On 22 February 2011, amendments have been made to the Investor Compensation Scheme Regulations (ICS) with regards to the Fixed Contribution by licence holders (L.N. 62 of 2011 (effective as from 1 January 2011).
Legal Notice 62 of 2011 (effective as from 1 January 2011) entitled Amendments to the Investor Compensation Scheme Regulations has presented amendments to the Investor Compensation Scheme Regulations (ICS) with regards to the Fixed Contribution. The main purpose of Legal Notice 62 of 2011 is to provide clarifications to the licence holder in the following instances:
- The obligation to contribute to the ICS automatically comes into force on the issuance of the licence by the competent Authority (MFSA). This implies that licenced companies have to contribute to the ICS irrespective of whether they have carried out investment services activities or not during that particular year; and
- The contribution to the ICS has to be computed on a pro-rata basis (i.e. on a daily basis) during the first year when the licence is issued. This also applies to licence holders which upgrade their licencing status from one category to another.
