The Malta Financial Services Authority (“MFSA“) has recently issued the findings of its 2025 Thematic Review on the oversight exercised by Company Service Providers (“CSPs“) when arranging for individuals to act as director
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For years, decentralisation has been heralded as the cornerstone of blockchain technology and one of the principal reasons why crypto-assets differ from traditional financial systems. It is a term frequently used in whitepapers, marketing material
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The recent FATF report on Detecting and Disrupting Terrorist Financing Activity Through SMSPs highlights a structural shift in the way terrorist financing is facilitated in the digital age. Rather than relying primarily on traditional financial sy
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The Financial Action Task Force (“FATF”) has launched a public consultation on its updated draft Guidance for implementing Recommendation 16. Regulators, financial institutions, virtual asset service providers (“VASPs”), and legal practiti
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In June 2026, the Financial Intelligence Analysis Unit (“FIAU“) published an extensive strategic analysis examining the relationship between organised crime and the Maltese financial system. The report reviewed 540 suspicious transacti
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On 24 June 2026, representatives from Zerafa Advocates attended one of the Mediterranean Film Festival’s most insightful industry sessions, “Industry Conversations – Show Me the Money: Understanding How Film Finance Works.” Mod
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The Malta Financial Services Authority’s recent consultation on Decentralised Finance comes at a time when the digital assets market is becoming more serious, more regulated and more connected to traditional finance. Crypto is no longer only a s
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In June 2026, the European Securities and Markets Authority (“ESMA“) published a letter outlining its strategic priorities for the coming regulatory cycle. While the communication is primarily addressed to European Union institutions,
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The end of the Markets in Crypto-Assets Regulation (“MiCAR”) transitional period marks a defining moment for the European crypto-asset sector. From 1st July 2026, firms providing crypto-asset services in the European Union will need to be auth
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Succession issues in family offices rarely stem from legal deficiencies. They more often arise from governance and relational dynamics, such as insufficient preparation of the next generation, unclear transitions of ownership and control, divergin
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As single family offices become more sophisticated in both structure and international footprint, governance increasingly emerges as the defining factor between long-term stability and internal fragmentation. While jurisdictional choice, tax effic
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Europol recently published the Internet Organised Crime Threat Assessment (“IOCTA”) 2026 highlighting the rapidly evolving cybercrime landscape facing businesses and financial institutions across Europe. The report identifies a significant inc
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The effectiveness of a single family office depends not only on governance structures but also on how capital is deployed. A well-designed investment platform enables efficient access to private markets, fund structures, and direct investment oppo
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Malta has introduced an innovative legal framework through the Companies Act (Youth Enterprise) Regulations, 2026, creating a new form of private limited liability company specifically designed for 16 and 17-year-old entrepreneurs. The new regulat
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The countdown to full Markets in Crypto-Assets Regulation ((EU) 2023/1114 (“MiCA”)) enforcement has officially begun. In a strong and unequivocal statement, the European Securities and Markets Authority confirmed that from 1 July 2026, any cry
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Recent developments highlighted by the Financial Intelligence Analysis Unit (“FIAU”) point towards a clear shift in the EU’s anti-money laundering framework under the 6th Anti-Money Laundering Directive (“AMLD6”): reporting is becoming
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The rapid growth of the digital asset ecosystem has fundamentally reshaped the global financial landscape. Virtual assets and blockchain-based services have opened new avenues for innovation, investment, and cross-border financial activity. Howeve
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In June 2025, the Malta Financial Services Authority (“MFSA”) issued a position paper examining an innovative application of distributed ledger technology (“DLT”) within the investment funds industry, which included the possibility of usin
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The Financial Intelligence Analysis Unit (“FIAU”) has issued amendments to the Implementing Procedures Part I, introducing important clarifications in relation to employee screening and record-keeping obligations, as well as the definition of
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For many observers, Islamic finance is most readily associated with Shariah-compliant investment funds or sukuk issuance. Yet these instruments represent only part of a broader financial philosophy that seeks to align economic activity with princi
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While Shariah-compliant funds represent an important component of Islamic finance, the development of sukuk has arguably played an even more transformative role in integrating Islamic finance with global capital markets. Frequently described as �
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The concept of Shariah-compliant investment funds is often perceived as niche or confined to jurisdictions with predominantly Muslim populations. In reality, Islamic finance has evolved into a sophisticated global financial system whose principles
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The Malta Financial Services Authority (“MFSA”) recently issued a Dear CEO Letter outlining the findings of its thematic review on the compliance and internal audit functions of management companies of alternative investment funds (“AIFs”)
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The Malta Financial Services Authority (“MFSA”) has issued a circular on 24th March 2026, introducing significant changes to the regulatory framework governing depositaries, marking a notable step towards simplification, proportionality, and i
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The Maltese Financial Intelligence Analysis Unit (“FIAU”) has drawn the attention of subject persons to a newly published report by the Financial Action Task Force (“FATF”), entitled “Targeted Report on Stablecoins and Unhosted Wallets &
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On 20 November 2025, the European Commission published its proposal to amend the Sustainable Finance Disclosure Regulation (“SFDR”), marking what is arguably the most significant development in the EU sustainable finance framework since SFDR f
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The Malta Financial Services Authority (“MFSA”) has issued its latest Investment Services Supervision Regulatory Briefing covering the period between 29th July 2025 to 28th February 2026. The publication highlights important regulatory and sup
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The recent public release of documents commonly referred to as the “Epstein Files” has reignited global debate around accountability, transparency, and the long-term consequences of governance failures within the financial sector. While the fo
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Beyond regulation, Malta’s tax and residency framework is a central driver behind the jurisdiction’s growing appeal for Single Family Offices (“SFOs”). Certain Maltese structures commonly used by family offices may benefit from: Notified P
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Following two joint communications, the European Commission proposed the drafting of an EU Space Act (the “Act”) as an initiative to harmonise a common framework between the Member States in terms of space activities. The Space Traffic Managem
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International Women’s Day is widely recognised today across corporate calendars, yet its origins are often less understood. The Day emerged in the early twentieth century amidst industrialisation, when women in Europe and North America organised
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One of Malta’s principal advantages is its proportionate regulatory approach to Single Family Offices (“SFOs”). However, families and their advisers must clearly understand where regulatory obligations arise and where exemptions may apply. T
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Modern sanctions enforcement is exposing a structural weakness across many regulated firms: an over-reliance on onboarding checks, coupled with insufficient focus on ongoing monitoring and behavioural analysis. This gap is becoming more pronounced
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Malta continues to strengthen its position as a credible European hub for Single Family Offices (“SFOs”). Following the introduction of a more tailored regulatory framework, families establishing an SFO in Malta must carefully consider the opt
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Sanctions compliance has undergone a fundamental shift. What was once treated as a peripheral element of AML frameworks is now emerging as a standalone, board-level risk discipline, with distinct enforcement thresholds, governance expectations, an
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Open banking has always carried a paradox between the promise of revolutionary innovation shadowed by the practical and legal challenges of implementation. PSD2 opened the door to third-party providers, enabling fintechs to aggregate accounts, ini
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On 10 June 2025, the European Banking Authority (“EBA”) issued a No Action Letter in the form of an Opinion (EBA/Op/2025/08), providing targeted supervisory guidance to national competent authorities (“NCAs”) designated under Directive (EU
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The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (“AMLA”) has set out its Single Programming Document (“SPD”) for 2026-2028, providing the first detailed roadmap of how the new EU Authority will shape the f
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Fraud has always been the shadow lurking at the edges of digital payments, but the Payment Services Directive II (“PSD 2”)’s introduction of strong customer authentication seemed, at first, to have turned the corner. Yet reality proved less
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The Malta Financial Services Authority (“MFSA”) has taken another concrete step towards reducing regulatory reporting burdens on the funds industry. Through a circular issued on 2 February 2026, the Authority announced a series of amendments t
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For a decade, the European payment services landscape has been defined by tension posed by the desire to open markets to innovation and competition, counterbalanced by the imperative to protect consumers and maintain financial stability. Directive
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The Malta Financial Services Authority (“MFSA”) has issued a new General Code of Conduct for Decision Makers in the Financial Services Industry, marking a significant step in strengthening governance standards, organisational culture, and ethi
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The Malta Financial Services Authority (“MFSA”) has issued a Circular establishing mandatory reporting timelines and procedural requirements for financial entities in scope of Regulation (EU) 2022/2554 on Digital Operational Resilience for the
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The entry into force of the Companies Act (Agricultural Companies) Regulations, 2025 on 26 December 2025, by virtue of Legal Notice 307 of 2025, represents a significant legislative development within Maltese company law. Promulgated under the Com
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Directive (EU) 2024/927, more commonly referred to as AIFMD II, amends the Alternative Investment Fund Managers Directive (“AIFMD”) with respect to the harmonisation of rules applicable to alternative investment fund managers (“AIFMs”) man
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The European Union’s fight against money laundering and terrorist financing has entered a new phase. What was once characterised by fragmented national supervision and uneven enforcement is steadily giving way to a more centralised, data-driven
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Affiliates occupy a central and often underestimated role within the online gaming sector, serving as the engine that drives visibility, player engagement, and commercial growth in an increasingly crowded and highly regulated market. At their core
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In the operation of payment institutions, safeguarding client funds is a fundamental regulatory requirement. Traditionally, this has been achieved through the segregation of client funds in separate accounts. However, Maltese law recognises altern
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A Data Reporting Services Provider (“DRSP”) is a specialised entity that plays a pivotal role in promoting transparency, integrity, and efficiency in financial markets. Introduced under the Markets in Financial Instruments Directive (“MiFID
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Banks seeking to expand their operations into Malta from another EU Member State benefit from the EU’s single market framework, which streamlines cross-border banking while maintaining rigorous prudential and operational safeguards. The establis
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Malta’s strategic location at the crossroads of Europe and North Africa, its full membership in the European Union, and its sophisticated regulatory framework make it an exceptionally attractive jurisdiction for international companies seeking t
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The European Union’s internal market is underpinned by a series of fundamental freedoms aimed at facilitating economic integration and enhancing the competitiveness of businesses operating within its borders. Among these, the freedom of establis
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On the 25th November 2025, the Malta Financial Services Authority (“MFSA”) issued a Dear CEO Letter summarising the findings of their Thematic Review on the effectiveness and resilience of the Risk Management Function within Company Service Pr
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In Malta’s dynamic corporate environment, companies often begin with an ambitious vision and a group of individuals ready to contribute skills, capital, and expertise. Yet even the strongest business relationships can be tested by the pressures
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The gaming industry has transformed beyond recognition in the past decade. What once revolved around physical casinos and sports betting shops has now expanded into a dynamic digital landscape from mobile gaming apps and online casinos to virtual
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The Financial Intelligence Analysis Unit (“FIAU”) has announced that the Financial Action Task Force (“FATF”) has published its latest updates to the lists of High-Risk Jurisdictions subject to a Call for Action and Jurisdictions under Inc
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The Malta Financial Services Authority (“MFSA”) recently issued guidance on how financial entities should report their Register of Information (“RoI”) under the Digital Operational Resilience Act (“DORA”). This Circular affects banks,
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November marks the arrival of Movember, one of the most significant health awareness campaigns of the year. While it is often associated with growing moustaches and fitness challenges, the movement carries a much deeper message: advancing men’s
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As October draws in and Halloween decorations begin to appear, financial services companies are reminded that while masks and illusions are acceptable for the season, they have no place in sustainable finance. Across the European Union (“EU”),
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The Malta Business Registry (“MBR”) has published guidelines outlining the proposed amendments to the Companies Act (Cap. 386 of the Laws of Malta). The amendments aim to streamline corporate compliance, modernise communication with the Regist
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In September 2025, the Malta Financial Services Authority (“MFSA”) issued its Dear CEO Letter on Supervisory Engagements and Digital Operational Resilience 2024. This letter deserves careful attention as it captures not only the MFSA’s super
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Each October, the world turns a little pinker. Offices, landmarks, and social media feeds light up in the colour of compassion to mark Breast Cancer Awareness Month. This is a movement that stands for courage, prevention, and solidarity. It is a t
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The European Commission (the “Commission”) has adopted two important updates under the Markets in Crypto-Assets Regulation (“MiCA”). Delegated Regulation (EU) 2025/1125 (the “Delegated Regulation”) and Implementing Regulation (EU) 2025
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Sustainable finance is more than a regulatory buzzword, but it is reshaping how investors and financial companies operate across Europe. At the heart of this transformation is the Sustainable Finance Disclosure Regulation (“SFDR”), which requi
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The Financial Intelligence Analysis Unit (“FIAU”) has issued a new Guidance Note for Limited (Registered) Company Service Providers (“CSPs”), providing clarity on how small-scale CSPs should meet their anti-money laundering and countering
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The Sustainable Finance Disclosure Regulation (“SFDR”) (Regulation (EU) 2019/2088) is a cornerstone of the European Union’s sustainable finance framework. It seeks to enhance transparency and comparability of financial products, reduce green
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In recent years the Malta Financial Services Authority (“MFSA”) has introduced significant updates designed to facilitate the establishment and operation of Single Family Offices (“SFO”) in Malta. These developments strengthen Malta’s po
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Unit trusts have established themselves as a flexible and efficient structure for collective investment under Maltese law. While rooted in trust law, they are commonly regulated as Collective Investment Schemes under the Investment Services Act (�
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On 19th August 2025 the Malta Financial Services Authority (“MFSA”) has published the findings of a thematic review into compliance of Financial Institutions with the Payment Account Regulations (SL 371.18). The review focused on the three I
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The Malta Financial Services Authority (“MFSA”) has issued a Circular announcing that the European Securities and Markets Authority (“ESMA”) has published its Q&A Guide on the Sustainable Finance Disclosure Regulation (Regulation (EU)
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In Malta, the declaration and payment of dividends is not simply a matter of transferring profits to shareholders, but it is a carefully regulated process governed by the Companies Act and, where applicable, the Capital Markets Rules (“CMRs”).
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On the 29th July 2025 the Malta Financial Services Authority (“MFSA”) issued its Investment Services Supervision Regulatory Briefing covering developments for the period 1st January 2025 – 24th July 2025. This update is essential reading
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The Malta Financial Services Authority (“MFSA”) has issued a Circular addressed to Central Securities Depositories, investment firms, and other market stakeholders concerning the upcoming transition to a T+1 settlement cycle under Regulation (
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The Financial Action Task Force (“FATF“) has released its 2025 Comprehensive Update on Terrorist Financing Risks, shedding light on emerging threats and regulatory expectations for financial service providers. For companies operating in Malt
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Islamic finance has grown significantly over the past few decades, positioning itself as a vital segment of the global financial system. Indeed, this area has drawn increasing attention from regulators, investors, and market operators alike. A suk
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The concept of transferability lies at the core of EU and Maltese financial regulation. It is this principle that distinguishes securities from bespoke or private contractual rights and determines whether a financial instrument falls within the sc
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The Malta Financial Services Authority (“MFSA”) has launched a consultation on proposed amendments to the Capital Markets Rules applicable to the Institutional Financial Securities Market (“IFSM”), a regulated market operated by the Malta
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On the 9th July 2025 the Malta Financial Services Authority (“MFSA”) issued a circular detailing the findings of its 2024 thematic review into the quality, timeliness, and accessibility of company announcements by publicly listed entities. The
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Over the past decade, the Maltese television landscape has been transformed by the arrival of globally franchised formats. Local audiences now enjoy domestic adaptations of international hits such as Love Island, MasterChef, Family Feud, XFactor,
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The Malta Business Registry (“MBR”) has enacted a series of important changes to the Companies Act (Register of Beneficial Owners) Regulations, by virtue of LN 127 of 2025. These changes form part of the first phase of Malta’s transpos
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A new report by the Financial Action Task Force (“FATF”) has brought renewed attention to the serious vulnerabilities in the global financial system posed by proliferation financing and sanctions evasion. Despite the critical threat that proli
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The evolving landscape of film finance demands more than a creative vision it requires a nuanced understanding of diverse funding mechanisms, strategic partnerships, and regulatory frameworks. At the recent panel “The New Funding Frontier for Fi
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The recent Letter of Formal Notice issued by the European Commission concerning Article 56A of Malta’s Gaming Act (Chapter 583 of the Laws of Malta), previously known as ‘Bill 55’, has prompted renewed attention around Malta’s legislative
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On the 13th June 2025, the Financial Action Task Force (“FATF”) issued its latest ‘High-Risk Jurisdictions subject to a Call for Action’ and ‘Jurisdictions under Increased Monitoring’ documents. These documents have been uploaded on th
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The Malta Financial Services Authority (the “Authority”) has issued a circular underlining updates to three key regulatory reporting templates: Annual Fund Return The Annual Fund Return has been update to Version 1.10 and is now available on t
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As Malta continues to attract filmmakers with its cinematic landscapes, generous tax incentives, and robust production infrastructure, the legal dimension of filmmaking has become increasingly prominent. Behind every evocative frame lies an array
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The Malta Financial Services Authority (“MFSA”) has issued a position paper setting out its stance on the tokenisation of fund units within Collective Investment Schemes (“CIS”). This initiative aligns with the EU’s broader efforts to re
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Malta’s cinematic appeal has grown considerably in recent years, with international productions increasingly choosing the island for its versatile locations, competitive incentives, and skilled workforce. As film producers and media companies co
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On the 10th of June 2025, the European Banking Authority (the “EBA”) published a No Action letter advising the European Union (“EU”) Commission, EU Council and EU Parliament to avoid dual authorisation under two EU legislative regimes. The
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The European Union’s Creative Europe MEDIA programme (2021–2027) offers substantial support for film and audiovisual projects, making it a key funding avenue for producers across Europe and beyond. Administered through competitive calls via th
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The introduction of the Markets in Crypto-Assets Regulation (“MiCA”) marks a pivotal shift in the regulation of digital assets across the European Union. For the first time, a unified framework governs crypto-asset service providers (“CASPs�
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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
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Malta has emerged as an attractive destination for film production, not only for its scenic landscapes but also for its compelling financial incentives. The Screen Malta Financial Incentive offers a cash rebate of up to 40% on eligible production
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As Malta continues to rise as one of Europe’s premier film production hubs, more international producers, directors, and content creators are turning to our picturesque islands not just for filming, but for business. At Zerafa Advocates, our tea
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In today’s digital economy, data has become one of the most valuable assets and the convergence of technology and creativity has significantly transformed the landscape of the film industry. As a result, the intersection between data protection
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In today’s evolving financial landscape, sustainability isn’t just a buzzword yet it’s a regulatory imperative. The EU’s Regulation on Sustainability-related disclosure in the financial services sector: (“SFDR”), codified under Regulat
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Strategic Investment funds have become a game-changer in the world of investments, offering targeted opportunities for growth in niche sectors like sports, media, and entertainment. These specialised funds are designed to capitalise on emerging tr
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In the first part of this series, we explored the legal ramifications of European Union (“EU”) sanctions, focusing on the Criminalisation Directive, Malta’s role in transportation, and the importance of reporting obligations. In this second
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The European Union (“EU”) has been a long-standing global leader in promoting peace, security and human rights. One of its most powerful tools to achieve these goals is through sanctions. These measures include but are not restricted to assets
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When it comes to registering a private aircraft, selecting the right jurisdiction is crucial for optimising both operational efficiency and financial performance. Malta, with its robust legal and regulatory framework, has become one of the most at
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Sanctions compliance has become a critical pillar of financial regulation, shaping corporate governance, risk management, and international business. In Malta and across Europe, women are playing an increasingly influential role in this evolving l
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The Malta Financial Services Authority (“MFSA”) have published the Markets in Crypto-Assets (“MiCA’”) Rulebook, which applies to entities within the scope of the Markets in Crypto-Assets Act as well as amendments to Chapter 3 of the Fina
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We would like to extend our sincere thanks to Swissquote, Integra Private Wealth Management, and Invesco for inviting our team to the Financial Horizons 2025 conference. It was a privilege to attend this insightful event, where we gained valuable
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The European Securities and Markets Authority (“ESMA“) has published an article to explore the increasing use of artificial intelligence (“AI“) in the European Union (“EU“) investment fund industry, highlighting
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Introduction In today’s global financial landscape, trusts serve as essential tools for wealth management, estate planning, and asset protection. However, ensuring the integrity and compliance of a trust, particularly when it holds shares in a M
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Since June 2020 Malta’s legal framework has offered a distinctive structure for shipping and aviation companies known as the Cell Company (“CC”). This model allows businesses to create multiple distinct ‘cells’ within a single le
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The Malta Financial Services Authority (“MFSA”) has introduced a new framework for Collective Investment Schemes (“CISs”) structured as Special Limited Partnership Funds (“SLPFs”). This move is part of the MFSA&
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The Malta Financial Services Authority (“MFSA”) has published a circular announcing amendments to the Notified Professional Investor Fund (“NPIF”) framework. These changes now allow NPIFs to be established as self-managed s
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We are delighted to announce that Zerafa Advocates and our founder, Omar Zerafa, have been ranked in the prestigious Chambers & Partners list, recognising our firm’s excellence in the legal industry. This ranking reflects our dedication to p
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The cryptocurrency industry has long been marked by rapid innovation, regulatory uncertainty, and evolving global standards. In response to growing concerns over market stability, investor protection, and financial integrity, the European Union ha
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The European Union’s Markets in Crypto-Assets Regulation (“MiCA”) has ushered in a new era for the crypto and FinTech sectors, providing a comprehensive framework for managing digital assets. The aim is to create legal certainty, protect inv
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The European Union (“EU”) Markets in Crypto Assets Regulation (“MiCA”) marks a significant milestone in the regulation of crypto assets both within the content and outside. With its implementation MiCA introduces a harmonized framework aim
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The Markets in Crypto-Assets Regulation (“MiCA”), which came into effect on 30th December 2024, marks a significant milestone in the financial sector. By addressing critical concerns such as consumer protection, market integrity, and financial
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Following the feedback statement on the proposed amendments to the Company Service Providers (“CSPs”) regulatory framework issued on the 9th April 2020, the amendments to the Company Service Providers Act, as amended by Act L of 2020 (“CSP A
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By a notice published on the 17th June 2020, the Malta Business Registry (“MBR”) has informed interested parties of the newly enacted regulations titled ‘Companies Act (Shipping and Aviation Cell Companies) Regulations’. The purpose of the
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On the 21st January 2021, the Malta Business Registry (“MBR”) informed relevant entities that, in respect of share transfers and changes in issued share capital or voting rights of companies and other commercial partnerships where applicable,
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On the 25th March 2021, the Malta Financial Services Authority (“MFSA”) issued a circular directed to Trustees & other Fiduciaries bringing to their attention the coming in force of the Company Service Providers (Exemption) Regulations 202
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The Malta Business Registry (“MBR”) has issued a Guidance document (“Guidance”) which presents an overview of the requirements emanating from the Companies Act (Register of Beneficial Owners) Regulations (the “Regulations”). The Guidan
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Following the coming of application of Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23rd July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Dir
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In analysing the duties of the trustee, it is fundamental to refer to article 21 of the Trusts and Trustees Act (Chapter 331 of the Laws of Malta) (the “TTA”) which lays down the fundamental duties of the trustee. Article 21(1) of the TTA refl
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There is no trust without a trustee. However, there is another essential party to the trust, without which the trust would be invalid: the beneficiary. The purpose behind creating a trust is to provide certain benefits to the beneficiary, that is,
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Under Article 2 of the Trusts and Trustees Act, Chapter 331 of the Laws of Malta (the “TTA”), the settlor is defined as ‘the person who makes the trust and includes a person who provides trust property or makes a disposition on trust or to a
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The main difference between a variation and a revocation of a trust is that, whilst variation allows the power to revoke certain terms under a trust and introduce new ones, revocation allows the power to terminate the rights under a trust indefini
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As per Article 2 of the Trusts and Trustees Act, Chapter 331 of the Laws of Malta (the “TTA”), the property held within a trust can be either a movable or an immovable, such as real estate property. Departing from the standard form of a trust
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On the 26th October 2021, the Companies (Amendment) Act (the “Amendment Act”) was enacted in order to amend the Companies Act (Cap. 386 of the Laws of Malta) (the “Act”). From an overview of the amendments undertaken, it seems that the goa
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On the 25th January 2022, the Malta Financial Services Authority (“MFSA”) issued new Crowdfunding Rules (the “Rules”) which contain provisions regulating the operations of Crowdfunding Service Providers authorised by the MFSA. The Rules
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Every company incorporated or otherwise established in Malta is required to have in office a company secretary who has sufficient knowledge and experience to discharge its functions. The company secretary is to be appointed by the board of directo
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The US Ministry of Finance announced that it will abolish the tax treaty with Hungary by the 31st December 2023. The key reason for this is that the Hungarian government is reluctant to adopt the global minimum tax approach (GLOBE) recommended by
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On the 25th November 2022, the Malta Business Registry (“MBR”) announced that it will be limiting access to the register of ultimate beneficial owners (“UBO”) to competent authorities and subject persons only. This comes after a ruling del
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Amongst several company forms available in Malta, the most popular to foreign investors are private limited liability companies and private exempt companies. The Companies Act, Chapter 386 of the Laws of Malta (hereinafter the ‘Act’) different
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Explore why the Meta’s Threads app isn’t accessible in the EU due to regulatory challenges, notably the Digital Markets Act (“DMA”). The act is designed to ensure fair competition and enhance the existing data protection framework
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In the background of a company formation, there is regularly business activity that requires investment. One way to raise capital for an entrepreneurial venture is through the relatively modern instrument of Investment-Based Crowdfunding. If you w
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What is the minimum share capital needed for Business in Malta? The short answer is: It depends! It depends on the type of entity chosen from the options, the Maltese legal framework offers. For separate legal entities, these are mainly companies
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Is 50%+ entitling to do whatever one wants? Under Malta’s corporate law framework, mainly the Maltese Companies Act, Cap. 386 of the Laws of Malta (“Act”), the majority rule is the fundamental principle to arrange the will formation of l
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The letter sent by Malta Financial Services Authority (“MFSA”) addresses several pertinent issues. The prohibition on payment for order flow (“PFOF”) bans brokers from receiving payments to direct client orders to specific trading platform
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The financial sector is undergoing rapid transformation driven by FinTech innovations, which are reshaping traditional practices and introducing new ways of conducting business. Among these groundbreaking technologies, smart contracts have emerged
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The Malta Financial Services Authority (“MFSA” or “Authority”) is tasked with the authorisation and regulation of the persons providing trustee and other fiduciary services in terms of the Trusts and Trustees Act, Chapter 331 of the Laws o
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The Malta Financial Services Authority (MFSA) recently shared insights from its supervisory engagements conducted between July 2022 and July 2024. These reviews, covering approximately 36% of licensed investment firms, highlight critical governanc
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The Financial Intelligence Analysis Unit (FIAU) has initiated a consultation on the revision of the Implementing Procedures – Part II for the Virtual Financial Assets (VFA) Sector. This consultation is an essential part of ongoing efforts to str
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Introduction Artificial Intelligence (AI) is transforming industries at a rapid pace. However, this development brings about concerns surrounding data security, privacy, and compliance with existing laws such as the General Data Protection Regulat
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Company Service Providers (CSPs) in Malta are essential to the financial system as they serve as the first point of contact for individuals establishing businesses. Due to this, CSPs face heightened risks of being exploited for money laundering an
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The Draft Regulatory Technical Standards (“RTS”) for adjusting own funds requirements, focus on issuers of significant asset-referenced tokens (“ARTs”) and e-money tokens, introduced by the Markets in Crypto-Assets Regulation (“MiCA”).
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The Digital Operational Resilience Act (“DORA”) and the Markets in Financial Instruments Directive (“MiFID II”) are two significant components of the EU’s regulatory landscape aimed at ensuring financial market stability, transparenc
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As Coco Chanel famously said, “Fashion is not something that exists in dresses only. Fashion is in the sky, in the street; fashion has to do with ideas, the way we live, what is happening.” As the fashion industry grows more competitiv
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With the rapid economic growth of the crypto-asset, regulatory authorities across the globe are struggling to catch up with the complex and often ambiguous nature of these digital innovations. The European Securities and Markets Authority (“ESMA
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International sanctions are key tools used by the international community to regulate the behaviour of states. They aim to align state conduct with international law or to contain or prevent regional threats or conflicts without violating a countr
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On the 29th of February the European Securities and Markets Authority (“ESMA”) issued a consultation paper to address the reverse solicitation provisions under the Markets in Crypto-Assets Regulation (“MiCA”). ESMA aimed to provide clarity
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The Markets in Crypto-Assets Regulation (“MiCA”), published in the Official Journal on June 9 2023, creates a thorough regulatory framework that addresses openness, disclosure, and supervision for issuers and service providers of crypto-assets
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As per the article published earlier this year on this website, Council and Parliament Unveiling Stricter Anti-Money Laundering Rules, the European Union (the “EU”) has developed a revamped anti-money laundering (“AML”) package. On the 19t
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One of the more recent developments in the world of alternative investment is the Notified Alternative Investment Funds (“NAIF”). NAIFS are a type of collective investment scheme exempt from licencing, provided they are included in the Malta F
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Introduction The Financial Intelligence Analysis Unit (the “FIAU“) has announced that the European Banking Authority (the “EBA“) has issued new Guidelines on the ‘travel rule’ under the revised Transfer of Funds
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History of AI and the European Union One of the broadest definitions of AI is a machine’s ability to perform a task that would have previously required human intelligence. Therefore, Artificial Intelligence (“AI”) has been around for decades
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As June approaches, the Markets in Crypto Assets Regulation (“MiCA”) implementation date approaches with it. MiCA’s provisions on Asset-Referenced Tokens (“ARTs”) and Electronic Money Tokens (“EMTs”) will come into force by the end o
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The circular addresses the Annual Compliance Return (“ACR”) which Company Service Providers (“CSPs”) are required to submit on an annual basis as part of their regulatory submissions to the MFSA. CSPs are informed that the revised ACR temp
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Fund Managers nowadays are concerned about one main matter: the time to market of their products. Acknowledging this, Malta as a jurisdiction has launched a new fund structure aimed at allowing managers, even those outside of the EU, to launch the
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In a significant move to fortify the EU’s defence against money laundering and terrorist financing, the Council and Parliament have reached a provisional agreement on key elements of the anti-money laundering package. This development is key
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20 November 2023 – This Circular published by the Malta Financial Services Authority (the “MFSA” or “Authority”) supplements a circular published in January 2023 by the Authority titled Regulation (EU) 2022/2554 and Amending Directive (E
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10 November 2023 – The Circular is addressed to all market participants, particularly entities who enter into derivative contracts, and financial counterparties and non-financial counterparties as defined under EMIR. The Circular draws attention
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The Malta Financial Services Authority (“MFSA”) has recently issued a circular, dated November 10, 2023, addressing market participants on the Guidelines for Reporting under Regulation (EU) No 648/2012, known as the European Market Infrastruct
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Discover Malta’s share capital requirements: When considering establishing a financial services provider or other licensed entity in Malta it is crucial to have a firm knowledge on the private law background. This includes an overview of min
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Investment-Based Crowdfunding Crowdfunding is a means for innovators and start-up companies to finance their projects and businesses by collecting funds from a large number of persons via a crowdfunding platform. The introduction of the European C
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In July 2023, Meta’s Threads app gained over 100 million users worldwide, yet it remains unavailable in the EU. What does this have to do with the Digital Markets Act (“DMA”), which is designed to ensure fair competition and enhance the
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16 October 2023 – The circular addresses market participants, especially users of benchmarks under EU Regulation 2016/1011 (“BMR”). Benchmarks play a crucial role in determining financial instrument prices and measuring investment fund p
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25th September 2023 – MFSA Circular on ESMA Publishing the Main Findings from the Common Supervisory Action (CSA) for the year 2022 and the Mystery Shopping Exercise on Information on Costs and Charges Emanating from MiFID II Requirements. Condu
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22nd September 2023 – The FIAU informs subject persons that the Guidance Note in mention has been amended to correctly quote Regulation 11(5) of the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”), where re
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The Financial Intelligence Analysis Unit (the “FIAU”) would like to inform subject persons about the following publications that have been issued by Europol: The European Financial and Economic Crime Threat Assessment 2023 titled “The Other
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5th September 2023 – The Malta Financial Services Authority (“MFSA” or the “Authority”) has issued an update to regulation (EU) 2022/2554 and Amending Directive (EU) 2022/2556 (the “Regulation”) on Digital Operational Resilience for
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On 23rd August 2023, the Malta Financial Services Authority (the “MFSA” or the “Authority”) informed the relevant stakeholders of the steps that it is taking to align the Virtual Financial Assets (“VFA”) Framework to the Markets in Cry
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The International Bar Association (“IBA”) Presidential Task Force on Cybersecurity and the IBA Legal Policy & Research Unit (“LPRU”) have issued a new report which is set to be a first of its kind offering a global perspective on cyber
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The European Union (the “EU”) shall be revising the rules of the Payment Services Directive (the “PSD 2” or “Directive”) due to digital payment methods which have emerged since the last time the Directive was amended. The current versi
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On the 23rd of June 2023, the Malta Financial Services Authority (the “MFSA”) issued a set of guidelines (the “Guidelines”) which shall aid FinTech companies understand how non-fungible tokens (“NFTs”) fit within the Maltese Virtual Fi
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The European Union (“EU”) has proposed the laying down of a uniform legal framework ‘in particular for the development, marketing and use of artificial intelligence in conformity with EU values’. This is to be known as the Artificial Intel
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On the 2nd of June 2023, the Malta Gaming Authority (the “MGA” or “Authority”) issued the Annual Report and Audited Financial Statements for the year ending December 2022. This report highlights the endeavours conducted throughout 2022. Th
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On the 30th of May 2023, the President of the European Parliament, Dr. Roberta Metsola, along with the Swedish Rural Affairs Minister Peter Kullgren, signed into law the Markets in Crypto Assets Regulation (“MiCA”). This came after the Parliam
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Although emerging from different regulatory frameworks, the operation of a Multilateral Trading Facility (“MTF”) and a Crowdfunding Platform share certain similarities which may at times blur their significant distinguishing features. For inst
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Introductory Analysis During its June 2019 plenary meeting, the Financial Action Task Force (“FATF“) approved a significant change to one of its 40 Recommendations. Previously, Recommendation 16 required originator and beneficiary info
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On the 20th of April 2023, the European Parliament voted on the landmark legislation which will regulate crypto currencies. Originally proposed by the European Commission, the proposed text was agreed upon on October 2022. Now after several rounds
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As part of its revised Recommendation 24 (the “Recommendation”), which was adopted in March 2022, the Financial Action Task Force (“FATF”), mandated that nations should guarantee the access for competent authorities to sufficient, accurate
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On the 28th of March 2023, Members of the European Parliament (“MEPs”) from the Economic and Monetary Affairs and Civil Liberties, Justice, and Home Affairs committee approved stricter rules to close existing gaps in anti-money laundering and
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On the 13th of March 2023, the Malta Financial Services Authority (“MFSA”) published the revised MFSA FinTech Regulatory Sandbox (the “Regulatory Sandbox”), established in line with the MFSA Rule 3: The MFSA FinTech Regulatory Sandbox (the
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On 20th March 2023, the amendments to Regulation 2015/760 on European Long-Term Investment Funds (“ELTIF 2”) was published on the Official Journal of the European Union (“EU”). This development comes after negotiations, proposals, and voti
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The Regulation (EU) 2017/2402 of the European Parliament and of the Council, known as the Securitisation Regulation, lays down a general framework for securitisation and creates a specific framework for simple, transparent, and standardised (“ST
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The Financial Intelligence Analysis Unit (“FIAU” or the “Authority”) has informed Subject Persons that additional guidance has been published in preparation for the upcoming 2023 Risk Evaluation Questionnaire (“REQ”) conducted by the s
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On the 14th of February 2023, the Malta Gaming Authority (the “MGA”) issued a notice addressed to those entities which offer licensable games in or from Malta without an authorisation from the MGA. The MGA’s Gaming Authorisations Regulations
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The Malta Gaming Authority (“the MGA” or “the Authority”) has issued a public consultation regarding the proposed regulations and policy document on Authorised Application Managers. This will run until the 15th of March 2023 (six weeks) an
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At the end of 2022, the Financial Intelligence Analysis Unit (“FIAU”) issued a press release to inform the industry that it has published the Implementing Procedures – Part II addressed to accountants and auditors. These Implementing Procedu
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On the 30th of January 2023, the Malta Gaming Authority (“the MGA” or the “the Authority”) has issued a policy on the use of Distributed Ledger Technology (“DLT”) by the Authorised Persons (“the Policy”). The MGA issued a closed co
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New developments regarding the proposed Anti-Money Laundering Regulation (“AMLR”) and the sixth (6th) Anti-Money Laundering Directive (“AMLD6”) have emerged with the new political agreement reached at the European Union (“EU”) Council
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With the introduction of the European Crowdfunding Service Providers Regulation (“ECSPR”), crowdfunding is a growing sector throughout the European Union (“EU”). Crowdfunding is an alternative means of financing for start-ups and small and
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On the 27th of December 2022, the Regulation (EU) 2022/2554 and Amending Directive (EU) 2022/2556 on Digital Operational Resilience for the Financial Sector were both published on the Official Journal of the European Union (“EU”) and will ente
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On the 22nd of December 2022, the Malta Financial Services Authority (“MFSA”) published a Consultation Document on the proposed establishment of a Framework for Notified Professional Investor Funds (“NPIFs”). The aim behind this Consultati
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With the introduction of the Regulation on European Crowdfunding Service Providers (“ECSP”), crowdfunding is now gaining momentum throughout the European Union (“EU”). It is an alternative means of financing for start-ups and small and med
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On the 28th November 2022, the Council of the European Union (“EU”) adopted the Digital Operational Resilience Act (“DORA”) proposal. A year earlier, on the 24th November 2021, the Council of the EU adopted its negotiating mandate on DORA,
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Crowdfunding is an increasing established form of alternative financing for start-ups and small and medium-sized enterprises. However, till 2021, the sector remained unregulated throughout the European Union (“EU”). Due to the lack of regulato
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On the 25th November 2022, the Malta Business Registry (“MBR”) announced that it will be limiting access to the register of ultimate beneficial owners (“UBO”) to competent authorities and subject persons only. This decision follows a rulin
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Start-ups and innovative companies often find it difficult to access funding in a traditional manner, that is, from one source or few different sources of funding (such as by bank loans). An alternative approach for such companies to obtain fundin
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On the 10th of November 2022, the European Parliament has adopted its position at first reading in relation to the Digital Operational Resilience Act (“DORA”). First published by the European Commission on 24th September 2020, DORA is part of
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On the 7th October 2022, the European Parliament and Council approved a set of technical standards emerging from the Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 (“EMIR REFIT”). These technical standard
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On the 21st of October 2022, the Financial Action Task Force (“FATF”) issued its latest ‘High-Risk Jurisdictions subject to a Call for Action’ and ‘Jurisdictions under Increased Monitoring’ documents. These documents have been uploaded
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On the 23rd September 2022, the European Securities and Markets Authority (“ESMA”) has updated its Questions and Answers (“Q&As”) on the following: The Q&As on the European Crowdfunding Service Providers for Business Regulations, w
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On the 6th October 2022, the Malta Financial Services Authority (“MFSA”) issued a circular on the European Securities and Markets Authority’s (“ESMA”) final Report on the Guidelines on MiFID II Suitability Requirements (“the Report”)
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Following months of consultations, discussions and proposals, the final version of the proposed Markets in Crypto Assets Regulation (“MiCA”) was approved by the European Council on the 5th of October 2022, confirmed by the Council’s Permanen
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On the 3rd October 2022, the Malta Financial Services Authority (“MFSA”) issued a circular addressed to those market participants which enter into derivative contracts falling within the scope of Regulation No. 648/2012, the European Market In
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On the 6th September 2022, the Malta Financial Services Authority (“MFSA”) issued a circular on Article 6 of the European Market Infrastructure Regulation (“EMIR”) which states the following: “ESMA shall establish, maintain and keep up t
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On the 5th August 2022, the Malta Financial Services Authority (“MFSA”) launched its Corporate Governance Code for MFSA authorised entities (the “Code”). This Code came into being after a process of consultation, where many respondents wel
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The proposal for a Markets in Crypto-Assets (“MiCA”) Regulation provides for a sound legal framework within the European Union (“EU”), in an area which remains mostly unregulated by existing financial services legislation. Once adopted, th
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On the 23rd August 2022, the Malta Financial Services Authority (“MFSA”) issued a circular as a final reminder to authorised persons of their obligation to submit their response to the Fintech Adoption Study Questionnaire (“FAS”) not later
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On the 24th of September 2020, the European Commission adopted a Digital Finance Package, which includes a digital finance strategy, together with three legislative proposals on Digital Operational Resilience Act (“DORA”), Markets in Crypto-As
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On the 28th July 2022, the Malta Financial Services Authority (“MFSA”) issued a circular in relation to the regulation on European Crowdfunding Service Providers for business (the “Regulation”). The MFSA announced that the EU Commission ha
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The financial services sector is an ever-evolving field which will continue to grow and advance. This is understood by the European Union (“the EU”) and in 2020, the European Commission issued the Proposal for a Regulation on Markets in Crypto
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On the 19th July 2022, the Financial Intelligence Analysis Unit (“FIAU”) issued a guidance document on ‘Reporting through goAML’. This document provides clarifications on the reporting process, the reporting of transactions connected to Ir
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The MiCA Proposal: Why is it important? On the 30th June 2022, the European Council and the European Parliament announced that a provisional agreement was reached on a proposal for a Market in Crypto-Assets (“MiCA”) Regulation. The MiCA propos
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On the 12th July 2022, the Committee on Payments and Market Infrastructures (“CPMI”) and the International Organisation of Securities Commissions (“IOSCO”), published their final guidance on stablecoin arrangements confirming that the Prin
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In 2019 the Financial Action Task Force (“FATF”) extended its anti-money laundering and counter- financing of terrorism (“AML/CFT”) measures’ oversight to also cover Virtual Assets (“VAs”) and Virtual Assets Service Providers (“VAS
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On the 30th June 2022, European Union (“EU”) officials agreed on a ‘balanced deal’ making the EU the first continent to provisionally regulate crypto-assets through this landmark law known as the Markets in Crypto-Assets (“MiCA”). The
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On the 2nd June 2022, the European Supervisory Authorities (“ESAs”) published a statement which clarifies the draft regulatory technical standards (“RTSs”) issued under the Sustainable Finance Disclosure Regulation (“SFDR”). The statem
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On the 14th June 2022, the European Banking Authority (“EBA”) published its Guidelines (the “Guidelines”) specifying the roles and responsibilities of the Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) comp
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On the 17th June 2022, the Financial Action Task Force (“FATF”) congratulated Malta for the significant progress it has made in addressing the strategic Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) deficiencies pr
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On the 15th June 2022, Maltese news sources revealed that following a secret plenary vote, the Financial Action Task Force (“FATF”) voted to remove Malta from its grey list. A formal announcement of the decision is expected to be made this Fri
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On the 30th May 2022, Regulation (EU) 2022/858 (the “Regulation”), which introduces a pilot regime for Distributed Ledger Technology (“DLT”) market infrastructures, was formally signed by the co-legislators. The Regulation lays down requir
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With respect to Regulation (EU) 2020/1503 (the “Crowdfunding Regulation”), crowdfunding service providers that provide their services only on a national basis currently benefit from a transitional period that will expire on the 10th November 2
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The Malta Financial Services Authority (“MFSA”) has revised the application forms for applicants seeking authorisation as Alternative Investment Funds (“AIFs”) and Undertakings for Collective Investment in Transferable Securities (“UCITS
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The European Commission has recently adopted a Delegated Regulation (the “Regulation”) containing the regulatory technical standards to be observed by financial market participants and financial advisors. The Regulation should be followed when
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The Malta Financial Services Authority (“MFSA”) Report on Operational and Compliance Readiness by Financial Market Participants and Financial Advisers (the “Report”) has been issued following the MFSA’s first supervision exercise into th
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The role of the Money Laundering Reporting Officer (“MLRO”) is arguably one of the most frequently asked about topics when it comes to questions directed to the Financial Intelligence Analysis Unit (“FIAU”). In the course of answering and
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On the 18th March 2022, the Malta Sanctions Monitoring Board issued a guidance note on the interpretation of Article 5b of Council Regulation 2022/328 regarding the sanctions on Russia following its invasion of Ukraine. Following amendments on the
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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”)
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On the 14th February 2022, the Malta Financial Services Authority (“MFSA”) issued a circular notifying investment services providers of the changes carried out to the Conduct of Business Rulebook (the “Rulebook”), originally issued by the
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A crypto fund can be defined as a collective investment scheme managing a portfolio consisting mainly of cryptocurrencies. These types of funds are on the rise, mainly due to the rapid growth in value of several cryptocurrencies. The development o
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On the 24th January 2021, the Malta Financial Services Authority (“MFSA”) issued a circular aimed at relevant stakeholders on the updates made to the procedures pertinent to applications for admissibility to listing and the approval of prospec
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On the 25th January 2022, the Malta Financial Services Authority (“MFSA”) issued new Crowdfunding Rules (the “Rules”) which contain provisions regulating the operations of Crowdfunding Service Providers authorised by the MFSA. The Rules ma
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The worldwide interest in Distributed Ledger Technology (“DLT”) is one of the main drivinig elements in the field of crypto. The local Maltese regulatory framework has served to further feed this interest in Malta. The Virtual Financial Assets
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Being at the forefront in regulating the cryptocurrency sector, Malta has implemented several regulations which provide a regulatory framework for service providers to operate, while also ensuring that investors are protected. In this article we s
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The European Commission (the “Commission”) launched a proposal for a regulation laying down the rules and regulations on the use of Artificial Intelligence (“AI”). With this proposal, the Commission aims to ensure the safety of such usage
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Alternative Investment Funds (“AIFs”) are established with the purpose to raise capital through non-traditional investment products which generally do not fall under the category of mainstream investments. In this respect, certain AIFs have al
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On the 10th of November 2021, the European Crowdfunding Service Providers for Business Regulation (“ECSPR”) and the accompanying Directive amending MiFID II came into force, achieving harmonisation of a regulatory rulebook for crowdfunding ser
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On the 18th October 2021, the Financial Intelligence Analysis Unit (“FIAU”) issued a revised version of the Implementing Procedures: Part I (“IPs”) which are accessible from the FIAU website. Adverse Media Section 3.5.1(a) of the IPs was a
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On the 28th of October 2021, the Financial Action Task Force (“FATF”) published a document to update and expand its guidelines intended to help national authorities to further understand and regulate Virtual Asset (“VA”) activities and Vir
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On the 26th October 2021, the Companies (Amendment) Act (the “Amendment Act”) was enacted in order to amend the Companies Act (Cap. 386 of the Laws of Malta) (the “Act”). From an overview of the amendments undertaken, it seems that the goa
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On the 11th of October 2021, the Malta Financial Services Authority (“MFSA”) issued a circular to inform the industry on two matters: the Investment Firms Classification and XBRL Submission Testing Phase. Investment Firms Classification Follow
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What are Sports Tokens? The ever-expanding world of cryptocurrency has recently taken its turn to enter into the popular and lucrative world of sport. News recently struck that a transfer of the highly renowned and talented football player Lionel
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The notion behind product governance stems from the fact that investment firms which manufacture and distribute financial instruments known as products, shall act in the best interests of their investors at all stages of a product’s development
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The main difference between a variation and a revocation of a trust is that, whilst variation allows the power to revoke certain terms under a trust and introduce new ones, revocation allows the power to terminate the rights under a trust indefini
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The Malta Financial Services Authority (“MFSA”) has issued a circular addressed to Fund Managers and Collective Investment Schemes (“CIS”) falling within the scope of the Securities & Markets Supervision Function. In order to conform w
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There is no trust without a trustee. However, there is another essential party to the trust, without which the trust would be invalid: the beneficiary. The purpose behind creating a trust is to provide certain benefits to the beneficiary, that is,
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The European Securities and Markets Authority (“ESMA”) published the results of the 2020 Common Supervisory Action (“CSA”) on MiFID II suitability requirements noting inter alia, that on the whole, firms do comply with the essential elemen
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In analysing the duties of the trustee, it is fundamental to refer to article 21 of the Trusts and Trustees Act (Chapter 331 of the Laws of Malta) (the “TTA”) which lays down the fundamental duties of the trustee. Article 21(1) of the TTA refl
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The scope of the Virtual Financial Assets Act, Chapter 590 of the Laws of Malta (“VFA Act”), is largely aligned with the Regulation of the European Parliament and of the Council on Markets in Crypto-Assets (“MiCA Regulation”), the latter a
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On the 3rd August 2021, the Malta Financial Services Authority (“MFSA“) issued a circular as a clarification intended for licensed Company Service Providers (“CSPs“) on their previous circular. In the circular, the MFSA pro
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On the 5th August 2021, the Malta Financial Services Authority (“MFSA“) issued a Circular reminding relevant entities that the Investment Firms Regulation and Directive (the “IFRD Package“) came into force on the 26th June
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As underlined in the Civil Code, Chapter 16 of the Laws of Malta, fiduciary obligations arise by virtue of law, contract, quasi-contract, unilateral declarations including wills, trusts, assumption of office or behaviour whenever a person (the “
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On the 21st July 2021, the Malta Financial Services Authority (“MFSA”) issued a circular regarding the changes to Appendix 2B Fund Manager Return, triggered by the Investment Firms Regulation and Directive (“IFRD”). The purpose of the circ
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Although the English law concept of trust was already present in Malta since the late 1980s through the concept of ‘offshore trusts’, the first written legislation regulating domestic Maltese trusts came into force in 2004 through the enactmen
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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 rele
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During its last plenary session, held on the 23rd June 2021, the Financial Action Task Force (“FATF”) voted to insert Malta in its list of countries that have been identified as having strategic anti-money laundering (“AML”) deficiencies,
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On the 17th May 2021, the Malta Business Registry (“MBR”) issued a notice directed to Company Service Providers (“CSPs”) noting the changes and procedures which will be implemented by the MBR following the enactment of the Company Service
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The Company Service Providers Act, Cap 529 of the Laws of Malta, as revised by Act L of 2020, extends the requirement of authorisation to persons that had previously been exempted from authorisation and supervision from the Malta Financial Service
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The Company Service Providers Act, Cap 529 of the Laws of Malta, as revised by Act L of 2020, extends the requirement of authorisation to persons that had previously been exempted from authorisation and supervision from the Malta Financial Service
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The Company Service Providers Act, Cap 529 of the Laws of Malta, as revised by Act L of 2020, extends the requirement of authorisation to persons that had previously been exempted from authorisation and supervision from the Malta Financial Service
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On the 16th March 2021, the Legal Notice 105 of 2021, Company Service Providers (Exemptions) Regulations, 2021 came into force. These regulations identify persons who are exempt from obtaining authorisation is terms of the Company Service Provider
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In 2020, as part of its oversight and prudential supervision, the Securities and Markets Supervision function within Malta Financial Services Authority (the “MFSA”) carried out several onsite visits to the offices of companies involved in inve
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As part of its monitoring role, the Compliance Function should carry out frequent onsite visits at the offices of the regulated entity the compliance of which is under its responsibility. For the purpose of these compliance visits and their freque
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On the 6th April 2021, the Malta Financial Services Authority (“MFSA”) issued a publication predominantly directed to credit institutions, highlighting that due to the COVID-19 pandemic many businesses and households have experienced financial
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When outsourcing one or more compliance tasks, the regulated entities remain responsible for the proper performance of all the outsourced functions and are expected to ensure that all requirements applicable to the Compliance Function continue to
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Subject to certain limitations and requirements, including the existence of objective reasons, where applicable, the regulated entities are allowed to outsource the carrying out of compliance tasks to third parties. It is practice that in order to
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Most of the applicable laws and regulations require the regulated entities to ensure that the Compliance Function performs its tasks and responsibilities on a permanent basis. These entities are expected to have a Compliance Function in office at
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On the 15th March 2021, the Malta Financial Services Authority (“MFSA”) issued a circular on the European Crowdfunding Service Providers Regulation (the “Regulation”) informing the industry of the incoming implementation of the Regulation
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Following the feedback statement on the proposed amendments to the Company Service Providers (“CSPs”) regulatory framework issued on the 9th April 2020, the amendments to the Company Service Providers Act, as amended by Act L of 2020 (“CSP A
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The purpose of the Compliance Policy is to set out high level principles, and to outline the policies, measures, and controls that the regulated entity has in place in order to ensure that the decisions and actions are in compliance with the rules
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On the 9th March 2021, the Malta Financial Services Authority (the “MFSA”) issued a circular addressed to financial market participants and financial advisors on the joint supervisory statement issued by the European Supervisory Authorities (�
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On the 26th February 2021, the European Securities and Markets Authority (“ESMA”) has issued a Consultation Paper on the draft technical standards on crowdfunding under the European crowdfunding service providers Regulation (the “Regulation�
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Independence is one of the fundamental principles of compliance and any regulated entity shall strive to establish and implement measures and controls in order to ensure that the duties performed, and the decisions taken, by the Compliance Functio
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We touched upon the obligation of the Compliance Function to conduct a risk assessment in our write up concerning the Compliance Monitoring Program, highlighting that such program should be grounded on the assessment of the relevant major risk fac
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On the 19th February 2021, the European Central Bank (“ECB”) published its Memorandum of Understanding (“MoU”) with the Bank of England and the Financial Conduct Authority (“UK Authorities”) on post-Brexit supervisory cooperation, effe
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The Conduct Supervision Function within the Malta Financial Services Authority is currently conducting a number of focused on-site inspections at investment firms to assess the application of product governance rules adopted by the selected firms.
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The ultimate purpose of the monitoring and reporting obligations allocated to the Compliance Function is to ensure that the compliance risks inherent in the investment activities and services undertaken by the regulated entity are duly mitigated a
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Along with its monitoring and reporting obligations, the Compliance Function should fulfil its advisory responsibilities by assisting and guiding the relevant persons responsible for carrying out investment services and activities within the regul
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As part of its responsibility to ensure that the Company complies with its obligations under MiFID II, the senior management must ensure that the compliance function fulfils the requirements set out in Article 22 of the MiFID Delegated Regulation.
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The scope of the Compliance Monitoring Program is to analyse and suggest methods which will be applied throughout the compliance year in order to ensure the compliance of the company with legislation, rules and regulations applicable to entities l
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On the 4th January 2021, the European Securities and Markets Authority (“ESMA”) has proceeded to withdraw the registration of a number of Credit Rating Agencies (“CRA”) and Trade Repositories (“TR”) registered in the United Kingdom (�
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Introduction Numerous laws, regulations, rules and guidelines applicable to regulated business activities, including investment firms, financial institutions, collective investment schemes, trustees, CSPs or VFA service providers, emphasise the im
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On the 13th January 2021, the European Securities and Markets Authority (“ESMA”) issued a public statement reminding firms falling under MiFID II on the requirements applicable to the provision of investment services to retail or professional
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On the 16th December 2020, the German cabinet passed a draft legislation intended to allow the possibility for shares to be issued and registered in an electronic manner. This move has been applauded by stakeholders as it follows the German govern
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On the 11th December 2020, the Malta Financial Services Authority (the “MFSA”) issued cross-sectoral guidelines titled: Guidance on Technology Arrangements, ICT and Security Risk Management, and Outsourcing Arrangements (the “Guidance”). T
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On the 10th December 2020, the Malta Financial Services Authority (“MFSA”) issued a circular as the 1st briefing to the industry on the impending implementation of the Investment Firms Regulation (“IFR”) package. The package consists of th
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On the 4th December 2020, the Malta Financial Services Authority (“MFSA”) issued a circular advising relevant entities on the derivatives reporting obligations emanating from the European Markets Infrastructure Regulation (the “Regulation”
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On the 1st December 2020, the Malta Financial Services Authority (“MFSA”) issued a consultation document on the updated Company Service Providers (“CSPs”) Rulebook. The updates to the CSP Rulebook will be applied in order to align such Rul
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On the 19th November 2020, the Malta Financial Services Authority (“MFSA”) issued a circular as a follow up to their previous publication to provide a clarification to counterparties which fall within the definition of ‘non-financial counter
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On the 23rd November 2020, the Malta Financial Services Authority (“MFSA”) issued a circular bringing to the attention of relevant entities the publication made by the Financial Action Task Force (“FATF”) which identifies countries which c
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On the 10th November 2020, the Malta Financial Services Authority (the “MFSA”) issued a circular informing the industry on the revisions made to the Loan Funds Rules, that shall apply as from the date of the issued circular. The new rules shal
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On the 13th October 2020, the Parliament of Malta sat for the second reading of the Company Service Providers (Amendment) Bill (the “Bill”) which is to effect the amendments envisaged by the Malta Financial Services Authority in its feedback
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On the 19th October 2020, the Malta Financial Services Authority (“MFSA”) issued a circular addressed to all market participants and entities which undertake Securities Financing Transactions (“SFTs”) falling under the Securities Financing
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On the 14th October 2020, the Malta Financial Services Authority (“MFSA”) issued a circular on its findings following the compliance inspections related to Regulation 648/2012 ‘The European Markets Infrastructure Regulation’ (“EMIR”) w
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On the 24th September 2020, the European Commission (“EC”) issued its digital finance package consisting of a digital finance strategy and regulatory suggestions on crypto-assets and digital resilience in order to push for a competitive EU f
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On the 24th September 2020 the European Securities and Markets Authority (“ESMA”) published a report containing its review on the appropriateness of the Market Abuse Regulation (“MAR”). The report has concluded that, in general the MAR has
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On the 2nd September 2020, the Malta Financial Services Authority (“MFSA”) issued a Circular outlining the effect of Brexit on the applicability of Directive 2000/31/EC (the “Directive”) which covers a broad range of online activities. The
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On the 27th August 2020, the Financial Intelligence Analysis Unit (“FIAU”) issued a Consultation Document that sets forth a proposal for the implementation of a subsidiary legislation which was drafted following consultations with the Malta Fi
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On the 25th August 2020, the Malta Financial Services Authority (“MFSA”) issued a circular on the updates made to the Investment Services Rules (the “Rules”) applicable to Collective Investment Schemes. The Rules have been updated by addin
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On the 11th August 2020, the Malta Financial Services Authority (the “MFSA”) issued a circular on the initiatives undertaken by the EU on sustainable finance while also providing an outline of the legislative instruments that will come into fo
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The Malta Financial Services Authority (“MFSA”) has issued a Guidance Paper on the 21st July 2020, providing information on the role and duties of the Money Laundering Reporting Officer (“MLRO”). The MFSA explains that all subject persons,
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On the 15th July 2020, the European Securities and Markets Authority (“ESMA”) has issued the final version of its Guidelines on the disclosure requirements imposed upon relevant entities under the Prospectus Regulation (“Guidelines”). Thes
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On the 17th July 2020, the Financial Intelligence Analysis Unit (“FIAU”) issued a Guidance Document on Funding of Terrorism (“FT”) which supplements and integrates the 2018 ‘Guidance Note on Funding of Terrorism – Red Flags and Suspici
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By means of a notice issued by the Malta Financial Services Authority (the “MFSA”) on the 15th July 2020, the MFSA reminded all licence holders of their obligations in relation to record keeping. In order to ensure consumer protection, complia
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On the 10th July 2020, the Malta Business Registry (the “MBR”) issued a notice in relation to the Companies Act (Public Companies – Annual General Meetings Regulations) 2020 (the “Regulations”), which Regulations address the requirements
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On the 29th June 2020, the European Securities and Markets Authority (“ESMA”) published its reply to the Commission’s consultation on a Digital Finance Strategy for Europe. The transformation of the financial sector taking a digitised form a
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The Financial Intelligence Analysis Unit (the “FIAU”), issued a notice on the 2nd July 2020, referring to the Financial Action Task Force’s (the “FATF”) Public statement issued on the 30th June 2020, in relation to “High-Risk Jurisdict
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On the 3 July 2020, the Malta Financial Services Authority (the “MFSA”), published a Circular addressed to MiFID firms, fund managers and self-managed Collective Investment Schemes (the “Licence Holders”) falling within the remit of the se
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On the 3 July 2020, the Malta Financial Services Authority (the “MFSA”) notified firms classifying as MiFID firms, Fund Managers and Collective Investment Schemes (the “Licence Holders“) that various amendments had been carried o
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On the 30 June 2020, the Malta Financial Services Authority (the “MFSA”) issued a Consultation Document on the Guidance on Technology Arrangements, ICT and Security Risk Management and Outsourcing Arrangement (the “Guidance Document̶
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On the 30th June 2020, the Malta Financial Services Authority (the “MFSA”) issued a circular making reference to its previous circular relating to the regulatory reporting due to the outbreak of COVID-19, where the MFSA had informed its market
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On the 10th June 2020, the Malta Financial Services Authority (the “MFSA”) issued a Circular addressed to all Company Service Providers (the “Circular”) regarding the Sectoral Risk Assessment and Action Plan on Legal Entities, Legal Arrang
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Various Financial Services Laws (Amendment) Act By means of Act V of 2020, Various Financial Services Laws (Amendment) Act, various financial services laws have been amended, including amendments to the Companies Act (the “Act”), Chapter 386 o
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On the 1st June 2020, the Financial Intelligence Analysis Unit (the “FIAU“) issued a notice informing involved parties that by means of Legal Notice 214 of 2020 (the “Legal Notice”), a series of amendments were made to the Preventi
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The Financial Intelligence Analysis Unit (the “FIAU“) has issued a Consultation Document in relation to the Draft Regulations providing for the establishment of an Automated Centralised Mechanism for the Collection and Retrieval of Dat
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On the 8th May 2020, the Malta Financial Services Authority (the “MFSA”), issued a Circular addressed to Investment Services Licence Holders which qualify as MiFID Firms (the “Licence Holders”), where the MFSA noted that even though the C
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On the 23rd April 2020, the Sanctions Monitoring Board (the “Board”) issued a Circular addressing the Administrative Penalties under the National Interests (Enabling Powers) Act (the “Act”). Indeed, the Board highlighted that by means of
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The Financial Action Task Force (“FATF”) has recently issued a Guidance on Digital Identity (the “Guidance”) intended to aid governments, financial institutions, virtual asset service providers and other regulated entities to determine whe
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On the 20th April 2020, the Financial Intelligence Analysis Unit (the “FIAU”) issued a notice to remind all Subject Persons to submit the Risk Evaluation Questionnaire (the “REQ”) by not later than the 4th May 2020 at 17:00. Moreover, the
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On the 9th April 2020, the Malta Financial Services Authority (the “MFSA”) issued its Feedback Statement (the “Feedback Statement”) regarding its Consultation Document (the “Consultation Document”) issued on 22nd October 2019 which sou
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On the 17 April 2020, the MFSA issued a circular on Regulation (EU) 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the “Market Abuse Regulation” or “MAR”) which is addressed to listed entities wh
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On the 7th April 2020, the Malta Financial Services Authority (“MFSA”) issued a media release in light of the impact on the local regulated market due to the recent outbreak of COVID-19, where it explained that the MFSA is continuously engagin
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By means of a notice issued by the Malta Financial Services Authority (“MFSA”) on the 6th April 2020, the MFSA informed the public that, in order for it to provide a formal basis for co-operation between the MFSA and the Malta Business Registr
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On the 3rd April 2020, the European Securities and Markets Authority (“ESMA”), the EU’s securities markets regulator, has published its Guidelines on performance fees in investment funds applicable to Undertakings for the Collective Investme
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On the 6 April 2020, the Malta Financial Services Authority ( the “MFSA”), issued a Circular addressed to Investment Services Providers, making reference to Rule R4-3.2.7 (the “Rule”) of Part BI of the Investment Services Rules for Investm
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On the 27 March 2020, the European Securities and Markets Authority (“ESMA”) issued a Consultation Paper on its draft Guidelines issued in relation to the leverage risks in the Alternative Investment Fund (“AIF”) sector (the “Guidelines�
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On the 1st April 2020, the Malta Financial Services Authority (the “MFSA” or the “Authority”) has published a circular addressed to all companies and individuals registered to act as a Company Service Providers in terms of the Company Serv
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On the 1 April 2020, the Financial Intelligence Analysis Unit (the “FIAU”) has released a Consultation Document relating to a series of proposed amendments to the Prevention of Money Laundering and Funding of Terrorism Regulations (the “PML
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On the 26 March 2020, the Malta Financial Services Authority (the “MFSA”) has issued a Circular addressing the unprecedented cybersecurity risks that the COVID-19 pandemic has brought upon the financial services sector. As many licence holders
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On the 25 March 2020, the Malta Financial Services Authority (“MFSA”) issued a circular as part of its efforts to protect retail customers during the current COVID-19 crisis. In the circular, the MFSA reminds relevant firms of its expectations
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On the 25 March 2020, the Malta Business Registry (the “MBR”) issued a notice on the submission of Annual Returns and Financial Statements. The MBR reiterated that every company is required to submit to the MBR their Annual Return, together wi
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On the 24 March 2020, the Malta Financial Services Authority (the “MFSA”) issued a notice to inform licence holders regarding the recent publication of two public documents issued by the Financial Action Task Force (the “FATFR
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On the 25 March 2020, the Malta Business Registry (the “MBR”) issued a notice on the submission of Annual Returns and Financial Statements. The MBR reiterated that every company is required to submit to the MBR their Annual Return, together wi
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The European Securities and Markets Authority (“ESMA”) has recently issued a decision to temporarily require the holders of net short positions in shares traded on a regulated market within the European Union (the “EU”), to notify the rele
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On the 21st March 2020, the Malta Financial Services Authority (the "MFSA") issued a circular in relation to the timing of regulatory reporting in view of the current outbreak of COVID-19. Indeed, as stated in various communications issu
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The Malta Financial Services Authority (“MFSA”) has just issued a circular providing more information in relation to the overhaul of the licensing and application process. Indeed, pursuant to the Press Release issued by the MFSA on the 14th Fe
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On the 21st March 2020, the Malta Financial Services Authority (the “MFSA”) issued a circular in relation to the timing of regulatory reporting in view of the current outbreak of COVID-19. Indeed, as stated in various communications i
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On the 16th March 2020, the Financial Intelligence Analysis Unit (the “FIAU”) issued a number of measures as a reaction to COVID-19 outbreak, including measures in relation to the submission of the Risk Evaluation Questionnaires (“REQs&#
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Following the notice on the interim supervisory measures delineating the measures to be taken by the Malta Financial Services Authority (“MFSA”) in supervising licensed entities during the recent pandemic, the MFSA circulated another notice re
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The Malta Financial Services Authority ("MFSA") has recently issued a circular addressed to all licence holders providing its expectations contingency planning in light of the COVID-19 outbreak and which is applicable to Investment Firms
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On the 13th March 2020, the Malta Financial Services Authority ("MFSA") issued a circular addressed to listed entities whose financial instruments are admitted to trading on a trading venue and which relates to the outbreak of COVID-19 (
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The Malta Financial Services Authority ("MFSA") has issued a notice to bring to the attention of all authorised firms, recognised and licensed persons that as part of its contingency plan in relation to COVID-19, the procedures for the c
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The Malta Financial Services Authority (“MFSA”) has published a circular on the 5th of March 2020 bringing to the attention of market participants the European Commission’s (“EC”) launch of a public consultation. This consultation relate
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The Malta Financial Services Authority (“MFSA”) has recently published a Notice drawing the attention of trustees duly authorised or registered in terms of Article 43 or Article 43B of the Trusts and Trustees Act with regards to the amendments
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The MFSA has recently issued two Circulars in relation to Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the perfo
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Following the Malta Financial Services Authority’s (the “MFSA”) issue of the ‘MFSA FinTech Strategy’, whereby six pillars were identified, the MFSA issued a Consultation Document on the 4th July 2019, regarding the first pillar, being th
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The following is the second part of an article which provides an overview of the major changes brought forward by the Fifth Anti-Money Laundering Directive. E-money and prepaid cards There is now increased transparency regarding e-money products b
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A Review of the EU Directive 2018/843 Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or ter
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It is crucial that Europe grasps all the potential of digital age and strengthens its industry and innovation capacity, within safe and ethical boundaries. Digitalisation and technology are significantly transforming the European financial system
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The European Securities and Markets Authority (“ESMA”) has recently updated its Questions and Answers (“Q&As”) in relation to various Regulations and Directives as provided hereunder: 1. Prospectus Regulation The two new Q&As provi
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ESMA updates its Q&As on the Securitisation Regulation The Malta Financial Sercvices Authority ("MFSA") has recently published a circular addressed to all interested stakeholders, in particular to the securitisation market participan
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The Malta Financial Services Authority ("MFSA") has recently issued a Circular on International Sanctions (the "Circular"). The aim of this Circular is to bring to the attention of all Financial Services Licence Holders the com
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The Malta Financial Services Authority (“MFSA”) has recently revised Financial Institution Rules FIR/01, FIR/02 and FIR/03 (the “Rules”) with the aim to reflect the recent amendments in the Financial Institutions Act, Chapter 376 of the La
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The Malta Financial Services Authority (“MFSA”) has received Letters of Intent from 34 prospective Virtual Financial Asset ("VFA") service roviders, 21 of which pertain to crypto-asset exchanges.These were operating under the transit
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The European Securities and Markets Authority ("ESMA") has published an updated version of its Questions and Answers ("Q&As") on the implementation of investor protection requirements under Directive 2014/65/EU of the Europ
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On the 15th October 2019, the Malta Financial Services Authority (“MFSA”) issued a Circular on Self-Assessment on potential closet indexing practices adopted by Collective Investment Schemes targeting retail investors (the "Circular"
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On 22th October 2019, the Malta Financial Services Authority (the “MFSA”) has issued a consultation document (the “Consultation Document”) on which the MFSA is seeking feedback from the stakeholders. The purpose of this Consultation Docume
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On the 14th October 2019, the Financial Intelligence Analysis Unit ("FIAU") issued a consultation on the proposed revised version of the Prevention of Money Laundering and Funding of Terrorism Regulations ("PMLFTR") in order to
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The European Securities and Markets Authority ("ESMA")has recently published a Consultation Paper on Regulation (EU) No 596/2014, the Market Abuse Regulation ("MAR"). This Consultation Paper provides a number of proposals which
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A guidance note was issued in October 2019 by the Sanctions Monitoring Board ("SMB") as the competent authority for the implementation of financial sanctions in Malta (the "Guidance Note"). The Guidance Note noted that all the
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On the 25th September 2019, the European Banking Authority (“EBA”) launched a public consultation on its proposals for a simple, transparent and standardised (“STS”) framework for synthetic securitisations. This new STS framework was intro
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The UK Financial Conduct Authority ("FCA") has recently published its ‘Guidance on Cryptoassets – Feedback and Final Guidance to Consultation Paper CP 19/3 (the "Guidance"). The Policy Statement followed the ‘Guidance
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On the 16th September 2019, the Malta Financial Services Authority (“MFSA”) published a Circular in relation to the reporting requirement introduced in Regulation (EU) No 909/2014 (“CSDR”) and which relates to the quarterly reporting of in
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In our recently published article on the Regulatory Sandbox (the "Sandbox") being proposed by the Malta Financial Services Authority (the “MFSA”), we presented that this Sandbox could be a great possibility for financial technology (
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The Malta Financial Services Authority ("MFSA") has today issued a Circular to Virtual Financial Asset Service Providers (the "Circular") addressed to those persons availing themselves of the transitory provision set out in Art
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The European Central Bank ("ECB")has recently issued an Occasional Paper entitled "In search for stability in crypto-assets: are stablecoins the solution?" (the "Paper"). The Paper provides a description of stablecoin
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The MFSA has recently carried out a number of changes to Conduct of Business Rulebook (the “Rulebook”) originally issued by the Malta Financial Services Authority (“MFSA”) on the 20th of December 2017. Indeed, following ESMA’s renewal of
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On the 27th July 2019, the European Parliamentary Research Service published a study with the title of "Blockchain and the General Data Protection Regulation" (the "Study") authored by Dr. Michèle Finck. This Study examined th
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The Malta Financial Services Authority (the "MFSA") has recently published a Consultation Document on the ‘Regulatory Sandbox’, which will provide the opportunity for its participants to test the commercial and regulatory viability o
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By means of L.N 158 of 2019 new amendments to the Register of Beneficial Owners Regulations (the "Regulations") under the Companies Act (Cap. 386) were enacted on the 12th of July 2019 in order to reflect the changes brought about by Dir
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The European Securities and Markets Authority ("ESMA’s") temporary restrictions on contracts for differences (CFDs) and Binary Options (BOs) to retail clients are or have been terminated. In this regard, the Malta Financial Services Au
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The Malta Financial Services Authority (the "MFSA") has recently published an updated version of the Conduct of Business Rulebook (the "Rulebook") originally issued by the MFSA in December 2017, and which changes have become ef
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The European Securities and Markets Authority (“ESMA”) has recently published two guidelines regarding the stress testing of money market funds and reporting on money market funds to national competent authorities. These guidelines were publis
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On the 11th July 2019, the European Securities and Markets Authority (“ESMA”) issued a Public Statement which aims to draw the attention of all regulated entities which either provide, distribute or sell Contracts for Differences (“CFDs”)
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The Malta Financial Services Authority (“MFSA”) has issued a circular addressed to all licence holders operating in the Financial Services industry, bringing to their attention the revised version of the Implementing Procedures Part I, recentl
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On the 19th of July 2019 the Malta Financial Services Authority (the “MFSA”) issued a Consultation Document on Security Token Offering (the “Consultation”). This Consultation forms part of the Capital Markets Strategy, Pillar II – Revisi
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As of the 21st of July 2019, Regulation (EU) 2017/1129 (the “Prospectus Regulation”) came fully into effect and is directly applicable in all EU member states. The Prospectus Regulation facilitates the so-called prospectus obligation and the i
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In order to ensure common, uniform and consistent application of the EU Directive 2004/39/EC (the “MiFID II”) compliance function requirements, the European Securities and Markets Authority (“ESMA”) has launched a public consultation on dr
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The Regulation (EU) No. 909/2014 on improving securities settlement in the European Union and on central securities depositories (the “CSDR”) plays a pivotal role for the harmonisation of the settlement of financial instruments in the European
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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 ther
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The Regulation (EU) No. 909/2014 on improving securities settlement in the European Union and on central securities depositories (the “CSDR”) lays down uniform requirements for the settlement of financial instruments in the European Union and
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Guidance Document for Credit Institutions, Payment Institutions and Electronic Money Institutions opening accounts for FinTechs On the 18th June 2019, the Malta Financial Services Authority (“MFSA”) and the Financial Intelligence Analysis Unit
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Binary options are cash settled derivative contracts based on the direction which the price of an underlying asset will take within a specified time frame and having only two possible outcomes that depend on whether the forecast price is correct (
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In 2007, the European Parliament and the European Council adopted the Shareholder Rights Directive (EU) 2017/828 (“SRD II”), amending Directive 2007/36 (“SRD I”). The aim of SRD II is to encourage long-term engagement of EU
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As of April 16th 2019, amendments were made to the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”) upon the advice of the Financial Intelligence Analysis Unit (“FIAU”) and published as Legal Notice 77 of 2019
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The Malta Financial Services Authority (“MFSA”) has published on 3th April 2019 an updated version of the Conduct of Business Rulebook (“Rulebook”). This Rulebook contains the Conduct of Business Obligations to which the Regulated Persons
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As of 29th March 2019, the European Securities and Markets Authority (“ESMA”) has updated its Questions & Answers (“Q&A”) document regarding the implementation of the Market Abuse Regulation (No. 596/2014, “MAR”). The objective
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On the 28th March 2019, the Malta Financial Services Authority (“MFSA”) issued circular on the proposed Temporary Permission Regime (“TPR”) which will be applicable to UK licensed investment funds, asset managers and investment firms (“U
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On the 25th February 2019, the Malta Financial Services Authority (the “MFSA”) published the much-awaited Chapter 3 of the Virtual Financial Assets Rulebook (the “VFA Rulebook”). This Chapter is applicable to Virtual Financial Assets Ser
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The European Securities and Markets Authority (“ESMA”) has recently published a document containing a list of thresholds below which an offer of securities would not need a prospectus. This list aims to create transparency around the different
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The European Securities and Markets Authority (“ESMA”) has recently issued a press release in relation to the Memoranda of Understanding (“MoUs”) agreed between ESMA and European securities regulators with the United Kingdom’s (“UK”)
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The Malta Financial Services Authority (“MFSA”) has published a Consultation Document on its FinTech strategy (“Consultation Document”), with the aim of adopting a strategy where the MFSA focuses its efforts towards supporting such industr
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The European Securities and Markets Authority (“ESMA”) has issued three Questions and Answers (“Q&As”) regarding the Prospectus Directive (“PD”) and the Transparency Directive (“TD”). Background Overview The PD The PD harmonise
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By virtue of EU Regulation 2017/2402 (the “Regulation”) focusing mainly on simple, transparent, and standardised securitisations (“STS”), which came into full effect on January 2019, a harmonised set of rules now exist for securitisations
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On the 25th January 2019, the Malta Financial Services Authority (“MFSA”) issued a Circular (the “Circular”) to provide a status update on the practical implementation of the Virtual Financial Assets (“VFA”) framework. Application for
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The Malta Financial Services Authority (“MFSA”) has issued a Circular to Issuers of Virtual Financial Assets (the “Circular”) identifying the way forward for Issuers of Virtual Financial Assets (“VFA”). The Circular caters for VFA Issu
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ESMA’s Advice to the EU Institutions on ICOs and crypto-assets The European Securities and Markets Authority (“ESMA”) has recently published its Advice to the European Union (EU) Institutions on initial coin offerings and crypto asse
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The Office of Commissioner for Revenue has recently issued three guidelines relating to the taxation of transactions involving Distributed Ledger Technology Assets (“DLT Assets”). The guidelines provide insight on the Commissioner’s position
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In light of the coming into force of the Virtual Financial Assets Act (“VFA Act”), the Financial Intelligence Analysis Unit (“FIAU”) has published a consultation document on the application of the anti-money laundering (“AML”) obligati
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The highly anticipated Virtual Financial Assets Act (the “VFA Act”) will come into force on Thursday 1st November 2018, however the regulator has provided certain provisions for the smooth transition and implementation of the VFA Act. Indeed,
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The newly established authority, the Malta Digital Innovation Authority (“MDIA”), which will be responsible for certifying Innovative Technology Arrangements and recognising service providers, such as Systems Auditors and Technical Administrat
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The MFSA has issued a consultation paper on the proposed additional regulation in relation to Initial VFA Offerings to complement the Virtual Financial Assets Act (“VFA Act”) and the proposed rules set forth in other consultation documents, in
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he Malta Financial Services Authority (“MFSA”) has published a circular clarifying as to when derivative contracts should be considered as financial instruments, and that companies trading in such transactions will have to either provide a rep
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As of the 1st July 2018, the new Gaming Act will require licensees to identify the persons responsible for the key functions, who will be issued with a Key Function Certificate following the Malta Gaming Authority’s (“MGA”) assessment of the
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The Virtual Financial Assets Act, The Innovative Technology Arrangements and Services Act, and the Malta Digital Innovation Authority Act have been published today. For more details please contact us on [email protected]
The MFSA has released a circular, addressed to all market participants falling within the scope of European Market Infrastructure Regulation (“EMIR”), on the implications on Clearing Through Central Counterparties (“CCPs”) established in t
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The MFSA has published a consultation document on the proposed draft legal notice (“Consultation Document”) which serves as setting out supplementary rules to the (“VFA Act”) regulating Virtual Financial Assets (“VFAs”). The Consultati
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Malta is set to become the first EU member state to regulate blockchain, DLT and cryptocurrencies, since on the 26th June, it was announced that Maltese Parliament has unanimously approved the three legislative bills on blockchain and Distributed
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The Virtual Financial Assets (VFAs) Act lays down the minimum requirements which the Whitepaper shall contain in relation to an Initial VFA Offering. The Whitepaper must comply with these requirements and must be registered with the competent au
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Three years after the EU adopted the Digital Single Market Strategy, progress has been made, with 12 legislative proposals out of 29 being agreed by the European Parliament and the Council. Major new laws such as the GDPR and the end of mobile roa
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We are one step closer to have a fully fledged legal framework regulating DLT and cryptocurrencies since yesterday the draft bills have been made available to the public. Parliament has scheduled the second reading today which will be followed by
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It has become a well-known fact that Malta is aiming to be a leader in regulating Distributed Ledger Technology (DLT), cryptocurrencies and ICOs. In fact, three new laws regulating this area have been proposed and presented to the Parliament and
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The Virtual Financial Assets Act (VFA Act), which should enter into force in the coming days once approved by Parliament, requires an issuer of Virtual Financial Assets (VFAs) to appoint and have in place a VFA agent at all times. Moreover, an a
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The MFSA has today issued its Consultation Paper on the Financial Instrument Test. The Financial Instrument Test is a very important process in determining whether a token falls within the definition of ‘financial instrument’ under the Markets
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Malta’s Prime Minister Dr. Joseph Muscat claimed that Malta is aiming to be “the global trailblazer in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies.” Such statemen
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The Malta Gaming Authority (MGA) has published the details of a sandbox which will allow the use of Virtual Currencies (VC) and the use of Distributed Ledger Technology (DLT) in the gaming sector. The sandbox will start in Q2 of 2018 and will last
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Due to inherent risks posed to investors, the European Securities and Markets Authority (“ESMA”) has agreed to impose temporary product intervention measures on the provision of contracts for differences (“CFDs”) and Binary Options. ESMA h
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Further to the publication and receipt of feedback on the MFSA’s Discussion Paper on Virtual Currencies (“VCs”), Initial Coin Offerings (“ICOs”) and Service Providers the Government published the Consultation Document where it provid
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Further to regulating the area of Blockchain, Virtual Currencies and Innovation, apart from the MDIA Bill, the Consultation Document also provides information on the proposed Technology Arrangements Bill (“TAS Bill”) aimed at regulating T
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Apart from providing for the establishment of a new central authority (the “MDIA”), the MDIA Bill also outlines the minimum governance arrangements of the MDIA and its overall objectives and policies. Composition and Governance Arrangements
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In its efforts to regulate blockchain, virtual currencies and innovation through the Consultation Document, Malta is proposing the establishment of a new central authority, a new Joint Co-ordination Board and a National Technology Ethics Committe
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The Maltese Parliamentary Secretary for Financial Services, Digital Economy and Innovation published a Consultation Document on the establishment of a central authority responsible for digital innovation in Malta, on the certification of Distribut
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Further to the transposition of the Fourth Anti-Money Laundering Directive into Maltese Law the Malta Gaming Authority (“MGA”) has published an announcement that a new Anti-Money Laundering Unit has now been set up within its operational and r
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Changes in the PSD II While the previous EU Directive on Payment Services has provided for the legal foundation of an EU single market in the area of payment services and has established a safer and more innovative payment services across the EU,
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Professional Investor Funds (“PIFs”) investing in Virtual Currencies (“VCs”) are now regulated through the supplementary conditions applicable to such schemes. The additional provisions found in the new section, which is applicable to PIFs
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Following the publication of the Consultation Document of the proposed regulations last Monday the Malta Financial Services Authority (“MFSA”) published the feedback statement highlighting the major issues raised by the major stakeholders an
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On the 20th of December 2017 ‘The Trusts and Trustees Act (Register of Beneficial Owners) Regulations, 2017’ (the “Regulations”) were published. These Regulations are aimed at implementing the requirement of having the information on benef
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The Malta Financial Services Authority (the “MFSA”) published a discussion paper to present to the public a proposed policy to be adopted by the MFSA for the regulation of the Initial Coin Offerings (“ICOs”), virtual currencies (“VCs”)
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This week, the Council of Europe adopted new rules aimed at facilitating the development of a securitisation market in Europe by defining and differentiating simple, transparent and standardised (“STS”) Securitisations. The simple, transparent
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If you are interested in the field of blockchain and cryptocurrencies, you should not miss the Blockchain & Bitcoin Conference Malta which will be held in Malta on the 7th of December. Entrepreneurs, investors, consultants and IT specialists
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The Government of Malta has adopted a broad national strategy reflecting its ambition to embrace blockchain innovation. In this regard, the Malta Financial Services Authority (MFSA) has been monitoring developments with respect to Virtual Currenci
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Investment-based crowdfunding, which is a relatively new concept within the financial services, could be the next gold-mine on Malta’s doorstep. With the Financial Services sector in Malta always reaching new heights, the MFSA was pro-active in
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ESMA has recently updated it Question and Answers documents in relation to the Market Abuse Regulation. The following is a summary of the salient points: Persons professionally arranging or executing transactions: this category is not only limited
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The Fourth Anti-Money Laundering Directive (the “4th AMLD”) which came into force on the 26th June 2015, recasts the previous third Anti-Money Laundering Directive (the “3rd AMLD”) and takes into account the 40 new recommendations adopted
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The Malta Financial Services Authority (the “MFSA”) has recently published a Consultation document on the Proposed Amendments to the Notified Investment Funds Regime (NAIFs). Proposed Changes The proposed changes seek to allow the possibility
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The Skill Games Regulations (the “Regulations”) were recently enacted and are applicable to skill games organised in Malta, provided from Malta or promoted or offered to persons in Malta. The Regulations establish certain objectives pursuant t
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The Malta Gaming Authority (the “MGA”) has recently published a White Paper (the “White Paper”) proposing major amendments to the current legal framework. The intended reforms will eventually repeal the existing legislation and pave the wa
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On the 7th of October 2016, the Trusts and Trustees (Protected Disability Trusts) Regulations (the “Regulations”) came into force by virtue of Legal Notice 324 of 2016. The aim of the Regulations is to provide for the establishment and adminis
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Introduction Externally managed funds in Malta, and in other European jurisdictions, are effectively regulated both at fund management level and at fund level. Following the introduction of the Alternative Investment Fund Managers Directive (“AI
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Today the MFSA has announced the launch of a new product, the Notified AIFs, promoted to either qualifying or professional investors. Notified AIFs, as long as they are managed by an AIFM, are not authorised or licensed by the MFSA and will not be
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Following the transposition of Directive 2013/34/EU regarding annual financial statements of companies, as from the 1st January 2016 there will be two major changes to the Companies Act: 1. The exemption from the preparation of consolidated accoun
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Dr. Omar Zerafa has recently published an article on LeapRate regarding the new policies adopted by the MFSA in relation to providers of binary options trading platforms. Read more on http://leaprate.com/uzmg5.
The MFSA has just updated its policy on online forex trading service providers, licensed as Category 2 or Category 3 Investment Service Licence holders. In its revised policy, the MFSA has lowered its threshold in relation to the requirement of a
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The MFSA has today issued a circular addressed to Company Service Providers regarding the duty of Company Service Providers to submit to the Authority a Certificate of Compliance. Such certificate shall cover one calendar year (from the 1st Januar
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Dr. Omar Zerafa provides an insight into establishing and licensing an online financial trading company in Malta, and how the jurisdiction compares to Cyprus as a hub for online financial trading.
Earlier this week, Dr. Omar Zerafa has been invited to Tel Aviv to be part of a regulatory panel where he spoke about the developments in the Maltese regulatory regime with respect to online financial trading, particularly forex and binary options
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Following the enactment of the Retirement Pensions Act (Chapter 514 of the Laws of Malta) (the “RPA”) which came into force on the 1st January 2015, the MFSA has issued a circular letter to registered persons, schemes or funds which are curren
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The announcement of the Swiss National Bank that it will no longer be enforcing and maintaining the minimum exchange rate for the Swiss Franc against the Euro has resulted in significant volatility in forex markets in relation to the Swiss Franc a
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Legal Notice 464 of 2014 has amended the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”). The new amendments further clarify the provisions of the PMLFTR, extend the scope of the regulations and introduce
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Zerafa Advocates has been approved as an Introducer for Henley & Partners, the entity which has been awarded a Public Services Concession by competitive tender with regards to the design, implementation and international promotion of the Indiv
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The MFSA has just issued a notice informing applicants for a Category 2 or Category 3 licence to carry out online forex trading of a new set of conditions specifically targeted to such companies. The new set of conditions put restrictions on the s
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On the 10th October 2014, the Commission has adopted an act containing the implementing rules for Solvency II, which will enter into force once they are approved by both the European Parliament and the Council. Solvency II takes into account the c
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The MFSA has recently published a set of documents formalising the implementation of the National Private Placement Regime (“NPPR”) in Malta. The NPPR allows Alternative Investment Fund Managers to market Alternative Investment Funds i
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The Corporate Governance Manual for Directors of Investment Companies and Collective Investment Schemes published by the MFSA has been updated to include the requirements of the Alternative Investment Fund Managers Directive (“AIFMD”)
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The UCITS V Directive was published in the European Union’s Official Journal on the 28th August 2014. The Directive, amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings fo
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