The Malta Financial Services Authority (“MFSA”) recently announced some changes to the Rulebook for Company Service Providers (the “Rulebook”), which came into effect on 23rd January 2024.
These modifications are primarily concerned with the regulatory submission process for licensed Company Service Providers (“CSPs”). Notably, these changes will have implications for submissions due in 2024 and thereafter.
Amidst these changes, the MFSA integrated into the Annual Compliance Return (“ACR”), certain regulatory submissions, which did not previously form part of, these being:
1. Under Threshold Class A and Class B CSPs are relieved from the obligation of submitting an Annual Self-Declaration.
2. The requirement for submission of the Certificate of Compliance has been removed.
3. All individual CSPs will no longer be mandated to submit a Statement of Solvency or a balance sheet.
4. The standalone Annual Financial Return is also no longer required.
For CSPs that are constituted as partnerships specific financial documents are to be submitted within four months of the financial year end. This is an alternative to the Audited Financial Statements, the Auditor’s Management Letter and the Auditor’s Report which have been rendered unnecessary.
Additionally, the MFSA addressed further key aspects, notably that:
· The timeframe for evaluating internal controls has been extended from every six months to an annual basis.
· The process for voluntary cancellation of CSP authorisations under Title 9 Chapter 2 of the Rulebook has been clarified, whereby CSPs must confirm their intended status and submit the relevant documentation when necessary.
· A new obligation has been added, particularly for Class A and Class C CSPs to notify the MFSA when using an address that is different from the CSPs’ registered address.
· Any breaches of the Company Services Providers Act, associated Regulations or the Rulebook are to be reported in the ACR.
· The requisite to notify the MFSA where the ACR would be submitted after the due date has been eliminated.
The changes to the Rulebook can be viewed here.
This article does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr Giulio Sammut.
