The MFSA has just issued guidance applicable to VFA Service Providers benefitting from the transitory provisions in Article 62 of the VFA Act.
VFA Service Providers – Licence Application Process
VFA Service Providers will need to take certain steps by 31 October 2019 if they would like to continue providing VFA services and commence the licensing process with the MFSA.
The MFSA will require a Letter of Intent including:
- a detailed description of the structure of the VFA Service Provider;
- the VFA service(s) for which licensing is being sought identifying key persons within the structure; and
- a legal opinion that the services fall outside the traditional financial services framework.
Upon receiving the Letter of Intent, the MFSA will schedule a preliminary meeting with the VFA Service Provider and its VFA Agent.
The VFA Service Provider will then have 60 days to submit the full MFSA Application Form together with the Business Plan, Financial Projections, Due Diligence Documents and other supporting documentation.
VFA Service Providers – Cessation of Business
VFA Service Providers, who will not be seeking a licence from the MFSA and will cease operations, will need to follow the below procedure by 31 October 2019.
The MFSA will need to receive a formal Notification Form together with:
- a declaration from the Board of Directors that the entity is not providing, or holding itself out as providing, a VFA service in or from Malta; and
- a confirmation that the entity has no obligations towards its clients in this regard.
The MFSA Circular may be accessed here.