The MFSA is responsible for the licensing and supervision of entities providing investment services in or from Malta. The regulated entities would be licensed to provide investment services in relation to those financial instruments (for example shares, bonds) listed in their licence.
The MFSA will only issue an investment services licence if it is satisfied that the applicant is a fit and proper person to provide the investment service concerned and that the applicant will comply with and observe at all times all the rules applicable to the licence holder.
The concept of fit and proper is a fundamental regulatory concept. This is a rigorous test which requires senior staff and potential and existing licensees to demonstrate competence, integrity and solvency i.e. they have sufficient capital, in all their dealings. This concept needs to be practised both at licensing stage and on an on-going basis thereafter.
Here you find a list of documents which you will come across when investing.
Before providing you with an investment service, your firm is required to carry out a client classification and categorise you as a Retail or Professional client.
Risks and potential returns vary greatly from investment to investment. Shares offer you growth, but they can be volatile. Bonds provide you with income although they come in varying risks.
The internet is a legitimate channel that is increasingly used by firms to market investment products to retail investors. Firms use the internet to offer retail investors instant access to their systems.
The Investor Compensation Scheme is a rescue fund for investors of investment firms which are licensed by MFSA and which have stopped trading and/or have become insolvent.