Updates to the Company Services Providers Act

We would like to draw up your attention about some recent changes made to Malta’s legislative framework regulating the Company Services Providers (‘CSPs’). These changes specifically relate to individuals providing the services of Directors and Company Secretaries.

Prior to these legislative amendments, individuals acting as directors or company secretaries not by way of a business in no more than two involvements were not required to notify or obtain any form of authorisation from the Malta Financial Services Authority (the ‘MFSA’).

A key amendment introduces a notification requirement for the category defined as Restricted Company Service Providers. This category refers to individuals who:

  • Act as a director and/or company secretary, or a partner in a partnership and/or hold a similar position in other legal entities; 
  • Do not hold any of the above-mentioned positions by way of business;
  • Hold an aggregate of not more than five (5) involvements in any of the capacities mentioned above and;
  • Although holding these involvements, do hold such involvements in more than two (2) groups of companies.

If an individual satisfies these conditions, and is not exempt under the Act, as detailed below, one is required to notify the MFSA of their involvements in whichever capacity, subject to a non-refundable notification fee of €50.  

One is exempt from this notification requirement to the MFSA if:

–              He/she already holds a licence under the CSP Act, 

–              He/she is a person authorised to act as a trustee or to provide other fiduciary duties in terms of the Trusts and Trustees Act (Cap. 331 of the Laws of Malta), 

–              He/she acts, or holds himself out as acting, as a director, a company secretary, a partner and, or a similar position solely in relation to a company, a partnership and, or a legal entity which is licensed, registered or otherwise authorised by the MFSA,  including the holding company of such company or legal entity.  

–               He/she only offers the services of acting as director or secretary of a company whose financial instruments have been admitted to listing on a regulated market in Malta or by an overseas regulatory authority in a recognised jurisdiction. –                          An individual who is acting as a director or company secretary of a company and/or a partner in a partnership or in a similar position in relation to other legal entities in virtue of a contract of employment,  

–              An individual who is acting as a director or company secretary of a company or a partner in a partnership or in a similar position in relation to other legal entities due to a beneficial interest in such company, partnership or other type of legal entity, or  

–              An individual who is acting as a director or company secretary of a company or a partner in a partnership or in a similar position in relation to other legal entities due to a family relationship

Should a director or company secretary within your company not fall under any exemption detailed above, then one would need to submit a notification to the MFSA with one’s appointment/s through the MFSA LH Portal. You can find further information on such notification on the MFSA website. This page also includes information as to how to register with the authorities.

Kindly note that the deadline for the notification (if applicable) for current involvements is the 16 July 2025 after which penalties will be imposed for the non-adherence to this legislation. 

For future appointments resulting in an individual qualifying as a Restricted Company Service Provider, the same notification form must be submitted with the MFSA within 14 days from the date of commencement of the appointment.

Should you wish further information, you may contact Dr Dionne Buhagiar from our Corporate & Legal unit on [email protected].

🖌️Colourful vibes for 3a Malta🍷🎨





🖌️🍷Our team got together for one of our fun social activities at the end of May. On a beautiful sunny day, we enjoyed a pleasant morning enjoying good food, drinks, relaxing music and each other’s company while getting creative in a session of sip and paint 🎨  at Il-Veduta restaurant, limits of Mdina.

🔥 The skyline of the beautiful silent city was the theme of the workshop where everyone had the chance to be an artist and unleash their talent. The activity was concluded with a pleasant lunch altogether where the works of art could be appreciated by all.😉.

Budget 2025Multi-asset funds

Investing Wisely with Multi-Asset Funds: A Balanced Strategy

In today’s financial landscape, investing wisely can be a challenge due to the vast array of options available. Among these, multi-asset funds have emerged as a versatile and effective solution for investors seeking a balance between risk and return. These funds bring together different types of investments within a single portfolio, offering a strategic mix of stability and growth potential.

What Are Multi-Asset Funds?

Multi-asset funds are professionally managed investment vehicles that allocate capital across a variety of asset classes. These typically include equities (stocks), bonds, real estate, commodities, and exchange-traded funds (ETFs). By spreading investments across different assets, these funds aim to build a well-diversified portfolio that can weather market fluctuations and generate steady returns.

Features and Benefits of Multi-Asset Funds

  • The hallmark of multi-asset funds is diversification. This approach helps reduce overall risk by ensuring that the portfolio is not overly reliant on the performance of a single asset class. If one segment under performs, the impact may be softened by stronger returns in other areas.
  • Another key benefit is professional management. These funds are handled by experienced investment managers who have the expertise to adjust the asset mix according to market trends and economic conditions. This management not only seeks to optimism returns but also helps manage downside risk.
  • Multi-asset funds are also flexible and cost-efficient, making them an attractive option for investors who may not have the time or expertise to manage a diverse portfolio themselves. Investors gain exposure to a broad range of assets through a single investment, streamlining the process and simplifying portfolio construction.

Investment Strategies Used by Fund Managers

  • To achieve the best outcomes, fund managers apply a range of investment strategies:
  • Strategic Asset Allocation involves setting long-term targets for asset distribution based on the investor’s goals and risk tolerance. These allocations are reviewed and re balanced periodically to maintain the desired mix.
  • Tactical Asset Allocation allows managers to make short-term adjustments in response to market opportunities or risks, enhancing returns during volatile periods.
  • Risk Parity is a strategy aimed at balancing the risk contributions of each asset class to produce more stable returns over time.
  • Dynamic Asset Allocation involves continuous evaluation and re balancing of the asset mix in line with changing market conditions and economic indicators.
  • Income Generation strategies focus on investing in assets that provide regular income, such as dividend-paying stocks or interest-bearing bonds, making them suitable for income-focused investors.

A Strategic Choice for All Investors
Multi-asset funds provide a comprehensive solution for both novice and experienced investors. They combine the benefits of diversification, expert oversight, and adaptability into a single, streamlined investment. Whether you’re looking to diversify your holdings or generate steady income, multi-asset funds can play a valuable role in achieving your long-term financial goals.

Disclaimer
The above information is being provided as a general guide only and should not be
considered as a substitute for professional advice.