Investment Service Providers
Investment Service Providers are regulated by the Malta Investment Services Act, Chapter 370 of the Laws of Malta. The Act defines Investment Services which are considered to be licensable activities. Licenses can be obtained from the Malta Financial Services Authority (MFSA) which is the sole regulator of financial services in Malta.
Regulated activities
The following activities are considered to be Investment Services under the Malta Investment Services Act, and can therefore only be provided by persons or companies in or from Malta which have acquired a licence or authorisation from the MFSA.
Categories of licences
Category 1A: License holders authorised to receive and transmit orders in relation to one or more instruments and / or provide investment advice and / or place instruments without a firm commitment basis but not to hold or control clients’ money or customers’ assets. This Category does not include managers of collective investment schemes. The minimum capital required apply to investment service licence is this category is €50,000.
Category 1B: License holders authorised to receive and transmit orders, and / or provide investment advice in relation to one or more instrument and / or place instruments without a firm commitment basis solely for professional clients and / or eligible counterparties, but not to hold or control clients’ money or customers’ assets. The minimum capital required apply to investment service licence is this category is € 20,000 with PII (Professional Indemnity Insurance) and €50,000 without PII.
Category 2: License holders authorised to provide any investment service and to hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis. The minimum capital required apply to investment service licence is this category is €125,000
Category 3: License holders authorised to provide any investment service and to hold and control clients’ money or customers’ assets. The minimum capital required apply to investment service licence is this category is €730,000
Category 4: License holders authorised to act as trustees or custodians of collective investment schemes. The minimum capital required apply to investment service licence is this category is €125,000
Taxation of Investment Service Providers
A company licensed as an investment service provider is chargeable to Malta tax at a rate of 35%. Shareholders are entitled to claim tax refunds of up to 6/7th of all tax paid in Malta by the investment firm.
European passporting rights
Investment firms that wish to establish a branch in another EU jurisdiction are able to do so by applying to exercise their passporting rights in another jurisdiction with the MFSA.
For more information about the Malta Investment Services Act, Nominee Services, Trustee Services and Custodian Services please contact us on info@virtusmalta.com or by filling in the form in the Contact Us page.
Regulated activities
The following activities are considered to be Investment Services under the Malta Investment Services Act, and can therefore only be provided by persons or companies in or from Malta which have acquired a licence or authorisation from the MFSA.
- Reception and transmission of orders
- Execution of orders on behalf of other persons
- Dealing on own account
- Management of investments
- Trustee, custodian or nominee services
- Investment advice
- Underwriting of instruments and, or placing of instruments on a firm commitment basis.
- Placing of Instruments without a firm commitment basis
- Operation of a Multilateral Trading Facility
Categories of licences
Category 1A: License holders authorised to receive and transmit orders in relation to one or more instruments and / or provide investment advice and / or place instruments without a firm commitment basis but not to hold or control clients’ money or customers’ assets. This Category does not include managers of collective investment schemes. The minimum capital required apply to investment service licence is this category is €50,000.
Category 1B: License holders authorised to receive and transmit orders, and / or provide investment advice in relation to one or more instrument and / or place instruments without a firm commitment basis solely for professional clients and / or eligible counterparties, but not to hold or control clients’ money or customers’ assets. The minimum capital required apply to investment service licence is this category is € 20,000 with PII (Professional Indemnity Insurance) and €50,000 without PII.
Category 2: License holders authorised to provide any investment service and to hold or control clients’ money or customers’ assets, but not to operate a multilateral trading facility or deal for their own account or underwrite or place instruments on a firm commitment basis. The minimum capital required apply to investment service licence is this category is €125,000
Category 3: License holders authorised to provide any investment service and to hold and control clients’ money or customers’ assets. The minimum capital required apply to investment service licence is this category is €730,000
Category 4: License holders authorised to act as trustees or custodians of collective investment schemes. The minimum capital required apply to investment service licence is this category is €125,000
Taxation of Investment Service Providers
A company licensed as an investment service provider is chargeable to Malta tax at a rate of 35%. Shareholders are entitled to claim tax refunds of up to 6/7th of all tax paid in Malta by the investment firm.
European passporting rights
Investment firms that wish to establish a branch in another EU jurisdiction are able to do so by applying to exercise their passporting rights in another jurisdiction with the MFSA.
For more information about the Malta Investment Services Act, Nominee Services, Trustee Services and Custodian Services please contact us on info@virtusmalta.com or by filling in the form in the Contact Us page.
