Introduction
All financial services
operators operating in or from Malta must have the relevant license and
would be supervised by the Malta Financial Services Authority (MFSA).
The latter issues guidance notes monitors local and international
developments, works with relevant parties on legislative matters and plays a
major role in training. It encourages high standards of compliance and runs
a consumer affairs unit.
The Investment Services Act 1994 (“the Act”) was enacted to establish a
regulatory regime for Investment Services and Collective Investment Schemes.
This law is in line with the relevant EU directives. It also provides a
great opportunity for Companies that deal in the financial services sector
within Europe or wish to expand their operations in Europe, to carry out
such activities in a regulated and supervised environment. This obviously
renders such operations more reputable.
A Licensed Maltese
Investment Services Company holds a passport to operate in any country of
the European Union. In other words, the Company may set a branch in any
European country without having to obtain another license from the country
in which the branch will be established.
REGULATED ACTIVITIES
The following activities
fall within the parameters of the above cited act and any company operating
within these fields would require a license:
-
Dealing as Principal or
Agent
-
Arranging Deals
-
Management of
Investments
-
Trustee, Custodian or
Nominee Services
CATEGORIES OF LICENSES
Category 1
Authorisation to provide any investment service but not to hold or
control clients' money or assets nor to deal for their own account or to
underwrite.
Category 2
Authorisation to provide any investment service and to hold or control
clients' money or assets, but not to deal for their own account or to
underwrite.
Category 3
Authorisation to provide any investment service, to hold and control
clients' money or assets, and to deal for their own account and to
underwrite.
Category 4
Authorisation to act as custodians of collective investment schemes.
The Maltese Investment
Services License provides the operator and the investor with various
advantages. It definitely marks the operator with the hallmark of the 'EU';
protects the investor from unregulated operators; presents various tax
advantages under Malta's tax laws and provides the possibility of
Passporting within the EU.
