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Investment Services Licence Categories

Under the Maltese Investment Services Act, the provision of an investment service in or from within Malta requires an investment services license issued by the Malta Financial Services Authority (MFSA).

The provision of Investment Services is classified under the following licence categories:

Category Licenced Activities Minimum Initial Share Capital MFSA Fees
Category 1a Licence 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.) €50,000 Application fee: €2,500

Annual Supervisory Fee: For revenue up to €50,000: €2,000

Further tranches of €50,000 up to a maximum of €1,000,000: €350 per tranche or part thereof

Category 1b Licence 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. (This Category does not include managers of Collective Investment Schemes.) €20,000 (with Professional Indemnity Insurance)

 

 

€50,000 (without Professional Indemnity Insurance)

Application fee: €3,000

Annual Supervisory Fee: For revenue up to €50,000: €2,750

Further tranches of €50,000 up to a maximum of €1,000,000: €350 per tranche or part thereof

Category 2 Licence 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. €125,000 Application Fee: €5,000

Annual Supervisory Fee: For revenue up to €250,000: €4,500

Further tranches of €250,000 up to a maximum of €5,000,000: €400 per tranche or part thereof

Category 3 Licence Holders authorised to provide any investment service and to hold and control Clients’ Money or Customers’ Assets. €730,000 Application Fee: €7,000

Annual Supervisory Fee: For revenue up to €250,000: €6,000

Further tranches of €250,000 up to a maximum of €50,000,000: €400 per tranche or part thereof

Category 4a Licence Holders authorised to act as trustees or custodians of all types of Collective Investment Schemes. €730,000 Application Fee: €17,000

Annual Supervisory Fee: €15,000

Category 4b Licence Holders authorised to act:

(a) as custodians of AIFs which have no redemption rights exercisable during the five-year period from the date of initial investment and which generally do not invest in assets that must be held in custody in terms of the Investment Services Rules;

(b) as custodians to AIFs marketed in Malta in terms of regulation 7 of the Investment Services Act (Alternative Investment Fund Manager) (Third Country) Regulations.

€125,000 Application Fee: €7,500

Annual Supervisory Fee: €5,000

For more information or if you have any questions, please feel free to contact Dr Cherise Abela on cabela@gtgadvocates.com

Disclaimer: This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.