Banking & Fintech Newsletter – Issue no.4 (June 2019) Authors: Leonard Bonello, James Debono Published on June 19, 2019 In this issue: CJEU’s AG opines on the Consumer Credit Directive MFSA issues circular to licence holders and applicants for a licence relating to the submission of applications EBA publishes its 2018 Annual Report VFA Agent approved courses and AML/CFT approved courses for VFA Issuers and VFA Service Providers FIAU publishes notice relating to the registration of entities licensed to provide VFA services CJEU’s AG opines on the Consumer Credit Directive A CJEU preliminary ruling concerns the interpretation of the Consumer Credit Directive (2008/48/EC) in particular on the matter as to whether consumer is entitled to a reduction in the credit on an early settlement. The preliminary request related to Article 16 of the aforementioned directive which has been described as obscure and which does not easily lend itself to an interpretation which is satisfactory. The Advocate General affirmed that this Article 16(1) must be not construed in a broad manner but that it must be interpreted as meaning that, “if a consumer has made an early repayment, the reduction to which that consumer is entitled may concern costs for which the amount does not depend on the duration of the credit agreement”. Opinion MFSA issues circular to licence holders and applicants for a licence relating to the submission of applications The MFSA issued the circular on the last day of May with important updates useful to licence applicants. The circular inter alia related to the new dedicated centralised emails which applicants must use when submitting applications for the granting of a licence or other authorisation, and extensions or changes to existing licences, including requests for the appointment of individuals to any position requirement regulatory approval, or the acquisition of shares in a licence holder. Other updates relate to the online personal questionnaire form, the process applicable to changes to constitutional or offering documentation of collective investment schemes and the process for the appointment individuals to an approved position. Circular EBA publishes its 2018 Annual Report In May, the European Banking Authority published the Annual Report for the year 2018 while providing an outline what the supranational authority worked on during the same year. Among other remarks, the EBA mentioned its focus on its delivery of technical standards and guidelines under PSD2 and how it work with other EU authorities to tackle non-performing loans in the EU. It also mentioned its efforts in the FinTech space and its commitment in developing a framework aimed at improving the effectiveness of anti-money laundering and countering the financing of terrorism supervision across the EU. Report VFA Agent approved courses and AML/CFT approved courses for VFA Issuers and VFA Service Providers The MFSA published two circulars outlining the approved courses (i) for the purpose of the Competence Assessment of Designated Persons and Administrators of the VFA Agent and (ii) for the purpose of fulfilling the competence requirements for Money Laundering Reporting Officers in terms of Chapter 2 and Chapter 3 of the Virtual Financial Assets Rulebook. VFA Agents Approved Courses AML/CFT Approved Courses for VFA Issuers & VFA Service Providers FIAU publishes notice relating to the registration of entities licensed to provide VFA services The notice, which is addressed to VFA Agents duly licensed by the MFSA, states that the registration on the Compliance and Supervision Platform for Assessing Risk (CASPAR) is now available. The FIAU also provided further detail on CASPAR and instructions relating to the registration. Go back