Reform to the Company Service Providers Regulatory Framework

Following the feedback statement on the proposed amendments to the Company Service Providers (“CSPs”) regulatory framework issued on the 9th April 2020, the amendments to the Company Service Providers Act, as amended by Act L of 2020 (“CSP Act”), have come into force on the 16th March 2021. Additionally, the Malta Financial Services Authority (“MFSA”) has also published the updated Rulebook for Company Service Providers.

The amendments to the CSP Act will remove the previous exemptions applicable to warranted professionals and de minimis operators and will introduce the different classifications for the different type of CSPs depending on the services offered. This means that warranted lawyers and accountants will no longer be exempt to provide CSP services without first acquiring an authorisation under the CSP Act.

In a circular issued on the 15th March 2021, the MFSA also noted that entities wishing to apply for an authorisation in terms of the CSP Act may do so from the 16th March 2021 until the 16th May 2021 by submitting their applications through the Licence Holder Portal.

Moreover, those CSPs who already possess a registration to act as a CSP do not need to submit an application for authorisation under the CSP Act, as their authorisation will be converted automatically following instructions provided by the MFSA.

Please contact us should you require further information on the respective CSP regulatory framework.