MFSA publishes New Chapter 3 of the VFA Rulebook ahead of MiCA

The Malta Financial Services Authority (MFSA) has just published a circular outlining that the new version of Chapter 3 of the VFA Rulebook shall become applicable in two stages.

Over the summer, various amendments were proposed to Chapter 3 of the VFA Rulebook (via a consultation process) to align the current requirements applicable to VFA Service Providers in Malta with the provisions in the Markets in Crypto-Assets Regulation (MiCA). Following feedback, the MFSA determined that it would be best for the updates and any deletions in the new Chapter 3 of the VFA Rulebook to apply as set out in the tables below.

Stage 1 – Applicable date: 1 January 2024

Requirement under Chapter 3 of the VFA Rulebook
New updates or removal of requirements

Systems Audit
(Title 2, Section 1, Sub-Section 4 & R3-3.1.6.6)
Removal

IT Audit
(Title 2, Section 1, Sub-section 5 & R3-3.1.6.7)
New updates

Prudential
(R3-2.2.3.4.3 & Title 3, Section 3)
New updates

Reporting: Risk Management and the Internal Capital Adequacy Assessment Report
(R3-3.5.4.5)
Removal

Conduct of Business
(R3-3.4.1.3 – R3-3.4.1.5)
New updates

Client Categorisation
(R3-3.4.3.3)
Removal

Stage 2 – Applicable date: 1 July 2024

Requirement under Chapter 3 of the VFA Rulebook
New updates or removal of requirements

Outsourcing
(R3-3.1.6.4)
New updates

Orderly Wind-Down Plan
(Title 3, Section 1, Sub-Section 8)
New updates

Supplementary Conditions applicable to Specific VFA Services
(Title 3, Section 2)
New updates

Conduct of Business
(R3-3.4.1.6)
New updates

The above illustrates that the MFSA has continued its efforts for Malta to be well equipped and ready for the implementation of MiCA ahead of applicable deadlines.

VFA Service Providers should also note that:

The MFSA will shortly issue an updated VFASP Return. VFA Service Providers will need to submit the updated VFASP Return at the end of Q1 2024 in line with reporting obligations.
From January 2024, the MFSA will begin contacting VFA Service Providers in Malta.

The objective is to discuss the implementation of MiCA (and any issues with ensuring compliance by VFA Services Providers) as soon as possible.