On the 2nd July 2019 the Malta Financial Services Authority (MFSA) issued a Guidance on the Fitness and Properness Assessments applied by the Authority.
In assessing fitness and properness, the MFSA assesses: [i] competence; [ii] reputation; [iii] solvency [iv] conflicts of interest and independence of mind; and [v] time commitment. The guidance document seeks to provide further detail by communicating, clearly and transparently, the basis on which the Authority’s assessments are carried out.
The publishing of these guidelines dovetails with last week’s announcement on the establishment of a new Financial Crime Compliance team which will strengthen further our supervisory processes.
Joseph Cuschieri, Chief Executive Officer of the MFSA, commented that “Proper due diligence procedures are fundamental to ensure that only fit and proper persons are granted, or continue having, access to the financial services sector in Malta. With these guidelines we are providing insight and communicating our expectations in relation to on-boarding of financial services businesses in order to safeguard consumers of financial services and the integrity and stability of the financial system”.