Offering Brexit solutions for Investment Services Providers (ISPs), Dr Jane Nweike proposes a way forward for Investment Services Providers (ISPs). Dr Nweike proposes the Maltese financial services industry as an ideal playing field to invest in.
Introduction
BREXIT SOLUTION FOR INVESTMENT SERVICES PROVIDERS
From January 1, 2021, with the end of the transition period following the United Kingdom's (UK) withdrawal from the European Union (EU) (i.e. Brexit), the UK ceases to be part of the EU's single market.
As such, entities which, prior to Brexit, provided financial services from the UK to Malta and other countries in the EU by way of exercising their passporting rights stopped being able to continue rendering their services within the EU.
Such entities may continue providing their services by:
a) Obtaining a licence from the Malta Financial Services Authority (the "MFSA") (Malta's single financial services regulator). This will give such entities the right to provide services in Malta and passport their services to the rest of the EU, or
b) Obtain a licence from another competent authority in the EU and passport their services into Malta and other EU jurisdictions.
Malta as a Brexit Solution
BREXIT SOLUTION FOR INVESTMENT SERVICES PROVIDERS
The Maltese financial services industry has undergone tremendous growth in the last decade, with the investment services sector being one of the largest sectors within the industry.
This growth is largely a result of Malta's pro-business environment, made possible by several factors, including:
- Its membership of the EU, which avails financial services providers the right to passport their services across the EU's single market,
- An innovation-friendly financial services regulator,
- An effective corporate tax of 5% after the relevant exemptions (one of the lowest rates in the world) and a strong network of double tax treaties, and
- A good investment services ecosystem – Malta is already home to numerous fund managers, UCITS, AIFs, and investment service providers such as Brokers and Trading Venues.
How Can We Help?
BREXIT SOLUTION FOR INVESTMENT SERVICES PROVIDERS
Our experienced team can assist you with:
- Incorporating a Maltese company
- Reviewing your business plan or preparing one for you from scratch
- Preparing the registration application and compiling supporting documents
- Liaising with the MFSA and accompanying you to all pre-application meetings
- Filing all fit and proper tests for all key persons for the MFSA's approval
- Drafting MFSA response letters as may be required
- Referrals to competent persons in our network to fill any needed roles (audit firms, etc.)
- Any other legal support required throughout the application process
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.