GTG - Malta Law Firm

The Less is More Report is timely & it exposes the unchecked regulatory inflation within the EU financial sector, highlighting how European Supervisory Authorities (ESAs) are eroding institutional balance by expanding their mandates beyond legal bounds. I would like to express a serious concern tied with the above. The European Securities and Markets Authority (ESMA) in particular seems intent to be the next European Banking Authority (EBA), expanding its powers despite clear legal limits particularly under MiCAR. Its overreach isn’t new. The European Commission has already reprimanded it for outsourcing standards under DORA. The report confirms this dangerous shift. By positioning itself as the de facto enforcer of broad crypto-asset oversight, European Securities and Markets Authority (ESMA) is effectively attempting to shape policy rather than merely enforce it. This overreach aligns with concerns raised in the Less is More report, which identifies the shifting of normative power away from EU co-legislators towards ESAs and highlights the institutional imbalance this creates. The Commission’s rebuke under DORA should have served as a warning, yet ESMA appears undeterred. Rather than exercising caution and respecting the carefully crafted division of regulatory powers, it continues to seek opportunities to embed itself deeper into areas where its legal competence is, at best, ambiguous. The result is a creeping regulatory encroachment that risks undermining the legal certainty necessary for stable financial markets. The broader concern here is the erosion of the EU’s institutional balance. The Less is More report identifies multiple instances where ESAs have overstepped their mandates, raising serious concerns about democratic oversight and institutional accountability. The report strongly advocates for strengthening political control over ESAs and limiting the scope of their soft law interventions & provides a comprehensive set of recommendations to curb this trend, including reforms to the governance of ESAs, enhanced judicial review mechanisms, and stricter adherence to the principles of proportionality and legal certainty. It also confirms that ESAs are increasingly bypassing co-legislators, undermining legal certainty. Regulators must enforce, not legislate. Institute of Financial Services Practitioners FIMA Financial Institutions Malta Association Malta Financial Services Authority (MFSA) GTG - Malta Law Firm Jonathan Galea #ESMA #Regulation #MiCAR #DORA #Fintech #FinancialMarkets #EUlaw #Compliance #RegulatoryOverreach #InstitutionalBalance

𝐓𝐡𝐞 𝐔𝐬𝐞 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐛𝐲 𝐌𝐚𝐥𝐭𝐞𝐬𝐞 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 Share capital plays a crucial role in a company's financial structure, providing the foundation for #growth, #operations, and #expansion. Under the #CompaniesAct, businesses have flexibility in utilizing share capital, but this comes with legal responsibilities and safeguards. Directors must carefully manage share capital, balancing flexibility with #compliance to protect both the company and its #stakeholders. Learn more in our latest article: https://lnkd.in/dThHHYgN #GTG #CorporateLaw #ShareCapital #BusinessGrowth Josef Cachia Fenech Gonzi l Sarah M. Vella

𝐀𝐝𝐯𝐚𝐧𝐜𝐢𝐧𝐠 𝐀𝐬𝐬𝐞𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚: 𝐌𝐅𝐒𝐀’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞𝐬 The Malta Financial Services Authority (MFSA) has announced two key initiatives that will broaden structuring options for non-retail Collective Investment Schemes (CIS) while enhancing flexibility and efficiency in Malta’s asset management sector: 𝐒𝐩𝐞𝐜𝐢𝐚𝐥 𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐅𝐮𝐧𝐝𝐬 (𝐒𝐋𝐏𝐅) – A new fund structure without separate legal personality, offering an alternative to the existing limited partnership framework for non-retail funds. 𝐄𝐱𝐭𝐞𝐧𝐬𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐍𝐨𝐭𝐢𝐟𝐢𝐞𝐝 𝐏𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐅𝐮𝐧𝐝 (𝐍𝐏𝐈𝐅) 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 – Now extended to self-managed funds, allowing fund promoters to benefit from a faster onboarding process and regulatory efficiency. These initiatives reinforce Malta’s position as a competitive and innovative financial services hub, attracting fund managers and international investment. https://lnkd.in/d8MXa_wp #GTG #FinancialServices #Investment #Malta Josef Cachia Fenech Gonzi l Neil Gauci

𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐚𝐬 𝐚𝐧 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐭𝐨 𝐁𝐚𝐧𝐤 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚 In Malta, businesses heavily rely on bank financing, but capital markets offer a viable alternative. By issuing #shares (equity) or #bonds (debt securities), companies can access long-term funding, diversify financial sources, and potentially reduce costs without the strict conditions of traditional bank loans. While capital markets involve regulatory requirements and market risks, listings on the Malta Stock Exchange plc and the Prospects MTF have been rising, supported by regulatory and financial incentives. For businesses seeking growth and financial flexibility, this funding route is worth exploring. Feel free to reach out for further information or assistance - 𝗶𝗻𝗳𝗼@𝗴𝘁𝗴.𝗰𝗼𝗺.𝗺𝘁 https://lnkd.in/d_BWRmQ7 #GTG #CapitalMarkets #MaltaFinance #BusinessGrowth #FundingOptions Josef Cachia Fenech Gonzi l Karl Cauchi

Preparing for Your Warrant Examination? Join us for Mastering Your Warrant, an interactive Q&A session designed to help you approach the exam with confidence. This session will feature legal professionals from various fields, providing valuable insights, answering questions, and addressing any concerns regarding the exam. Whether you require guidance on legal principles, exam techniques, or practical applications, this is an excellent opportunity to gain clarity and enhance your preparation. 📅 Date: Friday, 7th March 📍 Location: CHBO-206 🕒 Time: 6:30 PM Use the link below to register your place https://lnkd.in/dV54mV_R GTG - Malta Law Firm WH Partners

𝐄𝐒𝐌𝐀 𝐎𝐩𝐞𝐧𝐬 𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐧 𝐂𝐀𝐒𝐏 𝐒𝐭𝐚𝐟𝐟 𝐂𝐨𝐦𝐩𝐞𝐭𝐞𝐧𝐜𝐞 The European Securities and Markets Authority (ESMA) is seeking feedback on new knowledge and competence requirements for CASP staff under #MiCAR to enhance investor protection. Key highlights: ✅ Minimum knowledge standards on crypto-assets, DLT & regulations ✅ Ongoing CPD – at least 10 hours per year ✅ Annual competence reviews for compliance Feedback is open until 22 April 2025. https://lnkd.in/dP7g4nWK #GTG #MiCAR #CASP #Compliance #Financialservices #FinTech #Regulation Cherise Abela Grech l Neil Gauci

Excited to share that Dr Ian Gauci will be speaking at the upcoming Gaming Leaders' Summit, taking place from May 20-21, 2025, at Hilton Syon Park, London, UK. The Payments, Fraud & Compliance Gaming Leaders' Summit is shaping up to be a must-attend event for industry professionals, bringing together top experts to explore the evolving landscape of #gaming, #payments, and emerging #technologies. Clarion Events l Laura Lewis https://lnkd.in/eC_F_aNK

𝐃𝐚𝐭𝐚 𝐏𝐬𝐞𝐮𝐝𝐨𝐧𝐲𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧: 𝐀𝐆 𝐒𝐩𝐞𝐢𝐥𝐦𝐚𝐧𝐧’𝐬 𝐎𝐩𝐢𝐧𝐢𝐨𝐧 𝐨𝐧 𝐭𝐡𝐞 𝐄𝐃𝐏𝐒 𝐯 𝐒𝐑𝐁 AG Spielmann has challenged the General Court’s approach in the EDPS v SRB case, reinforcing that pseudonymized data remains personal data if re-identification is possible whether by the recipient or another party. He criticized the court’s focus on whether Deloitte (the recipient) could identify data subjects, instead arguing that the obligation to inform applies at the point of data collection. If the Court of Justice follows his reasoning, this could reshape the interpretation of Regulation 2018/1725 and the transparency obligations of data controllers. With the final ruling pending, the decision could have major implications for data protection practices across the EU. https://lnkd.in/dCGC2N5y #GTG #DataPseudonymization #DataProtection #DataPrivacy Ian Gauci l Terence Cassar l J.J. Galea

If you’re ready for a legal career in a stimulating and innovative environment, we’d love to hear from you! https://lnkd.in/dQVu2YJk

IMP: Key takeaways from the ENISA Threat Landscape report on the finance sector. The latest #ENISA Threat Landscape report for the finance sector paints a stark picture: cyber threats targeting financial institutions are more aggressive and sophisticated than ever. 🔹 488 reported cyber incidents—European banks were the primary targets (46%), followed by government finance entities (13%) and individuals (10%). 🔹 DDoS attacks on the rise—58% targeted banks, many linked to geopolitical events. 🔹 Data breaches & leaks—A top concern, exposing sensitive data, triggering financial loss, and regulatory penalties. 🔹 Social engineering scams booming—Phishing, smishing, and vishing campaigns affecting individuals (38%) and financial institutions (36%). 🔹 Fraud and crypto-related cybercrime surging—From deepfake scams to AI-powered fraud, financial crime is evolving fast. 🔹 Ransomware & malware threats persist—Service providers (29%) and insurance firms (17%) hit hardest, causing financial losses and operational disruption. 🚨 The takeaway? Financial institutions must step up their cybersecurity game: ✅ Invest in advanced threat detection and incident response ✅ Strengthen regulatory compliance (GDPR, NIS2, DORA) ✅ Enhance employee training and multi-factor authentication ✅ Fortify third-party risk management to protect supply chains ✅ Foster collaboration and intelligence sharing across the sector The stakes have never been higher. Cyber resilience isn’t optional—it’s mission-critical. GTG - Malta Law Firm #CyberSecurity #Finance #ENISA #DataBreach #CyberThreats #Ransomware #FraudPrevention #DORA #NIS2 #CyberResilience #RiskManagement #Fintech