Changes to the Company Services Providers Act (“the CSP Act”)
The anticipated changes to the CSP Act were recently issued. The main changes relate to the introduction of the new classes of company service providers in relation to the offering of directorship or company secretary services (the ‘Relevant Services’).
Restricted Company Service Providers (‘Restricted CSP’)
To be able to monitor who is offering the Relevant Services in Malta, a new class has been introduced: the Restricted CSP. Individuals, whether resident in Malta or not, qualify as Restricted CSPs when they offer the Relevant Services to up to five (companies / groups) with a maximum of two (2) groups.
Individuals qualifying as Restricted CSPs, who were previously exempt from registration, and whether resident in Malta or not, must notify the Malta Financial Services Authority (‘MFSA’) of their activity by means of a notification form, to be submitted by 16 July 2025.
An individual will not qualify as a Restricted CSP if they provide the Relevant Services as a result of:
a) An employment arrangement; or
b) Direct/indirect beneficial interest in such a company; or
c) Family relations with the beneficial owners; or
d) Employment with an authorised Company Service Provider.
Exemptions are also applicable where an individual provides the Relevant Services to:
a) Entities licenced, registered, or otherwise authorised by the MFSA (or authorised by an overseas regulatory authority in a recognised jurisdiction) and the holding company of such company or legal entity;
b) Entities whose financial instruments have been admitted to listing on a regulated market in Malta in terms of the Financial Markets Act (or admitted to listing on a regulated market by an overseas regulatory authority in a recognised jurisdiction).
Going forward, any individual who qualifies as a Restricted CSP for the first time must submit the Notification Form within fourteen (14) days.
The MFSA issued a Guidance Note on the said notification process.
Limited Company Service Providers (‘Limited CSP’)
Individuals who offer the Relevant Services to ten (10) or less entities/groups will qualify as a Limited CSP and will be subject to the less burdensome compliance obligations than they are currently subject to.
Limited CSPs will need to register as such via the Malta Financial Services Authority's (MFSA) website.
Should you need our assistance with the notification process, please contact Antoine Demicoli.
