On 22 July 2025, the Malta Financial Services Authority (MFSA) issued a letter addressed to advisors and representatives of applicants seeking authorisation. The objective is to promote greater transparency in the authorisation process while reiterating the MFSA’s expectations for all parties involved.
Enhancing Application Standards
The MFSA outlines its position clearly: applicants must demonstrate regulatory readiness from the outset. While the responsibility for regulatory compliance lies with the applicant, the MFSA recognises the value of appointing experienced advisors who can support a structured and compliant submission. Advisors, although not mandatory, are seen as instrumental in facilitating timely, complete, and well-documented applications.
Initial Steps: Statement of Intent and Early Engagement
Applicants are expected to begin the process by submitting a Statement of Intent to the relevant MFSA department. The Authority may, at its discretion, offer an initial meeting to better understand the applicant’s business model and clarify expectations. This marks the start of an interactive review process, provided the application progresses further.
The Role of Advisors
The MFSA sets out eight specific responsibilities for advisors who are engaged to support applicants. These include:
- Conducting Due Diligence – Advisors should perform thorough due diligence on the applicant prior to engagement.
- Preparing Complete Documentation – All forms and supporting materials must be accurate, complete, and aligned with regulatory expectations.
- Ensuring Regulatory Compliance – Applications must reflect compliance with all relevant EU and national frameworks.
- Maintaining Transparency – Advisors are expected to ensure full disclosure of all material facts, including governance structures and financial position.
- Facilitating Communication – Serving as the applicant’s main point of contact, advisors should provide clear and consistent responses to the Authority’s requests.
- Demonstrating Suitability – Advisors should help applicants evidence the fitness and properness of shareholders and management.
- Meeting Timelines – Applications and any requested additional documentation must be submitted punctually.
- Upholding Professional Standards – Advisors must act ethically and professionally throughout the process.
Clarity on the MFSA’s Role
While the MFSA may provide guidance on procedural aspects, it does not offer consultancy or tailor proposals to meet requirements. Applicants and their advisors must interpret and apply the relevant regulatory frameworks independently. The letter reinforces that responsibility for a successful application lies entirely with the applicant.
The MFSA’s communication highlights the importance of early preparation, regulatory awareness, and effective collaboration between applicants and advisors. By following these best practices, applicants can avoid unnecessary delays and foster a constructive relationship with the Authority.
For more information visit also: 'Dear CEOs letters' issued by the MFSA, MFSA Issues Follow-Up Circular on MiCA Authorisation Requirements, MFSA Observations on Outsourcing and Safeguarding Practices in Financial Institutions and MFSA Survey Highlights Varying Preparedness for CRR3 Implementation
