MFSA – Malta Financial Services Authority. Another well-known regulator of the middle tier, which is popular among brokers who open accounts and representation in the offshore areas.
Controller functions are quite broad: the organization carries out control and supervision in the entire financial sector, including the banking sector.
- analysis of the financial activities of all financial market participants to identify high-risk transactions and the definition of unreliable entities of financial area;
- the issuance of licenses and their yearly renewal under condition of compliance with the developed regulatory indicators (liquidity, capitalization, asset condition);
- development of control methods and standards in the field of regulation of the financial sector.
The international community considers license from the MFSA to the average level of trust on a par with the Cyprus CySEC. Investor skepticism in favor to American, British and German regulators is explained by the offshore area, and therefore more loyal requirements to the potential applicants. However, remember one of the big pyramids of recent years – the bankruptcy of the investment company MMCIS, that worked in Russia and Ukraine. In December 2014, the company ceased its activity, but even a few months earlier, in September 2014, MFSA warned the investors from working with the broker. However, MMCIS had FMRRC certificate (called “pocket controller”) had a misunderstanding with the CRFIN, but that’s anotherstory.
How to obtain MFSA license:
- requirements to registered capital compared to British FCA or American NFA are similar: until 2016 – 125 thousand euros, the current requirements – 730 000 euros. If the regulator sees higher risks, the capital requirements can be increased. To what extent – is unknown;
- in the process of registration, the presence in the country of the beneficial owner is not required (and Australian, and English regulators require the presence of the beneficiary);
- the chief Director and the Executive Director must reside in Malta, and requires the mandatory presence of office (for example, the Australian regulator agrees only for legal address);
- the documents, in addition to the classic lineup, include all the information about Bank accounts, professional recommendations about shareholders and Directors. You are also required to submit a detailed business plan and financial projections activities for the next 3 years;
- the entrance fee is 5 000 Euro (2016), the annual fee for license renewal – 4 500 euros.
The period of approval of the license is 3 months, possible extension for another three months. The guarantee of obtaining a license is the high professionalism of top management, and the ability of the regulator to promptly and in full to receive the financial statements from the company for the analysis of prudential criteria (standards of solvency and risk, developed by MFSA).
Interesting, in case of the MFSA’s refusal to grant a license due to the inconsistency of the company’s software, the company with the same stock part can again apply after the removal of comments. But if the claim are directed towards the financial statements or qualifications, then re-applying for a license is prohibited.
There is not much information about this controller. Therefore, if you are interested in obtaining a license in this country, we recommend you to visit the MFSA website where you can ask questions to the representatives of the organization.
Official MFSA website: http://mfsa.com.mt