Reminder: Existing CSPs to abide by new CSP Rules and Requirements by September 2021
On the 2nd July 2021, the MFSA issued a circular containing important information particularly addressed to Company Service Providers (CSP’s) who were already registered as CSP’s prior to the amendments effected by Act L of 2020 which came into force on 16 March 2021. A transitory period of 6 months from the 16 March 2021 was provided to existing licensed CSPs to take all necessary measures to comply with the updated CSP rules.
The industry is reminded that following the classification exercise of CSPs into new classes, CSP’s must ensure that they align with the new requirements of the updated CSP rules by 16 September 2021.
Therefore, CSP’s categorised as:
- Class A require a minimum share capital of €10,000, fully paid up, which is maintained throughout the CSP’s authorisation;
- Class B require a minimum share capital of €15,000, fully paid up, which is maintained throughout the CSP’s authorisation, and to have adequate professional indemnity insurance cover in place;
- Class C require a minimum share capital of €25,000, fully paid up, which is maintained throughout the CSP’s authorisation, and to have adequate professional indemnity insurance cover in place.
CSP’s falling under Class C must also comply with the new risk management function requirement found under Rule R3-7.1 by 16 September 2021. A proposal must be submitted relating to the individual who will be performing the risk management function by the said date.
It is pertinent to note that default in compliance with the requirements following the termination of the transitory period will be considered as a breach of the CSP rules.