The Central Bank of the Republic of San Marino has initiated a public consultation on the following draft regulation:
Reg. Miscellaneous of Targeted Interventions for Revision to Existing Supervisory Provisions.
The planned measures include, in summary and in the order set out in the draft provision, the following:
(a) the equalization of weighting factors applicable to ABS, whether related to system securitizations (differentiating based on whether the security holder is an originator or not), self-securitizations (where the securitization is initiated by the same entity holding the ABS), or any other type of credit securitization (distinguishing between senior, mezzanine, and junior tranches);
b) the authorization for San Marino payment institutions and e-money institutions (IMELs) to open segregated technical accounts for payment processing with banks outside San Marino, provided these banks are domiciled in an EEA member state (and thus PSD2-compliant) or in a jurisdiction with a bilateral supervisory cooperation agreement under Article 103 of the LISF;
(c) the requirement for authorized entities to publish their consolidated financial statements on their website, in line with the provisions introduced by CBSM Regulation No. 2023-04, effective from the 2024 financial year;
d) the extension of the authority to promote, organize, or accredit qualification and/or continuing education courses for the trustee profession - valid for registration or ongoing membership in the relevant Register - to other San Marino entities, such as trade associations, the Chamber of Commerce, and the University;
(e) the reduction of the minimum annual mandatory training hours for professional trustees from 20 to 15, allowing for legitimate impediments (such as pregnancy, serious illness, injury, etc.), accompanied by corresponding certification requirements (supplementing the attached standard self-declaration form);
f) the removal of the specific insurance requirement for financial promoters, who already operate under the full responsibility towards their clients on behalf of the financial enterprises they represent;
(g) the simplified restructuring of paragraph 4 of Article 5 of Regulation 2008-01 to align its scope with the taxonomy that distinguishes between life and non-life insurance at the European level;
(h) the introduction of clarifying regulations regarding:
- the rating to be applied to debt securities issued by insurance companies to cover technical reserves, with the aim of enhancing the protection of policyholders;
- the importance of negative references from other authorities, including foreign entities, in assessing the ownership structures and management representatives of financial institutions, particularly concerning potential associations with criminal organizations
The consultation will end on JANUARY 22, 2024.
Any contributions may be sent to the following email address:
vigilanza.regolamentare@bcsm.sm
with the subject line "Miscellaneous Regulations - Consultation."