Investment Services

Malta Investment Services are regulated by the Investment Services Act (Chap. 370 of the Laws of Malta). Furthermore, the Malta Financial Services Authority (“MFSA”) is the single regulator responsible for the licensing, regulation and supervision of Investment Services Providers, Collective Investment Schemes and Regulated Markets. Any person or entity providing an investment service in Malta or from Malta must possess a valid investment services licence issued by the MFSA or, alternatively, have a valid “passported” license from another EU Member State.

The Investment Services Act does not include a definition of ‘Investment’. Instead it includes a list of ‘Investment Services’ and a list of ‘Instruments’. The provision of an Investment Service in relation to an Instrument triggers a requirement to obtain an Investment Services Licence from the MFSA.

ELIGIBILITY OF THE DEPENDANTS

Eligible dependants of the main applicant are:

  • The spouse of the main applicant.
  • A child, including an adopted child of the main applicant or of his spouse who is less than eighteen (18) years of age.
  • A child of the main applicant or of his spouse who is between the age of eighteen (18) and (26) years, who is not married and who proves that he/she is not economically active and a dependant of the said main applicant.
  • A parent or grandparent of the main applicant or of his spouse who is not economically active and a dependant of the said main applicant.
  • A child of the main applicant or spouse who is over eighteen years (18) years of age and who is physically or mentally disabled and is living with and fully supported by the main applicant.

Licence Categories

The Malta Investment Services Licences are divided into four broad categories:

CategoryAuthorised Activity
1aAuthorised to receive and transmit orders in relation to one or more instruments and, or provide investment advice and, or place instruments without a firm commitment basis but not to hold or control clients’ money or customers’ assets.
1bAuthorised to receive and transmit orders, and, or provide investment advice in relation to one or more instruments and, or place instruments without a firm commitment basis solely for professional clients and, or eligible counter parties but not to hold or control clients’ money or customers’ assets.
2Authorised to provide any Investment Service, and hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis.
3Authorised to provide any Investment Service, hold and control clients’ money or customers’ assets.
4aAuthorised to act as trustees or custodians of Collective Investment Schemes.
4bAuthorised to act:
i. As custodians of AIFs which have no redemption rights exercisable during the five-year period from the date of initial investment and which generally do not invest in assets that must be held in custody in terms of the Investment Services Rules;
ii. As custodians to AIFs marketed in Malta

Advantages of a Maltese Investment Services License

Protection of Investors

It is illegal for any person to provide an investment service in or from Malta unless such person is in possession of a valid licence. Furthermore, the law provides that in granting a licence, the MFSA, may subject the Licence Holder to such conditions, as it may deem appropriate, which conditions usually centre around the observance of reasonable standards of competence, integrity and fair dealing.

Favourable Tax Treatment 

Maltese Investment Services License Holders, whose activities are limited to services from Malta but not in Malta could benefit from a corporate vehicle wherein they are subject to a corporate tax of 35% but non-resident shareholders would then benefit from a tax refund ending up in a final rate of taxation of 5%.

Passporting Rights in Europe 

A Malta Licensed Investment Services Company is able to operate in any other EU country either directly or through the establishment of a branch.

We are here to assist you.

For more information, please contact us on info@atomfs.com.mt or +356 2247 9000.