By virtue of Legal Notice 96 of 2021, the Malta Company Service Providers (Amendment) Act 2020 (“the Act” or “the Amendments”) came into force on 16 March 2021. This Act also brought with it an overhauled Corporate Services Provider (“CSP”) Rulebook (“Rulebook”). Previously exempt, Malta CSPs must apply for their licences under the impending deadline of 16 May 2021. CSPs who were already listed with the Malta Financial Services Authority (“MFSA” or “the Authority”) prior to this reform need also ensure full compliance with the new amended rules with a deadline expiring on 16 September 2021. Both groups of CSPs must look intensively at their new obligations under the new Rulebook.
Being part of a larger restructuring exercise undertaken by the MFSA to enhance the financial services industry benchmarks, improve regulation of CSP conduct and safeguard Malta's standing as a reliable financial services centre, these Amendments establish a classification system, assigning CSPs to a particular category by reference to the services provided. The Authority is in control of the authorisation and supervision of CSPs, who are entities or individuals providing corporate services, as a business activity, including company formation, directorship/company secretary services and registered office, business or correspondence address provision for businesses.
Malta Corporate Service Provider Legal Regime
The Main Legislation covering Malta CSPs are:
- Company Service Providers Act, 2013
- Various Financial Services Laws (Amendment) Act, 2017
- Company Service Providers (Amendment) Act, 2020
The Subsidiary Legislation (legal notices) covering Malta CSPs which lays down further requirements relating to the supervision of same are:
- Company Service Providers (Fees) Regulations, 2015 (L.N. 27 of 2015)
- Commencement Notice under Various Financial Services Laws (Amendment) Act 2017 (L.N. 384 of 2017)
- Company Service Providers (Exemption) Regulations, 2021 (L.N. 105 of 2021)
- Company Service Providers Act (Fees) (Amendment) Regulations, 2021 (L.N. 117 of 2021)
Regulations hold the Rules applicable to company service providers issued by the MFSA. These Rules supplement the requirements contained in the Main Legislation and in the Subsidiary Legislation which applies to Malta company service providers. They address in more detail certain requirements including the application process, the fitness and properness criteria, conduct of business, general organization requirements and internal management controls, compliance issues, reporting obligations and disclosure requirements. Company service providers are legally bound to comply with these Rules.
The New Malta Corporate Services Act (2020)
Through this Act several crucial changes have been introduced to the Malta’s framework regulating providers of company services. Noteworthy adjustments include the exclusion of prior exemptions available to warranted professionals and the end of the de minimis rule.
The Rulebook is the primary handbook defining the continuing responsibilities and commitments a CSP must follow and abide by.
Malta Corporate Services Providers Classification
The new CSP class structure is provided below:
