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.