Following our previous article titled 'A New Medium for Ensuring Fit and Proper Standards for Corporate Service Providers', it has been confirmed by the Malta Financial Services Authority (hereinafter referred to as the "MFSA") that the amendments to the Company Service Provider Act published as outlined by means of Act L of 2020 (hereinafter referred to as the "CSP Amendment Act") shall come into force on the 16th March 2021 following a legal notice being published in the Government Gazzette by the Minister responsible for Finance and Financial Services.
The coming into force of the much-anticipated CSP Amendment Act portrays the legislator's efforts to kickstart the legal reform governing the activities of local company service providers. This reform is centred around raising and ensuring fit and proper business standards across the industry, removal of prior exemptions enjoyed by de minimis operators and warranted professionals, and the introduction of newly defined categories of company service providers which shall be split into classes depending on the service being offered under the CSP Amendment Act. In this regard, the MFSA has taken a proactive approach and has made available the updated Rulebook for Company Service Providers through its website.
Notably, applications for authorisation from the MFSA are to be submitted by all company service providers in line with the CSP Amendment Act, and such tailormade applications shall be submitted through the LH Portal. This portal shall be open and accessible for a two-month period starting from the 16th March 2021 up until the 16th May 2021. Having said this, it is important to note that company service providers who already possess a registration as a company service provider from the MFSA shall not be required to submit the aforementioned application as their registration shall be changed into to an authorisation automatically under the CSP Amendment Act. The already registered company service providers shall be contacted by the MFSA in order to inform them of their class categorisation.
Originally published March 16, 2021
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