MFSA publishes feedback statement on proposed reforms to the CSP framework

The Malta Financial Services Authority (MFSA) today published its feedback statement following a consultation document on raising the bar for company service providers (CSPs) issued during the last quarter of 2019.

The feedback statement puts forward a reform which will generally raise standards for CSPs across the board, with one of the most salient changes being that a number of persons, who currently are exempt from – or who currently do not require – registration, are being brought within the scope of the CSP Act and therefore subject to an authorisation requirement.

The MFSA received over 50 responses from a wide range of industry participants and interested parties, which were all carefully considered. Some proposals were retained, while others have been revised. This is in line with the MFSA’s objectives of generally raising standards for CSPs by upgrading and converging the requirements of the current framework to establish a more robust, coordinated, and proportionate risk-based approach, while at the same time addressing key recommendations made by international institutions.

MFSA CEO Joseph Cuschieri said that the role of company service providers in the financial system was crucial.

“Today’s publication is a major milestone in reforming the applicable framework,” he said. “We have taken note of the responses received to our proposals and have sought to achieve a proportionate approach which raises standards across the board, but which does not act as a barrier to entry for sole practitioners and SMEs.”

The new framework will provide for a stepped approach which will allow stakeholders enough time to align themselves to the new requirements.

The feedback statement is publicly available on the MFSA website.