GVZH Newsletter - March 2025 Q1 Issue
We are delighted to introduce the first edition of our 2025 newsletter, featuring a selection of timely and thought-provoking legal insights. In this issue, we explore:
- Cross-Border Litigation in the EU: Simplifying dispute resolution for businesses
- Domestic Whistleblower Protection Laws: Ensuring compliance and fostering ethical corporate cultures
- Should Directors or Shareholders be Responsible for Representations & Warranties in a Share Purchase Agreement?
- Stablecoins in Europe
Our aim is to provide content that is both informative and practical, equipping you with valuable insights into key legal developments. We welcome your feedback as we continue to refine and enhance our publications.
We hope you find this edition engaging and insightful, serving as a useful resource in your professional endeavours.
Yours sincerely,
GVZH Advocates
Disclaimer: The content of this newsletter is for informational purposes only and should not be construed as legal advice.
Welcome to this quarter’s edition of our Legal & Compliance Bulletin, where we provide key updates on the latest legal, regulatory, and compliance developments shaping the industry. This edition features notable developments that may be relevant to your business, helping you stay informed and prepared for any changes in the legal landscape.
Below, you will find a summary of the most notable updates for this quarter:
Regulatory
MFSA
On February 13, the MFSA announced the launch of new initiatives following the publication of new regulations under the Investment Services Act. These initiatives expand options for establishing non-retail Collective Investment Schemes (see website circular).
The Capital Requirements Regulation 3 (CRR3) became directly applicable to all EU Member States since 1st January 2025. CRR3 is part of the EU’s Banking Package 2021, which implements the final Basel III reforms in Europe.
IDPC
In February 2025, the European Commission published guidelines on prohibited artificial intelligence practices, providing a framework for organizations to align their AI systems with EU standards (more information including the draft guidelines here).
MGA
On 21st February 2025, the MGA enhanced its regulatory oversight approach for 2025, aimed at strengthening its supervision of the online gaming sector while promoting transparency with stakeholders.
The first set of Annual Financial Reports (highlighting unaudited key financial figures extracted from the licensees’ financial statements) for operators whose financial year end is 31stDecember, is due by 28th February 2025.
On 27thFebruary, Malta’s Superior Court affirms jurisdictional integrity, rejecting Austrian gambling loss claims due to conflicts with EU law and Maltese public order.
FIAU
FIAU have released the 2025 Risk Evaluation Questionnaire (REQ 2025) that will be available on the Compliance and Supervision Platform for Assessing Risk (CASPAR) portal, for all subject persons to complete as from 3rd March 2025.
Legislative
By February 2, 2025, all prohibited AI practices under the EU AI Act must be withdrawn from the market. Businesses operating AI systems should assess compliance to avoid potential penalties.
Cross-border disputes have become increasingly common, and this can often lead to complex challenges when litigation extends across multiple jurisdictions.
Under Maltese law, a whistleblower is an employee who makes a disclosure to a whistleblowing reporting officer or a whistleblowing reports unit.
Should Directors or Shareholders be Responsible for Representations & Warranties in a Share Purchase Agreement?
In any Share Purchase Agreement (SPA), Representations and Warranties play a crucial role in allocating risk between the buyer and the seller. They serve as assurances about the state of the company being acquired, highlighting known risks and providing the buyer with a degree of certainty and confidence in the transaction.
Has the EU inadvertently caused destabilised stablecoins in its attempt to provide stability and clarity? Stablecoins play a pivotal role in the financial system as it bridges the gap between traditional financial systems and the cryptocurrency market, offering a more stable alternative to volatile assets such as Bitcoin.