Under the Maltese Investment Services Act, the provision of an investment service in or from within Malta requires an investment services license issued by the Malta Financial Services Authority (MFSA).
In 2021, following the publication of the Investment Firms Regulation and Directive (IFR/IFD), the MFSA opted to depart from the previous categorisation of Investment Services Licence Holders. Thus, licensees would no longer be classified as Category 1 – 4, but rather reference is now made to the regulated service/s that the respective licence holder is authorised to provide.
Investment Service License holders can thus be classified under the following categories:
An application for an Investment Service Licence is to be made to the MFSA, specifying the classification and the licensable activities which the applicant intends to conduct.
The following minimum initial capital requirements must be met when applying for an Investment Services licence, depending on the licensable activities:
| Categories of Investment Service Licence Holders | Minimum Initial Capital |
| Licence holders authorised to provide one or more of the following Investment Services: – Reception and transmission of orders in relation to one or more instruments;– Execution of orders; – Portfolio management; – Investment advice;– Placement of instruments without a firm commitment basis; but not to hold or control clients’ money or customers’ assets | EUR75,000 |
| Licence holders authorised to provide one or more of the following Investment Services: – Reception and transmission of orders in relation to one or more instruments; – Execution of orders; – Portfolio management; – Investment advice; – Placement of instruments without a firm commitment basis; and to hold or control clients’ money or customers’ assets | EUR150,000 |
Licence holders authorised to provide any Investment Service and to hold or control clients’ money or customers’ assets | EUR750,000 |
| Licence Holders qualifying as Alternative Investment Fund Managers |
EUR125,000 |
| Licence Holders qualifying as UCITS Management Companies |
EUR125,000 |
| Licence Holders qualifying as De Minimis AIFMs |
EUR125,000 |
| Licence holders authorised to act as Depositary |
EUR730,000 |
| Licence holders authorised to act as Depositary Lite |
EUR125,000 |
For more information or if you have any questions, please feel free to contact Dr Cherise Abela Grech.