Shoulder Compliance

The Malta Financial Services Authority published its 'Supervision Priorities' for 2025 outlining its main supervisory and regulatory priority areas for the upcoming calendar year in alignment with current regulatory developments and priorities. 🔎 Company Service Providers (CSPs) 🔹 Outcome 1: Enhanced Risk Management The MFSA will intensify its focus on the effectiveness and resilience of the Risk Management function within selected CSPs. With CSPs being highly susceptible to various risks, the MFSA aims to ensure they have robust systems to manage financial and operational risks, safeguarding overall market integrity. 🔹 Outcome 2: Stronger Oversight on Directorship & Company Secretarial Services CSPs arranging directorship and company secretarial services must ensure effective oversight over individuals carrying out these roles. The MFSA will examine the quality of monitoring conducted to guarantee fiduciary obligations are fulfilled, promoting sound business practices in Malta. #MFSA #SupervisionPriorities2025 #CorporateGovernance #CompanyServiceProviders Shoulder Compliance

As expected, the European Commission has proposed changes to the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), which could significantly weaken the EU’s corporate sustainability reporting requirements. The Commission describes the current climate as a “new and difficult context” within which the CSRD and the CSDDD are now being implemented with specific reference to Russia’s war of aggression against Ukraine and trade tensions due to shifts in the geopolitical landscape. ❗ Key Changes to the CSRD: Key changes to the CSRD include a delay in mandatory reporting deadlines by 2 years and the narrowing of scope of the Directive. Under the Commission’s proposal, reporting obligations will only apply to companies with more than 1,000 employees and either a turnover above Euro 50 million or a balance sheet total above Euro 25 million. #SustainabilityReporting #CorporateAccountability #EURegulation

On February 24, 2025, marking the third anniversary of Russia's full-scale invasion of Ukraine, the European Union adopted its 16th package of economic and individual sanctions against Russia.  The latest package targets Russia's military and defense industries, its "shadow fleet" used to evade oil export restrictions, and entities involved in circumventing EU sanctions, including those in third countries supporting Russia's war efforts. It also sanctions propagandists spreading Kremlin-aligned misinformation and imposes asset freezes and travel bans on individuals and entities linked to the Russian government. Reach out for assistance with setting up an affective Sanctions Monitoring Program. Shoulder Compliance

MFSA's latest thematic review notes improvement but highlights key compliance challenges for Company Service Providers. Shoulder Compliance

Today, the MFSA published a ‘Dear CEO’ letter addressed to all Company Service Providers. This communication underscores the essential role of robust compliance functions in upholding the integrity and reputation of Malta’s financial sector. Key recommendations include implementing comprehensive internal controls, ensuring continuous staff training on regulatory obligations, and fostering a culture of compliance at all organizational levels. Shoulder Compliance

FIAU has announced the deadlines for this year's Risk Evaluation Questionnaire reporting cycles. Get in touch if you require any assistance.

Today is D-Day! The highly anticipated, inevitable (and much needed) day when DORA regulation kicks in. Yes, the Digital Operational Resilience Act (DORA) officially comes into force today, January 17, 2025. DORA is a key regulation in the European Union designed to enhance the operational resilience of financial entities against information and communication technology (ICT) risks. It establishes a harmonised framework to ensure that financial institutions can withstand, respond to, and recover from ICT disruptions. Preparing for disruptions covers much more than cyberattacks, as these could result from equipment failure, employee mistakes, competitors actions, misinformation, etc. Performing risk assessments, training users, and testing your recovery solutions are key! #cybersecurity #cybersecurityawareness #DORA Reach out to us on cyber@shoulder.mt for tailored assistance with your DORA compliance needs.

Welcoming back a wide range of financial services operators are eight new legal notices introducing higher MFSA licence application and subsequent annual supervisory fees. Such supervisory fees will continue increasing until 2029, with the first round of higher licence application fees and annual supervisory fees actually being due as from this year.   Below please find a link to each respective Legal Notice: - https://lnkd.in/dtpyqfnR - Trusts and Trustees Act (Fees) (Amendment) Regulations - https://lnkd.in/dqTbcVJw - Retirement Pensions Act (Fees) Regulations - https://lnkd.in/deCegqvc - Investment Services Act (Fees) Regulations - https://lnkd.in/dQfEkM3Y - Insurance Distribution Act (Fees) Regulations - https://lnkd.in/dUNGA3sB - Insurance Business Act (Fees) Regulations - https://lnkd.in/dN3j-Gsv - Financial Markets (Fees) Regulations - https://lnkd.in/dfp7jf6r - Financial Institutions (Fees) (Amendment) Regulations - https://lnkd.in/dV8g6FHW - Credit Institutions (Fees) (Amendment) Regulations Should you wish to discuss the changes brought about by such Legal Notices or find ways to optimize your compliance costs, please feel free to reach out on info@shoulder.mt

2024 was a special year for us at Shoulder Compliance. This was the year we celebrated our fifth birthday and threw a very nerdy bash to celebrate the occasion. But more important was everything else did during the year. This was the year we expanded our mission. We started off in 2019 with the goal of helping you safeguard your business and reputation against financial crime risk. Now we embrace a broader mission: we want to help companies safeguard against risk more broadly defined, and grasp the opportunities that are to be found along the way. To this end, we launched two new practices: (i) Information Security, led by Jonathan Cassano and (ii) Governance & Public Sector, led by Roberta Avellino Pulè. These practices join our existing Anti-Financial Crime and Regulatory Compliance practices, enabling us to offer increasingly holistic second line of defence services. Along the way, we worked on scores of projects. We handled supervisory inspections, recalibrated technical systems, carried out enhanced due diligence exercises, provided operational support to compliance teams, and helped clients take scores of complex decisions seeking that fine balance between commercial agility and sustainability. Perhaps most importantly, we built an incredibly strong and tightly knit leadership team. Always ready to go with ideas, energy, and a 100% well intentioned remark about my hairline. And that’s not all. Our heads are brimming with ideas, some half-formed, some nearly ready to be announced. But new things can wait a while longer, as we take a break, reflect and celebrate in the company of friends and family. If our paths have crossed throughout this year, thank you for your trust and friendship. If they haven’t yet, a whole new year lies ahead. Thank you, and happy new year. 

Dear Clients and Colleagues, Thank you for your trust and support throughout the year. Now we sign off for a few days of family and rest. We look forward to seeing you all next year, full of energy and optimist for new challenges and opportunities. We wish you all a very happy Christmas 🎄