Financial service license in Malta

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Malta globally stands out when it comes to financial services. This is owed to its thriving international relations and an extensive network of double taxation agreements.  Its embracement of all the EU financial services and regulations has allowed it to easily network and do business with many other countries around the globe. This has greatly contributed to the country’s financial stability.
 
What is MFSA?
We cannot talk about financial services in Malta and not mention the MFSA. It is Malta’s Financial Services Authority which maintains the Maltese Trade Register. It is the single regulator of financial services within the Island.
 
Purpose of the MFSA 
The founding of the MFSA means that Malta has one skilled, experienced and powerful body specially designed to protect consumers whilst encouraging fair and open competition in the financial services sector.
 
Malta ensures that the MFSA body provides financing services that facilitate economic transactions carried out by banks, investment companies, and pension funds. MFSA is also responsible for consumer education in the financial services sector—and should serve as a mainstream finance center in the country.
 
MFSA also offers insurance to Maltese business entities and companies. It holds deposits for businesses and individuals in different sectors thereby issuing funds to the organizations.
 
Types of finance services licenses In Malta
 
Malta offers a wide variety of financial services:
 

  • Banking license

Malta’s banking act is responsible for setting up credit institutions. This license is ideal for handling deposits into checking and savings accounts. It allows institutions to lend money to customers.
 

  • Financial Institutions.

In Malta, the creation and licensing of a financial institution can be likened to a homegrown “quasi-bank”—authorized to carry out a number of defined activities regulated by the Financial Institutions Act. These institutions deal with lending mortgage credits, the financing of commercial transactions including forfeiting, issuing and the administration of other means of payments like cheques.
 

  • Investment licenses

These are ideal for potential investors. They fall into three types:
Retail schemes 
Private collective investment schemes 
Professional investors funds 
 

  • Insurance licenses

Malta offers insurance licenses mainly to insurance companies. However, these licenses can also serve to regulate the licensing of insurance brokers, agents, and managers.
 
Acquiring Malta Financial Service License 
 
To obtain a financial service license, one should present satisfactory documents to the MFSA. Among these documents, should be proof that your business is in Malta.
 
The process for the acquisition of a Maltese Financial service license is divided into three stages: the preparatory,pre-licensing and post-licensing stages.
 
The preparatory stage
This stage starts with a formal meeting between the company and the MFSA delegates. They discuss the application procedure before the submission of the draft application documents and other supporting documents.
 
The pre-licensing stage
At this stage the MFSA approves the issuance of the financial services license.
 
The post licensing stage
During this stage the firm must satisfy all the requirements as agreed in the commencement of the business. Once a license is issued, the firm would then need to comply with a number of conducive business rules that seek to safeguard the welfare of both the consumer as well as that of the services products.
 
Professional Assistance
For more insights on Malta’s financial services license, you may contact SIGTAX. Our invaluable team, which consists of expert lawyers, accountants and consultants will give you detailed information and counsel in each step.  Our lawyers can provide you with finer details on the legal aspects pertaining to Malta’s citizenship by investment so that you don’t skip any necessary steps.

 
 

 

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