Regulatory Changes for Company Service Providers

Company Service Providers
  • Publication
  • February 21, 2024

The Malta Financial Services Authority (MFSA) has recently published a Circular addressed to Company Service Providers (CSPs), notifying them of some changes to the 2021 Company Service Providers Rulebook (the Rulebook).

These changes, effective as from 23 January 2024, are intended to simplify the regulatory submission process for licensed CSPs and should inter alia, be impacting the regulatory submissions due in 2024 and beyond.

An official updated version of the Rulebook has been made available on the MFSA website.

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As part of this simplification of the regulatory submission, CSPs will no longer be required to submit the following documentation on a standalone basis. Instead, the related information will be incorporated in an updated Annual Compliance Return (ACR):

  • The annual Self-Declaration for all Under Threshold CSPs confirming that they still fall within the applicable thresholds to classify for their classification;

  • The Certificate of Compliance for all CSPs in the form previously set out in the Rulebook;

  • The Statement of Solvency in the form previously set out in the Rulebook and accompanying balance sheet for Individual CSPs;

  • The Annual Financial Return for Individual CSPs; and

  • Audited financial information by CSPs constituted as Partnerships, including warranted civil partnerships authorised to act as Under Threshold Class A CSPs.

The MFSA is currently in the final stages of including these updates in the template of the ACR which will be made available on the MFSA’s website ahead of this year’s submission deadline. The ACR and ancillary documents are to be submitted annually through the Licence Holder Portal by Legal Persons and Partnerships authorised to act as CSPs within four months from their financial year-end, and in case of Individual CSPs by the end of April.


Other changes to the CSP Rulebook

Several other updates have been made to the Rulebook, including:

  1. The extension of the timeframe for evaluating internal controls from at least every six months to at least annually;
  1. The clarification of documents that need to be submitted for the surrender of a CSP Licence;

  2. The requirement for Class A and B CSPs to notify the MFSA when they intend to use an address other than their registered address for CSP client services;

  3. The requirement to report breaches has been clarified (to be included in the appropriate field in the ACR);

  4. The removal of the requirement for the CSP to notify the Authority if it becomes aware that it will be submitting the ACR after the due date.

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How we can help

Since the introduction of the new CSP regime, PwC has been working hand in hand with CSPs to help them understand this new regulatory environment and keeping them up to date. PwC can assist with all the actions to be taken to fulfil CSP compliance requirements, including the process of populating and submitting the updated Annual Compliance Return.

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