On 4th October 2023, the Malta Financial Services Authority (the “MFSA) published a Guidance Note (the “Guidance Note”) on the Fulfilment of Post-Authorisation Requirements (“PARs”) addressed to all company service providers authorised by the MFSA in terms of the Company Service Providers Act (Chapter 529 of the laws of Malta) (“CSPs”).
The MFSA has the power to, inter alia, impose restrictions or conditions, including PARs, upon authorised CSPs, as it deems appropriate, and CSPs which do not comply with PARs within stipulated timeframes may have their authorisation withdrawn by the MFSA. That being said, CSPs may and are encouraged to inform the MFSA as soon as possible, preferably before the expiration of the stipulated time frame, if they encounter any difficulties when implementing any PARs.
Indeed, the Guidance Note is intended to assist CSPs when carrying out a gap analysis at post-authorisation stage in ensuring that PARs to which CSPs may have been made subject, are addressed/met, and the expectation of the MFSA is for details of any action taken by CSPs to address/meet any PARs, to be clearly documented, for the MFSA to be able to verify the effectiveness of the gap analysis and the outcome thereof, as part of its supervisory duties. Moreover, since the Guidance Note is also intended as a reference point for best practices to CSPs in general, it may also act as a reference guide for CSPs carrying out a review of its processes and systems as part of their on-going obligation to maintain updated processes and systems, as it sets out some expectations of the MFSA applicable to authorised CSPs in general.
Camilleri Preziosi regularly tracks the MFSA’s guidance on, as well as legislative developments with regards to, CSPs and regulated activity to ensure that we are well equipped to guide authorised CSPs or persons interested in applying for authorisation with the MFSA, to ensure compliance with their legal and regulatory requirements and obligations. Accordingly, should you have any queries in relation to the above or require assistance in carrying out a post-authorisation gap analysis or review of any systems or frameworks in place, feel free to get in touch with Kirsten Debono Huskinson at firstname.lastname@example.org or Kyra Sammut at email@example.com.
Authors: Kyra Sammut and Julia Darmanin