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The Malta Financial Services Authority (MFSA) published amendments to Section 13 of Part A and Section 7 of Part BI of the Investment Services Rules for Investment Services Providers. The amendments modify regulatory requirements applicable to investment services providers operating in Malta. Section 13 of Part A and Section 7 of Part BI establish operational and governance standards that investment services providers must observe when delivering services to clients. These provisions govern key aspects of how investment firms conduct their business, including organisational requirements, risk management frameworks, and client-facing procedures. The MFSA issued these amendments through a circular, which serves as the primary notification mechanism for regulatory changes affecting financial services providers in Malta. Investment services providers, including investment firms and other entities authorised to provide investment services under Malta's regulatory framework, must ensure compliance with the updated requirements. The circular represents the MFSA's ongoing effort to maintain and enhance the regulatory standards governing Malta's investment services sector. These amendments ensure that investment services providers continue to operate under current regulatory expectations and maintain appropriate safeguards for clients and market integrity. Investment services providers should review the amended sections carefully to identify any changes to their operational procedures, governance structures, or compliance obligations. Providers must implement necessary changes to align their operations with the updated requirements. The MFSA website contains the full text of the circular and amended rules. REFERENCES: Malta Financial Services Authority. Amendments to Section 13 of Part A and Section 7 of Part BI of the Investment Services Rules for Investment Services Providers. Available at: https://www.mfsa.mt/

On August 6, 2026, the Malta Financial Services Authority (MFSA) published amendments to Section 13 of Part A and Section 7 of Part BI of the Investment Services Rules for Investment Services Providers. The amendments modify regulatory requirements applicable to investment services providers operating in Malta. Section 13 of Part A and Section 7 of Part BI establish operational and governance standards that investment services providers must observe when delivering services to clients. The circular covers the following areas: Definition of Trading Organisation : The Authority is removing the existing definition of "Trading Organisation" and related references, as applicable. Shareholding Structure Requirements: The Authority is removing the existing requirement whereby applications would only be accepted where there is an active participation, through a shareholding interest of at least 10 percent, by a reputable investment services institution or other regulated financial services entity. Provisions relating to the assessment of shareholders and ownership structures will be retained Initial Capital Requirements : Section 13 of Part A currently establishes an initial capital requirement of €750,000 applicable to Licence Holders/ Applicants offering CFD products (previously Trading Organisations) investment firms eligible for the downward revision of the minimum initial capital requirement from the original threshold of €750,000 are required to provide the Authority with a written justification demonstrating this revision, to the email address plt.iss@mfsa.mt . Competence Requirements: The Authority has revisited the competence requirements applicable to applicants and licence holders. In particular, assessment scope has been extended to include the Money Laundering Reporting Officer (MLRO) whilst the assessment of the Head of Trading will be conducted on a case-by-case basis. Organisational Requirements and Risk Management: The Authority is amending the current requirements relating to the s3paration of the risk function from operations, with adequate safeguards to prevent conflicts of interest. The function no longer needs to be based in Malta, provided general local substance expectations are met. Systems and ICT Requirements: The Authority is removing several requirements relating to proprietary online trading platforms and system infrastructure.These requirements are considered to have been superseded by the regulatory framework established under Regulation (EU) 2022/2554 on digital operational resilience for the financial sector (DORA).

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Malta Financial Services Authority Amends Investment Services Rules for Investment Services Providers

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Malta Financial Services Authority Issues Circular Amending Investment Services Rules