An academic paper, titled “Establishing an EU internal market for depositaries”, a collaborative work between MFSA Chief Officer Supervision, Christopher P. Buttigieg, Head of Financial Stability, Joseph Agius and Senior Analyst within the Supervisory ICT Risk and Cybersecurity function, Sandra Saliba was published in The Journal of Financial Regulation and Compliance.
The paper examines the rationale for the establishment of a depositary passport as the next logical step in building an internal market for investment funds in the European Union (EU). It makes the point that the de facto prohibition of depositary passporting poses risks to financial stability and has an adverse impact on investor protection in EU member states, which do not have a fully developed funds industry.
Based on the review of the current EU legal framework, the paper, subsequently, puts forward possible solutions, which have been discussed with various experts in the field for the establishment of an internal market for depositary business.
Subscribed members can read the paper here.