Regulators

Malta Financial Services Authority (MFSA)

The MFSA was established on 23 July 2002 and is the only financial services regulator in Malta.

Forex Regulatory Tips

According to the information on the MFSA official website, the Malta Financial Services Authority ("MFSA") regulates leveraged foreign exchange transactions.

List of Regulated Companies

A total of 25 companies are regulated and licensed foreign exchange brokers. The full name is abbreviation. Regulatory status ABALONE ASSET MANAGEMENT LIMITED ABALONE ASSET MANAGEMENT C71261 ALANDA CAPITAL MANAGEMENT (MALTA) LIMITED ALANDA CAPITAL MANAGEMENT C80194 ALPHA VALUE MANAGEMENT LIMITED ALPHA VALUE MANAGEMENT C51941 监管中ALTARIUS ASSET MANAGEMENT LIMITED ALTARIUS ASSET MANAGEMENT C33168 监管中ALTRUID SYSTEMS LIMITED ALTRUID SYSTEMS C58147 监管中AMAGIS CAPITAL MANAGEMENT LTD AMAGIS CAPITAL MANAGEMENT C63765 监管中AMARILLO INVESTMENT SOLUTIONS LTD AMARILLO INVESTMENT SOLUTIONS C24462 监管中AMSTEL CAPITAL (MALTA) LTD Amstel Capital C38267 ANDURAND CAPITAL MANAGEMENT LTD ANDURAND CAPITAL MANAGEMENT C57351 APARTNERS CAPITAL INVESTMENT MANAGEMENT LIMITED APARTNERS CAPITAL C76143 APARTNERS CAPITAL C76143 APARTNERS CAPITAL C76143

Organization Profile

Institutional nature
Government agencies
Organization Introduction
The MFSA is the only financial services regulator in Malta. It was established on July 23, 2002 to take over foreign exchange regulatory rights from the Central Bank of Malta, the Malta Stock Exchange and the Malta Financial Services Centre. MFSA is a completely self-contained and independent institution that reports to Parliament once a year.
The financial services sector encompasses all financial activities, among which are associated credit institutions, financial and electronic money institutions, securities and investment services firms, regulated markets, insurance companies, pension schemes, and trustees. In addition, the MFSA also manages company registration.
Regulatory functions
(1) To supervise the dynamics of Malta's financial services industry;
(2) To help protect the interests of consumers and investors;
(3) Regularly provide relevant information that affects the development of the financial industry locally and internationally;
(4) Conduct due diligence before granting licenses to banking, investment, insurance, pension and stockbroking companies;
(5) Regular inspections of authorized financial service companies;
(6) Manage Malta company registration

Licence application

I. Application requirements
(1) Shareholder structure
The MFSA may require any applicant to submit an audited statement prepared by a major auditing firm stating the company's shareholders, shareholding structure and sponsor affiliates.
(2) Funding requirements
Companies holding or applying for a Category 2 licence are subject to a higher (previously €125,000) minimum initial capital requirement of €730,000, which is similar to the initial capital requirement for Category 3 licence holders.
(3) Ability requirements
Board members should have the necessary competencies and experience in the field of CFDs and/or spot rolling foreign exchange contracts. In addition, the company's senior management and those reporting directly to the board of directors must also be competent.
(4) Physical office and corporate governance
The company shall arrange risk management personnel locally to be responsible for the design, implementation and monitoring of risk management policies and procedures. Category 2 licensees can outsource risk management to other companies locally, while Category 3 licensees must appoint a full-time risk manager. In addition, the company's core licensing activities must be carried out in Malta. For Category 3 licensees, the following activities must also be performed in Malta:
A. The choice of the counterparty to the contract and the conclusion of the agreement;
B. Setting of transaction restrictions and other parameters;
C. The formulation of pricing policies;
D. Monitoring of customer transaction activities;
(5) Expert consultants
Firms must have a clear policy on the use of expert advisors by clients as part of their trading strategy and must be clearly told to clients at the outset.
(6) Record keeping
A Maltese company must have real-time access and control of all transaction data, continuous storage of this data, and a suitable offline backup system for risk management and business continuity purposes.
(7) System
If the company uses a proprietary online trading platform, it must demonstrate that the system has been certified by an independent IT auditor meeting the specified qualifications and that the company has records demonstrating that the system has been used by others in the industry in Europe/EEA or other jurisdictions Used by licensed companies. In addition, the company's core systems must be located in Malta.
(8) Liquidity Provider/Contract counterparty
Firms can only designate regulated financial services firms as counterparties or liquidity providers, but must have been authorised by the EU/European economy or other jurisdiction with the same regulatory framework as Malta.
(9) Customer Protection Measures
The board of directors of the company must ensure that the company takes adequate measures to safeguard the interests of its customers, including alerting retail customers of the risks associated with transactions. In addition, the company should remind customers of the risks of participating in CFDs and/or spot rolling foreign exchange contracts, and inform them that the above transactions may cost them all of their capital, prominently on the website home page and other promotional materials. In addition, the company's portal should also provide suitable investment educational materials.
(10) Lever Limit
Firms issuing complex speculative products (including CFDs and/or spot rolling FX contracts) must set the following leverage limits:
A. For retail customers - 1:50;
B. Professional retail clients under the MIFID framework — 1:100;
C. All other clients - no leverage limit.
(11) Slide settings
Companies must implement procedures to deter deceptive practices, including setting up sliding parameters that prevent companies from manipulating the price of any potential financial instrument.
2. Application process
(1) Preparation stage
Before applying for an investment service license, the applicant needs to hold a preliminary meeting. Prior to the meeting, applicants are required to submit a comprehensive written description of the proposed event. Second, applicants need to submit the application form together with the supporting documents specified in the application form to [email protected] The MFSA will comment on the application and will request more information if necessary. Applications will be rejected if the submitted documents do not clearly identify key positions.
(2) Pre-authorization stage
After reviewing the first draft of the application and supporting documents and determining that the licensing conditions are met, the MFSA will issue a Letter of Approval in Principle, valid for three months from the date of issuance. During this period, the applicant must finalize all outstanding issues in the license conditions and submit a signed revision of the application form and supporting documents in final form. After all pre-authorization issues are resolved, the MFSA issues an investment services license.
(3) Post-licensing/pre-opening stage
Applicants may be asked to meet post-licensing questions before the official opening.

Application Fee

License Type

1. Category 2
Licence holders can provide any investment services, as well as house or control client funds or assets, but cannot run multilateral trading platforms or agreements for their own accounts or underwrite instruments on the basis of company commitments.
2. Category 3
Licensees can provide any investment services, as well as house and control clients' funds or assets.

Regulatory Rules

I. Regulations

Second, reporting requirements
(1) Compliance report;
(2) Risk management report;
(3) Internal audit report;
(4) Transaction report (the license holder must submit the transaction report to the MFSA before the end of the next working day after the transaction is executed);
3. Recording requirements
(1) Customer classification and identity, customer agreement, customer details;
(2) Total volume transactions, orders on behalf of customers, etc.;
(3) Client regular statements, client financial instruments, client funds, etc.;
(4) Investment investigation, business and internal organization, compliance procedures, etc.;
(5) Complaint records, complaint handling, quotation records, personal transaction records, information disclosure records to customers, investment suggestions;
(6) The information required by the promotion personnel to be disclosed, etc.;
4. Leverage Limits
(1) Firms that issue complex speculative products (including CFDs and/or spot rolling foreign exchange contracts) must set the following leverage limits:
(2) For retail customers - 1:50;
(3) Professional retail customers under the MIFID framework - 1:100;
(4) All other clients - no leverage limit.

Regulatory Inquiries

The first step: enter the website https://www.mfsa.mt/financial-services-register/, enter the company name to query
Step 2: After entering the company name, several search results may appear below the search bar, select to open the company under "Investment Services".

Step 3: Click to open, you can see the company's name, supervision number, website, telephone and other information.

Regulatory complaints

After receiving the complaint, the license holder is advised to follow the procedure below:
1. Record every complaint as soon as possible, and the action taken;
2. Within 7 working days, confirm the receipt of the complaint;
3. If it is an oral complaint, make a brief summary of the complaint and ask the complainant to confirm it in writing;
4. The receipt letter should confirm: the license holder will investigate the complaint; after the investigation, the license holder should write to inform the complainant of the relevant results; if the investigation has not been completed within 2 months after receiving the complaint, the license The holder must notify the complainant in writing;
5. If the license holder thinks it is necessary to take remedial measures, it should describe the relevant process in the notification letter; at the same time, inform the complainant that if the complainant is not satisfied with the way his complaint is handled, he can turn to the MFSA Customer Complaints Department;
6. If the investigation has not been completed 2 months after receiving the complaint, the license holder should notify the complainant in writing within 7 working days after the above period ends. In the notification letter, it should be clearly explained that the investigation will continue. If a complainant is not satisfied with the progress of the investigation, the MFSA can be turned to.
If the dispute cannot be resolved, the licensee may resort to arbitration or an award.

Bankruptcy Compensation Agency

Investor Compensation Plan
The Investor Compensation Scheme is a client rescue fund for insolvent investment companies authorised by the Malta Financial Services Authority. The scheme will only pay compensation if the licensed investment firm cannot or may be unable to pay the claim. Generally, investors are compensated when a licensed company ceases trading or goes bankrupt.

Example of punishment

1. If the fine amount is ≤3000 euros, or for warnings, exhortations or other minor fouls, the information should be published online for more than 2 years;
2. 3000 euros < fine amount ≤ 25000 euros, or other serious violations, the information should be published online for more than 5 years;
3. For serious fouls, including suspension or restriction of license plates and fines of more than 25,000 euros, the information should be published online for more than 10 years;
4. If the license is cancelled, the information shall be permanently published online and shall not be revoked;
5. If there is a threat to the public, the information should be removed from the Internet after the threat is lifted.

FAQs

For details, please click this link: https://www.fsa.go.jp/en/others/index.html

Related Links

Financial Services Arbitration: https://financialarbiter.org.mt/en/Pages/Home.aspx
Central Bank of Malta: http://www.centralbankmalta.org/
Compensation Scheme: http://www.compensationchemes.org.mt/
Department of Information: http://www.doi.gov.mt/
Malta Finance: http://www.financemalta.org/
Malta Financial Intelligence Analysis Service: http://www.fiumalta.org/
Malta Financial Services Court: http://mfst.gov.mt/
Government of Malta: http://www.go

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