The Malta Financial Services Authority (“MFSA”) decided to proceed with imposing Directives against the Company in terms of Article 11(1) of the Company Service Providers Act, directing it to cease its licensable CSP business.

Address:

Cospicua Boutique Offices
Sqaq Cordina
Cospicua
BML 1900
Malta

Business Activity: Class C Company Service Provider

BREACHES

The MFSA determined that the Company has acted in breach of:

1. Article 10 of the CSP Act and Rule 1-2.3 & 1-2.4 of the CSP Rulebook due to its failure to provide the Authority with information/documentation relating to its CSP business when so requested, and consequently failed to act openly and in spirit of co-operation with the Authority;
2. Article 5(1)(c)(iii) of the CSP Act and Rules 3-6.6.2 and 3-6.6.3 of the CSP Rulebook due to its failure to have a Board of Directors composed of two members and the lack of adherence to the Dual Control Principle;
3. Rules 2-2.12 & 2-2.13 of the CSP Rulebook due to its failure to meet the Minimum Share Capital Requirement;
4. Rules 3-5.1 to 3-5.4 of the CSP Rulebook due to its failure to obtain Professional Indemnity Insurance Cover;
5. Rule 3-7.2 and 3-7.3 of the CSP Rulebook due to its failure to establish and maintain an Independent Risk Management Function;
6. Rule 3-13.3 of the CSP Rulebook due to its failure to submit regulatory reporting within the stipulated timeframes; and
7. Rule 3-8.2 of the CSP Rulebook due to its failure to establish and maintain a permanent Compliance Function.

REGULATORY ACTION

On 18 November 2024, the MFSA decided to issue the following Directives in terms of Article 11 (1) of the Company Service Providers Act, directing the Company to:

1. Refrain, with immediate effect, from onboarding new clients and from providing existing clients with any new or additional services;
2. Transfer its business to another person authorised to provide CSP services in terms of the CSP Act, within three (3) months from the date of this decision;
3. Report bi-monthly (every two weeks) to the Authority on any progress made with respect to the transfer of its CSP business;
4. Retain and preserve all records, data and documents relating to its business and its clients, including those on the Company’s IT systems and networks whether in Malta or in any other jurisdiction, as well as any other documentation which relates in any way, whether directly or indirectly, to the business of the Company;
5. Ensure that all such records, data and documents, in whatever form and however stored, are kept safe and not altered, destroyed, erased, concealed or disposed of in any manner; and
6. Ensure that all such records, data and documents, in whatever form and however stored, are accessible at any time to the Authority and/or to any person appointed by the Authority in terms of law.

It should be noted that the MFSA’s decision may be appealed before the Financial Services Tribunal within the period as prescribed by the applicable law.

PUBLICATION

This notice is being published in terms of Article 16(8) of the Malta Financial Services Authority Act and the MFSA’s Publication Policy.