The Malta Financial Services Authority is the entity which regulates financial services in Malta. The MFSA regulates various industries including financial institutions, payment institutions, investment services companies, collective investment schemes, and virtual financial assets service providers.
As the regulator, the MFSA is the entity responsible for the licensing and supervision of operators in these sectors. AE has assisted a number of clients through the process of applying for the different licences and authorisations, from the introductory meetings with the MFSA until the final issue of the licence.
As part of the licensing process, we can assist you in drafting the business plan, financial projections, and the required policies and procedures. These policies and procedures range from operational and technical, to compliance and AML/CFT matters.
Electronic Money Institutions
In the past years electronic money institutions have rose to the forefront as an effective and user-friendly alternative to traditional banking. The push towards a cashless society has also fuelled the need for more providers in this space, and the services being offered to both retail and business consumers are constantly evolving.
In order to operate an EMI an operator is required to obtain a financial institutions licence from the MFSA. This type of licence also covers different types of services which may be offered by the licence holder, including:
- Issuing of electronic money.
- Payment services.
- Lending, including personal credits, mortgage credits, and financing of commercial transactions.
- Money broking.
The EMI licence can also be passported to other member states within the European Union, and therefore obtaining a licence in Malta can be the stepping stone for operators who wish to expand their operations into the European Union.
Professional Investment Funds
Professional investment funds are a type of fund which have as its object the collective investment of capital acquired by means of an offer of units for subscription from experienced, qualifying, and extraordinary investors. PIFs established in Malta may be self-managed or appoint a third-party manager which is licensed as an Alternative Investment Fund Manager.
At AE we can assist you in setting-up the legal entity which will be applying for the licence with the MFSA, and we can also assist in the drafting of the required documentation, including the offering document.
Business plan and financial projections
As stated above, a very important part of any licence application is the submission of the business plan of the applicant together with the financial projections for the first three year of operations.
At AE we have people with both the business acumen as well as the financial expertise to help you prepare a business plan and financial forecasts.
Compliance as a service
Throughout the licence application process and, even more importantly, following the completion of the process, a licensed entity is required to have robust and effective systems in place in order to monitor and ensure compliance with the applicable regulatory requirements.
The risk and compliance team at AE assists licensed entities in complying with their ongoing obligations, ranging from regulatory matters to other important considerations such as AML/CFT and GDPR.
In view of the fact that Malta is a member state of the European Union, certain licences issued by the MFSA enable operators to market and offer their services in the other European member states. This process of passporting makes Malta an ideal destination for interested persons who wish to expand their operations into the European Union.