The Malta Financial Services Authority (MFSA) has issued a circular on market infrastructure matters following the United Kingdom’s withdrawal from the European Union (EU) on the 31st January 2020. Entities regulated by the Markets in Financial Instruments Directive (MiFID II) or Markets in Financial Instruments Regulation (MiFIR), the European Market Infrastructure Regulation (EMIR), the Central Securities Depositories Regulation (CSDR), the Alternative Investment Fund Managers Directive (AIMFD) and the Money Market Funds Regulation (MMFR) are specifically addressed in the circular.
The circular has been issued following a public statement by the European Securities and Markets Authority (ESMA) on issues pertaining to governance and reporting obligations following this development. The circular states that according to the Withdrawal Agreement (WA), EU law will apply to the UK for the duration of the transition period from the 1st February 2020 until the 31st December 2020. Thus, UK entities will still be subject to all rights and obligations applicable under EU law. ESMA will also continue in its supervisory role of Credit Rating Agencies, Trade Repositories and Securitisation Repositories established in the UK for such period. ESMA’s public statement also states that further to the WA, UK representatives may no longer participate in EU institutions, agencies and governance structures, and ESMA will be monitoring developments and the application of EU law throughout the transition period.
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