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2 NEWS 3.12.2020 THE MFSA on Tuesday launched a Consultation Document focusing on specific new areas of the proposed up- dated Rules for Company Service Pro- viders. e updates follow the amendments made to the Company Service Provid- ers Act (Cap 529 of the Laws of Malta), which was passed by Parliament as Act No. L of 2020 and published on 13 No- vember 2020. e Act will be brought into force through a legal notice by the Minister of Finance and Employment in the coming months. Once the amendments to the Compa- ny Service Providers Act are in force, they will introduce categorisation of company service providers into classes depending on the services offered and remove the exemption for warranted persons offering Company Service Pro- vider services by way of business. ere will be a move from the concept of registration to authorisation for all company service providers. In light of these amendments, the MFSA is undertaking an overhaul of the Rules for Company Service Providers. e rulebook, as revised by the Author- ity, is fully aligned with the Act and en- sures that the proportionality principle is applied. It also establishes detailed rules on governance systems, core functions and capital requirements expected of com- pany serviceproviders as well as transi- tory periods, where applicable. e rulebook outlines the criteria for those classes considered as 'under threshold' where a proportionate regu- latory approach will apply in line with the feedback statement to the consulta- tion document issued in April 2020. Stakeholders are invited to provide feedback to the questions raised in the Consultation Document about the up- dated Rulebook until 15 January 2021 by sending an email to cspframework@ mfsa.mt MFSA issues consultation document on updated CSP rules Restoring air connectivity crucial to post- coronavirus recovery - Central Bank report LAURA CALLEJA MALTA has lost almost half of its air routes in the last year due to the corona- virus, a situation that has sent air travel 15 years back, research carried out by the Central Bank of Malta shows. Countrywide lockdowns, quarantine restrictions and the fear of contracting COVID-19 saw travel demand tank in 2020 and recovering the lost air connec- tions will be crucial for economic recov- ery. e CBM said that in 2005, Malta had 84 direct air connections, increasing to 125 in 2019, largely because of the intro- duction of low-cost airlines. is saw the island directly connected to 40 countries in 2019, up from 27 in 2005, with Libya being the only destina- tion to lose its connection during that period. e CBM said that COVID-19 dealt air connectivity a "significant blow." It said over 50 direct connections were lost, with around 70 remaining. e connections lost include large hubs such as Doha and Dubai, which hindered indirect connectivity offered by the hubs, particularly to Asia and Australia. e bank said the dip in connectivity has also been mirrored by even great- er declines in tourist numbers, with spending by tourists down 90% in July. It said tourist numbers decreased by 60% in August, which is usually the busiest month of the year. Recovering air connections e bank said that it was important these connections are recovered, in or- der for Malta to benefit from an eventual post-COVID-19 recovery. "While COVID-19 has wiped out a sig- nificant number of direct connections from Malta, including connections to important hubs, restoring such connec- tions or establishing alternative ones, will be crucial for the economy to benefit from the eventual global recovery in a post-pandemic environment," the CBM said. e bank highlighted that air con- nectivity played a "key role" in facilitat- ing economic development. e bank stressed that policymakers should strive to retain and improve connectivity to large hubs. e bank said that the current econom- ic downturn caused by the pandemic was in terms of global air transportation was expected to grow by 5% each year to 2030. Malta lost air connectivity to key hubs and airports because of COVID-19's impact on tourism and the airline industry

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