Consultation Document on the Updated CSP Rules

Consultation Feedback Document - Consultation on the Updated Company Service Provider Rules.pdf

The MFSA launched a Consultation Document focusing on specific new areas of the proposed updated Rules for Company Service Providers. The updates follow the amendments made to the Company Service Providers Act (Cap 529 of the Laws of Malta), which was passed by Parliament as Act No. L of 2020 and published on 13 November 2020.

Once the amendments to the Company Service Providers Act are in force, they will introduce categorisation of company service providers into classes depending on the services offered and remove the exemption for warranted persons offering Company Service Provider services by way of business. There will be a move from the concept of registration to authorisation for all company service providers.

In light of these amendments, the MFSA is undertaking an overhaul of the Rules for Company Service Providers. The Rulebook, as revised by the Authority, is fully aligned with the Act and ensures that the proportionality principle is applied. It also establishes detailed rules on governance systems, core functions and capital requirements expected of Company Service Providers as well as transitory periods, where applicable. The Rulebook outlines the criteria for those classes considered as ‘under threshold’ where a proportionate regulatory approach will apply in line with the Feedback Statements to the Consultation Document entitled “Raising the Bar for Company Service Providers” issued in April 2020. The updated Rulebook is being published with the Consultation Document before it is brought into force, in order to give stakeholders time to familiarise themselves with its requirements.