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The Malta Investment Services Act does not include a definition of what an “investment” is. Instead it includes a list of Investment Services or Markets in Financial Instruments Directive (MiFID) Services as well as a list of Instruments. The provision of an Investment Service in relation to an instrument triggers a requirement for the obtainment of an Investment Services Licence from the MFSA.
Investment Services Instruments
The “instruments” listed in the Second Schedule to the Act are the following:
1. Transferable Securities
Classes of securities which are negotiable on the capital market and include:
- shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depository receipts in respect of shares;
- bonds or other forms of securitised debt, including depository receipts in respect of such securities; and
- any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures.
2. Money Market Instruments
Those classes of instruments which are normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers and excluding instruments of payment.
3. Units in collective investment schemes
4. Derivatives for the transfer of credit risk
Rights under a contract for differences or under any other contract the purpose or intended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in the value or price for property of any description or in an index or other factor designated for that purpose in the contract.
6. Various types of derivatives
Certificates or other instruments which confer property rights in respect of any other instrument
8. Foreign exchange acquired or held for investment purposes
Investment Services Licence Categories
Categories of Licence Holders and Initial Capital Requirements
Initial Capital Requirements
Licence holders authorised to receive and transmit orders in relation to one or more instrument and/or provide investment advice and/or place instruments without a firm commitment basis, but not hold or control clients’ money, or customers’ assets.Provided that, where category 1(A) licence holders are also registered under the Insurance Mediation Directive, the initial capital requirement shall be reduced to € 25,000.
Licence holders authorised to receive and transmit orders, and/or provide investment advice and/or place instruments without a firm commitment basis solely for non-private customers but not to hold or control clients’ money or customers’ assets.Provided that where category 1(B) licence holders are also registered under the Insurance Mediation Directive, the initial capital requirement shall bereduced to € 25,000.
€20,000with PII€50,000without PII
Licence holders authorised to provide any investment service, and hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite and/or place financial instruments on a firm commitment basis.
Licence holders authorised to provide any investment service including operating a multilateral trading facility, to hold and control clients’ money or customers’ assets and to deal for their own account or underwrite and / or place financial instruments on a firm commitment basis.
Licence holders authorised to act as trustees or custodians of Collective Investment Schemes
Licence holders authorised to act as custodians to:(a) AIFs marketed in Malta in terms of regulation 7 of the Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations; or(b) AIFs which have no redemption rights exercisable during the five year period from the date of initial investment and which generally do not invest in assets that must be held in custody in terms of the Investment Services Rules.
Regulated Financial Services
We offer the following related services.
The choice of CSB Group was naturally imposed when I decided to establish my private collective investment scheme in Malta. In addition to a strong overseas reputation, it is one of the three largest and probably the most serious Maltese business advisory firms. The whole Regulated Industries and Corporate Services Team is very meticulous, attentive, and all of them would be happy to bend over backwards to advance your projects. This firm and its team are the ambassadors of one of the best onshore jurisdictions in the world.
Magellan SICAV p.l.c.
We have appointed CSB Trustees & Fiduciaries Limited to be the Security Trustee for a bond issued by our company; Stivala Group Finance p.l.c. The team that we worked closely with, was efficient, reliable, and knowledgeable and we couldn’t be more satisfied with the service provided. The team always made itself available even when provided with a short notice. We are glad we have engaged their services and we would definitely recommend them.
Stivala Group Finance p.l.c.
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