pc
nid 92589
May 18, 2026
tojuri@vixio.com
Malta
Malta Financial Services Authority
financial services
186% of draft length
draft in Generated
Generated
1538 chars(no TITLE: in output)
I appreciate your detailed instructions, but I must note that the source material provided does not contain the substantive content of the circular itself. The webpage excerpt consists primarily of navigation menus, header information, metadata, and site structure from the Malta Financial Services Authority (MFSA) website, with only a title and date visible.
The title indicates:
- **Document**: Circular to Payment Institutions and Electronic Money Institutions about the Safeguarding of Clients' Funds through the Investment in Secure Liquid Low-Risk Assets
- **Date**: May 13, 2026
- **Jurisdiction**: Malta
- **Authority**: Malta Financial Services Authority
However, the actual circular content—including specific requirements, guidance, effective dates, implementation timelines, and substantive regulatory details—is not included in the source material provided.
**To generate a compliant Horizon Scanning update, I would need:**
- The full text or substantive excerpts from the circular itself
- Details on what safeguarding requirements are being introduced or modified
- Specific guidance on eligible secure liquid low-risk assets
- Implementation or effective dates
- Any transitional provisions or compliance deadlines
- Clarification on whether this is new guidance or an amendment to existing requirements
Could you provide the complete circular content or a more detailed source document? Once available, I will generate a fully compliant update following all specified formatting, style, and structural requirements.
Agent draft
Not run yet.
Published
2868 charsMalta Financial Services Authority Publishes Circular on Safeguarding of Client Funds Through Investments
The Malta Financial Services Authority (MFSA) has issued a circular to payment and e-money institutions on safeguarding client funds through investments in secure, liquid, low-risk assets.
The circular provides guidance for institutions that choose to safeguard clients’ funds by investing them in such assets, as set out in Article 7(1A)(a)(i) or (ii) of the Financial Institutions Act (Safeguarding of Funds) Regulations .
Specifically, the MFSA provides guidance on investments in transferable securities (UCITS), particularly those that qualify as money market funds (MMFs). The MFSA considers the ‘secure, low-risk’ criteria to be met where:
The stated investment objective of the UCITS MMF is to invest in high-quality money market instruments; and
The portfolio holdings of UCITS MMFs principally consist of high-quality money market instruments.
The MFSA deems secure, low-risk assets to be 'liquid' if they meet the criteria set out in Chapter 3 of the Financial Institutions Rulebook:
Listed debt securities issued by EU governments or central banks; or
Other assets of equivalent quality and liquidity, as approved by the MFSA upon request.
The MFSA also details the ongoing considerations that institutions must fulfil, such as:
Testing the liquidity of the UCITS MMF through redemptions.
Adopting a prudent allocation with respect to the investment of the client’s funds in UCITS MMFs, justifying their intended allocation on the basis of historical data.
Having robust internal governance arrangements in place, including a responsible person or function to oversee the investment in the UCITS MMF, and carrying out daily monitoring of the UCITS MMF.
When institutions wish to invest clients’ funds in units of a UCITS MMF, they must submit the following to the MFSA, such as:
Any applicable offering documents relating to the specific fund / sub-fund in which the institution intends to invest.
The maximum percentage of safeguarded funds to be safeguarded in this manner, and the basis on which this percentage was determined.
An updated safeguarding policy reflecting the use of such a method of safeguarding.
A board resolution approving the revised safeguarding policy and the utilisation of such a method of safeguarding.
Information and documentation proving that the account to be set up with a custodian or depository, where the assets will be held, complies with the relevant requirements.
The list is non-exhaustive and is without prejudice to any additional documents that the MFSA may require on a case-by-case basis.
The guidance supersedes the expectations set out in the January 21, 2025, Dear CEO Letter regarding the assessment required to determine whether the underlying assets of a UCITS meet the 'secure low risk' and 'liquid' criteria.
Institutions may address any queries to the MFSA at fintechpolicy@mfsa.mt .