Financial Regulatory Services
Malta has become home to several successful financial services operators. This is because, over the years, Malta has developed the necessary regulatory framework which paved the way for the establishment and licensing of such operators.
The financial services sector is overseen by the Malta Financial Services Authority (‘MFSA’) which is the authority entrusted with the regulation and supervision of financial services operators in Malta. The MFSA ensures that Malta remains a reputable jurisdiction in the financial services sector and curbs down abuse from those entities which are non-compliant.
Malta has enacted several legislative instruments which cater for financial institutions, credit institutions and investment services. Below is an overview of these legislative instruments.
Financial Institutions Act, Chapter 376 of the Laws of Malta
The Financial Institutions Act regulates entities referred to as ‘financial institutions’ which can be classified in the following two categories:
- Institutions undertaking payment services and/or the issuance of electronic money; and,
- Institutions undertaking other activities such as lending, financial leasing, the provision of guarantees and commitments, foreign exchange services and money brokering.
The Financial Institutions Act transposes the provisions of the European Union’s Second Payment Services Directive and the Second Electronic Money Directive, applicable to authorised payment and electronic money institutions.
The Banking Act, Chapter 371 of the Laws of Malta
The Banking Act regulates entities referred to as ‘credit institutions. Credit institutions may conduct a few activities, however the taking of deposits from retail customers is the licensable activity that distinguishes a credit institution from other licensed entities.
The Investment Services Act, Chapter 370 of the Laws of Malta
The Investment Services Act regulates entities referred to as ‘investment services providers’ which include the following:
- Firms regulated under MIFID (European Union Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments);
- Alternative Investment Fund Managers (AIFMs) and UCITS Management Companies, collectively referred to as Investment Managers; and,
- Custodians of financial instruments.
Our legal professionals have the necessary expertise to assist and provide solutions to clients with all matters of Maltese law relating to financial institutions, credit institutions as well as investment services.
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