Malta IVFAO Classes
04 March 2020
- Contact Rudolph Psaila
- Head of Commercial & Solutions, Europe
- [email protected]
- +356 2779 0425
Malta’s Companies Act of 1995 is chiefly based on English Law and EU Directives.
The VFA services are classified in four classes of licence:
Classes | 1 | 2 | 3 | 4 | |
| Services | Reception and Transmission of Orders | X | X | X | X |
| Investment Advice | X | X | X | X | |
| Placing of Virtual Financial Assets | X | X | X | X | |
| Execution of Orders on Behalf of Other Persons | X | X | X | ||
| Portfolio Management | X | X | X | ||
| Custodian and Nominee Services | X | X | X | ||
| Dealing of Own Account | X | X | |||
| Operation a VFA Exchange | X | ||||
| Minimum Share Capital | €50,000 or €25,000+ PII | €125,000 | €730,000 | ||
Requirements to file an application to obtain a VFA Service Provider Licence
The main requirements to file an application and obtain a VFA Service Provider licence are the following:
- Substance in Malta – The applicant must be a legal entity constituted under Maltese Law and must have physical presence in Malta.
- VFA Agent – A licensed VFA Agent must be appointed by the applicant who will file the application with the MFSA and act as liaison between the applicant and the MFSA.
- Fitness and Properness Assessment – A number of individuals involved in the structure including designated persons, directors, senior management, qualifying shareholders and ultimate beneficial owners have to undertake a fitness and properness assessment.
- Financial Instrument Test – The applicant must undertake, a Financial Instrument Test (FIT) to ensure that the DLT asset in relation to which the applicant will be providing the VFA Service falls within the meaning of a virtual financial asset as per the VFAA.
- Appointed Parties – The board of administrators / directors must effectively be directed by at least two individuals. The applicant needs also to appoint a compliance officer, a money laundering reporting officer, a Systems Auditor or an IT Auditor as necessary, and in certain instances a Risk Manager as well.
Contact Rudolph Psaila to find out more.
