On 19th May 2025, the Malta Financial Services Authority (MFSA) issued a circular outlining significant updates to the Company Service Providers Act (the “Act”), following the enactment of Act No. X of 2025. These changes, which primarily affect individuals offering directorship or company secretarial services, introduce a more proportionate and risk-sensitive framework—particularly for Class B Company Service Providers (CSPs).
What Changed?
The amendments aim to streamline regulatory obligations while maintaining Malta’s commitment to international standards. Two new regulatory categories have been introduced:
1. Registration Requirement
Under Article 3A(2) of the Act, individuals providing directorship or company secretarial services—or similar roles in other legal entities—must register with the MFSA if they hold no more than ten (10) involvements. These individuals are now formally recognised as Limited Company Service Providers. The relevant registration form is available via the MFSA’s website.
2. Notification Requirement
Article 3B(1) introduces a notification obligation for individuals who hold up to five (5) involvements across a maximum of two (2) corporate groups, without presenting themselves as CSPs. These individuals are classified as Restricted Company Service Providers. Notification must be submitted through the MFSA’s LH Portal.
Expanded Exemptions Interpretation
The MFSA has also broadened its interpretation of the exemption under Article 3(1)(c) of the Act. Now, individuals acting as directors or company secretaries in licensed entities are also exempt when serving in the immediate holding company of that licensed entity. This clarification provides greater flexibility for group structures and aligns with practical governance needs.
Compliance Deadline: 16th July 2025
Individuals falling under the new registration or notification regimes must submit the required forms by 16th July 2025. Failure to comply may result in enforcement action or administrative penalties. It is essential for affected professionals to assess their current involvements and determine their obligations under the revised framework.
Implications for Risk and Governance Professionals
These updates are particularly relevant for professionals in risk management, compliance, and corporate governance. The introduction of tiered obligations reflects a shift towards proportional regulation, allowing for more efficient oversight while reducing unnecessary burdens on low-risk individuals. However, the onus remains on professionals to ensure timely and accurate compliance.
How ARQ Can Help
As a multi-disciplinary firm, ARQ offers comprehensive solutions to help businesses meet safeguarding requirements, including:
- Gap Analysis and Audits
- Compliance Services
- Training and Support
- Risk Solutions
By implementing these best practices and staying ahead of upcoming legislation, firms can ensure the safety of their clients’ funds and maintain trust in their services.
For more information, please contact Dr Denia Ellul – Director – ARQ Advisory Ltd, ARQ Corporate Ltd and ARQ Fiduciaries Ltd.
Denia Ellul
Director of ARQ Advisory Ltd, ARQ Corporate Ltd and ARQ Fiduciaries Ltd.
A lawyer by profession, Denia attended the University of Malta and successfully completed a Bachelor of Laws degree, followed by a Doctor of Laws degree in 2014. Following her graduation from the University of Malta, Denia commenced her employment with a local law firm which helped her gain the necessary knowledge in various fields of law, including corporate and commercial law, cross-border tax planning and financial-legal matters.
