Malta Financial Institutions Legislation
Financial Institutions are entities which regularly or habitually acquire holdings or undertake the carrying out any of the prescribed activities such as lending, finance leasing, trading in financial instruments, money broking, the issuing of guarantees and underwriting of share issues amongst others and are regulated by the Maltese Financial Institutions Act. The Malta Financial Services Authority (MFSA) is the competent regulatory and supervisory authority which is empowered to issue Financial Institutions Rules regulating financial institutions.
The business of a financial institution may only be carried out in or from Malta upon obtainment of the requisite licence from the MFSA. The Financial Institutions Act transposes the provisions of the EU Payment Services Directive (2007/64/EC) and the Electronic Money Directive (Directive 2009/110/EC) thus it specifically regulates payment institutions and electronic money institutions which are respectively required to obtain a licence to provide and execute payment services and issue electronic money respectively.
Malta Financial Lawyers
Chetcuti Cauchi's Financial Services Practice Group provides legal assistance and advice relative to the general prudential requirements, initial capital, own funds and safeguarding requirements as set out in the applicable local legislation and provides both pre-licensing and post-licensing legal services. At the pre-licensing stage, prospective financial institutions are advised as to the statutory licence requirements to be fulfilled relative to the application procedures and requirements for authorisation under the Financial Institutions Act and are granted legal guidance in order to satisfy the statutory licencing criteria.
At a post-licencing stage , assistance is given in order to ensure compliance with the statutory obligations binding licence holders and the statutory notification and authorization requirements which must be satisfied vis-à-vis the MFSA.