6th of September 2022, The Malta Financial Services Authority (the ‘MFSA’) issued a circular on Markets in Financial Instruments Directive (‘MiFID II’) and Markets in Financial Instruments Regulation (‘MiFIR’) - Updated Questions and Answers on MiFID II and MiFIR Transparency Topics.
This circular is addressed particularly to investment firms, credit institutions providing investment services and/or performing investment activities and market operators including any trading venues they operate and should be read in conjunction with MiFID II and MiFIR, the delegated regulations and previous circulars issued by the MFSA.
Purpose of the Circular
By means of this circular, the MFSA wishes to inform market participants that on the 5th September 2022, the European Securities and Markets Authority (‘ESMA’) has updated its Q&A document on practical questions regarding transparency, under MiFID II and MiFIR. The Authority noted that the purpose of this document is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR In relation to transparency topics. It provides responses to questions posed by the general public in relation to the practical application of the MiFID II and MiFIR requirements.
Updates to the Q&A Document
The Authority noted that the updated Q&As explains that transfers of financial instruments between a branch and its parent company or between two branches of the same legal entity are not subject to the transparency or transaction reporting requirements, as they do not induce change of the ownership of the financial instrument.
The Q&A document was specifically updated with the following question and answers:
Question 3: Are transactions executed between a branch and its head office subject to transparency requirements?
Answer 3: No, transfers of financial instruments between two branches of the same legal entity or a branch and its parent company are not subject to the transparency or transaction reporting requirements, as they do not entail a change in the ownership of financial instruments.
About the Author
This update has been authored by Dr Jan Killips Wright, Regulated Industries and Compliance Advisor. For additional information kindly contact us on [email protected].
