MFSA launches skills survey
The MFSA has launched a survey among licence holders and ancillary service providers to determine the manpower and skills needs in the financial services sector over the medium to longer term. The survey is one of a number of strategic initiatives being taken by the authority to ensure continued growth in the sector in a structured and sustainable manner.
The survey, being carried out during the first quarter of 2008, will allow the MFSA to plan and undertake further initiatives with stakeholders. These initiatives will be aimed at improving the level of training and specialisation in the field in order to cater for increased volumes and sophistication in the business.
It is an established fact that Malta's success in financial services is largely due to its highly qualified and motivated human resources and that for this to be maintained, the sector must maintain its high service levels and international competitiveness as it continues to expand. Respondents are therefore encouraged to collaborate in this exercise so that the industry can have a clear and accurate picture of what lies ahead in order to be able to plan future recruitment drives and training initiatives with maximum efficiency.
Apex Group sets up operation in Malta
Apex Fund Services Ltd, whose parent company is the Apex Group, has set up a fund administration subsidiary in Malta. The new subsidiary is regulated as a recognised fund administrator by the MFSA under the Investment Services Act.
The Apex Group established its first independent fund administration operation in Bermuda in 2003 and has now grown into a network spanning three continents and eight jurisdictions.
With over $5 billion under administration, Apex has been confirmed to be the second fastest growing administrator in a recent global survey of fund administrators. Apex Malta will provide a platform for developing the group's business in the EU and other surrounding markets.
Trusts in Malta: A three-year review
by Malcolm Becker
The substantive changes that provide the current well thought out Malta trust law came into force in early 2005. Three years after its introduction, can we now assess what has been achieved?
To understand trusts, we need to understand the overall concept: a settlor of a trust settles assets by gifting them to the trustee. The trustee then owns as a fiduciary and is responsible for those assets only for the benefit of the beneficiaries provided by the intentions of the settler. Trustees are not permitted by law to benefit from the trusts they administer. Even, when taking this into account the concept of giving away assets proves to be difficult. However, this is from where the trust stucture derives some of its benefits and strength. There are many safeguards within the law and it is also the purpose of professional trustee organisations to fulfil this function.
The architects of this law were able to gain significant consensus in Malta on the compliance of the new trust law with the general principles of Maltese civil law and Code. As well as the new trust law itself, many other laws needed to be amended in order to avoid conflicts. This trust law seeks to provide a statutory framework for some of the common and international trust law principles which are essential for trusts and trustees to operate effectively. I see this local understanding and acknowledgement as a key achievement.
English common law trust principles are steeped in centuries of history of an evolving equity law. I would describe equity as a desire for fairness and honourable actions providing a framework for equitable outcomes to legal cases involving the holding of assets by one person for another. These equitable principles are at the root of common trust law. We are competing with many long standing trust jurisdictions and Malta is now beginning to achieve international recognition for its trust law and the merging of principles from civil and common law.
Another aspiration of Maltese trust law in 2005 was to create a legal framework for the authorisation of professional trustees. A professional trustee is a trustee who operates a business by charging fees. A special provision in the law provides for family trustee situations and notaries consistent with other civil law aspects are vital to the application of this part of the law. As at the end of December 2007, it is an achievement that the MFSA has authorised and undertakes the monitoring of 87 professional trustees.
In 2004, the Institute of Financial Service Practitioners (IFSP) launched a foundation certificate in trust law and administration. This course consists of nine three-hour afternoon sessions, spread over two months, with an exam at the end. The IFSP has since completed six courses and over 400 people have been trained in trusts and trusteeship at this foundation level. The next course is planned for April-May 2008. For further information contact Bernice Gauci at the IFSP via e-mail on info@ifsp.org.mt or on website www.ifsp.org.mt.
In the meantime, in October 2006, Malta formed a branch of the Society of Trust and Estate Practitioners (STEP), an international trust organisation in 33 countries with over 13,000 members. The IFSP foundation certificate has been accepted as equivalent to STEP's own certificate and can provide an exception for the STEP Diploma course in Trust Management and Administration. Currently, we are able to offer lectures in Malta. If you require more information, please contact Malcolm Becker - the author of this article - or visit the website www.step.org.
Since 2005, we have added a couple of organisations that operate in the area of international trusts to the previous two international organisations that already operated from Malta. It is not easy to create a market presence and to attract international organisations that are often well represented in jurisdictions with a number of decades of established business. This is probably a disappointing aspect but there is still a real potential for the future, and the current interest is growing.
The two major local banks have both provided resources and established their own internal trust companies, thereby showing commitment and support to this sector. Both banks have locally looked to use trusteeship innovatively, with the use of specific trust accounts, property trusts and family trusts. It is understood that both banks also see potential to attract business to Malta.
One of the greatest advantages one can perceive is the enhancement of the legal infrastructure of Malta, supporting the financial services sector as a whole - a sector which is registering major growth.
Local practitioners are hoping for an increase in trust and company business from international trust clients and their advisors. The market in securitised trusts for commercial transactions could also provide an interesting area of trust business. Malta is open for business in the area of trusts and momentum is growing. It will be very interesting to see what the effort of the last three years will deliver in the next three years.
Mr Becker is STEP (Malta), chairman.
mbecker@bentleytrust.com.mt
New strategic development unit
With effect from January 1, the MFSA's business development unit is being reconstituted to reflect the changing needs of the authority as the financial services sector continues to expand. The main functions of the new unit, which will be known as the strategic development unit, will be to research, recommend and assist with the implementation of appropriate policy, legislative and other initiatives to further Malta's development as a financial services centre.
The unit will among other things be responsible for monitoring international legislative, regulatory and market changes (particularly in the European Union), statistics and information, communications, and business and investment relations. Michael Xuereb will remain director of the unit. The unit's new e-mail address is sdu@mfsa.com.mt.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website: (www.mfsa.com.mt).
New licences issued December 2007
(i) Collective Investment Scheme Licences
Maltese UCITS
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of one sub fund.
(ii) Investment Services Licences
Category 1A Licence has been issued to AS Financial Services Ltd
Fund Administration
A Fund Administration Recognition Certificate has been issued to APEX Fund Services (Malta) Ltd
(iii) Financial Institution Licences
A licence has been issued to Unec Leasing Ltd
(iv) Trusts and Trustees Authorisations
New authorisations under the Trusts and Trustees Act have been issued to:
Antelope Trustees Ltd
BSI Trusts Corporation (Malta) Ltd
Dixcart Management (IOM) Lyd
International news - Payment Services Directive
The European Commission is encouraging swift and coherent implementation of the Payment Services Directive (PSD) at national level. The aim of the PSD is to ensure that electronic payments within the EU - in particular credit transfer, direct debit and card payments - will become as easy, efficient, and secure as domestic payments within a member state, by providing the legal foundation to make the Single Euro Payments Area (SEPA) possible. The PSD will reinforce the rights and protection of all users of payment services including consumers, retailers, large and small companies and public authorities.
The Commission will be assisting member states in their implementation of the PSD which has to be written into national law by November 1, 2009 at the latest. The Commission will be setting up best-practice workshops and an interactive question and answer website.
While the PSD's general approach is one of full harmonisation, some of its provisions leave a certain margin of discretion to member states. Cooperation between national regulators and the Commission will therefore be required to ensure consistent, timely and equivalent transposition of these provisions into national law. To assist member states during the implementation phase, a 'transposition group' will be set up with the task of comparing approaches and choices made by member states in order to highlight any discrepancies at an early stage, and to provide thorough and consistent understanding of the PSD provisions. The group, which will be chaired by the commission, will consist of member state representatives in charge of drafting the national implementation rules.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer
The MFSA has launched a survey among licence holders and ancillary service providers to determine the manpower and skills needs in the financial services sector over the medium to longer term. The survey is one of a number of strategic initiatives being taken by the authority to ensure continued growth in the sector in a structured and sustainable manner.
The survey, being carried out during the first quarter of 2008, will allow the MFSA to plan and undertake further initiatives with stakeholders. These initiatives will be aimed at improving the level of training and specialisation in the field in order to cater for increased volumes and sophistication in the business.
It is an established fact that Malta's success in financial services is largely due to its highly qualified and motivated human resources and that for this to be maintained, the sector must maintain its high service levels and international competitiveness as it continues to expand. Respondents are therefore encouraged to collaborate in this exercise so that the industry can have a clear and accurate picture of what lies ahead in order to be able to plan future recruitment drives and training initiatives with maximum efficiency.
Apex Group sets up operation in Malta
Apex Fund Services Ltd, whose parent company is the Apex Group, has set up a fund administration subsidiary in Malta. The new subsidiary is regulated as a recognised fund administrator by the MFSA under the Investment Services Act.
The Apex Group established its first independent fund administration operation in Bermuda in 2003 and has now grown into a network spanning three continents and eight jurisdictions.
With over $5 billion under administration, Apex has been confirmed to be the second fastest growing administrator in a recent global survey of fund administrators. Apex Malta will provide a platform for developing the group's business in the EU and other surrounding markets.
Trusts in Malta: A three-year review
by Malcolm Becker
The substantive changes that provide the current well thought out Malta trust law came into force in early 2005. Three years after its introduction, can we now assess what has been achieved?
To understand trusts, we need to understand the overall concept: a settlor of a trust settles assets by gifting them to the trustee. The trustee then owns as a fiduciary and is responsible for those assets only for the benefit of the beneficiaries provided by the intentions of the settler. Trustees are not permitted by law to benefit from the trusts they administer. Even, when taking this into account the concept of giving away assets proves to be difficult. However, this is from where the trust stucture derives some of its benefits and strength. There are many safeguards within the law and it is also the purpose of professional trustee organisations to fulfil this function.
The architects of this law were able to gain significant consensus in Malta on the compliance of the new trust law with the general principles of Maltese civil law and Code. As well as the new trust law itself, many other laws needed to be amended in order to avoid conflicts. This trust law seeks to provide a statutory framework for some of the common and international trust law principles which are essential for trusts and trustees to operate effectively. I see this local understanding and acknowledgement as a key achievement.
English common law trust principles are steeped in centuries of history of an evolving equity law. I would describe equity as a desire for fairness and honourable actions providing a framework for equitable outcomes to legal cases involving the holding of assets by one person for another. These equitable principles are at the root of common trust law. We are competing with many long standing trust jurisdictions and Malta is now beginning to achieve international recognition for its trust law and the merging of principles from civil and common law.
Another aspiration of Maltese trust law in 2005 was to create a legal framework for the authorisation of professional trustees. A professional trustee is a trustee who operates a business by charging fees. A special provision in the law provides for family trustee situations and notaries consistent with other civil law aspects are vital to the application of this part of the law. As at the end of December 2007, it is an achievement that the MFSA has authorised and undertakes the monitoring of 87 professional trustees.
In 2004, the Institute of Financial Service Practitioners (IFSP) launched a foundation certificate in trust law and administration. This course consists of nine three-hour afternoon sessions, spread over two months, with an exam at the end. The IFSP has since completed six courses and over 400 people have been trained in trusts and trusteeship at this foundation level. The next course is planned for April-May 2008. For further information contact Bernice Gauci at the IFSP via e-mail on info@ifsp.org.mt or on website www.ifsp.org.mt.
In the meantime, in October 2006, Malta formed a branch of the Society of Trust and Estate Practitioners (STEP), an international trust organisation in 33 countries with over 13,000 members. The IFSP foundation certificate has been accepted as equivalent to STEP's own certificate and can provide an exception for the STEP Diploma course in Trust Management and Administration. Currently, we are able to offer lectures in Malta. If you require more information, please contact Malcolm Becker - the author of this article - or visit the website www.step.org.
Since 2005, we have added a couple of organisations that operate in the area of international trusts to the previous two international organisations that already operated from Malta. It is not easy to create a market presence and to attract international organisations that are often well represented in jurisdictions with a number of decades of established business. This is probably a disappointing aspect but there is still a real potential for the future, and the current interest is growing.
The two major local banks have both provided resources and established their own internal trust companies, thereby showing commitment and support to this sector. Both banks have locally looked to use trusteeship innovatively, with the use of specific trust accounts, property trusts and family trusts. It is understood that both banks also see potential to attract business to Malta.
One of the greatest advantages one can perceive is the enhancement of the legal infrastructure of Malta, supporting the financial services sector as a whole - a sector which is registering major growth.
Local practitioners are hoping for an increase in trust and company business from international trust clients and their advisors. The market in securitised trusts for commercial transactions could also provide an interesting area of trust business. Malta is open for business in the area of trusts and momentum is growing. It will be very interesting to see what the effort of the last three years will deliver in the next three years.
Mr Becker is STEP (Malta), chairman.
mbecker@bentleytrust.com.mt
New strategic development unit
With effect from January 1, the MFSA's business development unit is being reconstituted to reflect the changing needs of the authority as the financial services sector continues to expand. The main functions of the new unit, which will be known as the strategic development unit, will be to research, recommend and assist with the implementation of appropriate policy, legislative and other initiatives to further Malta's development as a financial services centre.
The unit will among other things be responsible for monitoring international legislative, regulatory and market changes (particularly in the European Union), statistics and information, communications, and business and investment relations. Michael Xuereb will remain director of the unit. The unit's new e-mail address is sdu@mfsa.com.mt.
Warnings to investors
Over the past month the MFSA has received and circulated a number of warnings to investors issued by overseas regulators. Full releases can be accessed from the Warnings for Investors section in the MFSA website: (www.mfsa.com.mt).
New licences issued December 2007
(i) Collective Investment Scheme Licences
Maltese UCITS
Collective Investment Scheme licence issued to Celsius Global Funds SICAV plc in respect of one sub fund.
(ii) Investment Services Licences
Category 1A Licence has been issued to AS Financial Services Ltd
Fund Administration
A Fund Administration Recognition Certificate has been issued to APEX Fund Services (Malta) Ltd
(iii) Financial Institution Licences
A licence has been issued to Unec Leasing Ltd
(iv) Trusts and Trustees Authorisations
New authorisations under the Trusts and Trustees Act have been issued to:
Antelope Trustees Ltd
BSI Trusts Corporation (Malta) Ltd
Dixcart Management (IOM) Lyd
International news - Payment Services Directive
The European Commission is encouraging swift and coherent implementation of the Payment Services Directive (PSD) at national level. The aim of the PSD is to ensure that electronic payments within the EU - in particular credit transfer, direct debit and card payments - will become as easy, efficient, and secure as domestic payments within a member state, by providing the legal foundation to make the Single Euro Payments Area (SEPA) possible. The PSD will reinforce the rights and protection of all users of payment services including consumers, retailers, large and small companies and public authorities.The Commission will be assisting member states in their implementation of the PSD which has to be written into national law by November 1, 2009 at the latest. The Commission will be setting up best-practice workshops and an interactive question and answer website.
While the PSD's general approach is one of full harmonisation, some of its provisions leave a certain margin of discretion to member states. Cooperation between national regulators and the Commission will therefore be required to ensure consistent, timely and equivalent transposition of these provisions into national law. To assist member states during the implementation phase, a 'transposition group' will be set up with the task of comparing approaches and choices made by member states in order to highlight any discrepancies at an early stage, and to provide thorough and consistent understanding of the PSD provisions. The group, which will be chaired by the commission, will consist of member state representatives in charge of drafting the national implementation rules.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer