Issue link: https://maltatoday.uberflip.com/i/1117384
16.05.19 15 THE Malta Financial Services Authority has registered nine VFA Agents under the Virtual Financial Assets Act. VFA Agents will be assisting issuers and service providers under the Virtual Financial Assets Act, and will be making applications to the MFSA on their behalf. is announcement follows the in-principle approval pro- vided to fourteen Agents earli- er this year. e list of registered VFA Agents is now available on the Authority's Financial Services Register. e MFSA has also issued the in-principle approvals for reg- istration of another four VFA Agents. Furthermore, a num- ber of applications for registra- tion are still being vetted. e VFA agent will need to perform a thorough due dili- gence and KYC on their clients and would need to continue supporting the MFSA in its su- pervisory function by provid- ing the necessary information during post-registration super- vision. Dr Christopher P. Buttigieg, Chief Officer responsible for Strategy, Policy and Innova- tion, said that the role of the VFA Agent under the VFA Act is primarily that of gatekeeper – a first line of defence which ensures that only persons who are fit and proper enter the fi- nancial system. "e registration of the first batch of VFA Agents is a ma- jor milestone in our regulatory journey in this field," he said. "e Authority is now accept- ing applications for the reg- istration of whitepapers and licencing of VFA Service Pro- viders." Registered VFA Agents may now start submitting applica- tions through the MFSA web- site. FINANCIAL SERVICES First VFA Agents registered by MFSA IN line with the MFSA's Vision 2021, and its commitment to engage better with fi- nancial services practitioners, the MFSA organised a briefing session focusing on the Authority's recent changes in the organisational structure, its supervisory priorities and service improvements in the authorisation process. Introducing this briefing, MFSA Chair- man, Professor John Mamo spoke about the rationale behind the recent organ- isational changes, explaining that "the MFSA's drive to become more proactive will also affect firms, which need to be more vigilant in identifying risks of mis- conduct and in addressing these risks to avoid such occurrences." Profs Mamo said the MFSA is commit- ted to keep in close touch with the media and the public at large "to provide fur- ther transparency and knowledge of who we are and what we do." MFSA Chief Executive Officer Joseph Cuschieri gave practitioners a detailed overview of the new organisational structure which, he explained, was cru- cial for the Authority to operate in a more in-depth and widened scope par- ticularly in areas where additional focus was needed, to increase efficiency and to create a higher level of accountability. "I believe we have the right team with the right attitude to change the way the Authority handles its affairs", he said. e CEO stated that this revised structure was discussed with various internation- al institutions and experts including the IMF. "Strengthening the authority's over- all governance of the sector is a critical objective for the MFSA in order to en- hance market confidence and safeguard consumers' interests. Our strategic plan will also focus on the accountability of all market players to preserve the integrity and stability of the financial market and promote an environment conducive to sustainable growth. e changes in the way the MFSA operates coupled with a significant investment in technology, knowledge management and people are crucial to ensure Malta's positioning amongst Europe's top-tier financial ser- vices jurisdictions." Cuschieri referred to various new fea- tures of the MFSA's corporate structure, such as the creation of the Enforcement Decisions Committee which will be composed of external competent in- dividuals who shall act independently from the Executive Committee. "is will create an impartial system which will prevent the authority from being judge, jury and executioner and will avoid having the decisions of the Au- thority challenged on that basis." He added that the MFSA will be pub- lishing a corporate governance manual which clearly delineates the function of each Committee within the Authority. At the same briefing, MFSA Chief Of- ficer – Supervision, Marianne Scicluna highlighted the MFSA's supervisory pri- orities for 2019, which, based on the key directions of the European supervisory authorities, revolve around a risk-based approach. Scicluna explained that "the MFSA is placing the customer at the centre of its operations. e confidence and stability of the financial service industry can be placed at risk by unacceptable conduct such as market abuse, unreliable perfor- mance, unacceptable customer service and product mis-selling. Our role is to minimise these risks as much as possi- ble". Scicluna outlined the Authority's su- pervisory priorities, which currently fo- cus on five key elements: Governance, Risk and Compliance; Compliance with AML/CFT; Cross-Border Operations; Cyber Security and Retail Investor Pro- tection. She also gave details on the MFSA's ef- forts to combat money laundering, not- ing that "as the Country's recent Nation- al Risk Assessment highlighted, money laundering and terrorist financing repre- sent a threat to the stability, profitability and safety of the financial services indus- try and of the country as whole." During this event, Authorisations Head, Angele Galea St John went through a number of service improve- ments which the MFSA is delivering in its authorisation process, in a bid to be- come more efficient. ese improvements include the dig- italisation of key application forms, the reduction of documents needed to be submitted at application stage, fast tracking of applications and the appoint- ment of a relationship manager for key licence holders. Galea St John said that "the MFSA con- tinuously gathers feedback from the in- dustry and is updating its methodologies to deliver value added to its stakeholders. is is essential to safeguard Malta's rep- utation as a jurisdiction of choice". MFSA informs stakeholders of efforts to improve efficacy "I believe we have the right team with the right attitude to change the way the Authority handles its affairs"