In a recent circular, the MFSA has set out the approach it will be adopting for the concept of “ancillary activities” under the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFID II).
The MFSA has declared that it will be transposing the provisions of Section B of Annex I of MiFID II in the Maltese Investment Services Act, thus rendering these activities as licensable activities.
The Authority considers an activity to be “ancillary” if it is subordinate to the main activity. The provision of the activity must be temporary in nature and must not be such as to lead to a situation where the licenced entity will not be able to carry out the core activity in the absence of the ancillary activity.
The following will be considered as “ancillary activities” to the main business of investment services licence holders:
As from 1st March 2017, new applicants for an investment services licence will be required to indicate whether they intend to conduct an ancillary activity. Current licence holders are required to provide the Authority with information on whether they are providing any ancillary activities and to indicate which ancillary activities are being provided.
Once the revised Act comes into force, licenced entities providing ancillary activities which have not been disclosed to the Authority will be considered to be in breach of the Investment Services Act and may be subject to regulatory action.
For more information or if you have any questions, please feel free to contact Dr Cherise Abela on email@example.com
Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.