Summary of the MFSA Circular to VFA Service Providers

The MFSA issued a Cir­cu­lar on 6th Sep­tem­ber 2019 to the VFA Ser­vice Providers. The Cir­cu­lar is regard­ing the licens­ing require­ments. VFA Ser­vice Providers who are oper­at­ing in tran­si­to­ry would need to com­mence the license appli­ca­tion by not lat­er than the already stip­u­lat­ed dead­line, that being on the 31st of Octo­ber 2019.

The Cir­cu­lar applies to those who wish to com­mence the appli­ca­tion for the license, and for those who do not longer want to pro­vide VFA Ser­vices upon the expi­ra­tion of the tran­si­to­ry peri­od.

What is required?

The process of the license appli­ca­tion shall com­mence upon the sub­mis­sion of a let­ter of intent.

You as a Ser­vice Provider would need to sub­mit a let­ter of intent to the MFSA, which shall include the fol­low­ing:

  • An exten­sive descrip­tion of the struc­ture;
  • VFA Service/s for which the appli­ca­tion is being sought and pro­posed per­sons that will be hold­ing a key posi­tion such as C- Lev­el Man­age­ment, Direc­tors, MLRO, and Com­pli­ance Offi­cer amongst oth­er posi­tions; and
  • A legal opin­ion for the pur­pose of Sec­tion 3, Sub-Sec­tion 3, R3‑2.3.3.2 Prepara­to­ry Phase of the Vir­tu­al Finan­cial Assets Rule­book, Chap­ter 3. The legal opin­ion needs to con­firm that the pro­posed activ­i­ties does not fall with­in the scope of tra­di­tion­al finan­cial ser­vices leg­is­la­tion.

Once such let­ter of intent is sub­mit­ted to the MFSA, the author­i­ty may sched­ule an intro­duc­to­ry meet­ing with you as a Ser­vice Provider and the appoint­ed VFA Agent. Once such meet­ing is held, there is a 60-day peri­od to sub­mit the appli­ca­tion form and the nec­es­sary doc­u­men­ta­tion.

Guide­lines of the appli­ca­tion process for forth­com­ing appli­cants  may be found here: https://www.mfsa.mt/wp-content/uploads/2019/05/VFAG_VFAServiceProvAppForm_1.001.pdf. Such appli­ca­tion should be done through an appoint­ed VFA Agent.

If a Ser­vice Provider does not have the intent to sub­mit the appli­ca­tion for the License, then they are advised to ter­mi­nate the oper­a­tions and noti­fy the MFSA before the dead­line of the tran­si­to­ry peri­od.

In this case, the noti­fi­ca­tion of the Dis­con­tin­u­ance of Activ­i­ties and Oper­a­tions needs to con­firm that the Ser­vice Provider is not pro­vid­ing or hold­ing itself out as pro­vid­ing a VFA Ser­vice in or from Mal­ta. Such noti­fi­ca­tion needs to also con­firm that there are no oblig­a­tions towards clients. Once com­piled, the Direc­tor shall sign and send it to the MFSA.

Should you have any queries please do not hes­i­tate to con­tact us on: info@drwerner.com.

Dis­claimer*

The above-men­tioned arti­cle is sim­ply based on inde­pen­dent research car­ried out by Dr. Wern­er and Part­ner and can­not con­sti­tute any form of legal advice. If you would like to meet  up with any of our rep­re­sen­ta­tives to seek fur­ther infor­ma­tion, please con­tact us for an appoint­ment.

 

 

 

 

About Dr. Rebecca Mifsud

Dr Rebec­ca Mif­sud, born 6th May 1994, attend­ed the Uni­ver­si­ty of Mal­ta and is an LLB Hon­ours grad­u­ate. She also grad­u­at­ed in the Mas­ters in Advo­ca­cy and will be sit­ting for her Mal­ta War­rant Exam in 2019. She suc­cess­ful­ly defend­ed her dis­ser­ta­tion enti­tled: ‘Imput­ing respon­si­bil­i­ty for foot­ball injuries inflict­ed by minors in the Mal­tese sce­nario,’ in 2017.

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