The Malta Financial Services Authority (MFSA) has proposed a series of regulatory changes that impact the provision of directorship and company secretary services within Malta’s Company Service Provider (CSP) framework.
The proposed reforms, which are part of a broader consultation process, aim to strengthen oversight while adopting what the MFSA describes as a "more proportionate" regulatory approach.
Interested parties are invited to provide their feedback, with the consultation period set to close on 15th November. Input can be submitted via email to [email protected].
A shift in oversight and compliance expectations
The proposed changes signal a potential shift for individuals currently serving as directors or company secretaries for up to two entities, who are presently exempt from MFSA registration or authorisation. Should the proposed Notification regime take effect, these individuals will need to disclose their roles, enabling the regulator to assess jurisdictional risks and consider new compliance measures.
Professionals in this space should note that the MFSA’s move follows a series of earlier reforms dating back to 2019, which saw previously exempt professionals such as lawyers and accountants brought under regulatory scrutiny. The MFSA’s intention at the time was to align Malta’s practices with international standards set by bodies like the Financial Action Task Force (FATF) and MONEYVAL. For CSPs, this has translated into heightened compliance obligations, with regulatory shifts now poised to extend further.
Streamlining for certain CSP classes
The MFSA has also proposed adjustments for CSPs with limited engagements, such as those providing directorships and company secretary services for up to 10 entities. The changes would reduce application requirements and streamline data reporting, but affected professionals will still need to contend with the implications of evolving standards and additional oversight.
Alison Cortis, MFSA’s Deputy Head for Trustees and CSPs Supervision, remarked on the significance of these changes: “As a regulator, we are committed to constantly reassess our regulatory frameworks and authorisation processes, with the main objective of safeguarding Malta’s financial system, while ensuring that the market can thrive.
“The latest enhancements that are being proposed to the CSPs framework are meant to restore a level playing field across the various classes of CSPs, allowing us to achieve a higher degree of proportionality, but not at the expense of lowering the compliance standards which we managed to instil.”
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