On the 8th of July 2025, the MFSA published a Consultation Document proposing amendments to the Capital Markets Rules for Wholesale Security Markets applicable to the Institutional Financial Securities Market (hereinafter referred to as the “IFSM”), a regulated market operated by the Malta Stock Exchange dedicated to wholesale securities with a minimum denomination of €100,000 per security.
The proposed revisions pursue two main objectives: firstly, to modernise and streamline the IFSM Rulebook; and secondly, to introduce specific provisions relating to Sukuk, being Islamic financial instruments compliant with Shariah law.
1 – Proposed amendments to the Capital Markets Rules applicable to the IFSM
As part of the MFSA’s efforts to modernise the regulatory framework of the IFSM rules, the MFSA is proposing a general restructuring of the Capital Markets Rules for Wholesale Security Markets to improve clarity, remove redundancies and enhance regulatory efficiency. The proposed amendments include (1) clarifying the scope of the rules; (2) the deletion of Chapter 2, Structure and Content of Prospectuses due to the coming into force of the Prospectus Regulation (EU) 2017/1129 which repealed the earlier Prospectus Directive and has direct effect; and (3) re-evaluating the role of listing agents so as to align the IFSM framework with the Sponsors Regime under the Financial Markets Act.
2- Introduction of provisions on Sukuk
In recognition of the increasing relevance of Islamic finance globally, the MFSA proposed the introduction of a dedicated regulatory framework to introduce Sukuk within the rules governing the IFSM. Sukuk are a type of financial instrument which comply with the principles of Shariah law. The proposed framework aims to integrate Sukuk in the broader IFSM regulatory regime by addressing specific requirements related to admissibility to listing, the approval of prospectuses and ongoing obligations. Through these measures, the MFSA seeks to provide legal clarity for issuers and investors engaging in Islamic finance, marking a strategic step towards positioning the Maltese financial market as more inclusive and diversified, capable of accommodating both conventional and Islamic capital market products.
The MFSA invited stakeholders to submit feedback on the proposed amendments by the 8th of August 2025. Following the closure of the consultation period, the compilation of feedback submitted by market participants is ongoing and it is anticipated that the MFSA will publish a Feedback Statement in this regard.
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