Investment Services - Licence Categories


Maltese Investment services licences are divided into four broad categories which break down as follows:

Category Authorised Activities Minimum Initial Share Capital* Application Fee – MFSA Annual /Supervisory fee
1a Authorised to receive and transmit orders in relation to one or moreinstruments and, or provide investment advice and, or placeinstruments without a firm commitment basis but not to hold or control clients’ money or customers’ assets. (This Category does not include managers ofCollective Investment Schemes.) € 50,000 € 2,500 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
1b 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 counter parties but not to hold or control clients’ money or customers’ assets. (This Category does not include managers of Collective Investment Schemes.) €20,000 (with PI cover) € 3,000 For revenue up to €50,000:
€50,000 (without PI cover) € 2,750
Further tranches of €50,000 up to a maximum of €1,000,000:
€350 per tranche or part thereof
2 Authorised to provide any Investment Service, and 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 € 5,000 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
3 Authorised to provide any Investment Service, hold and control clients’ money or customers’ assets. € 730,000 € 7,000 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
4a Authorised to act as trustees or custodians of Collective Investment Schemes. € 730,000 € 17,000 € 15,000
4b Authorised to act: € 125,000 € 7,500 € 5,000
(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/

Notes:

  1. Initial capital comprises paid-up equity capital plus share premium accounts (but excluding cumulative preferential shares) and reserves (where applicable).
  2. A Licence Holder will be considered to be “holding or controlling” Clients’ Money or Customers’ Assets where, for example, the Licence Holder holds a mandate over the client’s bank account or holds a power of attorney by which he can control a customer’s assets.
  3. A Manager of a CIS normally requires a Category 2 Licence.