The “fit and proper” test is conducted by the Malta Financial Services Authority (“MFSA”) as part of its due diligence process which applicants for a licence in the financial services sector issued by the MFSA and the persons involved therein shall satisfy on an ongoing basis. The aim of this due diligence measure is to ensure that no person is appointed or continues to hold an “approved person” position or licence for which they are not fit and proper.
On 2nd July 2019, the MFSA issued a guidance document, the “Guidance on the Fitness and Properness Assessments applied by the Authority” which seeks to provide further detail on the fitness and properness assessments carried out by the MFSA, and to provide guidance for the due consideration of applicants and licence holders prior to proposing persons for positions requiring regulatory approval.
These guidelines also state that through this “fit and proper” test, the MFSA assesses the following four criteria:
Competence;Reputation;Solvency;Conflicts of interest and independence of mind; andTime commitment.
Please feel free to contact us in order to obtain more information about the Fitness and Properness Assessments.