Built on Relationships, Developed on Trust
Investment Services Licences
We cover the regulatory and technical aspects of blockchain and financial technology across major industries and various jurisdictions, allowing you to focus on innovation. We at MK Fintech Partners bridge the gap between the legal and technological realms with our specialised expertise in fintech, crypto, and investments. We offer bespoke solutions for clients navigating the complex and constantly evolving legal landscape in these industries. MK Fintech Partners is part of the Michael Kyprianou Group which is recognised as a leading law firm in the industry, receiving recognition from prestigious organisations such as Legal 500 and Global Law Experts.
Our Clients
BUILT ON RELATIONSHIPS, DEVELOPED ON TRUST
We have a 100% acceptance track record for all past license submissions. Past and present clients of MK Fintech include XNT, Stasis (only Euro backed stablecoin), PXP Financial, Damex, and Relm. Past and present clients of the Group include Silk Road Fund a state-owned investment fund of the Chinese Government, Bank Hapoalim a leading Israeli bank, the National Bank of Greece and Saxo Bank.
Minimum Initial Capital Requirement
Investment Services Licences in Malta
| Licence Class | Capital | Description of Activities |
|---|---|---|
| Class 2 | EUR 750,000 | License holders authorised to provide any Investment Service and to hold or control clients’ money or customers’ asset fee. (Essentially Dealing and Underwriting). |
| Class 2 | EUR 150,000 | Licence holders authorised to provide one or more of the following investment Services: Reception and transmission of orders in relation to one or more instruments; Execution of orders; Portfolio management; Investment advice; Placement of instruments without a firm commitment basis; and to hold or control client money or customers’ assets |
| Class 3 – if they respect Article 12 IFR thresholds, if not, Class 2 | EUR 75,000 | Licence holders authorised to provide one or more of the following Investment Services: Reception and transmission of orders in relation to one or more instruments; Execution of orders; Portfolio management; Investment advice; Placement of instruments without a firm commitment basis; but not to hold or control clients’ money or customers’ assets. |
Statutory Fees
Investment Services Licences in Malta
| Description | Applicable Fees |
|---|---|
| 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. | Application fee: €2,500 Supervisory fee: €2,000 for revenue up to €50,000 + €350 per tranche for tranches of €50,000 up to €1,000,000 |
| Licence holders authorised to receive and transmit orders, and, or provide investment advice in relation to one or more instruments 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. | Application fee: €3,000 Supervisory fee: €2,750 for revenue up to €50,000 + €350 per tranche for tranches of €50,000 up to €1,000,000 |
| 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. | Application fee: €5,000 Supervisory fee: €4.500 for revenue up to €250,000 + €400 per tranche for tranches of €250,000 up to €5,000,000 |
| Licence holders authorised to provide any Investment Service and to hold and control clients’ money or customers’ assets. | Application fee: €7,000 Supervisory fee: €6,000 for revenue up to €250,000 + €400 per tranche for tranches of €250,000 up to €50,000,000 |
Application Process
Investment Services Licences in Malta
The MFSA suggests that the promoter schedule a meeting with MFSA representatives prior to submitting the application. Afterward, the promoter should submit a preliminary application along with the necessary supporting documents. The MFSA may request additional information if needed, and the fitness and propriety evaluations occur during this phase.
Phase 2 – Pre-Licensing Phase
After the MFSA has reviewed and approved the draft application and accompanying documents, and agreed upon the license conditions, it will grant “in principle” approval for the license to be issued. The applicant must then settle any unresolved matters, such as incorporating the company and submitting signed copies of the updated application form, along with final versions of supporting documents. The license will then be issued by the MFSA.
Phase 3 – Post Licensing/Pre-Commencement of Business
Before formally commencing business, the applicant may need to fulfill several post-licensing obligations.
Application Documents
Investment Services Licences in Malta
MFSA Application Form.
Application fee (non-refundable).
Comprehensive business profile, including a detailed business plan.
Supporting board resolution.
Detailed shareholding structure.
Financial Resources Statement.
Audited accounts of three years (where applicable).
Projected three-year financial statements.
Draft Memorandum and Articles of Association.
Evidence substantiating competence of proposed individuals.
Auditors’ declaration to accept appointment and draft engagement letter.
Auditor’s opinion on the Statement of Financial Resources.
Personal questionnaires for each director, qualifying shareholder and senior officer of the applicant.
Insurance policies (where applicable).
IT Questionnaire (where applicable).
Fit and Proper Test
The fit and proper assessment will be conducted on the directors, qualifying shareholders (those holding 10% or more of the shares), and Key Persons, including members of the Investment Committee and Risk Manager, unless already approved by the MFSA. This test must be satisfied both at the outset and on an ongoing basis, and is based on three key criteria: integrity, competence, and solvency. The MFSA will conduct due diligence on the information provided in the Personal Questionnaires and Competency Forms, and must ensure that no negative information is known about the applicant. For applicants that are companies, the MFSA will also examine the directors and senior personnel to ensure that adequate assurances are obtained.
General Requirements:
- Within 12 months of receiving the license, the License holder must begin its operations.
- The business must comply with the “dual control” principle and be directed or managed by at least two individuals.
- Prior written consent from the MFSA is required for the License holder to:
- modify its share capital or the rights of its shareholders;
- establish a branch within Malta or overseas;
- acquire 10% or more of the voting share capital of another company;
- apply to a foreign regulator to conduct licensable activities outside Malta;
- appoint a director or senior manager.
Licence under MiCA
Investment Services Regulations in Malta
