Malta IVFAO Classes

04 March 2020

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.

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