In a continued effort to strengthen Malta’s regulatory landscape while introducing greater proportionality, the Malta Financial Services Authority (“MFSA”) has announced significant updates to the Company Service Providers Act, following the enactment of Act X of 2025. These changes, effective as of 19 May 2025, are particularly relevant to individuals offering directorship or company secretary services.
Below is a concise overview of the most notable developments, which are especially relevant for Class B Company Service Providers (“CSPs”), legal advisors, and individuals involved in the provision of corporate services.
1. Amendments to the Act
i. Registration Requirement:
Individuals providing directorship and/or company secretary services by way of business are now subject to a new registration requirement established in Article 3A(2) of the Act. These individuals are referred to as Limited Company Service Providers and can hold up to 10 involvements. A new Registration Form is available on the MFSA’s website.
ii. Notification Requirement:
Individuals offering such services on a non-commercial basis (i.e., without holding themselves out as doing so by way of business) are subject to a new notification requirement established by Article 3B (1) of the Act. These individuals are referred to as Restricted Company Service Providers and can hold up to 5 involvements, across a maximum of 2 groups. A new Notification Form is available via the MFSA’s LH Portal. These individuals have until 16 July 2025 to comply.
2. Amendments to Subsidiary Legislation
i. Amendments to the Company Service Providers (Fees) Regulations (Subsidiary Legislation 529.01) Registration and notification fees have been introduced under LN 89 of 2025. Additionally, several pre-existing fees have been revised.
ii. Amendments to the Company Service Providers (Exemption) Regulations (Subsidiary Legislation 529.02):
LN 90 of 2025 has repealed the exemption for VFA Agents due to the repeal of the Virtual Financial Assets Act. The exemption for directors or company secretaries of MFSA-regulated entities has been extended to also cover services provided to their immediate holding companies.
3. Updates to the CSP Rulebook
The CSP Rulebook has been amended to reflect these legislative changes:
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The “Interpretation” section now includes new definitions and amends existing ones, particularly changes made to the existing definition of “Under Threshold Class B CSPs” and involvement limits in view of the aforementioned introduction of the new registration requirement.
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Chapter 1 now clarifies the application of the rulebook in light of the new CSP classifications.
4. New Rulebook for Limited Company Service Providers
A bespoke rulebook has been issued for Limited Company Service Providers, recognising the limited scope of their services. This rulebook outlines tailored compliance obligations, governance expectations, and risk awareness requirements.
5. Updating of the Guidance Note on the Application of the Company Service Providers Act
The MFSA has revised its Guidance Note on the Application of the CSP Act, notably refining the interpretation of “by way of business”, offering more clarity for individuals unsure of whether their activities fall within scope.
Conclusion
These legislative reforms mark a significant evolution in Malta’s CSP framework, reinforcing regulatory clarity and proportionality. CSPs and individuals involved in corporate governance roles are encouraged to review their current structures and involvement levels to ensure timely compliance.
For tailored legal advice on how these changes may affect your business or your personal obligations, do not hesitate to get in touch with our corporate services team.
