Investment Services Providers
Investment Services Providers are regulated in terms of the Investment Services Act (Cap 370) and include:
i) MiFID Firms;
ii) Alternative Investment Fund Managers (AIFMs) and UCITS Management Companies, collectively referred to as Investment Managers;
The MFSA seeks to protect the interests of financial services consumers, ensures that financial markets are fair, efficient and transparent and strives to safeguard financial stability. This is achieved through, inter alia:
i) offsite supervision which involves the monitoring and analysis of ongoing developments in the business of licensed entities, desk reviews of periodic regulatory returns, financial statements and other documentation, as well as addressing queries and correspondence with various parties, including foreign and local regulators;
ii) onsite supervision which involves the analysis and evaluation of processes, procedures and internal controls within the business address of the licensed entity;
iii) event supervision through the review of the operational activities of licenced entities, their risk models and interaction with customers.
From a prudential supervision perspective, the focus is on system controls, governance arrangements, risk management and risk mitigation measures adopted by licenced entities.