The Malta Financial Services Authority (“MFSA”) published a paper on the 4th of August, 2025, outlining the MFSA’s stance on the tokenisation of shares or units issued by Collective Investment Schemes (“CISs”) from the standpoint of a transfer agency.
In addressing issues related to consumer protection, market integrity, and financial stability, the MFSA seeks to establish regulatory clarity. In order to facilitate trade and management on digital platforms, tokenisation entails converting traditional assets into digital representations.
According to the MFSA’s stance on the tokenisation, CIS shares or units may be provided in a digital format represented by a token, with digital assets standing in for different share classes. Since CIS shares and units are categorised as financial instruments and are thus covered by the Markets in Financial Instruments Directive II (MiFID II), tokenisation of these digital assets is not covered by MiCA.
For licensed alternative investment funds, professional investor funds, notified alternative investment funds, notified professional investor funds, and UCITS, the MFSA is seeking to authorize the tokenisation of CIS shares or units. Since tokenisation offers a chance to solve settlement inefficiencies and simplify the transfer agency operating model, this paper is a first step towards a wider implementation of tokenisation inside Malta-domiciled investment CISs.
How ARQ Group Can Help
At ARQ Group, we understand the regulatory. Our team of experts is dedicated to helping you navigate these changes with tailored strategies and practical solutions. Whether it’s reviewing your delegation framework, enhancing your EU substance, or preparing for expanded reporting obligations, we are here to support your compliance and operational resilience.
For more information, please speak to 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.
