A FOREX license in Malta! - 0 views
started by Erick Sanford on 14 Mar 12
started by Erick Sanford on 14 Mar 12
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started by Erick Sanford on 14 Mar 12
All financial services with Malta are regulated by the Malta Financial Services Authority (MFSA). The MFSA is in charge of issuing all financial servicesâ licenses, including banking licenses and FOREX licenses. As Malta is a member of the european union, this MFSA is obliged to adhere to the European standards with regard to regulating financial services and consequently, when applying for a FOREX license in Malta, the applicant can be assured that the license they are applying for is a well-recognized and regulated FOREX license.
Malta Investment Services Act (ISA)
Any sort of Malta investment service is licensable in the Malta Investment Services Act (ISA) â Chapter 370. The ISA attracts the licensing of currency trading acquired or held for investment purposes, in and also from Malta. Consequently businesses which provide services in relation to this kind of FOREIGN EXCHANGE (e. g. a portfolio manager who focuses on investing the assets associated with his clients in FOREX) are eligible for, and indeed bound, to obtain a license from the MFSA.
Passporting in the European Economic Area
Derivative instruments that happens to be commonly used in relation to FOREX e. grams. CFDs and Futures, qualify as âÂÂinstrumentsâ with MiFID, thereby, they enjoy automatic passporting rights through the entire European Economic Area (EEA). Additionally, certain types of spot FOREX contracts e. g. going spot FOREX, may very well be deemed to be akin to transactions made using derivatives and may thus also be passportable.
Passporting provides an investment company numerous strengths by reducing costs and bureaucracy while checking markets across the EEA. The high regulatory standards demanded with the EU help to make certain investor confidence is taken care of. Therefore a Malta certified investment services company, with its ability to passport services, is able to operate in any other EEA member condition either directly or through the establishment of a local branch. Malta, with it's advantageous tax regime, may be regarded as an attractive location by non-EU companies wishing to expand their operations inside Europe.
FOREX Licence Options
Companies who wish to get an investment services licence in order to be able to provide services with regards to FOREX in or from Malta have a variety of options to consider depending on the type of activities they wish to undertake in relation to currency trading.
Therefore the entity is usually acting as counterparty to help both transactions i. e. an execution of orders on behalf of its clients. In order for an entity to execute orders with respect to clients, a category 2 investment services licence becomes necessary.
Dealing on own bank account or operate an MTF Category 3 Licence required.
An entity which would love to deal on its own account or operate an MTFD is required to have a Category 3 investment services licence.
Application Process to get a FOREX Licence in The island of malta
The application process both to get a FOREX Licence is divided into three (3) distinctive phases, as follows:
Stage One Preparatory
Just before submitting an application, the MFSA recommends that this promoters arrange to meet considered one of their representatives to description their proposal. The applicant must submit a comprehensive written description of the proposed activity before that meeting. Following this getting together with, the promoter is required to submit a draft (rather than a Final) Application Mode, for review together with supporting documents as specified inside Application Form. Looking for a FOREX License - ever deemed Malta?, In which is hte greatest site in the EU for creating a FOREX firm? Malta most likely?, A FOREX license in Malta!.