Company Service Providers (CSPs) are crucial within the financial services industry in Malta since they serve as gatekeepers for the Malta Financial Services Authority (MFSA) when encountering persons seeking to carry out business activities in Malta. Such CSPs ensure that only persons who are considered fit and proper are encouraged to entering the financial system. The MFSA has launced a Consultation document proposing various reforms to the CSP Framework and its main take-aways are outlined hereunder.
The MFSA’s Consultation Document proposes revisiting the regulatory framework for CSPs extending its scope to eliminate any existing supervisory gaps and harmonise market entry requirements. All persons providing CSP services shall require authorisation to do so. Moreover, the said document outlines several novel requirements imposed by the MFSA aimed to ultimately raise raise standards for CSPs .
Hereunder please find outlined a summary of the pertinent changes being proposed in the MFSA’s Consultation Document.
Class B: License holders authorized to provide any CSP service but not the provision of professional assistance in the submission of applications for licensing/authorization (EUR 50,000 + mandatory PII)
Class C: Any CSP service (Eur 150,000 + mandatory PII)
The above-mentioned points are in no way exhaustive, but provide a brief overview of what is to be expected for CSPs should this Consultation Document be followed through. Interestingly, there is no mention of transitory provisions outlining how entities/ individuals operating a business today shall blend into the new regime over time.