The MFSA has on the 12th July 2018 issued a consultation paper on the Virtual Financial Assets rules for VFA agents. The closing date for submission was 31st July 2018 and now the MFSA is expected to issue the official chapter after taking into account the submissions which it has received as well as other consultations with relevant stake holders which it has carried out.
This paper is intended to form part of a rule book which will be entitled the ‘Virtual Financial Assets Rulebook’ and which will be divided into three chapters. This chapter applies to VFA agents appointed in terms of the VFA Act and to applicants seeking registration in terms of the said Act.
The first title of this chapter outlines the high-level principles which should guide VFA agents in the provision of their VFA activity in or from within Malta, while title 2 outlines the registration requirements and the registration process for VFA agents. Title 3 outlines the ongoing obligations which VFA agents must adhere to, while title 4 provides for enforcement and sanctions in the event of misconduct by VFA agents.
This article will deal with the high-level principles which VFA agents are expected to adhere to as well as with the registration requirements for VFA agents.
Title 1 – High level principles
VFA agents shall:
- Act in an ethical manner taking into account Malta’s best interest, investor protection and market integrity;
- Act honestly, fairly and professionally;
- Comply with the relevant laws, rules and regulations;
- Cooperate with the MFSA in an open and honest manner;
- Adhere to Maltese and EU rules and regulations as well as other guidance notes issued by the MFSA from time to time.
Title 2 – Registration requirements for VFA agents
A person providing or holding itself out as providing the services listed in Articles 7 and / or 14 of the VFA Act, whether in Malta or outside Malta, must be registered with the MFSA. An applicant must propose two persons to act as a VFA agent as well as a MLRO.
The person must be a legal person established in Malta or in a recognized jurisdiction, provided it has a registered office in Malta and at least 2 resident representatives in Malta. The representatives must be accountants, auditors or advocates.
The VFA agent must have an initial and ongoing capital of Eur50,000. It must also have a professional indemnity insurance.
In considering whether or not to grant a license, the MFSA will take into account the protection of investors and the general public and the reputation and suitability of the applicant and all other parties connected with the applicant.
Applicants shall be fit and proper persons on a continuous basis and must satisfy the following three criteria
The MFSA has on the 12th July 2018 issued a consultation paper on the Virtual Financial Assets rules for VFA agents. The closing date for submission was 31st July 2018 and now the MFSA is expected to issue the official chapter after taking into account the submissions which it has received as well as other consultations with relevant stake holders which it has carried out.
This paper is intended to form part of a rule book which will be entitled the ‘Virtual Financial Assets Rulebook’ and which will be divided into three chapters. This chapter applies to VFA agents appointed in terms of the VFA Act and to applicants seeking registration in terms of the said Act.
The first title of this chapter outlines the high-level principles which should guide VFA agents in the provision of their VFA activity in or from within Malta, while title 2 outlines the registration requirements and the registration process for VFA agents. Title 3 outlines the ongoing obligations which VFA agents must adhere to, while title 4 provides for enforcement and sanctions in the event of misconduct by VFA agents.
This article will deal with the high-level principles which VFA agents are expected to adhere to as well as with the registration requirements for VFA agents.
Title 1 – High level principles
VFA agents shall:
- Act in an ethical manner taking into account Malta’s best interest, investor protection and market integrity;
- Act honestly, fairly and professionally;
- Comply with the relevant laws, rules and regulations;
- Cooperate with the MFSA in an open and honest manner;
- Adhere to Maltese and EU rules and regulations as well as other guidance notes issued by the MFSA from time to time.
Title 2 – Registration requirements for VFA agents
A person providing or holding itself out as providing the services listed in Articles 7 and / or 14 of the VFA Act, whether in Malta or outside Malta, must be registered with the MFSA. An applicant must propose two persons to act as a VFA agent as well as a MLRO.
The person must be a legal person established in Malta or in a recognized jurisdiction, provided it has a registered office in Malta and at least 2 resident representatives in Malta. The representatives must be accountants, auditors or advocates.
The VFA agent must have an initial and ongoing capital of Eur50,000. It must also have a professional indemnity insurance.
In considering whether or not to grant a license, the MFSA will take into account the protection of investors and the general public and the reputation and suitability of the applicant and all other parties connected with the applicant.
Applicants shall be fit and proper persons on a continuous basis and must satisfy the following three criteria
- Integrity – applicants must demonstrate and provide reasonable assurance to the MFSA that they are of good repute as well as of their intentions to act in an honest and trust worthy manner.
- Competence – applicants must demonstrate that they have an acceptable level of knowledge, professional expertise and experience and have adequate systems in place to act as a VFA agent.
- Solvency – the applicant must be financially sound.
- Integrity – applicants must demonstrate and provide reasonable assurance to the MFSA that they are of good repute as well as of their intentions to act in an honest and trust worthy manner.
- Competence – applicants must demonstrate that they have an acceptable level of knowledge, professional expertise and experience and have adequate systems in place to act as a VFA agent.
- Solvency – the applicant must be financially sound.
