A Licence Holder has to identify one individual who will be responsible for ensuring adherence to the Standard Licence Conditions listed in Part B of the Investment Services Rules for Investment Services Providers (hereinafter referred to as the ‘Rules‘). After having conducted its own due diligence checks, the MFSA will contact the proposed person outlining the nature of the role and asking such person to confirm, in writing, his understanding of the requirements and their acceptance of the responsibilities attached to the Compliance role.

The role of the Compliance Officer is onerous due to the extent of responsibility and the possibility of censure by the Regulator if problems arise. The Compliance Officer will be expected to demonstrate independence of judgment and to exercise proper day-to-day supervision and control over the activity of the Company. In order to be able to satisfy these requirements, the Compliance Officer must familiarize himself thoroughly with the Licence Conditions that attach to the licence as well as any relevant Guidance issued by the MFSA.

A compliance officer must pay particular attention to Licence Condition 1.20 of Part B of the Rules which requires the Licence Holder to establish, implement and maintain adequate policies and procurers to identify breaches of the applicable regulatory requirements, and to minimise the risk of such breaches. The Compliance Officer must not breach, or permit breaches by others, of internal control procedures and systems. In the event that he becomes aware of such breaches, he is expected to draw them to the attention of the person concerned. The Compliance Officer must also ensure that incorrect or misleading information is not provided deliberately or recklessly to the MFSA.

At Fides Corporate Services we may provide you with a local Compliance Officer duly approved by the MFSA. For further information kindly contact us on info@fidesmalta.com