The Malta Independent 25 May 2020, Monday

Raising the bar for Company Service Providers

Friday, 10 April 2020, 15:25 Last update: about 2 months ago

MFSA publishes feedback statement on proposed reforms to the CSP Framework

The Malta Financial Services Authority (MFSA) has today published its feedback statement following a consultation document on Raising the Bar for Company Service Providers (CSPs) issued during the last quarter of 2019.

The Feedback Statement puts forward a reform which will generally raise standards for CSPs across the board, with one of the most salient changes being that a number of persons, who currently are exempt from, or who currently do not require registration, are being brought within the scope of the CSP Act and therefore subject to an authorisation requirement.

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The Authority received over 50 responses from a wide range of industry participants and interested parties, which were all carefully considered. Whilst some proposals were retained, others have been revised. In doing so, the MFSA has kept its strategic objectives of: [i] generally raising standards for CSPs by upgrading and converging the requirements of the current framework to establish a more robust, coordinated, and proportionate risk-based approach; and [ii] addressing key recommendations made by international institutions; at the forefront of its agenda.  

MFSA CEO Joseph Cuschieri, commented that "the role of Company Service Providers in our financial system is crucial. Today's publication is a major milestone in reforming the applicable framework. We have taken note of the responses received to our proposals and have sought to achieve a proportionate approach which raises standards across the board, but which does not act as a barrier to entry for sole practitioners and SMEs."  

The new Framework will provide for a stepped approach which will allow stakeholders enough time to align themselves to the new requirements.

The Feedback Statement is publicly available on the MFSA website and can be accessed from here.


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