Cynthia Debono Mizzi

Authorisation Unit

ICE BREAKER GAME

2013

2

3

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THE APPLICATION PROCESS

WHAT DOCUMENTATION IS REQUIRED?

In the case of a juridical person:

(1) A duly completed Application Form;

(2) Memorandum and Articles of Association;

(3) A copy of the most recent financial statements for the business (in case the Applicant is an entity which is already established);

WHAT DOCUMENTATION IS REQUIRED? (CONT.)

(4) Clients` Agreement;

(5) Business Plan;

(6) Personal Questionnaires in respect of each Director, Qualifying Shareholder(s), Compliance Officer, Money Laundering Reporting Officer and Senior Manager of the Applicant;

WHAT DOCUMENTATION IS REQUIRED? (CONT.)

(7) Corporate Questionnaire in case of any qualifying corporate shareholders of the Applicant;

(8) Directors` Resolution;

(9) A Group Structure chart (if applicable); and

(10) The Application fee.

WHAT DOCUMENTATION IS REQUIRED?

In the case of a natural person:

(1) An Application Form;

(2) A Personal Questionnaire in respect of the individual;

(3) A Business Proposal;

(4) Evidence of working capital;

(5) Client`s Agreement; and

(6) The Application fee.

TO FACILITATE MFSA`S REVIEW PROCESS

Some points to note: Documentation should be completed in a

comprehensive manner; Completed documents are to be submitted to the

Director – Authorisation Unit; MFSA may request applicants to provide

additional information or documents relating to the application.

CRITERIA OF FITNESS AND PROPERNESS

CRITERIA OF FITNESS AND PROPERNESS

Fit and Proper requirements are a means of raising public confidence in the financial services industry and a key element to the effective supervision of company services providers.

CRITERIA OF FITNESS AND PROPERNESS

Qualifying shareholders, board members, senior managers and other key functionaries are required to meet the fit and proper test.

The fit and proper test includes criteria of integrity, competence, experience, qualifications and the requirement to be financially sound.

All criteria must be met in satisfaction of the fit and proper test.

CRITERIA OF FITNESS AND PROPERNESS

The onus of proving that an applicant is a fit and proper person for the type of registration applied for is on the applicant itself.

MFSA’s approach is cumulative and will take into account all material facts, disclosed or otherwise.

CRITERIA OF FITNESS AND PROPERNESS

MFSA will not grant registration if it appears that the criteria of fitness and properness are not or will not be satisfied.

CRITERIA OF FITNESS AND PROPERNESS

Integrity involves the licence holder and its employees being of good repute and acting honestly and in a trustworthy fashion in relation to its clients and other parties.

CRITERIA OF FITNESS AND PROPERNESS

Competence means that those people carrying on the business of the licence holder must be able to demonstrate an acceptable amount of knowledge, professional expertise and experience. The MFSA will take into account the qualifications, experience and skills of those involved.

CRITERIA OF FITNESS AND PROPERNESS

Competence

Company Law; Applicable CSP legislation and regulatory

framework; and

Area of Money Laundering

CRITERIA OF FITNESS AND PROPERNESS

Solvency – The MFSA must be satisfied that the applicant has financial resources sufficient to meet commitments on a continuing basis as well as the ability to withstand any financial risks to which the business is exposed.

HOW?

A fact finding exercise.

A Personal Questionnaire is to be filled in and signed by the individual; and

A copy of the Personal Questionnaire is available on the MFSA`s website.

THE PERSONAL QUESTIONNAIRE

THE PERSONAL QUESTIONNAIRE

The PQ assists the MFSA to assess whether a person is fit and proper.

Applicants are expected to provide clear and detailed information and in case of doubt as to the relevance of the information, this should be disclosed to the MFSA.

THE PERSONAL QUESTIONNAIRE

MFSA reserves the right to seek information and references from organisations and individuals mentioned in the PQ - both at time of submission of PQ and after.

The PQ is to be completed by the applicant personally who retains responsibility for its contents.

THE PERSONAL QUESTIONNAIRE

Information regarding the licence holder/ applicant;

Personal Information regarding the applicant; Qualifications/memberships; Employment History; Directorships; Bank References & Other Regulatory

Authorisations; General Information; Declarations and Confirmations; and Declaration.

ATTACHMENTS TO THE PQ

Authenticated copy of identification document;

A police conduct certificate (not more than 3 months old);

Banker’s Authorisation Letter;

General Authorisation Letter; and

Authorisation Letter to the Commission for the Administration of Justice.

CORPORATE ENTITIES

Where proposed shareholders of an applicant are corporate entities, these will be required to complete the Corporate Questionnaire, that is, the “Questionnaire for Qualifying Shareholders Other Than Individuals.”

CORPORATE ENTITIES

Assessment includes: The financial soundness and strengths

(including capital structure);

Nature and scope of its business;

Its qualifying shareholders and key functionaries; and

The group structure (if applicable) and an organisation chart.

A CONTINUOUS OBLIGATION

The satisfaction of the fit and proper criteria is a continuous obligation.

Licence holders are required to report any material changes to the information previously submitted to the MFSA.

MFSA’S APPROVAL

On conclusion of its review of the application and its fitness and properness exercise, the Authorisation Unit compiles a report to the Authority's Supervisory Council for registration of the applicant;

MFSA will issue an “in principle approval” subject to the satisfactory

responses to outstanding due diligence enquiries as well as satisfactory resolution of any outstanding matters; and

On satisfactory resolution of any outstanding matters, MFSA will

issue a certificate of registration to the new licence holder and the name of the individual/company will be uploaded on MFSA`s website.

Thank You

Cynthia Debono Mizzi

Senior Manager

Authorisation Unit

Malta Financial Services Authority

Attard BKR 3000

E-mail: cdebonomizzi@mfsa.com.mt