As of the 1st of January 2026, the revised regime for sponsors strengthening the Maltese capital markers that was introduced in late December 2025 has become applicable. This revised regime supersedes the regulatory framework that was embedded in Chapter 2 of the Malta Financial Services Authority’s (hereinafter the “MFSA”) Capital Markets Rules through updating the old framework to a more active and registered-based sponsors.
Prior to the coming in effect of the sponsors’ register, the Financial Markets Act amended its requirements of becoming a sponsor, to be such that any person intending to act as a sponsor in Malta, or to hold itself out as providing such services, is required to obtain prior registration with the competent authority.
For persons who were already providing or holding themselves out as providing sponsor services at the time the amended provisions came into force, a transitional period of 10 months was established. During this period, such persons are permitted to continue offering sponsor services only if a duly completed application for registration is submitted within 2 months from the 1st of January 2026, and if registration was granted by the competent authority before the expiry of the ten-month period.
Furthermore, the amended framework vests the competent authority with broad discretion in the registration and ongoing regulation of sponsors. The MFSA may grant registration subject to conditions it deems appropriate. These conditions need not be static, as it retains the power to vary, revoke, or impose new conditions from time to time, thereby ensuring that registered sponsors continue to meet the regulatory standards applicable to their role.
Naturally, the competent authority is also empowered to cancel or suspend the registration of a sponsor at any time in the circumstances prescribed by law to ensure that sponsors who fail to comply with their regulatory obligations, or who no longer satisfy the applicable requirements, are removed from the register or temporarily barred from operating.
In addition, this revised regime provides for the establishment of a public register of sponsors. This register is maintained by the MFSA and made available on its official website. It includes the names of all persons who have been granted registration, enhancing transparency and market confidence.
The revised sponsors regime reflects a broader shift in Malta’s regulatory philosophy towards proactive market governance. By formalising the role of sponsors through registration, conditional approvals, and public disclosure, the MFSA has enhanced the credibility of sponsors as gatekeepers to the regulated market. This approach not only strengthens institutional accountability but also aligns Malta’s capital markets framework more closely with international best practices.
Importantly, the regime introduces a dynamic regulatory relationship between the MFSA and registered sponsors. This flexibility ensures that this framework remains responsive rather than static, enabling the MFSA to maintain regulatory effectiveness without compromising market accessibility. In this context, the revised regime should be understood not merely as a compliance-driven reform, but as a strategic instrument designed to reinforce long-term market resilience, investor trust, and the sustainable positioning of Malta’s capital markets within the wider European financial landscape.
For any other information or assistance, please contact us at info@gtg.com.mt
Author: Dr Neil Gauci