On the 11th March 2022, the Malta Financial Services Authority (“MFSA”) issued two separate circulars informing authorised Company Service Providers (“CSPs”) and Trustees and other fiduciaries about the Annual Compliance Return (“ACR”) submission for 2022, covering the financial year of 2021. The MFSA notes that while no updates have been undertaken to the Trustees ACR Template, the ACR Template for CSPs has been updated and can be accessed from the CSP page on the MFSA website.
The new features introduced within the updated CSP ACR Template are the following:
- For some pre-existing questions, further drop-down menus have been added to streamline the process of completion;
- All questions are to be completed, unless otherwise indicated, for the submission to be complete; and
- Guidance notes have been introduced throughout the ACR, particularly to clarify where certain questions may be applicable to a certain class of CSP and not the other. Where such question is not applicable to the relevant person, the latter is requested to put ‘Not Applicable’.
Through this circular, the MFSA also reminds CSPs and Trustees to submit audited financial statements together with the auditor’s management letter and the auditor’s report to the ACR. CSPs which were provisionally authorised in November of 2021 are not required to submit ACRs and any supporting documents until they are granted full authorisation.
Furthermore, although the MFSA still requires that under threshold Class A and Class B individual CSPs submit financial statements, it does not currently require that such financial statements are audited. This is because CSPs falling under such classes have only recently been authorised by the MFSA. The MFSA also reminds CSPs and Trustees that the resolution by the Board of Directors approving the ACR must be signed by at least two directors.
CSPs and Trustees are also required to submit any supporting documents which are outlined in the ACR, for the submission to be complete.
All of the required submissions detailed above are to be submitted through the Licence Holder Portal. The ACR and the related supporting documentation are to be submitted within four (4) months from the respective CSP or Trustee financial year end.
We invite you to contact us should you require any form of assistance in submitting your ACR.