According to Oberthur.com, 65% of the total card fraud represents online “card-no-present” transaction frauds due to the rise of e-commerce around the world. However, OT has developed a ready-to-go solution for banks and financial institutions.
What does the solution include?
This solution basically includes a card issuance and the server that secures online transactions by shortening the validity of the cryptogram security code : MOTION CODE™. Dynamic Security Code cards feature a mini-screen on the back of the card. It displays the security code (a 3 or 4-digit code usually printed onto the back of a payment card) used for online purchases.
Furthermore this code is refreshed randomly and automatically every hour, even without the card-holders having to press any button or install any special plug-in on their internet browser. On the other hand, if the card data gets stolen, that card data becomes useless in the following hour.
Good news for E-merchants is, that the won’t have to modify their websites, because the cryptogram code generated by the card is used as a standard one, on existing payment pages without actually any need for extra button or pop-up window of any kind.
Full article
With more than a 100% increase in 2016, the number of newly established securitization vehicles in Malta is on the rise making Malta more and more attractive in the securitization market. Below are just some of the benefits of setting up this type of structure on our sunny island. Seruritisation: Why Malta?
Maltese legal framework offers a unique combination of benefits for investors. All securitization transactions are regulated by several regulations:
- The Securitization Act (chapter 484 of the laws of Malta)
This Act is also supported by:
- Securitization Transaction (Deductions) Rules, Subsidiary Legislation number 123.128 of the Laws of Malta, and
- Securitization Cell Companies Regulations, Subsidiary Legislation 386.16 of the Laws of Malta.
How does it work?
Securitization is the financial practice of pooling various types of contractual debt or other non-debt assets that generate receivables into a single asset-backed security (or mortgage backed in case of bonds), and selling their related cash flow to third parties.
What type of structure can be used?
The types of securitization transactions that can be included within a Maltese securitization vehicle are vast: from synthetic risk transfer securitization to multiple asset-classes such as credit card receivables, lease/charter payments for aircraft and ships, passing through income/loyalty streams for intellectual property assets like copyrights, trademarks and patents, present assets or future assets, movable or immovable. These are just some of the types, the range of possibilities is much broader, and they all are covered under the license of the MFSA.
What are the rights for securitization creditors?
Some enforcement power on the sale?
The Act requires a “true sale” in asset securitization transaction. The transfer of a securitization vehicle is valid and enforceable on its term, and at the same time it is not subject to the claims of the originator’s creditors in insolvency or otherwise.
Bankruptcy risk?
Securitization vehicles established under Maltese law are bankruptcy remote from the originator by operation of the law. There is an express disposition in the Act which states that no proceedings taken in relation to the originator under any law will have effect on the securitization vehicle, on the securitization assets acquired or any other asset of the securitization vehicle.
Any priority right?
Under Maltese Law, creditors and investors can also benefit from a first ranking privilege with regards to all assets held by the securitization vehicle (except for other securitization creditors to whom the priority was given with the consent of the investors).
Contact
Simona Angotzi
Corporate Administrator
simona.angotzi@whitenovember.com
Simona Angotzi is a Corporate Officer in White November Group Corporate Department.
European Commission proposes new approach to business insolvency in Europe: promoting early restructuring to support growth and protect jobs. The European Commission is for the first time presenting a set of European rules on business insolvency.
Main Elements
The proposed Directive focuses on three main elements:
- Common principles on the use of early restructuring frameworks, that will help companies continue their activity and preserve jobs.
- Targeted measures for Member States to increase the efficiency of insolvency, restructuring and discharge procedures, which will reduce the excessive length and costs of procedures in many Member States. That results in legal uncertainty for creditors and investors and low recovery rates of unpaid debts.
- Rules to allow entrepreneurs to benefit from a second chance. They will be fully discharged of their debt after a maximum period of 3 years. Currently, half of Europeans say they would not start a business due to fear of failure.
New Rules
The new rules will observe the following msin principle in order to ensure insolvency and restructuring frameworks are efficient and also consistent throughout the EU:
- Training, specialisation of practitioners and courts, and also the use of technology (e.g. notifications to creditors, online filing of claims) will significantly improve the efficiency and length of insolvency, restructuring and second chance procedures.
- Companies in financial difficulties (especially SMEs) will have access to early warning tools in order to detect a deteriorating business situation and ensure restructuring at an early stage.
- New financing will be specifically protected increasing the chances of a successful restructuring.
- Flexible preventive restructuring frameworks will simplify lengthy, complex and costly court proceedings. Additionaly, where necessary, national courts have to be involved to safeguard the interests of stakeholders.
- Dissenting minority creditors and shareholders will not be able to block restructuring plans on one hand. On the other hand their legitimate interests will be safeguarded.
- The debtor will benefit from a time-limited” breathing space” of a maximum of four months from enforcement action to facilitate negotiations and also successful restructuring.
- Workers will enjoy full labour law protection in accordance with the existing EU legislation throughout the preventive restructuring procedures.
As it was decided on Thursday 23rd June by 52% of voters, UK is about to leave the European Union. Unfortunately, this decision will have profound impacts on implications for the UK’s financial services industry. There are several consequences that might cause huge inconveniences. Once of them is a potential loss of passporting rights for UK banks and financial institutions.
Worst case scenario – UK banks and Institutions might me be treated as “third country” institutions under EU law.
Due to the fact, that UK is most probably not going to join the EEA or obtain a bilateral arrangement for access for certain sectors, the loss of passporting rights for UK banks and financial institutions seems highly probable.
“While UK banks and financial institutions may be able to access the single market in financial services, many questions remain around if and when agreements between the EU and the UK will be put in place and whether such agreements will form part of exit negotiations.”
Banks
Currently, UK banks operate across the EEA on a freedom of establishment basis and freedom of services. As third country institutions, the most evident result of Brexit will be the loss of these passporting rights; with UK banks no longer allowed to provide banking services on a cross-border basis which might cause significant restrictions on the ability of UK banks to directly engage with EEA customers, potentially limiting them to providing services on a reverse solicitation basis.
On one hand, UK banks may be able to access the EEA market on a country-by-country basis through the establishment of local branches. On the other hand, UK banks could establish subsidiaries in the EEA that could passport their services into other Member States, although even this approach is not without questions. Let us help you to find a solution.
Payment and e-Money Institutions and Fintech Companies
Neither the e-money Directive nor the Payment Services Directive provides for specific access rights for third country institutions on a branch basis or otherwise. The rules relating to access for third country branches of payment and e-money institutions may therefore vary significantly between Member States. Although the E-Money Directive provides for agreements with one or more third countries it is not clear if or when such an arrangement could be put in place between the EU and the UK.
Investment firms
Regarding payment and e-money institutions, the access regime for third country investment firms is not currently harmonised. Due to this fact, it will be necessary for UK investment firms to examine establishing a branch as a non-EU investment firm in each Member State. Let us help you to find a solution.
Furthermore, the current MiFID regime hasn’t harmonized provisions on access for branches of third country investment firms, Directive 2014/65/EU (“MiFID II”), that is going to be implemented across the EEA from 3rd January 2018, seeks to harmonize the requirements for approving branches of third country investment firms. Such branches would still lack one of the fundamental advantages of EU and EEA branches, for example the ability to provide services in other Member States.
For UK retail investment firms trying to operate in the EU, it will be necessary to go through the third country branch approval process in every Member State which the institution would like to operate in. “The establishment of a subsidiary may therefore remain a more attractive option following the implementation of MiFID II for retail firms. For non-retail firms it would be possible to register with ESMA under MiFIR and provide services in the Member States.”
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