In the EU the financial sector is broadly harmonized by means of a variety of directives issued under the EU's Financial Services Action Plan, such as the Markets in Financial Instruments Directive. These directives establish rules which are applicable throughout the EU, such that one can expect to find largely similar regulatory requirements in the different EU states. An important consequence of this harmonization is that financial businesses that are established in one EU jurisdiction can, by means of a process known as 'passporting', provide their services in other European jurisdictions without incurring additional regulatory burdens. Investment advisors, credit institutions, insurance principals and intermediaties, stock brokers and certain kinds of FOREX business can all benefit from passporting rights. This can lead to important efficiencies and cost savings. Passporting rights can be used to either offer a service per se on a cross border basis (such as when a Malta based advisor provides advisory services via internet to a client established elsewhere) or to set up branches in the chosen territories.
At Chetcuti Cauchi we assist financial businesses in using Malta as a platform from which the enter the European market, helping clients with all facets of the process. We draft all relevant regulatory documentation and applications and ensure that these are expeditiously processed. Moreover, thanks to our international network of collaborators we are able to extend our services to assist clients with the set up and smooth running of their operations in whichever EU jurisdictions they choose to target.