On the 2nd July 2021 the Malta Financial Services Authority (“MFSA”) issued a circular reminding already licensed Company Service Providers (“CSPs”) of the requirements emanating from the updated CSP Rulebook and notifying them of the relevant procedures for any necessary increases in share capital.
CSPs must ensure that by the 16th September 2021 their issued share capital is equivalent to the respective amount attributable to each specific class. Classes have been allocated to the CSPs through an issued letter by the MFSA earlier this year. These classes are comprised of the following:
- Class A: minimum share capital of €10,000 fully paid up, and to be maintained throughout its authorisation;
- Class B: minimum share capital is of €15,000 fully paid up, and to be maintained throughout its authorisation, and to also have adequate Professional Indemnity Insurance cover in place; and
- Class C: minimum share capital of €25,000 fully paid up and to be maintained throughout its authorisation, and to also have adequate Professional Indemnity Insurance cover.
It is noteworthy for all authorised body corporate CSPs, that by 15th September 2021 the MFSA receives:
- the shareholders resolution relating to any increase in share capital;
- the amendments to the Memorandum and Articles of Association; and
- a confirmation that the share capital has been increased.
On the other hand, individual CSPs are requested to provide the MFSA with a bank statement confirming the capital investment.
This date also applies to a confirmation that Professional Indemnity Insurance cover has been obtained by the CSP (where applicable).
Moreover, Class C CSPs are required to ensure that by the 16th September 2021, they comply with the new requirements on the Risk Management Compliance Function. In this regard Class C CSPs are required to submit a proposal noting the individual who will be performing the risk management function.
Class C CSPs may also apply for a derogation in order to have the risk management function to be handled internally rather than having an independent service provider. CSPs wishing to do so may apply to the MFSA through the official notification form downloadable from the official website of the MFSA.
CSPs are now required to take all necessary measures to comply with the updated CSP Rules within the transitory period of 6 months, ending on 16th September 2021.
Feel free to contact us should you require any assistance on the above.
