MFSA RULE 4

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AUTHORISATIONS

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CONTENTS

Title 1 - General Scope and High-Level Principles................................................................................. 1

Section 1 - Scope ........................................................................................................................................................................................ 1
Section 2 - Legal Basis .............................................................................................................................................................................. 1
Section 3 - Definitions.............................................................................................................................................................................. 1
Section 4 - Transitory Period ................................................................................................................................................................ 2
Title 2 - Authorisations............................................................................................................................... 3
Section 1 - Scope and Application .................................................................................................................................................. 3
Section 2 - Authorisations Process - Service Charter ............................................................................................................ 3
Section 3 - Authorisation Process Structure............................................................................................................................... 3
Section 4 - Authorisation Process ..................................................................................................................................................... 4
Sub-section 1 - Intention Stage .............................................................................................................................................. 4
Sub-section 2 - Pre-Authorisation Stage ........................................................................................................................... 5
Sub-section 3 - Extensions ......................................................................................................................................................... 6
Sub-section 4 - Withdrawal of Application...................................................................................................................... 6
Section 5 - Authorisation Forms ........................................................................................................................................................ 6
Annex 1 - Scope of Authorisation Process and Forms .......................................................................... 8
Annex 2 - Authorisation Process - New Application Time Commitments ....................................... 11

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RULE 4 OF THE MFSA ACT
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REVISIONS LOG

VERSION DATE ISSUED DETAILS

1.00 30 June 2021 RULE 4 OF THE MFSA ACT ISSUED

1.01 02 July 2021 CORRECTED TYPOGRAPHICAL ERRORS

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Title 1 General Scope and High-Level Principles

Section 1 Scope

R4-1.1.1 The scope of this Rule is to provide the procedures and duties of persons licensed
or authorised by the MFSA or falling under its regulatory or supervisory functions,
in relation to authorisations.

Section 2 Legal Basis

R4-1.2.1 In terms of Article 16(2)(a) of the Malta Financial Services Authority Act, the Malta
Financial Services Authority, as established under Article 3 of the Act, may issue
and publish Rules regulating the procedures and duties of persons licensed or
authorised by it, or falling under its regulatory or supervisory functions.

R4-1.2.2 This Rule is being issued in terms of Article 16(2)(a) of the Act and should be read
in conjunction with any other legislative and/or regulatory framework,
administered by the Authority, in force in Malta and any regulations and rules
issued thereunder.

Section 3 Definitions

R4-1.3.1 For the purposes of this Rule, the definitions identified under R4-1.2.2 should be
read in conjunction with the provisions of the MFSA Act and any other special law
administered by the Authority for the time being in force in Malta.

R4-1.3.2 In the event that any of the definitions contained hereunder conflict with a
definition under the MFSA Act or any other law administered by the Authority for
the time being in force in Malta, the definitions set out in the Act or in any other
such law shall prevail.

‘Applicant’ means a person who has submitted an application

with the Authority for the purposes of being granted
an authorisation.

‘Application’ means the application submitted by an Applicant.

‘Authorisation’ means to the formal authorisation, by the Authority,

to a person, which the Authority is entitled to grant
through or by the provision, issuance, validation,
confirmation, certification or otherwise in writing to
an applicant and includes any licence, permission,
authorisation, approval, confirmation, enrolment,

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recognition, certification by, registration with, or

notification to the Authority in terms of any special
law which the Authority is entitled to administer or
enforce and the terms "authorisation'' or ''authorised
person'' shall be construed as a reference to the
relevant form of authorisation, or the holder thereof,
as the case may be.

‘Malta Financial Services Authority Act’, means the Malta Financial Services Authority Act,
‘MFSA Act’ or ‘the Act’ Chapter 330 of the Laws of Malta.

‘Malta Financial Services Authority’, means the Malta Financial Services Authority, as
‘MFSA’ or ‘Authority’ established by the Malta Financial Services Authority
Act.

‘Prospective Applicant’ means a person who has submitted a Statement of

Intent to MFSA but has not submitted an application
with the Authority for the purposes of being granted
an authorisation.

‘Rule’ means Rule 4 under the MFSA Act.

Section 4 Transitory Period

R4-1.4.1 This Rule will be applicable from 5 July 2021.

Provided that Prospective Applicants may submit applications using the previous
version of the respective Authorisation Application Forms until 31 August 2021.

Provided that the submissions of new and previous Applications, falling within
scope of this Rule, through the LH Portal will be mandatory and applicable as from
5 July 2021.

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Title 2 Authorisations

Section 1 Scope and Application

R4-2.1.1 This Rule is applicable to Prospective Applicants, and Applicants, as applicable, for
all the authorisations as indicated in Annex 1 to this Rule.

Provided that where a conflict with other Rules issued under the MFSA Act or any
other special law administered by the Authority currently in force in Malta, the Rules
set out in this Rule shall prevail, unless otherwise specified herein.

Provided that any person who has submitted an application to act as a Company
Service Provider in terms of article 19 of the Company Service Providers Act (Chapter
529 of the Laws of Malta) shall not fall within scope of this Rule.

Section 2 Authorisations Process - Service Charter

R4-2.2.1 Prospective Applicants and Applicants shall refer to the MFSA Authorisation Process
– Service Charter when determining:

i. the Authority’s considerations and expectations applicable to Prospective

Applicants and Applicants; and

ii. the timeframes applicable to the applicant for the effective conclusion of
the authorisation process.

R4-2.2.2 Prospective Applicants and Applicants shall also refer to the MFSA Authorisation
Process – Service Charter for guidance on the MFSA Authorisation Process as
stipulated in Sections 3 and 4 of this Rule.

Section 3 Authorisation Process Structure

R4-2.3.1 The MFSA Authorisation process consists of four stages, namely: (1) Intention Stage;
(2) Pre-Authorisation Stage; (3) Authorisation Stage; and (4) Post-Authorisation
Stage and shall be triggered when a Prospective Applicant submits an intention to
submit an application for authorisation.

R4-2.3.2 Further to the information and/or documentation required to be submitted to the

Authority, the Authority may, at its discretion and at any stage, request any
additional information and/or documentation as it may deem appropriate.

R4-2.3.3 The Applicant shall provide the Authority with information, which is truthful,
accurate and complete.

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R4-2.3.4 Further to R4-2.3.3, Applicants shall notify the MFSA immediately in the event that
the information previously provided to the Authority has changed.

R4-2.3.5 Applicants shall adhere to the timeframes stipulated in Annex 2 to this Rule.

Section 4 Authorisation Process

Sub-section 1 Intention Stage

R4-2.4.1.1 Prior to the submission of an Application, Prospective Applicants are requested to

submit their intention to the MFSA, through a Statement of Intent.

R4-2.4.1.2 Pursuant to R4-2.4.1.1, the Statement of Intent should be in the format of a high-
level presentation and include the following details of the Prospective Applicant:

i. Identification and contact details;

ii. If the Applicant is/or will be structured as a legal person, formation details
as follows:

a. formation details:

- when formed, the Applicant should state its formation

details; or

- when not yet formed, the Applicant should state its

proposed formation details including proposed name;

b. diagram of the actual or proposed shareholding structure, as

applicable, specifying (i) the percentage holdings of all persons in
the ownership structure of the Prospective Applicant up to the
ultimate beneficial owner/s, highlighting those persons that fall
within the definition of “qualifying shareholder” as laid down in the
various sectoral laws, as well as those entities within the structure
that are regulated; and

c. Indication of any regulatory history of the Prospective Applicant

and related persons, including group entities, if applicable,
including any history of applications filed with other regulatory
authorities;

iii. Identification and contact details of the Applicant’s representative, where

applicable;

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iv. Proposed organisational structure, including (i) diagram, (ii) names of

directors and key function holders; (iii) the relevant reporting lines; and (iv)
respective time commitments.

v. Identification of the type of authorisation required and the proposed

financial service activities intended to be undertaken; and

vi. An outline of the Prospective Applicant’s (i) business model; (ii) business
strategy; (iii) local substance; (iv) type of clients to be serviced and
geographical target markets; (v) location of risks; and (vi) outsourcing, as
applicable.

R4-2.4.1.3 Pursuant to point (iii) and (iv) of R4-2.4.1.2, the Prospective Applicant should also
include a diagram.

R4-2.4.1.4 The Authority, upon receipt of the intention may, at its discretion, schedule a
preliminary meeting with the Applicant and/or request further information, as it
may deem necessary.

R4-2.4.1.5 Prospective Applicants shall refer to the Authorisations Charter for further
information on how the intention should be submitted to the Authority.

Sub-section 2 Pre-Authorisation Stage

R4-2.4.2.1 Submission of Application

R4-2.4.2.2 Applicants, shall upon being instructed by the MFSA, be able to submit their
Application to the Authority using the Authorisation Forms outlined in Annex 1 of
this Rule.

R4-2.4.2.3 Applications should be submitted to the Authority through the MFSA Licence
Holder Portal (‘LH Portal’) and any correspondence in relation to an Application
should be made through the messaging system available therein.

R4-2.4.2.4 Review of Application

R4-2.4.2.5 The MFSA shall not initiate the review of the application until such time that both:
(i) the respective authorisation fee as mandated by the appliable law; and (ii) the
Application together with all the required supporting documentation have been
submitted to the Authority.

R4-2.4.2.6 Completeness of Application

R4-2.4.2.7 Applications shall only be considered complete in terms of the applicable law after
the MFSA determines that the submission addresses all matters indicated by the
Authority and is of sufficient quality to proceed to the next stage of the process.

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R4-2.4.2.8 Upon being provided feedback by the MFSA, Applicants shall revise the submitted
Application with the requested information until R4-2.4.2.7 is satisfied.

R4-2.4.2.9 Any statutory timelines stipulated in the respective special law administered by the
Authority shall only be triggered when the Applicant is informed that the
Application is considered to be complete.

Sub-section 3 Extensions

R4-2.4.3.1 Any Extensions to the timelines stipulated in the Authorisations Charter shall require
the approval of the Authority.

R4-2.4.3.2 Applicants wishing to extend any of the timelines as stipulated in the Authorisations
Charter are to inform the MFSA immediately and prior to the expiry of the relevant
timeline.

R4-2.4.3.3 When requesting an extension, Applicants shall submit a justifiable explanation as

to why the said extension is being sought.

Sub-section 4 Withdrawal of Application

R4-2.4.4.1 Applicants can withdraw their Application throughout the Authorisation Process.

R4-2.4.4.2 Pursuant to R4-2.4.4.1, Applicants wishing to withdraw their Application are to

inform the MFSA immediately upon knowing their intention.

R4-2.4.4.3 The MFSA may also consider an application as withdrawn if an Applicant fails to
adhere to the respective stipulated time frames throughout the Authorisation
Process, unless the said Applicant has not requested an Extension in accordance
with Sub-section 4 of this Rule.

R4-2.4.4.4 Should the MFSA decide to consider an application as withdrawn, the decision shall
be communicated to the Applicant.

Section 5 Authorisation Forms

R4-2.5.1 Applicants shall submit their Application as indicated in Annex 1 to this Rule.

R4-2.5.2 Provided that where the Application is not specified in Annex 1 to this Rule the
application form as specified in applicable rules shall apply.

R4-2.5.3 Applicants need to submit the information and supporting documentation

specified within the respective Application and shall be guided by the notes
provided in the said Application.

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Provided that the MFSA retains the right to request any additional information that
is required for the purpose of carrying out the assessment of the application.

R4-2.5.4 Applicants shall also make reference to the Guidelines to the Authorisation Forms
(link), the Frequently Asked Questions (link) and any other publication relevant to
authorisations issued by the MFSA from time to time when completing the
Application.

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Annex 1 - Scope of Authorisation Process and Forms

Authorisation Authorisation Application

Sector Authorisation Type Authorisation Framework
Process Form
Article 6 of the Banking Act
Credit Institutions  AA01 - Credit Institutions
(Chapter 371 of the Laws of Malta)
Banking

Article 18 of the Credit Agreements for Consumers relating

Credit Intermediaries  PREVIOUS FORM
to Residential Immovable Property Regulations
Article 5 of the Financial Institutions Act
Financial Institutions  AA03 - Financial Institutions
(Chapter 376 of the Laws of Malta)
Investment Firms  AA04 - Investment Firms
Alternative Investment Fund

Managers (AIFM)
Investment Services UCITS Management Article 6 of the Investment Services Act
 AA05 - Fund Management
Licence Holders Companies (Chapter 370 of the Laws of Malta

De Minimis AIFM 
Securities and Markets

Custodians  AA08 - Custodians

Recognised Fund

Administrators Article 9A of the Investment Services Act
Recognised Persons AA06 - Fund Administrators
Recognised Incorporated (Chapter 370 of the Laws of Malta)

Cell Company
Undertakings for the
Collective Investment in 
Transferable Securities
Collective Investment Article 6 of the Investment Services Act
Alternative Investment AA07 - Funds
Schemes (Chapter 370 of the laws of Malta) 
Funds
Professional Investment

Funds
Regulated Markets Article 4(1) of the Financial Markets Act AA10 - Trading Venues operated

(Trading Venues operated by a Market Operator) (Chapter 345 of the Laws of Malta) by a Market Operator

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Annex 1 - Scope of Authorisation Process and Forms

Authorisation Authorisation Application

Sector Authorisation Type Authorisation Framework
Process Form
Article 7 of the Insurance Business Act
(Re)Insurance Undertakings  AA12 - Undertakings
(Chapter 403 of the Laws of Malta)
Enrolment in the Agents, Article 13 of the Insurance Distribution Act

Brokers, Managers List (Chapter 487 of the Laws of Malta)
Registration of individuals in
Article 7 of the Insurance Distribution Act
the Agents, Brokers or 
Insurance (Chapter 487 of the Laws of Malta) PREVIOUS FORMS AVAILABLE ON
Managers Register
Intermediaries AND SUBMITTED VIA LH PORTAL
Enrolment in the Tied Article 37 of the Insurance Distribution Act

Insurance and Pensions

Insurance Intermediary List (Chapter 487 of the Laws of Malta)

Enrolment in the Ancillary Article 43D of the Insurance Distribution Act

Insurance Intermediaries List (Chapter 487 of the Laws of Malta)
Article 6 of the Retirement Pensions Act AA16 - Retirement Scheme
Retirement Scheme Administrator 
(Chapter 514 of the Laws of Malta Administrator
Personal Retirement AA17 - Personal Retirement

Schemes Article 4 of the Retirement Pensions Act Schemes
Retirement Schemes
Occupational Retirement (Chapter 514 of the Laws of Malta AA18 - Occupational Retirement

Schemes Schemes
Custodians
Other Service Article 6 of the Retirements Pensions Act
 AA19 - Other Service Providers
Providers (Chapter 514 of the Laws of Malta)
Investment Managers
Article 5 of the Retirement Pensions Act
Retirement Funds  AA20 - Retirement Funds
(Chapter 514 of the Laws of Malta)
Article 7 and/or Article 14 of the Virtual Financial Assets Act
VFA Agents 
Virtual Financial

(Chapter 590 of the Laws of Malta)

Article 13 of the Virtual Financial Assets Act
Assets

VFA Service Providers  PREVIOUS FORMS AVAILABLE ON

(Chapter 590 of the Laws of Malta)
AND SUBMITTED VIA LH PORTAL
Article 3 of the Virtual Financial Assets Act
Whitepapers 
(Chapter 590 of the Laws of Malta)

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Annex 1 - Scope of Authorisation Process and Forms

Authorisation Authorisation Application

Sector Authorisation Type Authorisation Framework
Process Form
Article 3 of the Company Service Providers Act
Company Service Providers 1  AA24 - CSP
(Chapter 529 of the Laws of Malta)
Trustees and Company
Service Providers

Article 43 of the Trusts and Trustees Act AA25 - Trustee / Fiduciary

Trustee / Fiduciary Services 
(Chapter 331 of the Laws of Malta) Services
Article 43B of the Trusts and Trustees Act
Trustee of Family Trusts  AA26 - Trustee of Family Trusts
(Chapter 331 of the Laws of Malta)
Regulation 3 of the Trusts and Trustees Act (Registration of
AA27 - Notaries acting as
Notaries acting as Qualified Persons Notaries to act as Qualified Persons) Regulations – 
Qualified Persons
Legal Notice 14 of 2015

1
This excludes any person who has submitted an application to act as a Company Service Provider in terms of article 19 of the Company Service Providers Act (Chapter 529 of the Laws of Malta).
Such Applicants will: (i) follow the transitory authorisation process as established by the Authority specifically for this purpose; and (ii) submit any documentation required by the MFSA for the
successful conclusion of this said process.
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Annex 2 - Authorisation Process - New Application Time Commitments

Time Frames applicable to Trigger of Applicant Time

Stage Type
Applicant Frame
Submission of From receipt of the
Application Submission following clarifications 40 working days
Application communication
From receipt of the
Pre-Authorisation Stage Submission Review Submission of any missing documents with the Application 20 working days
communication
From receipt of MFSA
Quality Review Initial Application Review Feedback 3 weeks
feedback
Pre-Authorisation From receipt of MFSA
Replies to MFSA Feedback 15 working days
and Authorisation Stage feedback

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 MALTA FINANCIAL SERVICES AUTHORITY
TRIQ L-IMDINA, ZONE 1 CENTRAL BUSINESS DISTRICT, BIRKIRKARA, CBD 1010, MALTA.
[email protected]
+356 2144 1155

WWW.MFSA.MT

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